diff --git a/packages/excalidraw/appState.ts b/packages/excalidraw/appState.ts
index 2a37b138d8..53cf458f45 100644
--- a/packages/excalidraw/appState.ts
+++ b/packages/excalidraw/appState.ts
@@ -248,7 +248,7 @@ const APP_STATE_STORAGE_CONF = (<
   searchMatches: { browser: false, export: false, server: false },
   lockedMultiSelections: { browser: true, export: true, server: true },
   activeLockedId: { browser: false, export: false, server: false },
-  stylesPanelMode: { browser: true, export: false, server: false },
+  stylesPanelMode: { browser: false, export: false, server: false },
 });
 
 const _clearAppStateForStorage = <
diff --git a/packages/excalidraw/components/App.tsx b/packages/excalidraw/components/App.tsx
index d4c8722d73..f273db0d91 100644
--- a/packages/excalidraw/components/App.tsx
+++ b/packages/excalidraw/components/App.tsx
@@ -3985,7 +3985,12 @@ class App extends React.Component<AppProps, AppState> {
       }
 
       if (appState) {
-        this.setState(appState);
+        this.setState({
+          ...appState,
+          // keep existing stylesPanelMode as it needs to be preserved
+          // or set at startup
+          stylesPanelMode: this.state.stylesPanelMode,
+        } as Pick<AppState, K> | null);
       }
 
       if (elements) {