diff --git a/src/actions/action_menu.ts b/src/actions/action_menu.ts
index ed456fbc..dea986d2 100644
--- a/src/actions/action_menu.ts
+++ b/src/actions/action_menu.ts
@@ -45,12 +45,23 @@ export class ActionMenu {
   private registerShortcut() {
     const menuShortcut: ShortcutRegistry.KeyboardShortcut = {
       name: Constants.SHORTCUT_NAMES.MENU,
-      preconditionFn: (workspace) =>
-        this.navigation.canCurrentlyNavigate(workspace),
+      preconditionFn: (workspace) => {
+        return (
+          this.navigation.canCurrentlyNavigate(workspace) &&
+          !workspace.isDragging()
+        );
+      },
       callback: (workspace) => {
         switch (this.navigation.getState(workspace)) {
           case Constants.STATE.WORKSPACE:
             return this.openActionMenu(workspace);
+          case Constants.STATE.FLYOUT: {
+            const flyoutWorkspace = workspace.getFlyout()?.getWorkspace();
+            if (flyoutWorkspace) {
+              return this.openActionMenu(flyoutWorkspace);
+            }
+            return false;
+          }
           default:
             return false;
         }
diff --git a/src/navigation.ts b/src/navigation.ts
index d1ec3342..6cbf0866 100644
--- a/src/navigation.ts
+++ b/src/navigation.ts
@@ -99,9 +99,9 @@ export class Navigation {
   getState(workspace: Blockly.WorkspaceSvg): Constants.STATE {
     const focusedTree = Blockly.getFocusManager().getFocusedTree();
     if (focusedTree instanceof Blockly.WorkspaceSvg) {
-      if (focusedTree.isFlyout && workspace === focusedTree.targetWorkspace) {
+      if (focusedTree.isFlyout) {
         return Constants.STATE.FLYOUT;
-      } else if (workspace === focusedTree) {
+      } else {
         return Constants.STATE.WORKSPACE;
       }
     } else if (focusedTree instanceof Blockly.Toolbox) {
@@ -109,9 +109,7 @@ export class Navigation {
         return Constants.STATE.TOOLBOX;
       }
     } else if (focusedTree instanceof Blockly.Flyout) {
-      if (workspace === focusedTree.targetWorkspace) {
-        return Constants.STATE.FLYOUT;
-      }
+      return Constants.STATE.FLYOUT;
     }
     // Either a non-Blockly element currently has DOM focus, or a different
     // workspace holds it.
@@ -822,8 +820,11 @@ export class Navigation {
    * @returns whether keyboard navigation is currently allowed.
    */
   canCurrentlyNavigate(workspace: Blockly.WorkspaceSvg) {
+    const accessibilityMode = workspace.isFlyout
+      ? workspace.targetWorkspace?.keyboardAccessibilityMode
+      : workspace.keyboardAccessibilityMode;
     return (
-      workspace.keyboardAccessibilityMode &&
+      !!accessibilityMode &&
       this.getState(workspace) !== Constants.STATE.NOWHERE
     );
   }
diff --git a/test/webdriverio/test/actions_test.ts b/test/webdriverio/test/actions_test.ts
new file mode 100644
index 00000000..239ed7ed
--- /dev/null
+++ b/test/webdriverio/test/actions_test.ts
@@ -0,0 +1,72 @@
+/**
+ * @license
+ * Copyright 2025 Google LLC
+ * SPDX-License-Identifier: Apache-2.0
+ */
+
+import * as chai from 'chai';
+import {Key} from 'webdriverio';
+import {
+  contextMenuExists,
+  moveToToolboxCategory,
+  PAUSE_TIME,
+  setCurrentCursorNodeById,
+  tabNavigateToWorkspace,
+  testFileLocations,
+  testSetup,
+} from './test_setup.js';
+
+suite('Menus test', function () {
+  // Setting timeout to unlimited as these tests take longer time to run
+  this.timeout(0);
+
+  // Clear the workspace and load start blocks
+  setup(async function () {
+    this.browser = await testSetup(testFileLocations.BASE);
+    await this.browser.pause(PAUSE_TIME);
+  });
+
+  test('Menu action opens menu', async function () {
+    // Navigate to draw_circle_1.
+    await tabNavigateToWorkspace(this.browser);
+    await setCurrentCursorNodeById(this.browser, 'draw_circle_1');
+    await this.browser.pause(PAUSE_TIME);
+    await this.browser.keys([Key.Ctrl, Key.Return]);
+    await this.browser.pause(PAUSE_TIME);
+    chai.assert.isTrue(
+      await contextMenuExists(this.browser, 'Duplicate'),
+      'The menu should be openable on a block',
+    );
+  });
+
+  test('Menu action returns true in the toolbox', async function () {
+    // Navigate to draw_circle_1.
+    await tabNavigateToWorkspace(this.browser);
+    await setCurrentCursorNodeById(this.browser, 'draw_circle_1');
+    // Navigate to a toolbox category
+    await moveToToolboxCategory(this.browser, 'Functions');
+    // Move to flyout.
+    await this.browser.keys(Key.ArrowRight);
+    await this.browser.keys([Key.Ctrl, Key.Return]);
+    await this.browser.pause(PAUSE_TIME);
+
+    chai.assert.isTrue(
+      await contextMenuExists(this.browser, 'Help'),
+      'The menu should be openable on a block in the toolbox',
+    );
+  });
+
+  test('Menu action returns false during drag', async function () {
+    // Navigate to draw_circle_1.
+    await tabNavigateToWorkspace(this.browser);
+    await setCurrentCursorNodeById(this.browser, 'draw_circle_1');
+    // Start moving the block
+    await this.browser.keys('m');
+    await this.browser.keys([Key.Ctrl, Key.Return]);
+    await this.browser.pause(PAUSE_TIME);
+    chai.assert.isTrue(
+      await contextMenuExists(this.browser, 'Duplicate', true),
+      'The menu should not be openable during a move',
+    );
+  });
+});
diff --git a/test/webdriverio/test/test_setup.ts b/test/webdriverio/test/test_setup.ts
index 8c9fd94a..85f0bf0f 100644
--- a/test/webdriverio/test/test_setup.ts
+++ b/test/webdriverio/test/test_setup.ts
@@ -431,3 +431,56 @@ export async function isDragging(
     return workspaceSvg.isDragging();
   });
 }
+
+/**
+ * Returns the result of the specificied action precondition.
+ *
+ * @param browser The active WebdriverIO Browser object.
+ * @param action The action to check the precondition for.
+ */
+export async function checkActionPrecondition(
+  browser: WebdriverIO.Browser,
+  action: string,
+): Promise<boolean> {
+  return await browser.execute((action) => {
+    const node = Blockly.getFocusManager().getFocusedNode();
+    let workspace;
+    if (node instanceof Blockly.BlockSvg) {
+      workspace = node.workspace as Blockly.WorkspaceSvg;
+    } else if (node instanceof Blockly.Workspace) {
+      workspace = node as Blockly.WorkspaceSvg;
+    } else if (node instanceof Blockly.Field) {
+      workspace = node.getSourceBlock()?.workspace as Blockly.WorkspaceSvg;
+    }
+
+    if (!workspace) {
+      throw new Error('Unable to derive workspace from focused node');
+    }
+    const actionItem = Blockly.ShortcutRegistry.registry.getRegistry()[action];
+    if (!actionItem || !actionItem.preconditionFn) {
+      throw new Error(
+        `No registered action or missing precondition: ${action}`,
+      );
+    }
+    return actionItem.preconditionFn(workspace, {
+      focusedNode: node ?? undefined,
+    });
+  }, action);
+}
+
+/**
+ * Wait for the specified context menu item to exist.
+ *
+ * @param browser The active WebdriverIO Browser object.
+ * @param itemText The display text of the context menu item to click.
+ * @param reverse Whether to check for non-existence instead.
+ * @return A Promise that resolves when the actions are completed.
+ */
+export async function contextMenuExists(
+  browser: WebdriverIO.Browser,
+  itemText: string,
+  reverse = false,
+): Promise<boolean> {
+  const item = await browser.$(`div=${itemText}`);
+  return await item.waitForExist({timeout: 200, reverse: reverse});
+}