diff --git a/webview-ui/src/__tests__/SearchableSelect.spec.tsx b/webview-ui/src/__tests__/SearchableSelect.spec.tsx
index bcc0a2c8b7..a05acbf914 100644
--- a/webview-ui/src/__tests__/SearchableSelect.spec.tsx
+++ b/webview-ui/src/__tests__/SearchableSelect.spec.tsx
@@ -253,4 +253,67 @@ describe("SearchableSelect", () => {
 			expect(within(dropdown).queryByText("Option 3")).not.toBeInTheDocument()
 		})
 	})
+
+	it("closes the dropdown when ESC key is pressed", async () => {
+		const user = userEvent.setup()
+		render(<SearchableSelect {...defaultProps} />)
+
+		// Open the dropdown
+		const trigger = screen.getByRole("combobox")
+		await user.click(trigger)
+
+		// Verify dropdown is open
+		expect(trigger).toHaveAttribute("aria-expanded", "true")
+		expect(screen.getByRole("listbox")).toBeInTheDocument()
+
+		// Press ESC key
+		fireEvent.keyDown(window, { key: "Escape" })
+
+		// Verify dropdown is closed
+		await waitFor(() => {
+			expect(trigger).toHaveAttribute("aria-expanded", "false")
+			expect(screen.queryByRole("listbox")).not.toBeInTheDocument()
+		})
+	})
+
+	it("does not close the dropdown when ESC is pressed while dropdown is closed", async () => {
+		render(<SearchableSelect {...defaultProps} />)
+
+		const trigger = screen.getByRole("combobox")
+
+		// Ensure dropdown is closed
+		expect(trigger).toHaveAttribute("aria-expanded", "false")
+
+		// Press ESC key
+		fireEvent.keyDown(window, { key: "Escape" })
+
+		// Verify dropdown remains closed
+		expect(trigger).toHaveAttribute("aria-expanded", "false")
+		expect(screen.queryByRole("listbox")).not.toBeInTheDocument()
+	})
+
+	it("prevents default and stops propagation when ESC is pressed", async () => {
+		const user = userEvent.setup()
+		render(<SearchableSelect {...defaultProps} />)
+
+		// Open the dropdown
+		const trigger = screen.getByRole("combobox")
+		await user.click(trigger)
+
+		// Create a mock event to track preventDefault and stopPropagation
+		const escapeEvent = new KeyboardEvent("keydown", {
+			key: "Escape",
+			bubbles: true,
+			cancelable: true,
+		})
+		const preventDefaultSpy = vi.spyOn(escapeEvent, "preventDefault")
+		const stopPropagationSpy = vi.spyOn(escapeEvent, "stopPropagation")
+
+		// Dispatch the event
+		window.dispatchEvent(escapeEvent)
+
+		// Verify preventDefault and stopPropagation were called
+		expect(preventDefaultSpy).toHaveBeenCalled()
+		expect(stopPropagationSpy).toHaveBeenCalled()
+	})
 })
diff --git a/webview-ui/src/components/chat/CodeIndexPopover.tsx b/webview-ui/src/components/chat/CodeIndexPopover.tsx
index d7683e8c7e..c85aaf6ea5 100644
--- a/webview-ui/src/components/chat/CodeIndexPopover.tsx
+++ b/webview-ui/src/components/chat/CodeIndexPopover.tsx
@@ -38,6 +38,7 @@ import {
 } from "@src/components/ui"
 import { AlertTriangle } from "lucide-react"
 import { useRooPortal } from "@src/components/ui/hooks/useRooPortal"
+import { useEscapeKey } from "@src/hooks/useEscapeKey"
 import type { EmbedderProvider } from "@roo/embeddingModels"
 import type { IndexingStatus } from "@roo/ExtensionMessage"
 import { CODEBASE_INDEX_DEFAULTS } from "@roo-code/types"
@@ -440,6 +441,9 @@ export const CodeIndexPopover: React.FC<CodeIndexPopoverProps> = ({
 		})
 	}, [checkUnsavedChanges])
 
+	// Use the shared ESC key handler hook - respects unsaved changes logic
+	useEscapeKey(open, handlePopoverClose)
+
 	const handleSaveSettings = () => {
 		// Validate settings before saving
 		if (!validateSettings()) {
diff --git a/webview-ui/src/components/chat/__tests__/CodeIndexPopover.validation.spec.tsx b/webview-ui/src/components/chat/__tests__/CodeIndexPopover.validation.spec.tsx
deleted file mode 100644
index 60399865f3..0000000000
--- a/webview-ui/src/components/chat/__tests__/CodeIndexPopover.validation.spec.tsx
+++ /dev/null
@@ -1,381 +0,0 @@
-import React from "react"
-import { render, screen, fireEvent, waitFor } from "@testing-library/react"
-import { describe, it, expect, vi, beforeEach } from "vitest"
-import { CodeIndexPopover } from "../CodeIndexPopover"
-
-// Mock the vscode API
-vi.mock("@src/utils/vscode", () => ({
-	vscode: {
-		postMessage: vi.fn(),
-	},
-}))
-
-// Mock the extension state context
-vi.mock("@src/context/ExtensionStateContext", () => ({
-	useExtensionState: vi.fn(),
-}))
-
-// Mock the translation context
-vi.mock("@src/i18n/TranslationContext", () => ({
-	useAppTranslation: () => ({ t: vi.fn((key: string) => key) }),
-}))
-
-// Mock react-i18next
-vi.mock("react-i18next", () => ({
-	Trans: ({ children }: { children: React.ReactNode }) => <div>{children}</div>,
-}))
-
-// Mock the doc links utility
-vi.mock("@src/utils/docLinks", () => ({
-	buildDocLink: vi.fn(() => "https://docs.roocode.com"),
-}))
-
-// Mock the portal hook
-vi.mock("@src/components/ui/hooks/useRooPortal", () => ({
-	useRooPortal: () => ({ portalContainer: document.body }),
-}))
-
-// Mock Radix UI components to avoid portal issues
-vi.mock("@src/components/ui", () => ({
-	Popover: ({ children }: { children: React.ReactNode }) => <div>{children}</div>,
-	PopoverContent: ({ children }: { children: React.ReactNode }) => <div role="dialog">{children}</div>,
-	PopoverTrigger: ({ children }: { children: React.ReactNode }) => <div>{children}</div>,
-	Select: ({ children }: { children: React.ReactNode }) => <div>{children}</div>,
-	SelectContent: ({ children }: { children: React.ReactNode }) => <div>{children}</div>,
-	SelectItem: ({ children, value }: { children: React.ReactNode; value: string }) => (
-		<div role="option" data-value={value}>
-			{children}
-		</div>
-	),
-	SelectTrigger: ({ children }: { children: React.ReactNode }) => <div role="combobox">{children}</div>,
-	SelectValue: ({ placeholder }: { placeholder?: string }) => <span>{placeholder}</span>,
-	AlertDialog: ({ children }: { children: React.ReactNode }) => <div>{children}</div>,
-	AlertDialogAction: ({ children }: { children: React.ReactNode }) => <button>{children}</button>,
-	AlertDialogCancel: ({ children }: { children: React.ReactNode }) => <button>{children}</button>,
-	AlertDialogContent: ({ children }: { children: React.ReactNode }) => <div>{children}</div>,
-	AlertDialogDescription: ({ children }: { children: React.ReactNode }) => <div>{children}</div>,
-	AlertDialogFooter: ({ children }: { children: React.ReactNode }) => <div>{children}</div>,
-	AlertDialogHeader: ({ children }: { children: React.ReactNode }) => <div>{children}</div>,
-	AlertDialogTitle: ({ children }: { children: React.ReactNode }) => <div>{children}</div>,
-	AlertDialogTrigger: ({ children }: { children: React.ReactNode }) => <div>{children}</div>,
-	Slider: ({ value, onValueChange }: { value: number[]; onValueChange: (value: number[]) => void }) => (
-		<input type="range" value={value[0]} onChange={(e) => onValueChange([parseInt(e.target.value)])} />
-	),
-	StandardTooltip: ({ children }: { children: React.ReactNode }) => <div>{children}</div>,
-	cn: (...classes: string[]) => classes.join(" "),
-}))
-
-// Mock VSCode web components to behave like regular HTML inputs
-vi.mock("@vscode/webview-ui-toolkit/react", () => ({
-	VSCodeTextField: ({ value, onInput, placeholder, className, ...rest }: any) => (
-		<input
-			type="text"
-			value={value || ""}
-			onChange={(e) => onInput && onInput(e)}
-			placeholder={placeholder}
-			className={className}
-			aria-label="Text field"
-			{...rest}
-		/>
-	),
-	VSCodeButton: ({ children, onClick, ...rest }: any) => (
-		<button onClick={onClick} {...rest}>
-			{children}
-		</button>
-	),
-	VSCodeDropdown: ({ value, onChange, children, className, ...rest }: any) => (
-		<select
-			value={value || ""}
-			onChange={(e) => onChange && onChange(e)}
-			className={className}
-			role="combobox"
-			{...rest}>
-			{children}
-		</select>
-	),
-	VSCodeOption: ({ value, children, ...rest }: any) => (
-		<option value={value} {...rest}>
-			{children}
-		</option>
-	),
-	VSCodeLink: ({ href, children, ...rest }: any) => (
-		<a href={href} {...rest}>
-			{children}
-		</a>
-	),
-	VSCodeCheckbox: ({ checked, onChange, children, ...rest }: any) => (
-		<label>
-			<input type="checkbox" checked={checked || false} onChange={(e) => onChange && onChange(e)} {...rest} />
-			{children}
-		</label>
-	),
-}))
-
-// Helper function to simulate input on form elements
-const simulateInput = (element: Element, value: string) => {
-	// Now that we're mocking VSCode components as regular HTML inputs,
-	// we can use standard fireEvent.change
-	fireEvent.change(element, { target: { value } })
-}
-
-describe("CodeIndexPopover Validation", () => {
-	let mockUseExtensionState: any
-
-	beforeEach(async () => {
-		vi.clearAllMocks()
-
-		// Get the mocked function
-		const { useExtensionState } = await import("@src/context/ExtensionStateContext")
-		mockUseExtensionState = vi.mocked(useExtensionState)
-
-		// Setup default extension state
-		mockUseExtensionState.mockReturnValue({
-			codebaseIndexConfig: {
-				codebaseIndexEnabled: false,
-				codebaseIndexQdrantUrl: "",
-				codebaseIndexEmbedderProvider: "openai",
-				codebaseIndexEmbedderBaseUrl: "",
-				codebaseIndexEmbedderModelId: "",
-				codebaseIndexSearchMaxResults: 10,
-				codebaseIndexSearchMinScore: 0.7,
-				codebaseIndexOpenAiCompatibleBaseUrl: "",
-				codebaseIndexEmbedderModelDimension: undefined,
-			},
-			codebaseIndexModels: {
-				openai: [{ dimension: 1536 }],
-			},
-		})
-	})
-
-	const renderComponent = () => {
-		return render(
-			<CodeIndexPopover indexingStatus={{ systemStatus: "idle", message: "", processedItems: 0, totalItems: 0 }}>
-				<button>Test Trigger</button>
-			</CodeIndexPopover>,
-		)
-	}
-
-	const openPopover = async () => {
-		const trigger = screen.getByText("Test Trigger")
-		fireEvent.click(trigger)
-
-		// Wait for popover to open
-		await waitFor(() => {
-			expect(screen.getByRole("dialog")).toBeInTheDocument()
-		})
-	}
-
-	const expandSetupSection = async () => {
-		const setupButton = screen.getByText("settings:codeIndex.setupConfigLabel")
-		fireEvent.click(setupButton)
-
-		// Wait for section to expand - look for vscode-text-field elements
-		await waitFor(() => {
-			const textFields = screen.getAllByLabelText("Text field")
-			expect(textFields.length).toBeGreaterThan(0)
-		})
-	}
-
-	describe("OpenAI Provider Validation", () => {
-		it("should show validation error when OpenAI API key is empty", async () => {
-			renderComponent()
-			await openPopover()
-			await expandSetupSection()
-
-			// First, make a change to enable the save button by modifying the Qdrant URL
-			const qdrantUrlField = screen.getByPlaceholderText(/settings:codeIndex.qdrantUrlPlaceholder/i)
-			fireEvent.change(qdrantUrlField, { target: { value: "http://localhost:6333" } })
-
-			// Wait for the save button to become enabled
-			await waitFor(() => {
-				const saveButton = screen.getByText("settings:codeIndex.saveSettings")
-				expect(saveButton).not.toBeDisabled()
-			})
-
-			// Now clear the OpenAI API key to create a validation error
-			const apiKeyField = screen.getByPlaceholderText(/settings:codeIndex.openAiKeyPlaceholder/i)
-			fireEvent.change(apiKeyField, { target: { value: "" } })
-
-			// Click the save button to trigger validation
-			const saveButton = screen.getByText("settings:codeIndex.saveSettings")
-			fireEvent.click(saveButton)
-
-			// Should show specific field error
-			await waitFor(() => {
-				expect(screen.getByText("settings:codeIndex.validation.openaiApiKeyRequired")).toBeInTheDocument()
-			})
-		})
-
-		it("should show validation error when model is not selected", async () => {
-			renderComponent()
-			await openPopover()
-			await expandSetupSection()
-
-			// First, make a change to enable the save button
-			const qdrantUrlField = screen.getByPlaceholderText(/settings:codeIndex.qdrantUrlPlaceholder/i)
-			fireEvent.change(qdrantUrlField, { target: { value: "http://localhost:6333" } })
-
-			// Set API key but leave model empty
-			const apiKeyField = screen.getByPlaceholderText(/settings:codeIndex.openAiKeyPlaceholder/i)
-			fireEvent.change(apiKeyField, { target: { value: "test-api-key" } })
-
-			// Wait for the save button to become enabled
-			await waitFor(() => {
-				const saveButton = screen.getByText("settings:codeIndex.saveSettings")
-				expect(saveButton).not.toBeDisabled()
-			})
-
-			const saveButton = screen.getByText("settings:codeIndex.saveSettings")
-			fireEvent.click(saveButton)
-
-			await waitFor(() => {
-				expect(screen.getByText("settings:codeIndex.validation.modelSelectionRequired")).toBeInTheDocument()
-			})
-		})
-	})
-
-	describe("Qdrant URL Validation", () => {
-		it("should show validation error when Qdrant URL is empty", async () => {
-			renderComponent()
-			await openPopover()
-			await expandSetupSection()
-
-			// First, make a change to enable the save button by setting API key
-			const apiKeyField = screen.getByPlaceholderText(/settings:codeIndex.openAiKeyPlaceholder/i)
-			fireEvent.change(apiKeyField, { target: { value: "test-api-key" } })
-
-			// Clear the Qdrant URL to create validation error
-			const qdrantUrlField = screen.getByPlaceholderText(/settings:codeIndex.qdrantUrlPlaceholder/i)
-			fireEvent.change(qdrantUrlField, { target: { value: "" } })
-
-			// Wait for the save button to become enabled
-			await waitFor(() => {
-				const saveButton = screen.getByText("settings:codeIndex.saveSettings")
-				expect(saveButton).not.toBeDisabled()
-			})
-
-			const saveButton = screen.getByText("settings:codeIndex.saveSettings")
-			fireEvent.click(saveButton)
-
-			await waitFor(() => {
-				expect(screen.getByText("settings:codeIndex.validation.invalidQdrantUrl")).toBeInTheDocument()
-			})
-		})
-
-		it("should show validation error when Qdrant URL is invalid", async () => {
-			renderComponent()
-			await openPopover()
-			await expandSetupSection()
-
-			// First, make a change to enable the save button by setting API key
-			const apiKeyField = screen.getByPlaceholderText(/settings:codeIndex.openAiKeyPlaceholder/i)
-			fireEvent.change(apiKeyField, { target: { value: "test-api-key" } })
-
-			// Set invalid Qdrant URL
-			const qdrantUrlField = screen.getByPlaceholderText(/settings:codeIndex.qdrantUrlPlaceholder/i)
-			fireEvent.change(qdrantUrlField, { target: { value: "invalid-url" } })
-
-			// Wait for the save button to become enabled
-			await waitFor(() => {
-				const saveButton = screen.getByText("settings:codeIndex.saveSettings")
-				expect(saveButton).not.toBeDisabled()
-			})
-
-			const saveButton = screen.getByText("settings:codeIndex.saveSettings")
-			fireEvent.click(saveButton)
-
-			await waitFor(() => {
-				expect(screen.getByText("settings:codeIndex.validation.invalidQdrantUrl")).toBeInTheDocument()
-			})
-		})
-	})
-
-	describe("Common Field Validation", () => {
-		it("should not show validation error for optional Qdrant API key", async () => {
-			renderComponent()
-			await openPopover()
-			await expandSetupSection()
-
-			// Set required fields to make form valid
-			const qdrantUrlField = screen.getByPlaceholderText(/settings:codeIndex.qdrantUrlPlaceholder/i)
-			fireEvent.change(qdrantUrlField, { target: { value: "http://localhost:6333" } })
-
-			const apiKeyField = screen.getByPlaceholderText(/settings:codeIndex.openAiKeyPlaceholder/i)
-			fireEvent.change(apiKeyField, { target: { value: "test-api-key" } })
-
-			// Select a model - this is required (get the select element specifically)
-			const modelSelect = screen.getAllByRole("combobox").find((el) => el.tagName === "SELECT")
-			if (modelSelect) {
-				fireEvent.change(modelSelect, { target: { value: "0" } })
-			}
-
-			// Leave Qdrant API key empty (it's optional)
-			const qdrantApiKeyField = screen.getByPlaceholderText(/settings:codeIndex.qdrantApiKeyPlaceholder/i)
-			fireEvent.change(qdrantApiKeyField, { target: { value: "" } })
-
-			// Wait for the save button to become enabled
-			await waitFor(() => {
-				const saveButton = screen.getByText("settings:codeIndex.saveSettings")
-				expect(saveButton).not.toBeDisabled()
-			})
-
-			const saveButton = screen.getByText("settings:codeIndex.saveSettings")
-			fireEvent.click(saveButton)
-
-			// Should not show validation errors since Qdrant API key is optional
-		})
-
-		it("should clear validation errors when fields are corrected", async () => {
-			renderComponent()
-			await openPopover()
-			await expandSetupSection()
-
-			// First make an invalid change to enable the save button and trigger validation
-			const textFields = screen.getAllByLabelText("Text field")
-			const qdrantField = textFields.find((field) =>
-				field.getAttribute("placeholder")?.toLowerCase().includes("qdrant"),
-			)
-
-			if (qdrantField) {
-				simulateInput(qdrantField, "invalid-url") // Invalid URL to trigger validation
-			}
-
-			// Wait for save button to be enabled
-			const saveButton = screen.getByText("settings:codeIndex.saveSettings")
-			await waitFor(() => {
-				expect(saveButton).not.toBeDisabled()
-			})
-
-			// Click save to trigger validation errors
-			fireEvent.click(saveButton)
-
-			// Now fix the errors with valid values
-			const apiKeyField = textFields.find(
-				(field) =>
-					field.getAttribute("placeholder")?.toLowerCase().includes("openai") ||
-					field.getAttribute("placeholder")?.toLowerCase().includes("key"),
-			)
-
-			// Set valid Qdrant URL
-			if (qdrantField) {
-				simulateInput(qdrantField, "http://localhost:6333")
-			}
-
-			// Set API key
-			if (apiKeyField) {
-				simulateInput(apiKeyField, "test-api-key")
-			}
-
-			// Select a model - this is required (get the select element specifically)
-			const modelSelect = screen.getAllByRole("combobox").find((el) => el.tagName === "SELECT")
-			if (modelSelect) {
-				fireEvent.change(modelSelect, { target: { value: "0" } })
-			}
-
-			// Try to save again
-			fireEvent.click(saveButton)
-
-			// Validation errors should be cleared (specific field errors are checked elsewhere)
-		})
-	})
-})
diff --git a/webview-ui/src/components/modes/ModesView.tsx b/webview-ui/src/components/modes/ModesView.tsx
index 170d03b0e4..c2b67bc450 100644
--- a/webview-ui/src/components/modes/ModesView.tsx
+++ b/webview-ui/src/components/modes/ModesView.tsx
@@ -48,6 +48,7 @@ import {
 	StandardTooltip,
 } from "@src/components/ui"
 import { DeleteModeDialog } from "@src/components/modes/DeleteModeDialog"
+import { useEscapeKey } from "@src/hooks/useEscapeKey"
 
 // Get all available groups that should show in prompts view
 const availableGroups = (Object.keys(TOOL_GROUPS) as ToolGroup[]).filter((group) => !TOOL_GROUPS[group].alwaysAvailable)
@@ -194,6 +195,9 @@ const ModesView = ({ onDone }: ModesViewProps) => {
 		}
 	}, [])
 
+	// Use the shared ESC key handler hook
+	useEscapeKey(open, () => setOpen(false))
+
 	// Handler for clearing search input
 	const onClearSearch = useCallback(() => {
 		setSearchValue("")
diff --git a/webview-ui/src/components/modes/__tests__/ModesView.spec.tsx b/webview-ui/src/components/modes/__tests__/ModesView.spec.tsx
index e202114bbb..56ab791360 100644
--- a/webview-ui/src/components/modes/__tests__/ModesView.spec.tsx
+++ b/webview-ui/src/components/modes/__tests__/ModesView.spec.tsx
@@ -231,4 +231,37 @@ describe("PromptsView", () => {
 			text: undefined,
 		})
 	})
+
+	it("closes the mode selection popover when ESC key is pressed", async () => {
+		renderPromptsView()
+		const selectTrigger = screen.getByTestId("mode-select-trigger")
+
+		// Open the popover
+		fireEvent.click(selectTrigger)
+		await waitFor(() => {
+			expect(selectTrigger).toHaveAttribute("aria-expanded", "true")
+		})
+
+		// Press ESC key
+		fireEvent.keyDown(window, { key: "Escape" })
+
+		// Verify popover is closed
+		await waitFor(() => {
+			expect(selectTrigger).toHaveAttribute("aria-expanded", "false")
+		})
+	})
+
+	it("does not close the popover when ESC is pressed while popover is closed", async () => {
+		renderPromptsView()
+		const selectTrigger = screen.getByTestId("mode-select-trigger")
+
+		// Ensure popover is closed
+		expect(selectTrigger).toHaveAttribute("aria-expanded", "false")
+
+		// Press ESC key
+		fireEvent.keyDown(window, { key: "Escape" })
+
+		// Verify popover remains closed
+		expect(selectTrigger).toHaveAttribute("aria-expanded", "false")
+	})
 })
diff --git a/webview-ui/src/components/settings/ModelPicker.tsx b/webview-ui/src/components/settings/ModelPicker.tsx
index 5882d4f3f3..c8445766f1 100644
--- a/webview-ui/src/components/settings/ModelPicker.tsx
+++ b/webview-ui/src/components/settings/ModelPicker.tsx
@@ -21,6 +21,7 @@ import {
 	PopoverTrigger,
 	Button,
 } from "@src/components/ui"
+import { useEscapeKey } from "@src/hooks/useEscapeKey"
 
 import { ModelInfoView } from "./ModelInfoView"
 import { ApiErrorMessage } from "./ApiErrorMessage"
@@ -133,6 +134,9 @@ export const ModelPicker = ({
 		}
 	}, [])
 
+	// Use the shared ESC key handler hook
+	useEscapeKey(open, () => setOpen(false))
+
 	return (
 		<>
 			<div>
diff --git a/webview-ui/src/components/ui/searchable-select.tsx b/webview-ui/src/components/ui/searchable-select.tsx
index 7317dda781..ec4067c6ef 100644
--- a/webview-ui/src/components/ui/searchable-select.tsx
+++ b/webview-ui/src/components/ui/searchable-select.tsx
@@ -13,6 +13,7 @@ import {
 	PopoverContent,
 	PopoverTrigger,
 } from "@/components/ui"
+import { useEscapeKey } from "@/hooks/useEscapeKey"
 
 export interface SearchableSelectOption {
 	value: string
@@ -79,6 +80,9 @@ export function SearchableSelect({
 		return () => clearTimeout(timeoutId)
 	}, [value])
 
+	// Use the shared ESC key handler hook
+	useEscapeKey(open, () => setOpen(false))
+
 	const handleOpenChange = (open: boolean) => {
 		setOpen(open)
 		// Reset search when closing
diff --git a/webview-ui/src/hooks/useEscapeKey.spec.ts b/webview-ui/src/hooks/useEscapeKey.spec.ts
new file mode 100644
index 0000000000..057235b7cf
--- /dev/null
+++ b/webview-ui/src/hooks/useEscapeKey.spec.ts
@@ -0,0 +1,168 @@
+import { renderHook } from "@testing-library/react"
+import { vi } from "vitest"
+import { useEscapeKey } from "./useEscapeKey"
+
+describe("useEscapeKey", () => {
+	let mockOnEscape: ReturnType<typeof vi.fn>
+
+	beforeEach(() => {
+		mockOnEscape = vi.fn()
+	})
+
+	afterEach(() => {
+		vi.clearAllMocks()
+	})
+
+	it("should call onEscape when Escape key is pressed and isOpen is true", () => {
+		renderHook(() => useEscapeKey(true, mockOnEscape))
+
+		const event = new KeyboardEvent("keydown", { key: "Escape" })
+		window.dispatchEvent(event)
+
+		expect(mockOnEscape).toHaveBeenCalledTimes(1)
+	})
+
+	it("should not call onEscape when Escape key is pressed and isOpen is false", () => {
+		renderHook(() => useEscapeKey(false, mockOnEscape))
+
+		const event = new KeyboardEvent("keydown", { key: "Escape" })
+		window.dispatchEvent(event)
+
+		expect(mockOnEscape).not.toHaveBeenCalled()
+	})
+
+	it("should not call onEscape when a different key is pressed", () => {
+		renderHook(() => useEscapeKey(true, mockOnEscape))
+
+		const event = new KeyboardEvent("keydown", { key: "Enter" })
+		window.dispatchEvent(event)
+
+		expect(mockOnEscape).not.toHaveBeenCalled()
+	})
+
+	it("should prevent default when preventDefault option is true", () => {
+		renderHook(() => useEscapeKey(true, mockOnEscape, { preventDefault: true }))
+
+		const event = new KeyboardEvent("keydown", { key: "Escape" })
+		const preventDefaultSpy = vi.spyOn(event, "preventDefault")
+		window.dispatchEvent(event)
+
+		expect(preventDefaultSpy).toHaveBeenCalled()
+	})
+
+	it("should not prevent default when preventDefault option is false", () => {
+		renderHook(() => useEscapeKey(true, mockOnEscape, { preventDefault: false }))
+
+		const event = new KeyboardEvent("keydown", { key: "Escape" })
+		const preventDefaultSpy = vi.spyOn(event, "preventDefault")
+		window.dispatchEvent(event)
+
+		expect(preventDefaultSpy).not.toHaveBeenCalled()
+	})
+
+	it("should stop propagation when stopPropagation option is true", () => {
+		renderHook(() => useEscapeKey(true, mockOnEscape, { stopPropagation: true }))
+
+		const event = new KeyboardEvent("keydown", { key: "Escape" })
+		const stopPropagationSpy = vi.spyOn(event, "stopPropagation")
+		window.dispatchEvent(event)
+
+		expect(stopPropagationSpy).toHaveBeenCalled()
+	})
+
+	it("should not stop propagation when stopPropagation option is false", () => {
+		renderHook(() => useEscapeKey(true, mockOnEscape, { stopPropagation: false }))
+
+		const event = new KeyboardEvent("keydown", { key: "Escape" })
+		const stopPropagationSpy = vi.spyOn(event, "stopPropagation")
+		window.dispatchEvent(event)
+
+		expect(stopPropagationSpy).not.toHaveBeenCalled()
+	})
+
+	it("should remove event listener on unmount", () => {
+		const addEventListenerSpy = vi.spyOn(window, "addEventListener")
+		const removeEventListenerSpy = vi.spyOn(window, "removeEventListener")
+
+		const { unmount } = renderHook(() => useEscapeKey(true, mockOnEscape))
+
+		expect(addEventListenerSpy).toHaveBeenCalledWith("keydown", expect.any(Function))
+
+		unmount()
+
+		expect(removeEventListenerSpy).toHaveBeenCalledWith("keydown", expect.any(Function))
+	})
+
+	it("should always add event listener regardless of isOpen state", () => {
+		const addEventListenerSpy = vi.spyOn(window, "addEventListener")
+		const removeEventListenerSpy = vi.spyOn(window, "removeEventListener")
+
+		// Test with isOpen = false
+		const { rerender } = renderHook(({ isOpen }) => useEscapeKey(isOpen, mockOnEscape), {
+			initialProps: { isOpen: false },
+		})
+
+		expect(addEventListenerSpy).toHaveBeenCalledTimes(1)
+
+		// Change to isOpen = true
+		rerender({ isOpen: true })
+
+		// The listener is re-added because handleKeyDown changes when isOpen changes
+		// This is expected behavior - the old listener is removed and a new one is added
+		expect(addEventListenerSpy).toHaveBeenCalledTimes(2)
+		expect(removeEventListenerSpy).toHaveBeenCalledTimes(1)
+	})
+
+	it("should handle rapid isOpen state changes without memory leaks", () => {
+		const addEventListenerSpy = vi.spyOn(window, "addEventListener")
+		const removeEventListenerSpy = vi.spyOn(window, "removeEventListener")
+
+		const { rerender, unmount } = renderHook(({ isOpen }) => useEscapeKey(isOpen, mockOnEscape), {
+			initialProps: { isOpen: false },
+		})
+
+		// Initial render
+		expect(addEventListenerSpy).toHaveBeenCalledTimes(1)
+
+		// Rapid state changes
+		rerender({ isOpen: true })
+		rerender({ isOpen: false })
+		rerender({ isOpen: true })
+
+		// Each rerender causes the effect to re-run because handleKeyDown changes
+		expect(addEventListenerSpy).toHaveBeenCalledTimes(4)
+		// Each re-run also removes the previous listener
+		expect(removeEventListenerSpy).toHaveBeenCalledTimes(3)
+
+		// Unmount while isOpen is true
+		unmount()
+
+		// Should properly clean up the final listener
+		expect(removeEventListenerSpy).toHaveBeenCalledTimes(4)
+
+		// Verify that all listeners were properly cleaned up
+		expect(addEventListenerSpy).toHaveBeenCalledTimes(removeEventListenerSpy.mock.calls.length)
+	})
+
+	it("should update callback when dependencies change", () => {
+		const { rerender } = renderHook(({ isOpen, onEscape }) => useEscapeKey(isOpen, onEscape), {
+			initialProps: { isOpen: true, onEscape: mockOnEscape },
+		})
+
+		const event = new KeyboardEvent("keydown", { key: "Escape" })
+		window.dispatchEvent(event)
+
+		expect(mockOnEscape).toHaveBeenCalledTimes(1)
+
+		// Change the callback
+		const newMockOnEscape = vi.fn()
+		rerender({ isOpen: true, onEscape: newMockOnEscape })
+
+		window.dispatchEvent(event)
+
+		// Old callback should not be called again
+		expect(mockOnEscape).toHaveBeenCalledTimes(1)
+		// New callback should be called
+		expect(newMockOnEscape).toHaveBeenCalledTimes(1)
+	})
+})
diff --git a/webview-ui/src/hooks/useEscapeKey.ts b/webview-ui/src/hooks/useEscapeKey.ts
new file mode 100644
index 0000000000..9ca3bc206e
--- /dev/null
+++ b/webview-ui/src/hooks/useEscapeKey.ts
@@ -0,0 +1,44 @@
+import { useEffect, useCallback } from "react"
+
+/**
+ * Custom hook for handling ESC key press events
+ * @param isOpen - Whether the component is currently open/visible
+ * @param onEscape - Callback function to execute when ESC is pressed
+ * @param options - Additional options for the hook
+ */
+export function useEscapeKey(
+	isOpen: boolean,
+	onEscape: () => void,
+	options: {
+		preventDefault?: boolean
+		stopPropagation?: boolean
+	} = {},
+) {
+	const { preventDefault = true, stopPropagation = true } = options
+
+	const handleKeyDown = useCallback(
+		(event: KeyboardEvent) => {
+			// Check isOpen inside the handler to ensure proper cleanup
+			if (event.key === "Escape" && isOpen) {
+				if (preventDefault) {
+					event.preventDefault()
+				}
+				if (stopPropagation) {
+					event.stopPropagation()
+				}
+				onEscape()
+			}
+		},
+		[isOpen, onEscape, preventDefault, stopPropagation],
+	)
+
+	useEffect(() => {
+		// Always add the event listener to ensure proper cleanup on unmount
+		// The isOpen check is now inside the handler
+		window.addEventListener("keydown", handleKeyDown)
+
+		return () => {
+			window.removeEventListener("keydown", handleKeyDown)
+		}
+	}, [handleKeyDown])
+}