diff --git a/webui/src/components/ChatList.tsx b/webui/src/components/ChatList.tsx
index 98490e5a2..c12afa717 100644
--- a/webui/src/components/ChatList.tsx
+++ b/webui/src/components/ChatList.tsx
@@ -107,7 +107,6 @@ export const ChatList = memo(function ChatList({
 }: ChatListProps) {
   const { t } = useTranslation();
   const [visibleLimit, setVisibleLimit] = useState(INITIAL_VISIBLE_SESSIONS);
-  const listContentRef = useRef<HTMLDivElement>(null);
   const activeRowRef = useRef<HTMLDivElement>(null);
   const labels = useMemo<ChatGroupLabels>(() => ({
     pinned: t("chat.groups.pinned"),
@@ -188,8 +187,10 @@ export const ChatList = memo(function ChatList({
 
   return (
     <div className="h-full min-h-0 min-w-0 overflow-x-hidden overflow-y-auto overscroll-contain scrollbar-thin scrollbar-track-transparent">
-      <div
-        ref={listContentRef}
+      <SidebarSelectionHighlight
+        targetRef={activeRowRef}
+        activeId={activeKey}
+        scope="sessions"
         data-chat-list-content
         className="relative min-w-0 space-y-3 px-2 py-1.5"
       >
@@ -408,13 +409,7 @@ export const ChatList = memo(function ChatList({
             </button>
           </div>
         ) : null}
-        <SidebarSelectionHighlight
-          containerRef={listContentRef}
-          targetRef={activeRowRef}
-          activeId={activeKey}
-          scope="sessions"
-        />
-      </div>
+      </SidebarSelectionHighlight>
     </div>
   );
 });
diff --git a/webui/src/components/Sidebar.tsx b/webui/src/components/Sidebar.tsx
index ae3227594..485727569 100644
--- a/webui/src/components/Sidebar.tsx
+++ b/webui/src/components/Sidebar.tsx
@@ -92,7 +92,6 @@ export function Sidebar(props: SidebarProps) {
   const collapsed = Boolean(props.collapsed);
   const toggleLabel = t("thread.header.toggleSidebar");
   const newChatShortcut = newChatShortcutLabel();
-  const actionListRef = useRef<HTMLDivElement>(null);
   const activeActionRef = useRef<HTMLButtonElement>(null);
   const activeActionId = props.newChatActive
     ? "new-chat"
@@ -150,8 +149,10 @@ export function Sidebar(props: SidebarProps) {
         )}
       </div>
 
-      <div
-        ref={actionListRef}
+      <SidebarSelectionHighlight
+        targetRef={activeActionRef}
+        activeId={activeActionId}
+        scope="actions"
         className={cn(
           "relative space-y-1.5 px-2 pb-2",
           collapsed && "flex w-14 flex-col items-center px-0",
@@ -208,13 +209,7 @@ export function Sidebar(props: SidebarProps) {
             icon={<Archive className="h-4 w-4" />}
           />
         ) : null}
-        <SidebarSelectionHighlight
-          containerRef={actionListRef}
-          targetRef={activeActionRef}
-          activeId={activeActionId}
-          scope="actions"
-        />
-      </div>
+      </SidebarSelectionHighlight>
       <div
         className={cn(
           "flex min-h-0 min-w-0 flex-1 flex-col overflow-hidden transition-opacity duration-200",
diff --git a/webui/src/components/SidebarSelectionHighlight.tsx b/webui/src/components/SidebarSelectionHighlight.tsx
index 17ee7148e..d7bd6a037 100644
--- a/webui/src/components/SidebarSelectionHighlight.tsx
+++ b/webui/src/components/SidebarSelectionHighlight.tsx
@@ -1,11 +1,11 @@
 import {
+  type HTMLAttributes,
   type RefObject,
   useLayoutEffect,
   useRef,
 } from "react";
 
-interface SidebarSelectionHighlightProps {
-  containerRef: RefObject<HTMLElement>;
+interface SidebarSelectionHighlightProps extends HTMLAttributes<HTMLDivElement> {
   targetRef: RefObject<HTMLElement>;
   activeId: string | null;
   scope: string;
@@ -18,11 +18,13 @@ export const SIDEBAR_SELECTION_ACTION_ITEM_CLASS =
   "relative z-[1] transition-[width,padding,color] [transition-duration:300ms,300ms,150ms] ease-out motion-reduce:transition-none";
 
 export function SidebarSelectionHighlight({
-  containerRef,
   targetRef,
   activeId,
   scope,
+  children,
+  ...containerProps
 }: SidebarSelectionHighlightProps) {
+  const containerRef = useRef<HTMLDivElement>(null);
   const highlightRef = useRef<HTMLDivElement>(null);
   const positionedRef = useRef(false);
 
@@ -30,11 +32,19 @@ export function SidebarSelectionHighlight({
     const highlight = highlightRef.current;
     const container = containerRef.current;
     const target = targetRef.current;
+    if (!highlight) return;
+    if (!activeId || !container || !target) {
+      highlight.style.opacity = "0";
+      positionedRef.current = false;
+      return;
+    }
+
     let restoreTransitionFrame: number | null = null;
 
     const position = () => {
-      if (!highlight) return;
-      if (!activeId || !container || !target) {
+      const containerRect = container.getBoundingClientRect();
+      const targetRect = target.getBoundingClientRect();
+      if (targetRect.width === 0 || targetRect.height === 0) {
         highlight.style.opacity = "0";
         positionedRef.current = false;
         return;
@@ -43,8 +53,6 @@ export function SidebarSelectionHighlight({
       const firstPosition = !positionedRef.current;
       if (firstPosition) highlight.style.transitionProperty = "none";
 
-      const containerRect = container.getBoundingClientRect();
-      const targetRect = target.getBoundingClientRect();
       highlight.style.width = `${targetRect.width}px`;
       highlight.style.height = `${targetRect.height}px`;
       highlight.style.transform = `translate3d(${targetRect.left - containerRect.left}px, ${
@@ -64,8 +72,8 @@ export function SidebarSelectionHighlight({
     position();
     const resizeObserver =
       typeof ResizeObserver === "undefined" ? null : new ResizeObserver(position);
-    if (container) resizeObserver?.observe(container);
-    if (target) resizeObserver?.observe(target);
+    resizeObserver?.observe(container);
+    resizeObserver?.observe(target);
     window.addEventListener("resize", position);
 
     return () => {
@@ -79,12 +87,15 @@ export function SidebarSelectionHighlight({
   });
 
   return (
-    <div
-      ref={highlightRef}
-      data-testid={`${scope}-selection-highlight`}
-      data-active-id={activeId ?? undefined}
-      aria-hidden="true"
-      className="pointer-events-none absolute left-0 top-0 z-0 !mt-0 rounded-xl bg-sidebar-foreground/[0.055] opacity-0 transition-[transform,width,height] duration-300 ease-out will-change-transform motion-reduce:transition-none dark:bg-white/[0.07]"
-    />
+    <div {...containerProps} ref={containerRef}>
+      {children}
+      <div
+        ref={highlightRef}
+        data-testid={`${scope}-selection-highlight`}
+        data-active-id={activeId ?? undefined}
+        aria-hidden="true"
+        className="pointer-events-none absolute left-0 top-0 z-0 !mt-0 rounded-xl bg-sidebar-foreground/[0.055] opacity-0 transition-[transform,width,height] duration-300 ease-out will-change-transform motion-reduce:transition-none dark:bg-white/[0.07]"
+      />
+    </div>
   );
 }
diff --git a/webui/src/components/settings/SettingsView.tsx b/webui/src/components/settings/SettingsView.tsx
index 66a13501e..50158080b 100644
--- a/webui/src/components/settings/SettingsView.tsx
+++ b/webui/src/components/settings/SettingsView.tsx
@@ -2501,7 +2501,6 @@ function SettingsSidebar({
   hostChromeInset?: boolean;
 }) {
   const { t } = useTranslation();
-  const desktopNavRef = useRef<HTMLDivElement>(null);
   const activeNavItemRef = useRef<HTMLButtonElement>(null);
   const activeItem = SETTINGS_NAV_ITEMS.find((item) => item.key === activeSection)
     ?? SETTINGS_NAV_ITEMS[0];
@@ -2575,7 +2574,12 @@ function SettingsSidebar({
           </DropdownMenuContent>
         </DropdownMenu>
 
-        <div ref={desktopNavRef} className="relative hidden space-y-1 lg:block">
+        <SidebarSelectionHighlight
+          targetRef={activeNavItemRef}
+          activeId={activeSection}
+          scope="settings"
+          className="relative hidden space-y-1 lg:block"
+        >
           {SETTINGS_NAV_ITEMS.map(({ key, icon: Icon, fallback }) => {
             const active = key === activeSection;
             return (
@@ -2600,13 +2604,7 @@ function SettingsSidebar({
               </button>
             );
           })}
-          <SidebarSelectionHighlight
-            containerRef={desktopNavRef}
-            targetRef={activeNavItemRef}
-            activeId={activeSection}
-            scope="settings"
-          />
-        </div>
+        </SidebarSelectionHighlight>
       </nav>
 
       <div className="hidden lg:mt-auto lg:block lg:pt-4">
diff --git a/webui/src/tests/chat-list.test.tsx b/webui/src/tests/chat-list.test.tsx
index 9c313e580..e2b0e3b3b 100644
--- a/webui/src/tests/chat-list.test.tsx
+++ b/webui/src/tests/chat-list.test.tsx
@@ -44,6 +44,7 @@ function rect({
 describe("ChatList", () => {
   afterEach(() => {
     vi.restoreAllMocks();
+    vi.unstubAllGlobals();
   });
 
   it("orders chats by latest session activity by default", () => {
@@ -220,8 +221,20 @@ describe("ChatList", () => {
     expect(within(chatsSection).queryByText("Project chat")).not.toBeInTheDocument();
   });
 
-  it("positions one background highlight, then slides it between selected topics", () => {
+  it("positions one background highlight and resets it across hidden targets", () => {
     let revealFrame: FrameRequestCallback | null = null;
+    let resizeObserverCallback: ResizeObserverCallback | null = null;
+    let activeTargetVisible = true;
+    class MockResizeObserver {
+      constructor(callback: ResizeObserverCallback) {
+        resizeObserverCallback = callback;
+      }
+
+      observe() {}
+      unobserve() {}
+      disconnect() {}
+    }
+    vi.stubGlobal("ResizeObserver", MockResizeObserver);
     vi.spyOn(window, "requestAnimationFrame").mockImplementation((callback) => {
       revealFrame = callback;
       return 1;
@@ -232,7 +245,9 @@ describe("ChatList", () => {
           return rect({ left: 0, top: 0, width: 300, height: 200 });
         }
         if (this.getAttribute("data-chat-row") === "websocket:active") {
-          return rect({ left: 8, top: 12, width: 284, height: 32 });
+          return activeTargetVisible
+            ? rect({ left: 8, top: 12, width: 284, height: 32 })
+            : rect({ left: 0, top: 0, width: 0, height: 0 });
         }
         if (this.getAttribute("data-chat-row") === "websocket:inactive") {
           return rect({ left: 8, top: 48, width: 284, height: 40 });
@@ -255,7 +270,7 @@ describe("ChatList", () => {
     const { rerender } = render(
       <ChatList
         {...props}
-        activeKey={null}
+        activeKey="websocket:active"
       />,
     );
 
@@ -265,16 +280,9 @@ describe("ChatList", () => {
       "transition-[transform,width,height]",
       "motion-reduce:transition-none",
     );
-    expect(highlight).toHaveStyle("opacity: 0");
     expect(screen.queryByTestId("sessions-selection-highlight-surface"))
       .not.toBeInTheDocument();
-
-    rerender(
-      <ChatList
-        {...props}
-        activeKey="websocket:active"
-      />,
-    );
+    expect(resizeObserverCallback).not.toBeNull();
 
     const activeButton = screen.getByTitle("Active topic");
     expect(activeButton).toHaveAttribute("aria-current", "page");
@@ -295,6 +303,17 @@ describe("ChatList", () => {
     revealFrame?.(0);
     expect(highlight.style.transitionProperty).toBe("");
 
+    activeTargetVisible = false;
+    resizeObserverCallback?.([], {} as ResizeObserver);
+    expect(highlight).toHaveStyle("opacity: 0");
+
+    activeTargetVisible = true;
+    resizeObserverCallback?.([], {} as ResizeObserver);
+    expect(highlight).toHaveStyle(
+      "width: 284px; height: 32px; transform: translate3d(8px, 12px, 0); opacity: 1; transition-property: none",
+    );
+    revealFrame?.(0);
+
     rerender(
       <ChatList
         {...props}
@@ -307,6 +326,9 @@ describe("ChatList", () => {
     expect(highlight).toHaveStyle(
       "width: 284px; height: 40px; transform: translate3d(8px, 48px, 0)",
     );
+
+    rerender(<ChatList {...props} activeKey={null} />);
+    expect(highlight).toHaveStyle("opacity: 0");
   });
 
   it("can collapse a project group and keeps project rename separate from chat titles", async () => {