diff --git a/Commons/Settings.qml b/Commons/Settings.qml
index 5ad8f6e2..3458032e 100644
--- a/Commons/Settings.qml
+++ b/Commons/Settings.qml
@@ -674,7 +674,7 @@ Singleton {
       // Read raw JSON file to access properties not in adapter schema
       try {
         var rawJson = settingsFileView.text()
-        
+
         if (rawJson) {
           var parsed = JSON.parse(rawJson)
           if (parsed.appLauncher && parsed.appLauncher.backgroundOpacity !== undefined) {
diff --git a/Modules/MainScreen/SmartPanel.qml b/Modules/MainScreen/SmartPanel.qml
index a9a335ca..5a5f25c6 100644
--- a/Modules/MainScreen/SmartPanel.qml
+++ b/Modules/MainScreen/SmartPanel.qml
@@ -28,8 +28,6 @@ Item {
   property real preferredHeight: 900
   property real preferredWidthRatio
   property real preferredHeightRatio
-  property color panelBackgroundColor: Color.mSurface
-  property color panelBorderColor: Color.mOutline
   property var buttonItem: null
   property bool forceAttachToBar: false
 
@@ -41,6 +39,9 @@ Item {
   property bool panelAnchorLeft: false
   property bool panelAnchorRight: false
 
+  // Keyboard focus
+  property bool exclusiveKeyboard: true
+
   // Track if window has been created (for lazy loading)
   property bool windowCreated: false
 
@@ -190,8 +191,7 @@ Item {
       placeholder: panelPlaceholder
       panelContent: root.panelContent
       panelWrapper: root // Pass reference to SmartPanel for keyboard handlers
-      panelBackgroundColor: root.panelBackgroundColor
-      panelBorderColor: root.panelBorderColor
+      exclusiveKeyboard: root.exclusiveKeyboard
 
       // Forward signals
       onPanelOpened: root.opened()
diff --git a/Modules/MainScreen/SmartPanelWindow.qml b/Modules/MainScreen/SmartPanelWindow.qml
index bea07ef9..64c9d44f 100644
--- a/Modules/MainScreen/SmartPanelWindow.qml
+++ b/Modules/MainScreen/SmartPanelWindow.qml
@@ -24,9 +24,8 @@ PanelWindow {
   // Reference to the SmartPanel wrapper (for keyboard handlers)
   property var panelWrapper: null
 
-  // Color properties (forwarded from SmartPanel)
-  property color panelBackgroundColor: Color.mSurface
-  property color panelBorderColor: Color.mOutline
+  // Keyboard focus
+  property bool exclusiveKeyboard: true
 
   // Track whether panel is open
   property bool isPanelOpen: false
@@ -129,17 +128,7 @@ PanelWindow {
   WlrLayershell.layer: WlrLayer.Top
   WlrLayershell.namespace: "noctalia-panel-content-" + placeholder.panelName + "-" + (placeholder.screen?.name || "unknown")
   WlrLayershell.exclusionMode: ExclusionMode.Ignore
-
-  // Different compositor handle the keyboard focus differently (inc. mouse)
-  // This ensures all keyboard shortcuts work reliably (Escape, etc.)
-  // Also ensures that the launcher get proper focus on launch.
-  WlrLayershell.keyboardFocus: {
-    if (CompositorService.isNiri) {
-      return root.isPanelOpen ? WlrKeyboardFocus.Exclusive : WlrKeyboardFocus.None
-    } else {
-      return root.isPanelOpen ? WlrKeyboardFocus.OnDemand : WlrKeyboardFocus.None
-    }
-  }
+  WlrLayershell.keyboardFocus: !root.isPanelOpen ? WlrKeyboardFocus.None : (exclusiveKeyboard ? WlrKeyboardFocus.Exclusive : WlrKeyboardFocus.OnDemand)
 
   // Anchor to all edges to make fullscreen
   anchors {
diff --git a/Modules/Panels/Launcher/Launcher.qml b/Modules/Panels/Launcher/Launcher.qml
index fb2851e5..3faf2bb3 100644
--- a/Modules/Panels/Launcher/Launcher.qml
+++ b/Modules/Panels/Launcher/Launcher.qml
@@ -19,8 +19,6 @@ SmartPanel {
   preferredWidthRatio: 0.3
   preferredHeightRatio: 0.5
 
-  exclusiveKeyboard: true
-
   // Positioning
   readonly property string panelPosition: {
     if (Settings.data.appLauncher.position === "follow_bar") {
diff --git a/Modules/Panels/Tray/TrayDrawerPanel.qml b/Modules/Panels/Tray/TrayDrawerPanel.qml
index ffc9bb8d..bbe02ded 100644
--- a/Modules/Panels/Tray/TrayDrawerPanel.qml
+++ b/Modules/Panels/Tray/TrayDrawerPanel.qml
@@ -12,6 +12,9 @@ import qs.Modules.MainScreen
 SmartPanel {
   id: root
 
+  // Do not give exclusive focus to the TrayDrawer or it will prevent the dropdown menu to request it.
+  exclusiveKeyboard: false
+
   // Widget info for menu functionality
   property string widgetSection: ""
   property int widgetIndex: -1