diff --git a/crates/viewer/re_context_menu/src/lib.rs b/crates/viewer/re_context_menu/src/lib.rs
index 2ca4209c9f4b..603d503b93cc 100644
--- a/crates/viewer/re_context_menu/src/lib.rs
+++ b/crates/viewer/re_context_menu/src/lib.rs
@@ -43,7 +43,7 @@ pub fn context_menu_ui_for_item(
     selection_update_behavior: SelectionUpdateBehavior,
 ) {
     item_response.context_menu(|ui| {
-        if ui.input(|i| i.key_pressed(egui::Key::Escape)) {
+        if ui.input_mut(|i| i.consume_key(egui::Modifiers::NONE, egui::Key::Escape)) {
             ui.close_menu();
             return;
         }
diff --git a/crates/viewer/re_ui/src/modal.rs b/crates/viewer/re_ui/src/modal.rs
index b2cc9d03820c..ba8048e15a01 100644
--- a/crates/viewer/re_ui/src/modal.rs
+++ b/crates/viewer/re_ui/src/modal.rs
@@ -164,7 +164,8 @@ impl Modal {
     ) -> ModalResponse<R> {
         Self::dim_background(ctx);
 
-        let mut open = ctx.input(|i| !i.key_pressed(egui::Key::Escape));
+        // We consume such as to avoid the top-level deselect-on-ESC behavior.
+        let mut open = ctx.input_mut(|i| !i.consume_key(egui::Modifiers::NONE, egui::Key::Escape));
 
         let screen_height = ctx.screen_rect().height();
         let modal_vertical_margins = (75.0).at_most(screen_height * 0.1);
diff --git a/crates/viewer/re_viewer/src/app_state.rs b/crates/viewer/re_viewer/src/app_state.rs
index 4c39a8ae9951..7e85957a0cbc 100644
--- a/crates/viewer/re_viewer/src/app_state.rs
+++ b/crates/viewer/re_viewer/src/app_state.rs
@@ -157,6 +157,9 @@ impl AppState {
             focused_item,
         } = self;
 
+        // check state early, before the UI has a chance to close these popups
+        let is_any_popup_open = ui.memory(|m| m.any_popup_open());
+
         // Some of the mutations APIs of `ViewportBlueprints` are recorded as `Viewport::TreeAction`
         // and must be applied by `Viewport` at the end of the frame. We use a temporary channel for
         // this, which gives us interior mutability (only a shared reference of `ViewportBlueprint`
@@ -202,10 +205,6 @@ impl AppState {
             )),
         );
 
-        if ui.input(|i| i.key_pressed(egui::Key::Escape)) {
-            selection_state.clear_selection();
-        }
-
         let applicable_entities_per_visualizer = space_view_class_registry
             .applicable_entities_for_visualizer_systems(recording.store_id());
         let indicated_entities_per_visualizer =
@@ -470,6 +469,11 @@ impl AppState {
         // This must run after any ui code, or other code that tells egui to open an url:
         check_for_clicked_hyperlinks(&egui_ctx, ctx.selection_state);
 
+        // Deselect on ESC. Must happen after all other UI code to let them capture ESC if needed.
+        if ui.input(|i| i.key_pressed(egui::Key::Escape)) && !is_any_popup_open {
+            selection_state.clear_selection();
+        }
+
         // Reset the focused item.
         *focused_item = None;
     }
diff --git a/tests/python/release_checklist/check_deselect_on_escape.py b/tests/python/release_checklist/check_deselect_on_escape.py
new file mode 100644
index 000000000000..fcbb5ca1603e
--- /dev/null
+++ b/tests/python/release_checklist/check_deselect_on_escape.py
@@ -0,0 +1,48 @@
+from __future__ import annotations
+
+import os
+from argparse import Namespace
+from uuid import uuid4
+
+import rerun as rr
+
+README = """\
+# Deselect on Escape
+
+This checks that the deselect-on-escape works as expected.
+
+### Actions
+
+* Base behavior: select the 3D view and hit ESC => the view is no longer selected.
+
+In all the following cases, the 3D view should *remain selected*.
+
+* Select the 3D view, open the "Background Kind" dropdown in the selection panel, and hit ESC.
+* Select the 3D view, open the "Add space view or container" modal, and hit ESC.
+* Select the 3D view, right-click on it in the blueprint tree, and hit ESC.
+* Select the 3D view, open the Rerun menu, and hit ESC (KNOWN FAIL).
+"""
+
+
+def log_readme() -> None:
+    rr.log("readme", rr.TextDocument(README, media_type=rr.MediaType.MARKDOWN), timeless=True)
+
+
+def log_some_data() -> None:
+    rr.log("data", rr.Points3D([0, 0, 0]))
+
+
+def run(args: Namespace) -> None:
+    rr.script_setup(args, f"{os.path.basename(__file__)}", recording_id=uuid4())
+
+    log_readme()
+    log_some_data()
+
+
+if __name__ == "__main__":
+    import argparse
+
+    parser = argparse.ArgumentParser(description="Interactive release checklist")
+    rr.script_add_args(parser)
+    args = parser.parse_args()
+    run(args)