diff --git a/ui/desktop/src/components/Layout/NavigationContext.tsx b/ui/desktop/src/components/Layout/NavigationContext.tsx
index e0f472fd95c8..5f714fb09520 100644
--- a/ui/desktop/src/components/Layout/NavigationContext.tsx
+++ b/ui/desktop/src/components/Layout/NavigationContext.tsx
@@ -172,14 +172,12 @@ export const NavigationProvider: React.FC<NavigationProviderProps> = ({ children
   }, [setIsNavExpanded]);
 
   useEffect(() => {
-    const handleModeChange = (e: Event) =>
-      setNavigationModeState((e as CustomEvent).detail.mode);
+    const handleModeChange = (e: Event) => setNavigationModeState((e as CustomEvent).detail.mode);
     const handleStyleChange = (e: Event) =>
       setNavigationStyleState((e as CustomEvent).detail.style);
     const handlePositionChange = (e: Event) =>
       setNavigationPositionState((e as CustomEvent).detail.position);
-    const handlePrefsChange = (e: Event) =>
-      setPreferences((e as CustomEvent).detail);
+    const handlePrefsChange = (e: Event) => setPreferences((e as CustomEvent).detail);
 
     window.addEventListener('navigation-mode-changed', handleModeChange);
     window.addEventListener('navigation-style-changed', handleStyleChange);
diff --git a/ui/desktop/src/components/settings/SettingsView.tsx b/ui/desktop/src/components/settings/SettingsView.tsx
index 92d2024ceb49..f67e362fd84c 100644
--- a/ui/desktop/src/components/settings/SettingsView.tsx
+++ b/ui/desktop/src/components/settings/SettingsView.tsx
@@ -74,7 +74,7 @@ export default function SettingsView({
 
   useEffect(() => {
     const handleKeyDown = (event: KeyboardEvent) => {
-      if (event.key === 'Escape') {
+      if (event.key === 'Escape' && !event.defaultPrevented) {
         onClose();
       }
     };
diff --git a/ui/desktop/src/components/settings/dictation/DictationSettings.tsx b/ui/desktop/src/components/settings/dictation/DictationSettings.tsx
index 848346c38d3c..07a3a5e84e19 100644
--- a/ui/desktop/src/components/settings/dictation/DictationSettings.tsx
+++ b/ui/desktop/src/components/settings/dictation/DictationSettings.tsx
@@ -6,10 +6,17 @@ import { Input } from '../../ui/input';
 import { Button } from '../../ui/button';
 import { trackSettingToggled } from '../../../utils/analytics';
 import { LocalModelManager } from './LocalModelManager';
+import { DICTATION_ALLOWED_PROVIDERS } from '../../../updates';
+import {
+  DropdownMenu,
+  DropdownMenuContent,
+  DropdownMenuRadioGroup,
+  DropdownMenuRadioItem,
+  DropdownMenuTrigger,
+} from '../../ui/dropdown-menu';
 
 export const DictationSettings = () => {
   const [provider, setProvider] = useState<DictationProvider | null>(null);
-  const [showProviderDropdown, setShowProviderDropdown] = useState(false);
   const [providerStatuses, setProviderStatuses] = useState<Record<string, DictationProviderStatus>>(
     {}
   );
@@ -17,41 +24,39 @@ export const DictationSettings = () => {
   const [isEditingKey, setIsEditingKey] = useState(false);
   const { read, upsert, remove } = useConfig();
 
+  const refreshStatuses = async () => {
+    const audioConfig = await getDictationConfig();
+    setProviderStatuses(audioConfig.data || {});
+  };
+
   useEffect(() => {
     const loadSettings = async () => {
       const providerValue = await read('voice_dictation_provider', false);
-      const loadedProvider: DictationProvider | null = (providerValue as DictationProvider) || null;
-      setProvider(loadedProvider);
+      let loadedProvider: DictationProvider | null = (providerValue as DictationProvider) || null;
+
+      if (
+        DICTATION_ALLOWED_PROVIDERS &&
+        loadedProvider &&
+        !DICTATION_ALLOWED_PROVIDERS.includes(loadedProvider)
+      ) {
+        loadedProvider = null;
+        await upsert('voice_dictation_provider', '', false);
+      }
 
-      const audioConfig = await getDictationConfig();
-      setProviderStatuses(audioConfig.data || {});
+      setProvider(loadedProvider);
+      await refreshStatuses();
     };
 
     loadSettings();
-  }, [read]);
+  }, [read, upsert]);
 
-  const saveProvider = async (newProvider: DictationProvider | null) => {
-    console.log('Saving dictation provider to backend config:', newProvider);
+  const handleProviderChange = (value: string) => {
+    const newProvider = value === 'disabled' ? null : (value as DictationProvider);
     setProvider(newProvider);
-    await upsert('voice_dictation_provider', newProvider || '', false);
+    upsert('voice_dictation_provider', newProvider || '', false);
     trackSettingToggled('voice_dictation', newProvider !== null);
   };
 
-  const handleProviderChange = (newProvider: DictationProvider | null) => {
-    saveProvider(newProvider);
-    setShowProviderDropdown(false);
-  };
-
-  const handleDropdownToggle = async () => {
-    const newShowState = !showProviderDropdown;
-    setShowProviderDropdown(newShowState);
-
-    if (newShowState) {
-      const audioConfig = await getDictationConfig();
-      setProviderStatuses(audioConfig.data || {});
-    }
-  };
-
   const handleSaveKey = async () => {
     if (!provider) return;
     const providerConfig = providerStatuses[provider];
@@ -64,9 +69,7 @@ export const DictationSettings = () => {
     await upsert(keyName, trimmedKey, true);
     setApiKey('');
     setIsEditingKey(false);
-
-    const audioConfig = await getDictationConfig();
-    setProviderStatuses(audioConfig.data || {});
+    await refreshStatuses();
   };
 
   const handleRemoveKey = async () => {
@@ -78,9 +81,7 @@ export const DictationSettings = () => {
     await remove(keyName, true);
     setApiKey('');
     setIsEditingKey(false);
-
-    const audioConfig = await getDictationConfig();
-    setProviderStatuses(audioConfig.data || {});
+    await refreshStatuses();
   };
 
   const handleCancelEdit = () => {
@@ -88,11 +89,15 @@ export const DictationSettings = () => {
     setIsEditingKey(false);
   };
 
-  const getProviderLabel = (provider: DictationProvider | null): string => {
-    if (!provider) return 'Disabled';
-    return provider.charAt(0).toUpperCase() + provider.slice(1);
+  const getProviderLabel = (p: DictationProvider | null): string => {
+    if (!p) return 'Disabled';
+    return p.charAt(0).toUpperCase() + p.slice(1);
   };
 
+  const visibleProviders = (Object.keys(providerStatuses) as DictationProvider[]).filter(
+    (p) => !DICTATION_ALLOWED_PROVIDERS || DICTATION_ALLOWED_PROVIDERS.includes(p)
+  );
+
   return (
     <div className="space-y-4">
       <div className="flex items-center justify-between py-2 px-2 hover:bg-background-secondary rounded-lg transition-all">
@@ -102,47 +107,28 @@ export const DictationSettings = () => {
             Choose how voice is converted to text
           </p>
         </div>
-        <div className="relative">
-          <button
-            onClick={handleDropdownToggle}
-            className="flex items-center gap-2 px-3 py-1.5 text-sm border border-border-primary rounded-md hover:border-border-primary transition-colors text-text-primary bg-background-primary"
-          >
+        <DropdownMenu onOpenChange={(open) => open && refreshStatuses()}>
+          <DropdownMenuTrigger className="flex items-center gap-2 px-3 py-1.5 text-sm border border-border-primary rounded-md hover:border-border-primary transition-colors text-text-primary bg-background-primary">
             {getProviderLabel(provider)}
             <ChevronDown className="w-4 h-4" />
-          </button>
-
-          {showProviderDropdown && (
-            <div className="absolute right-0 mt-1 w-max min-w-[250px] max-w-[350px] bg-background-primary border border-border-primary rounded-md shadow-lg z-50">
-              <button
-                onClick={() => handleProviderChange(null)}
-                className="w-full px-3 py-2 text-left text-sm transition-colors hover:bg-background-secondary text-text-primary whitespace-nowrap first:rounded-t-md"
-              >
-                <span className="flex items-center justify-between gap-2">
-                  <span>Disabled</span>
-                  {provider === null && <span>✓</span>}
-                </span>
-              </button>
-
-              {(Object.keys(providerStatuses) as DictationProvider[]).map((p) => (
-                <button
-                  key={p}
-                  onClick={() => handleProviderChange(p)}
-                  className="w-full px-3 py-2 text-left text-sm transition-colors hover:bg-background-secondary text-text-primary whitespace-nowrap last:rounded-b-md"
-                >
-                  <span className="flex items-center justify-between gap-2">
-                    <span>
-                      {getProviderLabel(p)}
-                      {!providerStatuses[p]?.configured && (
-                        <span className="text-xs ml-1 text-text-secondary">(not configured)</span>
-                      )}
-                    </span>
-                    {provider === p && <span>✓</span>}
-                  </span>
-                </button>
+          </DropdownMenuTrigger>
+          <DropdownMenuContent align="end" className="w-max min-w-[250px] max-w-[350px]">
+            <DropdownMenuRadioGroup
+              value={provider ?? 'disabled'}
+              onValueChange={handleProviderChange}
+            >
+              <DropdownMenuRadioItem value="disabled">Disabled</DropdownMenuRadioItem>
+              {visibleProviders.map((p) => (
+                <DropdownMenuRadioItem key={p} value={p}>
+                  {getProviderLabel(p)}
+                  {!providerStatuses[p]?.configured && (
+                    <span className="text-xs ml-1 text-text-secondary">(not configured)</span>
+                  )}
+                </DropdownMenuRadioItem>
               ))}
-            </div>
-          )}
-        </div>
+            </DropdownMenuRadioGroup>
+          </DropdownMenuContent>
+        </DropdownMenu>
       </div>
 
       {provider && providerStatuses[provider] && (
diff --git a/ui/desktop/src/updates.ts b/ui/desktop/src/updates.ts
index 14e49fc10a07..88f257c8e301 100644
--- a/ui/desktop/src/updates.ts
+++ b/ui/desktop/src/updates.ts
@@ -3,3 +3,4 @@ export const COST_TRACKING_ENABLED = true;
 export const ANNOUNCEMENTS_ENABLED = false;
 export const CONFIGURATION_ENABLED = true;
 export const TELEMETRY_UI_ENABLED = true;
+export const DICTATION_ALLOWED_PROVIDERS: string[] | null = null;