diff --git a/web/package/cockpit-agama.changes b/web/package/cockpit-agama.changes
index 51ad097014..791086ffdd 100644
--- a/web/package/cockpit-agama.changes
+++ b/web/package/cockpit-agama.changes
@@ -1,3 +1,10 @@
+-------------------------------------------------------------------
+Wed Aug  2 18:59:16 UTC 2023 - Balsa Asanovic <balsaasanovic95@gmail.com>
+
+- Introduced functionality to close Dropdown automatically
+  when the user clicks outside of it.
+  (gh#openSUSE/agama#552).
+  
 -------------------------------------------------------------------
 Wed Aug  2 10:03:23 UTC 2023 - Imobach Gonzalez Sosa <igonzalezsosa@suse.com>
 
diff --git a/web/src/components/core/PageOptions.jsx b/web/src/components/core/PageOptions.jsx
index a25a5a264e..cf3c9d3de0 100644
--- a/web/src/components/core/PageOptions.jsx
+++ b/web/src/components/core/PageOptions.jsx
@@ -19,7 +19,7 @@
  * find current contact information at www.suse.com.
  */
 
-import React, { useState } from 'react';
+import React, { useState, useEffect, useRef } from 'react';
 import { Button, Dropdown, DropdownItem, DropdownGroup } from '@patternfly/react-core';
 import { Icon, PageOptions as PageOptionsSlot } from "~/components/layout";
 
@@ -114,20 +114,40 @@ const Item = ({ children, ...props }) => {
  */
 const PageOptions = ({ children }) => {
   const [isOpen, setIsOpen] = useState(false);
+  const dropdownRef = useRef(null);
+
   const onToggle = () => setIsOpen(!isOpen);
   const onSelect = () => setIsOpen(false);
 
+  useEffect(() => {
+    const handleClickOutside = (event) => {
+      if (dropdownRef.current && !dropdownRef.current.contains(event.target)) {
+        setIsOpen(false);
+      }
+    };
+
+    if (isOpen) {
+      document.addEventListener('click', handleClickOutside);
+    }
+
+    return () => {
+      document.removeEventListener('click', handleClickOutside);
+    };
+  }, [isOpen]);
+
   return (
     <PageOptionsSlot>
-      <Dropdown
-        isOpen={isOpen}
-        toggle={<Toggler onClick={onToggle} />}
-        onSelect={onSelect}
-        dropdownItems={Array(children)}
-        position="right"
-        className="page-options"
-        isGrouped
-      />
+      <div ref={dropdownRef}>
+        <Dropdown
+          isOpen={isOpen}
+          toggle={<Toggler onClick={onToggle} />}
+          onSelect={onSelect}
+          dropdownItems={Array(children)}
+          position="right"
+          className="page-options"
+          isGrouped
+        />
+      </div>
     </PageOptionsSlot>
   );
 };
diff --git a/web/src/components/core/PageOptions.test.jsx b/web/src/components/core/PageOptions.test.jsx
index 00c26aaafa..31576c26dd 100644
--- a/web/src/components/core/PageOptions.test.jsx
+++ b/web/src/components/core/PageOptions.test.jsx
@@ -20,7 +20,7 @@
  */
 
 import React from "react";
-import { screen } from "@testing-library/react";
+import { screen, fireEvent } from "@testing-library/react";
 import { plainRender, mockLayout } from "~/test-utils";
 import { PageOptions } from "~/components/core";
 
@@ -74,3 +74,25 @@ it("hide the component content when the user clicks on one of its actions", asyn
 
   expect(screen.queryByRole("menuitem", { name: "A dummy action" })).toBeNull();
 });
+
+it('should close the dropdown on click outside', async () => {
+  const { user } = plainRender(
+    <PageOptions>
+      <PageOptions.Item><>Item 1</></PageOptions.Item>
+      <PageOptions.Item><>Item 2</></PageOptions.Item>
+    </PageOptions>
+  );
+
+  // Open the dropdown
+  const toggler = screen.getByRole("button");
+  await user.click(toggler);
+
+  // Ensure the dropdown is open
+  screen.getByRole("menuitem", { name: "Item 2" });
+
+  // Click outside the dropdown
+  fireEvent.click(document);
+
+  // Ensure the dropdown is closed
+  expect(screen.queryByRole("menuitem", { name: "Item 2" })).toBeNull();
+});