diff --git a/app/client/packages/design-system/ads/src/List/List.tsx b/app/client/packages/design-system/ads/src/List/List.tsx
index a6d74126c84a..95b905e7e61d 100644
--- a/app/client/packages/design-system/ads/src/List/List.tsx
+++ b/app/client/packages/design-system/ads/src/List/List.tsx
@@ -1,4 +1,4 @@
-import React, { useEffect, useState } from "react";
+import React, { useState } from "react";
 import clsx from "classnames";
 
 import type { ListItemProps, ListProps } from "./List.types";
@@ -22,6 +22,7 @@ import {
   ListItemTextOverflowClassName,
   ListItemTitleClassName,
 } from "./List.constants";
+import { useEventCallback } from "usehooks-ts";
 
 function List({ className, items, ...rest }: ListProps) {
   return (
@@ -34,39 +35,30 @@ function List({ className, items, ...rest }: ListProps) {
 }
 
 function TextWithTooltip(props: TextProps & { isMultiline?: boolean }) {
-  const ref = React.useRef<HTMLDivElement>(null);
   const [disableTooltip, setDisableTooltip] = useState(true);
 
-  const isEllipsisActive = () => {
-    let active = false;
-
-    if (ref.current) {
-      const text_node = ref.current.children[0];
-
-      if (props.isMultiline) {
-        active = text_node && text_node.clientHeight < text_node.scrollHeight;
-      } else {
-        active = text_node && text_node.clientWidth < text_node.scrollWidth;
+  const handleShowFullText = useEventCallback(
+    (e: React.MouseEvent<HTMLDivElement, MouseEvent>) => {
+      let isInEllipsis = false;
+      const text_node = e.target;
+
+      if (text_node instanceof HTMLElement) {
+        if (props.isMultiline) {
+          isInEllipsis =
+            text_node && text_node.clientHeight < text_node.scrollHeight;
+        } else {
+          isInEllipsis =
+            text_node && text_node.clientWidth < text_node.scrollWidth;
+        }
       }
-    }
 
-    setDisableTooltip(!active);
-  };
-
-  useEffect(() => {
-    if (ref.current) {
-      isEllipsisActive();
-      ref.current.addEventListener("mouseover", isEllipsisActive);
-
-      return () => {
-        ref.current?.removeEventListener("mouseover", isEllipsisActive);
-      };
-    }
-  }, []);
+      setDisableTooltip(!isInEllipsis);
+    },
+  );
 
   return (
     <Tooltip content={props.children} isDisabled={disableTooltip}>
-      <TooltipTextWrapper ref={ref}>
+      <TooltipTextWrapper onMouseOver={handleShowFullText}>
         <Text
           {...props}
           className={clsx(ListItemTextOverflowClassName, props.className)}
@@ -92,21 +84,25 @@ function ListItem(props: ListItemProps) {
   const isBlockDescription = descriptionType === "block" && description;
   const isInlineDescription = descriptionType === "inline" && description;
 
-  const handleOnClick = () => {
+  const handleOnClick = useEventCallback((e: React.MouseEvent) => {
+    e.stopPropagation();
+
     if (!props.isDisabled && props.onClick) {
-      props.onClick();
+      props.onClick(e);
     }
-  };
+  });
+
+  const handleDoubleClick = useEventCallback((e: React.MouseEvent) => {
+    e.stopPropagation();
 
-  const handleDoubleClick = () => {
     if (!props.isDisabled && props.onDoubleClick) {
       props.onDoubleClick();
     }
-  };
+  });
 
-  const handleRightControlClick = (e: React.MouseEvent) => {
+  const handleRightControlClick = useEventCallback((e: React.MouseEvent) => {
     e.stopPropagation();
-  };
+  });
 
   return (
     <StyledListItem
@@ -114,6 +110,7 @@ function ListItem(props: ListItemProps) {
       data-disabled={props.isDisabled || false}
       data-rightcontrolvisibility={rightControlVisibility}
       data-selected={props.isSelected}
+      id={props.id}
       onClick={handleOnClick}
       onDoubleClick={handleDoubleClick}
       role="listitem"
diff --git a/app/client/packages/design-system/ads/src/List/List.types.tsx b/app/client/packages/design-system/ads/src/List/List.types.tsx
index ecf63fc6522c..282d463f7b24 100644
--- a/app/client/packages/design-system/ads/src/List/List.types.tsx
+++ b/app/client/packages/design-system/ads/src/List/List.types.tsx
@@ -1,5 +1,5 @@
 import type { Sizes } from "../__config__/types";
-import type { ReactNode } from "react";
+import type { MouseEvent, ReactNode } from "react";
 
 export type ListSizes = Extract<Sizes, "md" | "lg">;
 
@@ -11,7 +11,7 @@ export interface ListItemProps {
   /** Control the visibility trigger of right control */
   rightControlVisibility?: "hover" | "always";
   /** callback for when the list item is clicked */
-  onClick: () => void;
+  onClick: (e: MouseEvent) => void;
   /** callback for when the list item is double-clicked */
   onDoubleClick?: () => void;
   /** Whether the list item is disabled. */
diff --git a/app/client/packages/design-system/ads/src/Templates/EntityExplorer/Editable/useEditableText.test.tsx b/app/client/packages/design-system/ads/src/Templates/EntityExplorer/Editable/useEditableText.test.tsx
index 455c3f8cc612..d314a8e193cb 100644
--- a/app/client/packages/design-system/ads/src/Templates/EntityExplorer/Editable/useEditableText.test.tsx
+++ b/app/client/packages/design-system/ads/src/Templates/EntityExplorer/Editable/useEditableText.test.tsx
@@ -82,6 +82,7 @@ describe("useEditableText", () => {
     act(() => {
       handleKeyUp({
         key: "Enter",
+        stopPropagation: jest.fn(),
       } as unknown as React.KeyboardEvent<HTMLInputElement>);
     });
 
@@ -113,6 +114,7 @@ describe("useEditableText", () => {
     act(() => {
       handleKeyUp({
         key: "Enter",
+        stopPropagation: jest.fn(),
       } as unknown as React.KeyboardEvent<HTMLInputElement>);
     });
 
@@ -134,7 +136,10 @@ describe("useEditableText", () => {
     const [, , , handleKeyUp] = result.current;
 
     act(() => {
-      handleKeyUp({ key: "Escape" } as React.KeyboardEvent<HTMLInputElement>);
+      handleKeyUp({
+        key: "Escape",
+        stopPropagation: jest.fn(),
+      } as unknown as React.KeyboardEvent<HTMLInputElement>);
     });
 
     expect(mockExitEditing).toHaveBeenCalled();
@@ -155,7 +160,10 @@ describe("useEditableText", () => {
     const [, , , handleKeyUp] = result.current;
 
     act(() => {
-      handleKeyUp({ key: "Enter" } as React.KeyboardEvent<HTMLInputElement>);
+      handleKeyUp({
+        key: "Enter",
+        stopPropagation: jest.fn(),
+      } as unknown as React.KeyboardEvent<HTMLInputElement>);
     });
 
     expect(mockExitEditing).toHaveBeenCalled();
diff --git a/app/client/packages/design-system/ads/src/Templates/EntityExplorer/Editable/useEditableText.ts b/app/client/packages/design-system/ads/src/Templates/EntityExplorer/Editable/useEditableText.ts
index ac8d6d5e621b..59b3d4e26784 100644
--- a/app/client/packages/design-system/ads/src/Templates/EntityExplorer/Editable/useEditableText.ts
+++ b/app/client/packages/design-system/ads/src/Templates/EntityExplorer/Editable/useEditableText.ts
@@ -74,6 +74,8 @@ export function useEditableText(
   ]);
 
   const handleKeyUp = useEventCallback((e: KeyboardEvent<HTMLInputElement>) => {
+    e.stopPropagation();
+
     if (e.key === "Enter") {
       attemptSave();
     } else if (e.key === "Escape") {
diff --git a/app/client/packages/design-system/ads/src/Templates/EntityExplorer/EntityItem/EntityItem.stories.tsx b/app/client/packages/design-system/ads/src/Templates/EntityExplorer/EntityItem/EntityItem.stories.tsx
index eb4be22a56b6..7b73e7a8b559 100644
--- a/app/client/packages/design-system/ads/src/Templates/EntityExplorer/EntityItem/EntityItem.stories.tsx
+++ b/app/client/packages/design-system/ads/src/Templates/EntityExplorer/EntityItem/EntityItem.stories.tsx
@@ -36,6 +36,7 @@ const Template = (props: EntityItemProps) => {
       <ExplorerContainer borderRight="STANDARD" height="500px" width="255px">
         <Flex flexDirection="column" gap="spaces-2" p="spaces-3">
           <EntityItem
+            id="storyItem"
             onDoubleClick={() => {
               setIsEditing(true);
             }}
diff --git a/app/client/packages/design-system/ads/src/Templates/EntityExplorer/EntityItem/EntityItem.tsx b/app/client/packages/design-system/ads/src/Templates/EntityExplorer/EntityItem/EntityItem.tsx
index df92daef4400..dfeb0279eb49 100644
--- a/app/client/packages/design-system/ads/src/Templates/EntityExplorer/EntityItem/EntityItem.tsx
+++ b/app/client/packages/design-system/ads/src/Templates/EntityExplorer/EntityItem/EntityItem.tsx
@@ -4,6 +4,7 @@ import { ListItem, Spinner, Tooltip } from "../../..";
 import type { EntityItemProps } from "./EntityItem.types";
 import { EntityEditableName } from "./EntityItem.styles";
 import { useEditableText } from "../Editable";
+import clx from "classnames";
 
 export const EntityItem = (props: EntityItemProps) => {
   const {
@@ -77,7 +78,10 @@ export const EntityItem = (props: EntityItemProps) => {
   return (
     <ListItem
       {...props}
+      className={clx("t--entity-item", props.className)}
       customTitleComponent={customTitle}
+      data-testid={`t--entity-item-${props.title}`}
+      id={"entity-" + props.id}
       startIcon={startIcon}
     />
   );
diff --git a/app/client/packages/design-system/ads/src/Templates/EntityExplorer/EntityItem/EntityItem.types.ts b/app/client/packages/design-system/ads/src/Templates/EntityExplorer/EntityItem/EntityItem.types.ts
index 09244c4b3b1f..36873a9f422a 100644
--- a/app/client/packages/design-system/ads/src/Templates/EntityExplorer/EntityItem/EntityItem.types.ts
+++ b/app/client/packages/design-system/ads/src/Templates/EntityExplorer/EntityItem/EntityItem.types.ts
@@ -5,6 +5,8 @@ export interface EntityItemProps
     ListItemProps,
     "customTitleComponent" | "description" | "descriptionType"
   > {
+  /** ID of the entity. Will be added to the markup for identification */
+  id: string;
   /** Control the name editing behaviour */
   nameEditorConfig: {
     // Set editable based on user permissions