diff --git a/web/apps/dashboard/components/ui/combobox.tsx b/web/apps/dashboard/components/ui/combobox.tsx
index b05f153c09..ab62fa0299 100644
--- a/web/apps/dashboard/components/ui/combobox.tsx
+++ b/web/apps/dashboard/components/ui/combobox.tsx
@@ -111,7 +111,7 @@ export function Combobox({
   );
 
   return (
-    <Popover open={open} onOpenChange={setOpen}>
+    <Popover open={open} onOpenChange={setOpen} modal={true}>
       <div className={cn(comboboxWrapperVariants({ variant }), wrapperClassName)}>
         {leftIcon && (
           <div className="absolute left-3 flex items-center pointer-events-none">{leftIcon}</div>
@@ -149,21 +149,35 @@ export function Combobox({
         </PopoverTrigger>
       </div>
       <PopoverContent
-        align="start"
-        className="p-0 w-[var(--radix-popover-trigger-width)] rounded-lg border border-grayA-4 bg-white dark:bg-black shadow-md z-50"
+        className="p-0 w-full min-w-[var(--radix-popover-trigger-width)] rounded-lg border border-grayA-4 bg-white dark:bg-black shadow-md z-[200] overflow-visible"
+        onOpenAutoFocus={(e) => {
+          // Prevent auto-focus to allow proper keyboard navigation
+          e.preventDefault();
+        }}
       >
-        <Command>
+        <Command
+          onKeyDown={(e) => {
+            // Allow keyboard navigation within the combobox
+            if (
+              e.key === "ArrowDown" ||
+              e.key === "ArrowUp" ||
+              e.key === "Enter" ||
+              e.key === "Escape"
+            ) {
+              e.stopPropagation();
+            }
+          }}
+        >
           <CommandInput
             onInput={onChange}
             onKeyDown={(e) => {
-              if (e.key !== "Enter" && e.key !== " ") {
-                e.stopPropagation();
-              }
+              // Prevent propagation to Dialog but allow command list navigation
+              e.stopPropagation();
             }}
             placeholder={searchPlaceholder}
             className="text-xs placeholder:text-xs placeholder:text-accent-8"
           />
-          <CommandList className="max-h-[300px] overflow-y-auto overflow-x-hidden">
+          <CommandList className="max-h-[300px] overflow-y-auto overflow-x-hidden scrollbar-thin">
             <CommandEmpty>{emptyMessage}</CommandEmpty>
             <CommandGroup className="max-h-[260px] overflow-y-auto">
               {options.map((option) => (
diff --git a/web/apps/dashboard/components/ui/form-combobox.tsx b/web/apps/dashboard/components/ui/form-combobox.tsx
index e7b9e4f527..910313128a 100644
--- a/web/apps/dashboard/components/ui/form-combobox.tsx
+++ b/web/apps/dashboard/components/ui/form-combobox.tsx
@@ -57,8 +57,9 @@ export const FormCombobox = React.forwardRef<HTMLDivElement, FormComboboxProps>(
     },
     ref,
   ) => {
+    const generatedId = React.useId();
     const inputVariant = error ? "error" : variant;
-    const inputId = propId || React.useId();
+    const inputId = propId || generatedId;
     const descriptionId = `${inputId}-helper`;
     const errorId = `${inputId}-error`;
 
diff --git a/web/internal/ui/src/components/dialog/dialog.tsx b/web/internal/ui/src/components/dialog/dialog.tsx
index f5dbe2bbf1..9779cb3350 100644
--- a/web/internal/ui/src/components/dialog/dialog.tsx
+++ b/web/internal/ui/src/components/dialog/dialog.tsx
@@ -74,6 +74,11 @@ const DialogContent = React.forwardRef<
             className,
           )}
           onKeyDown={(e) => {
+            // Allow keyboard navigation for nested interactive elements
+            if (e.key === "ArrowDown" || e.key === "ArrowUp" || e.key === "Enter") {
+              // Let these events propagate to nested components like Combobox
+              return;
+            }
             // Prevent Tab key from closing the dialog
             if (e.key === "Tab") {
               e.stopPropagation();
@@ -106,6 +111,13 @@ const DialogContent = React.forwardRef<
             // Also prevent interact outside events when preventOutsideClose is true
             if (preventOutsideClose) {
               e.preventDefault();
+              return;
+            }
+
+            // Allow interactions with nested popovers/portals (e.g., Combobox dropdowns)
+            const target = e.target as HTMLElement;
+            if (target.closest('[role="listbox"]') || target.closest("[cmdk-root]")) {
+              e.preventDefault();
             }
           }}
           {...props}
diff --git a/web/internal/ui/src/components/dialog/navigable-dialog.tsx b/web/internal/ui/src/components/dialog/navigable-dialog.tsx
index 27836e17f4..8f6b5d26da 100644
--- a/web/internal/ui/src/components/dialog/navigable-dialog.tsx
+++ b/web/internal/ui/src/components/dialog/navigable-dialog.tsx
@@ -68,7 +68,18 @@ const NavigableDialogRoot = <TStepName extends string>({
       <Dialog open={isOpen} onOpenChange={onOpenChange} modal={true}>
         <DialogPortal>
           <DialogContent
-            onKeyDown={(e) => e.stopPropagation()}
+            onKeyDown={(e) => {
+              // Allow keyboard events to propagate to nested components like Combobox
+              if (
+                e.key === "ArrowDown" ||
+                e.key === "ArrowUp" ||
+                e.key === "Enter" ||
+                e.key === "Escape"
+              ) {
+                return;
+              }
+              e.stopPropagation();
+            }}
             className={cn(
               "drop-shadow-2xl transform-gpu border-grayA-4 overflow-hidden !rounded-2xl p-0 gap-0 flex flex-col max-h-[90vh]",
               dialogClassName,
@@ -225,7 +236,7 @@ const NavigableDialogContent = <TStepName extends string>({
   return (
     <div className="flex-1 min-w-0 overflow-y-auto">
       <DefaultDialogContentArea className={cn("min-h-[70vh] xl:min-h-[50vh] h-full", className)}>
-        <div className="h-full relative">
+        <div className="h-full relative overflow-visible">
           {items.map((item) => {
             const isActive = item.id === activeId;
             return (
@@ -258,7 +269,11 @@ const NavigableDialogBody = ({
   children: ReactNode;
   className?: string;
 }) => {
-  return <div className={cn("flex flex-grow overflow-hidden", className)}>{children}</div>;
+  return (
+    <div className={cn("flex flex-grow overflow-x-hidden overflow-y-hidden", className)}>
+      {children}
+    </div>
+  );
 };
 
 NavigableDialogBody.displayName = "NavigableDialogBody";
diff --git a/web/internal/ui/src/components/dialog/popover.tsx b/web/internal/ui/src/components/dialog/popover.tsx
index 7637d85930..c0e008f895 100644
--- a/web/internal/ui/src/components/dialog/popover.tsx
+++ b/web/internal/ui/src/components/dialog/popover.tsx
@@ -17,7 +17,7 @@ const PopoverContent = React.forwardRef<
       align={align}
       sideOffset={sideOffset}
       className={cn(
-        "z-[150] w-72 overflow-hidden rounded-lg border border-grayA-4 bg-gray-2 p-4 text-gray-12 shadow-md outline-none",
+        "z-[200] w-72 rounded-lg border border-grayA-4 bg-gray-2 p-4 text-gray-12 shadow-md outline-none",
         "data-[state=open]:animate-in data-[state=closed]:animate-out data-[state=closed]:fade-out-0 data-[state=open]:fade-in-0 data-[state=closed]:zoom-out-95 data-[state=open]:zoom-in-95",
         "data-[side=bottom]:slide-in-from-top-2 data-[side=left]:slide-in-from-right-2 data-[side=right]:slide-in-from-left-2 data-[side=top]:slide-in-from-bottom-2",
         className,