diff --git a/frontend/src/components/ui-new/containers/ProjectSelectorContainer.tsx b/frontend/src/components/ui-new/containers/ProjectSelectorContainer.tsx
index d627720f..e9217ae8 100644
--- a/frontend/src/components/ui-new/containers/ProjectSelectorContainer.tsx
+++ b/frontend/src/components/ui-new/containers/ProjectSelectorContainer.tsx
@@ -180,6 +180,7 @@ export function ProjectSelectorContainer({
         <DropdownMenuItem
           onSelect={handleCreateClick}
           onMouseEnter={() => setHighlightedIndex(0)}
+          preventFocusOnHover
           icon={PlusIcon}
           className={cn(
             'text-accent',
@@ -208,6 +209,7 @@ export function ProjectSelectorContainer({
                 <DropdownMenuItem
                   onSelect={() => handleSelect(item)}
                   onMouseEnter={() => setHighlightedIndex(idx + 1)}
+                  preventFocusOnHover
                   className={cn(
                     isSelected && 'bg-secondary',
                     isHighlighted && 'bg-secondary'
diff --git a/frontend/src/components/ui-new/primitives/Dropdown.tsx b/frontend/src/components/ui-new/primitives/Dropdown.tsx
index eae530cf..717e34e6 100644
--- a/frontend/src/components/ui-new/primitives/Dropdown.tsx
+++ b/frontend/src/components/ui-new/primitives/Dropdown.tsx
@@ -142,6 +142,8 @@ interface DropdownMenuItemProps
   icon?: Icon;
   badge?: string;
   variant?: 'default' | 'destructive';
+  /** When true, prevents hover from stealing focus (useful for searchable dropdowns) */
+  preventFocusOnHover?: boolean;
 }
 
 const DropdownMenuItem = React.forwardRef<
@@ -154,6 +156,9 @@ const DropdownMenuItem = React.forwardRef<
       icon: IconComponent,
       badge,
       variant = 'default',
+      preventFocusOnHover = false,
+      onPointerMove,
+      onPointerLeave,
       children,
       ...props
     },
@@ -171,6 +176,22 @@ const DropdownMenuItem = React.forwardRef<
         variant === 'destructive' && 'text-error',
         className
       )}
+      onPointerMove={
+        preventFocusOnHover
+          ? (e) => {
+              e.preventDefault();
+              onPointerMove?.(e);
+            }
+          : onPointerMove
+      }
+      onPointerLeave={
+        preventFocusOnHover
+          ? (e) => {
+              e.preventDefault();
+              onPointerLeave?.(e);
+            }
+          : onPointerLeave
+      }
       {...props}
     >
       {IconComponent && <IconComponent weight="bold" />}
diff --git a/frontend/src/components/ui-new/primitives/SearchableDropdown.tsx b/frontend/src/components/ui-new/primitives/SearchableDropdown.tsx
index f5ab00e7..8e887311 100644
--- a/frontend/src/components/ui-new/primitives/SearchableDropdown.tsx
+++ b/frontend/src/components/ui-new/primitives/SearchableDropdown.tsx
@@ -108,6 +108,7 @@ export function SearchableDropdown<T>({
                 <DropdownMenuItem
                   onSelect={() => onSelect(item)}
                   onMouseEnter={() => onHighlightedIndexChange(idx)}
+                  preventFocusOnHover
                   badge={getItemBadge?.(item)}
                   className={cn(
                     isSelected && 'bg-secondary',