diff --git a/packages/mrgn-ui/src/components/action-box-v2/components/action-wrappers/action-box-wrapper.tsx b/packages/mrgn-ui/src/components/action-box-v2/components/action-wrappers/action-box-wrapper.tsx
index ad26b329a6..94d9170d14 100644
--- a/packages/mrgn-ui/src/components/action-box-v2/components/action-wrappers/action-box-wrapper.tsx
+++ b/packages/mrgn-ui/src/components/action-box-v2/components/action-wrappers/action-box-wrapper.tsx
@@ -37,6 +37,10 @@ export const ActionBoxWrapper = ({ children, isDialog, actionMode, showSettings
     [actionMode]
   );
 
+  React.useEffect(() => {
+    setIsSettingsDialogOpen(false);
+  }, [setIsSettingsDialogOpen]);
+
   if (isActionDisabled) {
     return (
       <div className="flex flex-col items-center">
@@ -69,7 +73,7 @@ export const ActionBoxWrapper = ({ children, isDialog, actionMode, showSettings
             />
           )}
 
-          <div className={cn(isSettingsDialogOpen && "hidden")}>{children}</div>
+          <div className={cn(isSettingsDialogOpen && showSettings && "hidden")}>{children}</div>
         </div>
       </div>
     </>