diff --git a/src/components/ha-sidebar.ts b/src/components/ha-sidebar.ts
index 1a2e7f5ada..a8a6a1b5a3 100644
--- a/src/components/ha-sidebar.ts
+++ b/src/components/ha-sidebar.ts
@@ -589,10 +589,7 @@ class HaSidebar extends SubscribeMixin(LitElement) {
     // On keypresses on the listbox, we're going to ignore mouse enter events
     // for 100ms so that we ignore it when pressing down arrow scrolls the
     // sidebar causing the mouse to hover a new icon
-    if (
-      this.alwaysExpand ||
-      new Date().getTime() < this._recentKeydownActiveUntil
-    ) {
+    if (new Date().getTime() < this._recentKeydownActiveUntil) {
       return;
     }
     if (this._mouseLeaveTimeout) {
@@ -612,7 +609,7 @@ class HaSidebar extends SubscribeMixin(LitElement) {
   }
 
   private _listboxFocusIn(ev) {
-    if (this.alwaysExpand || ev.target.localName !== "ha-md-list-item") {
+    if (ev.target.localName !== "ha-md-list-item") {
       return;
     }
     this._showTooltip(ev.target);
@@ -652,6 +649,14 @@ class HaSidebar extends SubscribeMixin(LitElement) {
       clearTimeout(this._tooltipHideTimeout);
       this._tooltipHideTimeout = undefined;
     }
+    const itemText = item.querySelector(".item-text") as HTMLElement | null;
+    if (this.hasAttribute("expanded") && itemText) {
+      const isTruncated = itemText.scrollWidth > itemText.clientWidth;
+      if (!isTruncated) {
+        this._hideTooltip();
+        return;
+      }
+    }
     const tooltip = this._tooltip;
     const allListbox = this.shadowRoot!.querySelectorAll("ha-md-list")!;
     const listbox = [...allListbox].find((lb) => lb.contains(item));
@@ -662,9 +667,7 @@ class HaSidebar extends SubscribeMixin(LitElement) {
       (listbox?.offsetTop ?? 0) -
       (listbox?.scrollTop ?? 0);
 
-    tooltip.innerText = (
-      item.querySelector(".item-text") as HTMLElement
-    ).innerText;
+    tooltip.innerText = itemText?.innerText ?? "";
     tooltip.style.display = "block";
     tooltip.style.position = "fixed";
     tooltip.style.top = `${top}px`;
@@ -846,6 +849,9 @@ class HaSidebar extends SubscribeMixin(LitElement) {
         }
         :host([expanded]) ha-md-list-item .item-text {
           display: block;
+          overflow: hidden;
+          text-overflow: ellipsis;
+          white-space: nowrap;
         }
 
         .divider {
@@ -913,7 +919,9 @@ class HaSidebar extends SubscribeMixin(LitElement) {
           position: absolute;
           opacity: 0.9;
           border-radius: var(--ha-border-radius-sm);
-          white-space: nowrap;
+          max-width: calc(var(--ha-space-20) * 3);
+          white-space: normal;
+          overflow-wrap: break-word;
           color: var(--sidebar-background-color);
           background-color: var(--sidebar-text-color);
           padding: var(--ha-space-1);
diff --git a/src/panels/config/lovelace/dashboards/ha-config-lovelace-dashboards.ts b/src/panels/config/lovelace/dashboards/ha-config-lovelace-dashboards.ts
index 5bef4823f3..af27793629 100644
--- a/src/panels/config/lovelace/dashboards/ha-config-lovelace-dashboards.ts
+++ b/src/panels/config/lovelace/dashboards/ha-config-lovelace-dashboards.ts
@@ -175,24 +175,31 @@ export class HaConfigLovelaceDashboards extends LitElement {
           template: narrow
             ? undefined
             : (dashboard) => html`
-                ${dashboard.title}
-                ${dashboard.default
-                  ? html`
-                      <ha-svg-icon
-                        .id="default-icon-${dashboard.title}"
-                        style="padding-left: 10px; padding-inline-start: 10px; padding-inline-end: initial; direction: var(--direction);"
-                        .path=${mdiHomeCircleOutline}
-                      ></ha-svg-icon>
-                      <ha-tooltip
-                        .for="default-icon-${dashboard.title}"
-                        placement="right"
-                      >
-                        ${this.hass.localize(
-                          `ui.panel.config.lovelace.dashboards.default_dashboard`
-                        )}
-                      </ha-tooltip>
-                    `
-                  : nothing}
+                <span
+                  style="display:flex; align-items:center; gap: var(--ha-space-2); min-width:0; width:100%;"
+                >
+                  <span
+                    style="min-width:0; overflow:hidden; text-overflow:ellipsis; white-space:nowrap; flex:1;"
+                    >${dashboard.title}</span
+                  >
+                  ${dashboard.default
+                    ? html`
+                        <ha-svg-icon
+                          .id="default-icon-${dashboard.title}"
+                          style="flex-shrink:0;"
+                          .path=${mdiHomeCircleOutline}
+                        ></ha-svg-icon>
+                        <ha-tooltip
+                          .for="default-icon-${dashboard.title}"
+                          placement="right"
+                        >
+                          ${this.hass.localize(
+                            `ui.panel.config.lovelace.dashboards.default_dashboard`
+                          )}
+                        </ha-tooltip>
+                      `
+                    : nothing}
+                </span>
               `,
         },
       };