diff --git a/packages/app/e2e/regression/server-dialog-focus.spec.ts b/packages/app/e2e/regression/server-dialog-focus.spec.ts
new file mode 100644
index 0000000000..c8788b98c8
--- /dev/null
+++ b/packages/app/e2e/regression/server-dialog-focus.spec.ts
@@ -0,0 +1,48 @@
+import { expect, test, type Route } from "@playwright/test"
+
+const server = "http://127.0.0.1:4097"
+
+test("nested server dialog keeps focus inside the top layer", async ({ page }) => {
+  await page.addInitScript((server) => {
+    localStorage.setItem("opencode.global.dat:server", JSON.stringify({ list: [server] }))
+  }, server)
+  await page.route("**/*", async (route) => {
+    const url = new URL(route.request().url())
+    if (url.origin !== server) return route.fallback()
+    if (url.pathname === "/api/event") {
+      return route.fulfill({
+        status: 200,
+        contentType: "text/event-stream",
+        body: 'data: {"id":"evt_connected","type":"server.connected","data":{}}\n\n',
+      })
+    }
+    if (url.pathname === "/api/global/health" || url.pathname === "/api/health") {
+      return json(route, { healthy: true, version: "2.0.0" })
+    }
+    return json(route, {})
+  })
+
+  await page.goto("/")
+  await page.keyboard.press("Control+,")
+  const settings = page.locator(".settings-dialog")
+  await expect(settings).toBeVisible()
+  await settings.getByRole("tab", { name: "Servers" }).click()
+  await settings.getByRole("button", { name: "Add server" }).click()
+
+  const editor = page.getByRole("dialog", { name: "Add server" })
+  await expect(editor.getByPlaceholder("http://localhost:4096")).toBeFocused()
+  const username = editor.getByPlaceholder("username")
+  const password = editor.getByPlaceholder("password")
+  await username.click()
+  await expect(username).toBeFocused()
+  await username.fill("kit")
+  await expect(username).toHaveValue("kit")
+  await page.keyboard.press("Tab")
+  await expect(password).toBeFocused()
+  await password.fill("secret")
+  await expect(password).toHaveValue("secret")
+})
+
+function json(route: Route, body: unknown, status = 200) {
+  return route.fulfill({ status, contentType: "application/json", body: JSON.stringify(body) })
+}
diff --git a/packages/ui/src/context/dialog.tsx b/packages/ui/src/context/dialog.tsx
index 39ef8ea1c7..40df0cb3fb 100644
--- a/packages/ui/src/context/dialog.tsx
+++ b/packages/ui/src/context/dialog.tsx
@@ -81,6 +81,7 @@ function init() {
     let dispose: (() => void) | undefined
     let setClosing: ((closing: boolean) => void) | undefined
 
+    // Stacked dialogs render as sibling portals, so only the top layer may own the focus trap.
     const node = runWithOwner(owner, () =>
       createRoot((d: () => void) => {
         dispose = d
@@ -88,7 +89,7 @@ function init() {
         setClosing = setClosingSignal
         return (
           <Kobalte
-            modal
+            modal={stack().length <= layer + 1}
             open={!closing()}
             onOpenChange={(open: boolean) => {
               if (open) return