diff --git a/webview-ui/src/__tests__/AutoApproveMenu.spec.tsx b/webview-ui/src/__tests__/AutoApproveMenu.spec.tsx
new file mode 100644
index 00000000000..a628bf674d2
--- /dev/null
+++ b/webview-ui/src/__tests__/AutoApproveMenu.spec.tsx
@@ -0,0 +1,133 @@
+import { render, screen, fireEvent } from "@/utils/test-utils"
+import { describe, it, expect, vi, beforeEach } from "vitest"
+import AutoApproveMenu from "../components/chat/AutoApproveMenu"
+
+// Mock vscode API
+vi.mock("@src/utils/vscode", () => ({
+	vscode: {
+		postMessage: vi.fn(),
+	},
+}))
+
+// Mock window.postMessage
+const mockPostMessage = vi.fn()
+window.postMessage = mockPostMessage
+
+// Mock useExtensionState
+const mockUseExtensionState = vi.fn()
+
+vi.mock("@src/context/ExtensionStateContext", () => ({
+	useExtensionState: () => mockUseExtensionState(),
+	ExtensionStateContextProvider: ({ children }: { children: React.ReactNode }) => <>{children}</>,
+}))
+
+// Mock translation hook
+vi.mock("@src/i18n/TranslationContext", () => ({
+	useAppTranslation: () => ({
+		t: (key: string) => key,
+	}),
+}))
+
+const createMockExtensionState = (overrides = {}) => ({
+	autoApprovalEnabled: false,
+	setAutoApprovalEnabled: vi.fn(),
+	alwaysAllowReadOnly: false,
+	alwaysAllowWrite: false,
+	alwaysAllowExecute: false,
+	alwaysAllowBrowser: false,
+	alwaysAllowMcp: false,
+	alwaysAllowModeSwitch: false,
+	alwaysAllowSubtasks: false,
+	alwaysApproveResubmit: false,
+	alwaysAllowFollowupQuestions: false,
+	alwaysAllowUpdateTodoList: false,
+	allowedMaxRequests: undefined,
+	setAlwaysAllowReadOnly: vi.fn(),
+	setAlwaysAllowWrite: vi.fn(),
+	setAlwaysAllowExecute: vi.fn(),
+	setAlwaysAllowBrowser: vi.fn(),
+	setAlwaysAllowMcp: vi.fn(),
+	setAlwaysAllowModeSwitch: vi.fn(),
+	setAlwaysAllowSubtasks: vi.fn(),
+	setAlwaysApproveResubmit: vi.fn(),
+	setAlwaysAllowFollowupQuestions: vi.fn(),
+	setAlwaysAllowUpdateTodoList: vi.fn(),
+	setAllowedMaxRequests: vi.fn(),
+	...overrides,
+})
+
+describe("AutoApproveMenu", () => {
+	beforeEach(() => {
+		vi.clearAllMocks()
+		mockUseExtensionState.mockReturnValue(createMockExtensionState())
+	})
+
+	it("renders without crashing", () => {
+		render(<AutoApproveMenu />)
+		expect(screen.getByText("chat:autoApprove.title")).toBeInTheDocument()
+	})
+
+	it("expands when clicked", () => {
+		render(<AutoApproveMenu />)
+
+		// Initially, the expanded content should not be visible
+		const expandedContainer = document.querySelector(".flex.flex-col.gap-2.max-h-\\[400px\\].overflow-y-auto")
+		expect(expandedContainer).not.toBeInTheDocument()
+
+		// Click to expand
+		const titleArea = screen.getByText("chat:autoApprove.title").parentElement?.parentElement
+		fireEvent.click(titleArea!)
+
+		// Now the expanded content should be visible
+		const expandedContent = document.querySelector(".flex.flex-col.gap-2.max-h-\\[400px\\].overflow-y-auto")
+		expect(expandedContent).toBeInTheDocument()
+	})
+
+	it("expanded content has max-height and overflow-y auto to prevent overflow", () => {
+		render(<AutoApproveMenu />)
+
+		// Click to expand
+		const titleArea = screen.getByText("chat:autoApprove.title").parentElement?.parentElement
+		fireEvent.click(titleArea!)
+
+		// Find the expanded content container
+		const expandedContent = document.querySelector(".flex.flex-col.gap-2.max-h-\\[400px\\].overflow-y-auto")
+
+		// Check that it exists and has the correct classes
+		expect(expandedContent).toBeInTheDocument()
+		expect(expandedContent).toHaveClass("max-h-[400px]", "overflow-y-auto")
+	})
+
+	it("collapses when clicked again", () => {
+		render(<AutoApproveMenu />)
+
+		// Click to expand
+		const titleArea = screen.getByText("chat:autoApprove.title").parentElement?.parentElement
+		fireEvent.click(titleArea!)
+
+		// Verify expanded
+		const expandedContent = document.querySelector(".flex.flex-col.gap-2.max-h-\\[400px\\].overflow-y-auto")
+		expect(expandedContent).toBeInTheDocument()
+
+		// Click to collapse
+		fireEvent.click(titleArea!)
+
+		// Verify collapsed
+		const collapsedContent = document.querySelector(".flex.flex-col.gap-2.max-h-\\[400px\\].overflow-y-auto")
+		expect(collapsedContent).not.toBeInTheDocument()
+	})
+
+	it("displays enabled actions list when toggles are enabled", () => {
+		mockUseExtensionState.mockReturnValue(
+			createMockExtensionState({
+				alwaysAllowReadOnly: true,
+				alwaysAllowWrite: true,
+			}),
+		)
+
+		render(<AutoApproveMenu />)
+
+		// Should show the enabled actions instead of "none"
+		expect(screen.queryByText("chat:autoApprove.none")).not.toBeInTheDocument()
+	})
+})
diff --git a/webview-ui/src/components/chat/AutoApproveMenu.tsx b/webview-ui/src/components/chat/AutoApproveMenu.tsx
index ae363a7b63b..811968d4ec4 100644
--- a/webview-ui/src/components/chat/AutoApproveMenu.tsx
+++ b/webview-ui/src/components/chat/AutoApproveMenu.tsx
@@ -201,7 +201,7 @@ const AutoApproveMenu = ({ style }: AutoApproveMenuProps) => {
 			</div>
 
 			{isExpanded && (
-				<div className="flex flex-col gap-2">
+				<div className="flex flex-col gap-2 max-h-[400px] overflow-y-auto">
 					<div
 						style={{
 							color: "var(--vscode-descriptionForeground)",