diff --git a/public/app/core/components/AppChrome/AppChrome.tsx b/public/app/core/components/AppChrome/AppChrome.tsx
index 2f987dc1b27..950286821eb 100644
--- a/public/app/core/components/AppChrome/AppChrome.tsx
+++ b/public/app/core/components/AppChrome/AppChrome.tsx
@@ -20,7 +20,7 @@ export function AppChrome({ children }: Props) {
   const state = chrome.useState();
 
   if (state.chromeless || !config.featureToggles.topnav) {
-    return <main className="main-view">{children} </main>;
+    return <main className="main-view">{children}</main>;
   }
 
   return (
@@ -37,7 +37,7 @@ export function AppChrome({ children }: Props) {
         />
       </div>
       <div className={cx(styles.content, state.searchBarHidden && styles.contentNoSearchBar)}>{children}</div>
-      {state.megaMenuOpen && <MegaMenu searchBarHidden={state.searchBarHidden} onClose={chrome.toggleMegaMenu} />}
+      <MegaMenu searchBarHidden={state.searchBarHidden} onClose={() => chrome.setMegaMenu(false)} />
     </main>
   );
 }
diff --git a/public/app/core/components/AppChrome/AppChromeService.tsx b/public/app/core/components/AppChrome/AppChromeService.tsx
index dd9a6b04a04..f9092690817 100644
--- a/public/app/core/components/AppChrome/AppChromeService.tsx
+++ b/public/app/core/components/AppChrome/AppChromeService.tsx
@@ -62,6 +62,10 @@ export class AppChromeService {
     this.update({ megaMenuOpen: !this.state.getValue().megaMenuOpen });
   };
 
+  setMegaMenu = (megaMenuOpen: boolean) => {
+    this.update({ megaMenuOpen });
+  };
+
   toggleSearchBar = () => {
     const searchBarHidden = !this.state.getValue().searchBarHidden;
     store.set(this.searchBarStorageKey, searchBarHidden);
diff --git a/public/app/core/components/MegaMenu/MegaMenu.test.tsx b/public/app/core/components/MegaMenu/MegaMenu.test.tsx
index 04283424de5..e7fab5a8e6a 100644
--- a/public/app/core/components/MegaMenu/MegaMenu.test.tsx
+++ b/public/app/core/components/MegaMenu/MegaMenu.test.tsx
@@ -2,9 +2,11 @@ import { render, screen } from '@testing-library/react';
 import React from 'react';
 import { Provider } from 'react-redux';
 import { Router } from 'react-router-dom';
+import { getGrafanaContextMock } from 'test/mocks/getGrafanaContextMock';
 
 import { NavModelItem, NavSection } from '@grafana/data';
 import { locationService } from '@grafana/runtime';
+import { GrafanaContext } from 'app/core/context/GrafanaContext';
 import { configureStore } from 'app/store/configureStore';
 
 import TestProvider from '../../../../test/helpers/TestProvider';
@@ -31,15 +33,20 @@ const setup = () => {
     },
   ];
 
+  const context = getGrafanaContextMock();
   const store = configureStore({ navBarTree });
 
+  context.chrome.toggleMegaMenu();
+
   return render(
     <Provider store={store}>
-      <TestProvider>
-        <Router history={locationService.getHistory()}>
-          <MegaMenu onClose={() => {}} />
-        </Router>
-      </TestProvider>
+      <GrafanaContext.Provider value={context}>
+        <TestProvider>
+          <Router history={locationService.getHistory()}>
+            <MegaMenu onClose={() => {}} />
+          </Router>
+        </TestProvider>
+      </GrafanaContext.Provider>
     </Provider>
   );
 };
diff --git a/public/app/core/components/MegaMenu/NavBarMenu.tsx b/public/app/core/components/MegaMenu/NavBarMenu.tsx
index 2b2df363de4..5eb41abd64f 100644
--- a/public/app/core/components/MegaMenu/NavBarMenu.tsx
+++ b/public/app/core/components/MegaMenu/NavBarMenu.tsx
@@ -2,12 +2,13 @@ import { css } from '@emotion/css';
 import { useDialog } from '@react-aria/dialog';
 import { FocusScope } from '@react-aria/focus';
 import { OverlayContainer, useOverlay } from '@react-aria/overlays';
-import React, { useRef } from 'react';
+import React, { useEffect, useRef, useState } from 'react';
 import CSSTransition from 'react-transition-group/CSSTransition';
 
 import { GrafanaTheme2, NavModelItem } from '@grafana/data';
 import { reportInteraction } from '@grafana/runtime';
 import { CustomScrollbar, Icon, IconButton, useTheme2 } from '@grafana/ui';
+import { useGrafana } from 'app/core/context/GrafanaContext';
 
 import { TOP_BAR_LEVEL_HEIGHT } from '../AppChrome/types';
 import { NavItem } from '../NavBar/NavBarMenu';
@@ -27,29 +28,47 @@ export function NavBarMenu({ activeItem, navItems, searchBarHidden, onClose }: P
   const styles = getStyles(theme, searchBarHidden);
   const animationSpeed = theme.transitions.duration.shortest;
   const animStyles = getAnimStyles(theme, animationSpeed);
+  const { chrome } = useGrafana();
+  const state = chrome.useState();
   const ref = useRef(null);
+  const backdropRef = useRef(null);
   const { dialogProps } = useDialog({}, ref);
+  const [isOpen, setIsOpen] = useState(false);
+
+  const onMenuClose = () => setIsOpen(false);
 
   const { overlayProps, underlayProps } = useOverlay(
     {
       isDismissable: true,
       isOpen: true,
-      onClose,
+      onClose: onMenuClose,
     },
     ref
   );
 
+  useEffect(() => {
+    if (state.megaMenuOpen) {
+      setIsOpen(true);
+    }
+  }, [state.megaMenuOpen]);
+
   return (
     <OverlayContainer>
-      <FocusScope contain autoFocus>
-        <CSSTransition appear={true} in={true} classNames={animStyles.overlay} timeout={animationSpeed}>
-          <div data-testid="navbarmenu" ref={ref} {...overlayProps} {...dialogProps} className={styles.container}>
+      <CSSTransition
+        in={isOpen}
+        unmountOnExit={true}
+        classNames={animStyles.overlay}
+        timeout={animationSpeed}
+        onExited={onClose}
+      >
+        <div data-testid="navbarmenu" ref={ref} {...overlayProps} {...dialogProps} className={styles.container}>
+          <FocusScope contain autoFocus>
             <div className={styles.mobileHeader}>
               <Icon name="bars" size="xl" />
               <IconButton
                 aria-label="Close navigation menu"
                 name="times"
-                onClick={onClose}
+                onClick={onMenuClose}
                 size="xl"
                 variant="secondary"
               />
@@ -59,24 +78,24 @@ export function NavBarMenu({ activeItem, navItems, searchBarHidden, onClose }: P
               isExpanded={true}
               onClick={() => {
                 reportInteraction('grafana_navigation_collapsed');
-                onClose();
+                onMenuClose();
               }}
             />
             <nav className={styles.content}>
               <CustomScrollbar hideHorizontalTrack>
                 <ul className={styles.itemList}>
                   {navItems.map((link) => (
-                    <NavItem link={link} onClose={onClose} activeItem={activeItem} key={link.text} />
+                    <NavItem link={link} onClose={onMenuClose} activeItem={activeItem} key={link.text} />
                   ))}
                 </ul>
               </CustomScrollbar>
             </nav>
-          </div>
-        </CSSTransition>
-        <CSSTransition appear={true} in={true} classNames={animStyles.backdrop} timeout={animationSpeed}>
-          <div className={styles.backdrop} {...underlayProps} />
-        </CSSTransition>
-      </FocusScope>
+          </FocusScope>
+        </div>
+      </CSSTransition>
+      <CSSTransition in={isOpen} unmountOnExit={true} classNames={animStyles.backdrop} timeout={animationSpeed}>
+        <div ref={backdropRef} className={styles.backdrop} {...underlayProps} />
+      </CSSTransition>
     </OverlayContainer>
   );
 }
@@ -109,6 +128,7 @@ const getStyles = (theme: GrafanaTheme2, searchBarHidden?: boolean) => {
       zIndex: theme.zIndex.navbarFixed - 1,
       position: 'fixed',
       top: topPosition,
+      backgroundColor: theme.colors.background.primary,
       boxSizing: 'content-box',
       [theme.breakpoints.up('md')]: {
         borderRight: `1px solid ${theme.colors.border.weak}`,
@@ -154,7 +174,7 @@ const getAnimStyles = (theme: GrafanaTheme2, animationDuration: number) => {
 
   const overlayTransition = {
     ...commonTransition,
-    transitionProperty: 'background-color, box-shadow, width',
+    transitionProperty: 'box-shadow, width',
     // this is needed to prevent a horizontal scrollbar during the animation on firefox
     '.scrollbar-view': {
       overflow: 'hidden !important',
@@ -167,7 +187,6 @@ const getAnimStyles = (theme: GrafanaTheme2, animationDuration: number) => {
   };
 
   const overlayOpen = {
-    backgroundColor: theme.colors.background.primary,
     boxShadow: theme.shadows.z3,
     width: '100%',
     [theme.breakpoints.up('md')]: {
@@ -178,10 +197,6 @@ const getAnimStyles = (theme: GrafanaTheme2, animationDuration: number) => {
   const overlayClosed = {
     boxShadow: 'none',
     width: 0,
-    [theme.breakpoints.up('md')]: {
-      backgroundColor: theme.colors.background.primary,
-      width: theme.spacing(7),
-    },
   };
 
   const backdropOpen = {
@@ -194,16 +209,16 @@ const getAnimStyles = (theme: GrafanaTheme2, animationDuration: number) => {
 
   return {
     backdrop: {
-      appear: css(backdropClosed),
-      appearActive: css(backdropTransition, backdropOpen),
-      appearDone: css(backdropOpen),
+      enter: css(backdropClosed),
+      enterActive: css(backdropTransition, backdropOpen),
+      enterDone: css(backdropOpen),
       exit: css(backdropOpen),
       exitActive: css(backdropTransition, backdropClosed),
     },
     overlay: {
-      appear: css(overlayClosed),
-      appearActive: css(overlayTransition, overlayOpen),
-      appearDone: css(overlayOpen),
+      enter: css(overlayClosed),
+      enterActive: css(overlayTransition, overlayOpen),
+      enterDone: css(overlayOpen),
       exit: css(overlayOpen),
       exitActive: css(overlayTransition, overlayClosed),
     },