diff --git a/change/@microsoft-fast-foundation-903a969b-3de3-4090-974a-3423344c571c.json b/change/@microsoft-fast-foundation-903a969b-3de3-4090-974a-3423344c571c.json
new file mode 100644
index 00000000000..18310ef14b1
--- /dev/null
+++ b/change/@microsoft-fast-foundation-903a969b-3de3-4090-974a-3423344c571c.json
@@ -0,0 +1,7 @@
+{
+  "type": "prerelease",
+  "comment": "Fix focus issue when clicking on an element in the toolbar",
+  "packageName": "@microsoft/fast-foundation",
+  "email": "20542556+mollykreis@users.noreply.github.com",
+  "dependentChangeType": "prerelease"
+}
diff --git a/packages/web-components/fast-foundation/docs/api-report.md b/packages/web-components/fast-foundation/docs/api-report.md
index f29f1958b48..7b6bd2bcbf0 100644
--- a/packages/web-components/fast-foundation/docs/api-report.md
+++ b/packages/web-components/fast-foundation/docs/api-report.md
@@ -2093,8 +2093,6 @@ export class FASTToolbar extends FASTElement {
     childItems: Element[];
     // (undocumented)
     protected childItemsChanged(prev: undefined | Element[], next: Element[]): void;
-    // @internal
-    clickHandler(e: MouseEvent): boolean | void;
     // @internal (undocumented)
     connectedCallback(): void;
     // @internal
@@ -2103,6 +2101,8 @@ export class FASTToolbar extends FASTElement {
     focusinHandler(e: FocusEvent): boolean | void;
     // @internal
     keydownHandler(e: KeyboardEvent): boolean | void;
+    // @internal
+    mouseDownHandler(e: MouseEvent): boolean | void;
     orientation: ToolbarOrientation;
     // @internal
     protected reduceFocusableElements(): void;
diff --git a/packages/web-components/fast-foundation/src/toolbar/toolbar.pw.spec.ts b/packages/web-components/fast-foundation/src/toolbar/toolbar.pw.spec.ts
index 9416924b333..e450ad5770d 100644
--- a/packages/web-components/fast-foundation/src/toolbar/toolbar.pw.spec.ts
+++ b/packages/web-components/fast-foundation/src/toolbar/toolbar.pw.spec.ts
@@ -418,4 +418,65 @@ test.describe("Toolbar", () => {
 
         await expect(element).toHaveJSProperty("activeIndex", 2);
     });
+
+    test("should focus most recently focused item when toolbar receives focus", async () => {
+        await root.evaluate(node => {
+            node.innerHTML = /* html */ `
+                <fast-toolbar>
+                    <button slot="start">Start Slot Button</button>
+                    <button>Button 1</button>
+                    <button>Button 2</button>
+                    <button>Button 3</button>
+                    <button>Button 4</button>
+                    <button>Button 5</button>
+                    <button slot="end">End Slot Button</button>
+                </fast-toolbar>
+                <button>Button Outside Toolbar</button>
+            `;
+        });
+        const button2 = element.locator("button", { hasText: "Button 2" });
+
+        const buttonOutsideToolbar = page.locator("button", { hasText: "Button Outside Toolbar"});
+
+        await button2.click();
+        await expect(button2).toBeFocused();
+
+        await buttonOutsideToolbar.click();
+        await expect(buttonOutsideToolbar).toBeFocused();
+
+        await element.focus();
+
+        await expect(button2).toBeFocused();
+    });
+
+    test("should focus clicked item when focus enters toolbar by clicking an item that is not the most recently focused item", async () => {
+        await root.evaluate(node => {
+            node.innerHTML = /* html */ `
+                <fast-toolbar>
+                    <button slot="start">Start Slot Button</button>
+                    <button>Button 1</button>
+                    <button>Button 2</button>
+                    <button>Button 3</button>
+                    <button>Button 4</button>
+                    <button>Button 5</button>
+                    <button slot="end">End Slot Button</button>
+                </fast-toolbar>
+                <button>Button Outside Toolbar</button>
+            `;
+        });
+        const button2 = element.locator("button", { hasText: "Button 2" });
+
+        const button3 = element.locator("button", { hasText: "Button 3" });
+
+        const buttonOutsideToolbar = page.locator("button", { hasText: "Button Outside Toolbar"});
+
+        await button2.click();
+        await expect(button2).toBeFocused();
+
+        await buttonOutsideToolbar.click();
+        await expect(buttonOutsideToolbar).toBeFocused();
+
+        await button3.click();
+        await expect(button3).toBeFocused();
+    });
 });
diff --git a/packages/web-components/fast-foundation/src/toolbar/toolbar.template.ts b/packages/web-components/fast-foundation/src/toolbar/toolbar.template.ts
index bb391f43864..29766c2884f 100644
--- a/packages/web-components/fast-foundation/src/toolbar/toolbar.template.ts
+++ b/packages/web-components/fast-foundation/src/toolbar/toolbar.template.ts
@@ -24,7 +24,7 @@ export function toolbarTemplate<T extends FASTToolbar>(
             aria-orientation="${x => x.orientation}"
             orientation="${x => x.orientation}"
             role="toolbar"
-            @click="${(x, c) => x.clickHandler(c.event as MouseEvent)}"
+            @mousedown="${(x, c) => x.mouseDownHandler(c.event as MouseEvent)}"
             @focusin="${(x, c) => x.focusinHandler(c.event as FocusEvent)}"
             @keydown="${(x, c) => x.keydownHandler(c.event as KeyboardEvent)}"
             ${children({
diff --git a/packages/web-components/fast-foundation/src/toolbar/toolbar.ts b/packages/web-components/fast-foundation/src/toolbar/toolbar.ts
index 98fcf9fcff5..df230a91063 100644
--- a/packages/web-components/fast-foundation/src/toolbar/toolbar.ts
+++ b/packages/web-components/fast-foundation/src/toolbar/toolbar.ts
@@ -121,7 +121,7 @@ export class FASTToolbar extends FASTElement {
      *
      * @internal
      */
-    public clickHandler(e: MouseEvent): boolean | void {
+    public mouseDownHandler(e: MouseEvent): boolean | void {
         const activeIndex = this.focusableElements?.findIndex(x =>
             x.contains(e.target as HTMLElement)
         );