diff --git a/packages/radix-vue/src/NavigationMenu/NavigationMenuContent.vue b/packages/radix-vue/src/NavigationMenu/NavigationMenuContent.vue
index 6cd527b76..c609e7d73 100644
--- a/packages/radix-vue/src/NavigationMenu/NavigationMenuContent.vue
+++ b/packages/radix-vue/src/NavigationMenu/NavigationMenuContent.vue
@@ -28,7 +28,7 @@ const commonProps = computed(() => ({
   triggerRef: itemContext!.triggerRef,
   focusProxyRef: itemContext!.focusProxyRef,
   wasEscapeCloseRef: itemContext!.wasEscapeCloseRef,
-  // onContentFocusOutside: itemContext!.onContentFocusOutside,
+  onContentFocusOutside: itemContext!.onContentFocusOutside,
   // onRootContentClose: itemContext!.onRootContentClose,
 }));
 
diff --git a/packages/radix-vue/src/NavigationMenu/NavigationMenuContentImpl.vue b/packages/radix-vue/src/NavigationMenu/NavigationMenuContentImpl.vue
index e50b8d099..9b7fe2238 100644
--- a/packages/radix-vue/src/NavigationMenu/NavigationMenuContentImpl.vue
+++ b/packages/radix-vue/src/NavigationMenu/NavigationMenuContentImpl.vue
@@ -6,7 +6,7 @@ interface NavigationMenuContentImplProps {
   triggerRef: Ref<HTMLElement | undefined>;
   focusProxyRef: Ref<HTMLElement | undefined>;
   wasEscapeCloseRef: Ref<boolean>;
-  // onContentFocusOutside(): void;
+  onContentFocusOutside(): void;
   // onRootContentClose(): void;
 }
 </script>
@@ -20,7 +20,7 @@ import {
   makeContentId,
   makeTriggerId,
 } from "./utils";
-import { useArrowNavigation, useCollection } from "@/shared";
+import { useArrowNavigation, useCollection, onFocusOutside } from "@/shared";
 
 const props = defineProps<NavigationMenuContentImplProps>();
 const emits = defineEmits<{
@@ -29,6 +29,7 @@ const emits = defineEmits<{
 
 const { getItems } = useCollection();
 
+const elementRef = ref<HTMLElement>();
 const context = inject(NAVIGATION_MENU_INJECTION_KEY);
 const triggerId = makeTriggerId(context!.baseId, props.value);
 const contentId = makeContentId(context!.baseId, props.value);
@@ -67,44 +68,37 @@ const motionAttribute = computed(() => {
   return attribute;
 });
 
+onFocusOutside(elementRef, (ev) => {
+  props.onContentFocusOutside();
+  const target = ev.target as HTMLElement;
+  // Only dismiss content when focus moves outside of the menu
+  if (context!.rootNavigationMenu?.value?.contains(target)) ev.preventDefault();
+});
+
 const handleKeydown = (ev: KeyboardEvent) => {
   const isMetaKey = ev.altKey || ev.ctrlKey || ev.metaKey;
   const isTabKey = ev.key === "Tab" && !isMetaKey;
   const candidates = getTabbableCandidates(ev.currentTarget as HTMLElement);
-  const triggerItems = getItems(context?.rootNavigationMenu.value);
-  const triggerButtonIndex = triggerItems.findIndex(
-    (i) => i === props.triggerRef.value
-  );
-  const nextTriggerButton = triggerItems[triggerButtonIndex + 1];
 
   if (isTabKey) {
     const focusedElement = document.activeElement;
     const index = candidates.findIndex(
       (candidate) => candidate === focusedElement
     );
-    if (
-      index === candidates.length - 1 &&
-      triggerButtonIndex !== triggerItems.length - 1
-    ) {
-      return nextTriggerButton.focus();
-    }
     const isMovingBackwards = ev.shiftKey;
-    if (isMovingBackwards && index === 0) {
-      props.triggerRef.value?.focus();
+    const nextCandidates = isMovingBackwards
+      ? candidates.slice(0, index).reverse()
+      : candidates.slice(index + 1, candidates.length);
+
+    if (focusFirst(nextCandidates)) {
+      // prevent browser tab keydown because we've handled focus
+      ev.preventDefault();
     } else {
-      const nextCandidates = isMovingBackwards
-        ? candidates.slice(0, index).reverse()
-        : candidates.slice(index + 1, candidates.length);
-
-      if (focusFirst(nextCandidates)) {
-        // prevent browser tab keydown because we've handled focus
-        ev.preventDefault();
-      } else {
-        // If we can't focus that means we're at the edges
-        // so focus the proxy and let browser handle
-        // tab/shift+tab keypress on the proxy instead
-        props.focusProxyRef.value?.focus();
-      }
+      // If we can't focus that means we're at the edges
+      // so focus the proxy and let browser handle
+      // tab/shift+tab keypress on the proxy instead
+      props.focusProxyRef.value?.focus();
+      return;
     }
   }
 
@@ -114,8 +108,8 @@ const handleKeydown = (ev: KeyboardEvent) => {
     undefined,
     { itemsArray: candidates, loop: false }
   );
-
   newSelectedElement?.focus();
+  ev.preventDefault();
 };
 
 const handleEscape = (ev: KeyboardEvent) => {
@@ -129,10 +123,11 @@ defineExpose({
 
 <template>
   <div
+    ref="elementRef"
     :id="contentId"
     :aria-labelledby="triggerId"
     :data-motion="motionAttribute"
-    @keydown.prevent="handleKeydown"
+    @keydown="handleKeydown"
     @keydown.escape.prevent="handleEscape"
   >
     <slot></slot>
diff --git a/packages/radix-vue/src/NavigationMenu/NavigationMenuItem.vue b/packages/radix-vue/src/NavigationMenu/NavigationMenuItem.vue
index e710c8fe8..9ad73652e 100644
--- a/packages/radix-vue/src/NavigationMenu/NavigationMenuItem.vue
+++ b/packages/radix-vue/src/NavigationMenu/NavigationMenuItem.vue
@@ -10,9 +10,9 @@ export type NavigationMenuItemContextValue = {
   focusProxyRef: Ref<HTMLElement | undefined>;
   wasEscapeCloseRef: Ref<boolean>;
   onEntryKeyDown(): void;
-  // onFocusProxyEnter(side: 'start' | 'end'): void;
+  onFocusProxyEnter(side: "start" | "end"): void;
   // onRootContentClose(): void;
-  // onContentFocusOutside(): void;
+  onContentFocusOutside(): void;
 };
 
 export const NAVIGATION_MENU_ITEM_INJECTION_KEY =
@@ -31,7 +31,7 @@ import {
 } from "vue";
 import { PrimitiveLi } from "@/Primitive";
 import { useArrowNavigation, useCollection, useId } from "@/shared";
-import { getTabbableCandidates, focusFirst } from "./utils";
+import { getTabbableCandidates, removeFromTabOrder, focusFirst } from "./utils";
 import { unrefElement } from "@vueuse/core";
 
 const props = defineProps<NavigationMenuItemProps>();
@@ -42,8 +42,29 @@ const value = props.value || useId();
 const triggerRef = ref<HTMLElement>();
 const contentRef = ref<VNode>();
 const focusProxyRef = ref<HTMLElement>();
+let restoreContentTabOrderRef: () => void = () => ({});
 
 const wasEscapeCloseRef = ref(false);
+const handleContentEntry = async (side = "start") => {
+  // @ts-ignore
+  const el = contentRef.value?.children?.[0]?.el.parentElement as HTMLElement;
+  if (el) {
+    restoreContentTabOrderRef();
+    const candidates = getTabbableCandidates(unrefElement(el) as HTMLElement);
+    if (candidates.length)
+      focusFirst(side === "start" ? candidates : candidates.reverse());
+  }
+};
+
+const handleContentExit = () => {
+  // @ts-ignore
+  const el = contentRef.value?.children?.[0]?.el.parentElement as HTMLElement;
+  if (el) {
+    const candidates = getTabbableCandidates(unrefElement(el) as HTMLElement);
+    if (candidates.length)
+      restoreContentTabOrderRef = removeFromTabOrder(candidates);
+  }
+};
 
 provide(NAVIGATION_MENU_ITEM_INJECTION_KEY, {
   value,
@@ -51,16 +72,9 @@ provide(NAVIGATION_MENU_ITEM_INJECTION_KEY, {
   contentRef,
   focusProxyRef,
   wasEscapeCloseRef,
-  onEntryKeyDown: (side = "start") => {
-    // @ts-ignore
-    const el = contentRef.value?.children?.[0]?.el.parentElement as HTMLElement;
-    if (el) {
-      // @ts-ignore
-      const candidates = getTabbableCandidates(unrefElement(el));
-      if (candidates.length)
-        focusFirst(side === "start" ? candidates : candidates.reverse());
-    }
-  },
+  onEntryKeyDown: handleContentEntry,
+  onFocusProxyEnter: handleContentEntry,
+  onContentFocusOutside: handleContentExit,
 });
 
 const handleClose = () => {
diff --git a/packages/radix-vue/src/NavigationMenu/NavigationMenuRoot.vue b/packages/radix-vue/src/NavigationMenu/NavigationMenuRoot.vue
index cf8d22cbc..9fa111ade 100644
--- a/packages/radix-vue/src/NavigationMenu/NavigationMenuRoot.vue
+++ b/packages/radix-vue/src/NavigationMenu/NavigationMenuRoot.vue
@@ -1,7 +1,7 @@
 <script lang="ts">
 import { type InjectionKey, type Ref } from "vue";
 import type { Direction, Orientation } from "./utils";
-import { useCollection, useId } from "@/shared";
+import { onFocusOutside, useCollection, useId } from "@/shared";
 
 export interface NavigationMenuProps {
   modelValue?: string;
@@ -21,6 +21,10 @@ export interface NavigationMenuProps {
   skipDelayDuration?: number;
 }
 
+interface VNodeWithParentProps extends VNode {
+  parentProps: any;
+}
+
 export interface NavigationMenuContextValue {
   isRootMenu: boolean;
   modelValue: Ref<string>;
@@ -33,8 +37,11 @@ export interface NavigationMenuContextValue {
   onIndicatorTrackChange(indicatorTrack: HTMLElement | undefined): void;
   viewport: Ref<HTMLElement | undefined>;
   onViewportChange(viewport: HTMLElement | undefined): void;
-  viewportContent: Ref<Map<string, VNode>>;
-  onViewportContentChange(contentValue: string, contentData: VNode): void;
+  viewportContent: Ref<Map<string, VNodeWithParentProps>>;
+  onViewportContentChange(
+    contentValue: string,
+    contentData: VNodeWithParentProps
+  ): void;
   onViewportContentRemove(contentValue: string): void;
   onTriggerEnter(itemValue: string): void;
   onTriggerLeave(): void;
@@ -49,8 +56,13 @@ export const NAVIGATION_MENU_INJECTION_KEY =
 </script>
 
 <script setup lang="ts">
-import { useDebounceFn, useVModel } from "@vueuse/core";
-import { provide, ref, type VNode } from "vue";
+import {
+  onClickOutside,
+  useDebounceFn,
+  useFocusWithin,
+  useVModel,
+} from "@vueuse/core";
+import { provide, ref, watch, type VNode } from "vue";
 import { PrimitiveNav, usePrimitiveElement } from "@/Primitive";
 
 const props = withDefaults(defineProps<NavigationMenuProps>(), {
@@ -76,9 +88,20 @@ const { primitiveElement, currentElement: rootNavigationMenu } =
 const { createCollection } = useCollection();
 createCollection();
 
+const closeMenu = () => {
+  modelValue.value = "";
+};
+
+onClickOutside(rootNavigationMenu, () => {
+  closeMenu();
+});
+onFocusOutside(rootNavigationMenu, () => {
+  closeMenu();
+});
+
 const indicatorTrack = ref<HTMLElement>();
 const viewport = ref<HTMLElement>();
-const viewportContent = ref<Map<string, VNode>>(new Map());
+const viewportContent = ref<Map<string, VNodeWithParentProps>>(new Map());
 
 const debouncedFn = useDebounceFn((val: string) => {
   previousValue.value = modelValue.value;
diff --git a/packages/radix-vue/src/NavigationMenu/NavigationMenuTrigger.vue b/packages/radix-vue/src/NavigationMenu/NavigationMenuTrigger.vue
index 56e700a99..590ac35c6 100644
--- a/packages/radix-vue/src/NavigationMenu/NavigationMenuTrigger.vue
+++ b/packages/radix-vue/src/NavigationMenu/NavigationMenuTrigger.vue
@@ -1,9 +1,11 @@
 <script setup lang="ts">
 import { NAVIGATION_MENU_INJECTION_KEY } from "./NavigationMenuRoot.vue";
 import { NAVIGATION_MENU_ITEM_INJECTION_KEY } from "./NavigationMenuItem.vue";
-import { computed, inject, onMounted, ref } from "vue";
+import { computed, inject, onMounted, ref, type VNode } from "vue";
 import { PrimitiveButton, usePrimitiveElement } from "@/Primitive";
+import { VisuallyHidden } from "@/VisuallyHidden";
 import { makeTriggerId, makeContentId, getOpenState } from "./utils";
+import { unrefElement } from "@vueuse/core";
 
 const props = defineProps<{
   disabled?: boolean;
@@ -56,7 +58,11 @@ const handlePointerLeave = (ev: PointerEvent) => {
 };
 
 const handleClick = (ev: MouseEvent) => {
-  context?.onItemSelect(itemContext!.value);
+  if (open.value) {
+    context?.onItemSelect("");
+  } else {
+    context?.onItemSelect(itemContext!.value);
+  }
   wasClickCloseRef.value = open.value;
 };
 
@@ -65,13 +71,33 @@ const handleKeydown = (ev: KeyboardEvent) => {
   const entryKey = { horizontal: "ArrowDown", vertical: verticalEntryKey }[
     context!.orientation
   ];
-  if (open.value && (ev.key === entryKey || ev.key === "Tab")) {
+  if (open.value && ev.key === entryKey) {
     itemContext!.onEntryKeyDown();
     // Prevent FocusGroupItem from handling the event
     ev.preventDefault();
     ev.stopPropagation();
   }
 };
+
+const setFocusProxyRef = (node: VNode) => {
+  // @ts-ignore
+  itemContext!.focusProxyRef.value = unrefElement(node);
+  return undefined;
+};
+
+const handleVisuallyHiddenFocus = (ev: FocusEvent) => {
+  const content = // @ts-ignore
+    (itemContext!.contentRef.value?.children?.[0].el as HTMLElement)
+      .parentElement;
+  const prevFocusedElement = ev.relatedTarget as HTMLElement | null;
+
+  const wasTriggerFocused = prevFocusedElement === triggerElement.value;
+  const wasFocusFromContent = content?.contains(prevFocusedElement);
+
+  if (wasTriggerFocused || !wasFocusFromContent) {
+    itemContext!.onFocusProxyEnter(wasTriggerFocused ? "start" : "end");
+  }
+};
 </script>
 
 <template>
@@ -95,7 +121,13 @@ const handleKeydown = (ev: KeyboardEvent) => {
   </PrimitiveButton>
 
   <template v-if="open">
-    <!-- VisuallyHiddenPrimitive -->
+    <VisuallyHidden
+      aria-hidden
+      :tabIndex="0"
+      :ref="setFocusProxyRef"
+      @focus="handleVisuallyHiddenFocus"
+    >
+    </VisuallyHidden>
     <span :aria-owns="contentId" v-if="context?.viewport"></span>
   </template>
 </template>
diff --git a/packages/radix-vue/src/NavigationMenu/NavigationMenuViewport.vue b/packages/radix-vue/src/NavigationMenu/NavigationMenuViewport.vue
index e553347ea..5ee19bfa7 100644
--- a/packages/radix-vue/src/NavigationMenu/NavigationMenuViewport.vue
+++ b/packages/radix-vue/src/NavigationMenu/NavigationMenuViewport.vue
@@ -81,14 +81,7 @@ defineOptions({
         <Presence :present="activeContentValue === node.props?.value">
           <NavigationMenuContentImpl
             :ref="setRef"
-            v-bind="
-              //@ts-ignore
-              node.parentProps
-            "
-            :value="node.props?.value"
-            :triggerRef="node.props?.triggerRef"
-            :focusProxyRef="node.props?.focusProxyRef"
-            :wasEscapeCloseRef="node.props?.wasEscapeCloseRef"
+            v-bind="{ ...node.props, ...node.parentProps }"
             @escape="handleClose(node)"
           >
             <component :is="node"></component>