diff --git a/browser/ui/views/sidebar/sidebar_item_add_button.cc b/browser/ui/views/sidebar/sidebar_item_add_button.cc
index 359897162f90..88bf0724459f 100644
--- a/browser/ui/views/sidebar/sidebar_item_add_button.cc
+++ b/browser/ui/views/sidebar/sidebar_item_add_button.cc
@@ -38,6 +38,8 @@ void SidebarItemAddButton::OnButtonPressed() {
   if (timer_.IsRunning())
     timer_.Stop();
 
+  add_item_bubble_shown_by_click_ = true;
+
   DoShowBubble();
 }
 
@@ -50,6 +52,11 @@ void SidebarItemAddButton::OnMouseExited(const ui::MouseEvent& event) {
   SidebarButtonView::OnMouseExited(event);
   // Don't show bubble if user goes outo from add item quickly.
   timer_.Stop();
+
+  if (!add_item_bubble_shown_by_click_ && IsBubbleVisible()) {
+    DCHECK(add_item_bubble_widget_);
+    add_item_bubble_widget_->Close();
+  }
 }
 
 void SidebarItemAddButton::OnGestureEvent(ui::GestureEvent* event) {
@@ -71,6 +78,9 @@ void SidebarItemAddButton::AddedToWidget() {
 }
 
 void SidebarItemAddButton::OnWidgetDestroying(views::Widget* widget) {
+  DCHECK_EQ(add_item_bubble_widget_, widget);
+  add_item_bubble_widget_ = nullptr;
+  add_item_bubble_shown_by_click_ = false;
   observation_.Reset();
 }
 
@@ -78,6 +88,8 @@ void SidebarItemAddButton::ShowBubbleWithDelay() {
   if (IsBubbleVisible())
     return;
 
+  DCHECK(!add_item_bubble_shown_by_click_);
+
   if (timer_.IsRunning())
     timer_.Stop();
 
@@ -87,10 +99,11 @@ void SidebarItemAddButton::ShowBubbleWithDelay() {
 }
 
 void SidebarItemAddButton::DoShowBubble() {
-  auto* bubble = views::BubbleDialogDelegateView::CreateBubble(
+  DCHECK(!add_item_bubble_widget_);
+  add_item_bubble_widget_ = views::BubbleDialogDelegateView::CreateBubble(
       new SidebarAddItemBubbleDelegateView(browser_, this));
-  observation_.Observe(bubble);
-  bubble->Show();
+  observation_.Observe(add_item_bubble_widget_);
+  add_item_bubble_widget_->Show();
 }
 
 bool SidebarItemAddButton::IsBubbleVisible() const {
diff --git a/browser/ui/views/sidebar/sidebar_item_add_button.h b/browser/ui/views/sidebar/sidebar_item_add_button.h
index e4d050728958..4b03313d439c 100644
--- a/browser/ui/views/sidebar/sidebar_item_add_button.h
+++ b/browser/ui/views/sidebar/sidebar_item_add_button.h
@@ -48,6 +48,9 @@ class SidebarItemAddButton : public SidebarButtonView,
   void OnButtonPressed();
 
   raw_ptr<BraveBrowser> browser_ = nullptr;
+  raw_ptr<views::Widget> add_item_bubble_widget_ = nullptr;
+  // true when bubble is shown by add item button press. Otherwise, false.
+  bool add_item_bubble_shown_by_click_ = false;
   base::OneShotTimer timer_;
   base::CallbackListSubscription on_enabled_changed_subscription_;
   base::ScopedObservation<views::Widget, views::WidgetObserver> observation_{