diff --git a/packages/react-native-ui-lib/src/components/picker/__tests__/index.spec.tsx b/packages/react-native-ui-lib/src/components/picker/__tests__/index.spec.tsx
index fa44fd684e..44512945c4 100644
--- a/packages/react-native-ui-lib/src/components/picker/__tests__/index.spec.tsx
+++ b/packages/react-native-ui-lib/src/components/picker/__tests__/index.spec.tsx
@@ -166,7 +166,7 @@ describe('Picker', () => {
         expect(driver.isOpen()).toBeTruthy();
         driver.cancel();
         expect(driver.isOpen()).toBeFalsy();
-        expect(onDismiss).toHaveBeenCalledTimes(2); // TODO: this should be 1
+        expect(onDismiss).toHaveBeenCalledTimes(1);
       });
 
       // TODO: this test is not passing yet
diff --git a/packages/react-native-ui-lib/src/incubator/expandableOverlay/index.tsx b/packages/react-native-ui-lib/src/incubator/expandableOverlay/index.tsx
index a084fd567e..82c7240b8a 100644
--- a/packages/react-native-ui-lib/src/incubator/expandableOverlay/index.tsx
+++ b/packages/react-native-ui-lib/src/incubator/expandableOverlay/index.tsx
@@ -83,11 +83,16 @@ const ExpandableOverlay = (props: ExpandableOverlayProps, ref: any) => {
     onPress?.(props);
   }, [onPress, customValue]);
 
-  const closeExpandable = useCallback(() => {
+  const dismissOverlay = useCallback(() => {
     setExpandableVisible(false);
     focusAccessibility();
+  }, [focusAccessibility]);
+
+  const closeExpandable = useCallback(() => {
+    dismissOverlay();
     useDialog ? dialogProps?.onDismiss?.() : modalProps?.onDismiss?.();
-  }, [useDialog, dialogProps?.onDismiss, modalProps?.onDismiss, focusAccessibility]);
+    // eslint-disable-next-line react-hooks/exhaustive-deps
+  }, [dismissOverlay, dialogProps?.onDismiss, modalProps?.onDismiss]);
 
   const toggleExpandable = useCallback(() => (visible ? closeExpandable() : openExpandable()),
     [visible, openExpandable, closeExpandable]);
@@ -105,7 +110,7 @@ const ExpandableOverlay = (props: ExpandableOverlayProps, ref: any) => {
         overlayBackgroundColor={Colors.$backgroundDefault}
         {...modalProps}
         visible={visible}
-        onDismiss={closeExpandable}
+        onDismiss={dismissOverlay}
         onRequestClose={closeExpandable}
         onBackgroundPress={closeExpandable}
       >