diff --git a/.upgradenotes/MDL-86015-2025071423520976.yml b/.upgradenotes/MDL-86015-2025071423520976.yml
new file mode 100644
index 00000000000..d22ea1b8a0f
--- /dev/null
+++ b/.upgradenotes/MDL-86015-2025071423520976.yml
@@ -0,0 +1,8 @@
+issueNumber: MDL-86015
+notes:
+  core:
+    - message: >-
+        The `\core\output\local\dropdown\dialog` class constructor now accepts a
+        `$definition['autoclose']` parameter to define autoclose behaviour of
+        the element
+      type: changed
diff --git a/lib/classes/output/local/dropdown/dialog.php b/lib/classes/output/local/dropdown/dialog.php
index 18aa714fd75..926e6e49f7e 100644
--- a/lib/classes/output/local/dropdown/dialog.php
+++ b/lib/classes/output/local/dropdown/dialog.php
@@ -74,6 +74,10 @@ class dialog implements named_templatable, renderable {
      */
     protected $dropdownwidth = self::WIDTH['default'];
 
+    /**
+     * @var string dropdown autoclose behaviour.
+     */
+    protected $autoclose = 'true';
 
     /**
      * @var array extra HTML attributes (attribute => value).
@@ -93,6 +97,7 @@ class dialog implements named_templatable, renderable {
      * - buttonclasses: the button CSS classes.
      * - dialogwidth: the dropdown width.
      * - dropdownposition: the dropdown position.
+     * - autoclose: dropdown autoclose behaviour ('true' (default), 'false', 'inside', 'outside')
      * - extras: extra HTML attributes (attribute => value).
      *
      * @param string $buttoncontent the button content
@@ -117,6 +122,9 @@ class dialog implements named_templatable, renderable {
         if (isset($definition['dropdownposition'])) {
             $this->dropdownposition = $definition['dropdownposition'];
         }
+        if (isset($definition['autoclose'])) {
+            $this->autoclose = $definition['autoclose'];
+        }
     }
 
     /**
@@ -231,6 +239,7 @@ class dialog implements named_templatable, renderable {
             'classes' => $this->classes,
             'buttonclasses' => $this->buttonclasses,
             'dialogclasses' => $this->dropdownwidth,
+            'autoclose' => $this->autoclose,
             'extras' => $extras,
         ];
         if ($this->disabled) {
diff --git a/lib/templates/local/dropdown/dialog.mustache b/lib/templates/local/dropdown/dialog.mustache
index 554f7c1fa68..063a3ff7541 100644
--- a/lib/templates/local/dropdown/dialog.mustache
+++ b/lib/templates/local/dropdown/dialog.mustache
@@ -77,6 +77,7 @@
         role="button"
         id="{{#buttonid}}{{buttonid}}{{/buttonid}}{{^buttonid}}dropdownDialog{{uniqid}}{{/buttonid}}"
         data-bs-toggle="dropdown"
+        data-bs-auto-close="{{#autoclose}}{{autoclose}}{{/autoclose}}{{^autoclose}}true{{/autoclose}}"
         aria-haspopup="true"
         aria-expanded="false"
         data-for="dropdowndialog_button"
diff --git a/mod/assign/classes/output/grading_actionmenu.php b/mod/assign/classes/output/grading_actionmenu.php
index eb5f42341e0..190dea8484f 100644
--- a/mod/assign/classes/output/grading_actionmenu.php
+++ b/mod/assign/classes/output/grading_actionmenu.php
@@ -390,6 +390,7 @@ class grading_actionmenu implements templatable, renderable {
             [
                 'classes' => 'extrafilters d-flex',
                 'buttonclasses' => 'btn d-flex border-none align-items-center dropdown-toggle p-0',
+                'autoclose' => 'outside',
             ]
         );
     }
diff --git a/mod/assign/templates/actionbar/grading/extra_filters_dropdown_body.mustache b/mod/assign/templates/actionbar/grading/extra_filters_dropdown_body.mustache
index 98bdf4de27c..c33949c8401 100644
--- a/mod/assign/templates/actionbar/grading/extra_filters_dropdown_body.mustache
+++ b/mod/assign/templates/actionbar/grading/extra_filters_dropdown_body.mustache
@@ -71,7 +71,7 @@
         <input type="hidden" name="action" value="{{action}}">
         {{#filters}}
             {{#markingworkflow}}
-                <div class="d-flex flex-wrap m-0 pb-3">
+                <div class="d-flex flex-wrap gap-2 m-0 pb-3">
                     <label class="w-100" for="filter-workflow-{{uniqid}}">
                         {{#str}}markingstate, mod_assign{{/str}}
                     </label>
@@ -83,7 +83,7 @@
                 </div>
             {{/markingworkflow}}
             {{#markingallocation}}
-                <div class="d-flex flex-wrap m-0 pb-3">
+                <div class="d-flex flex-wrap gap-2 m-0 pb-3">
                     <label class="w-100" for="filter-marking-allocation-{{uniqid}}">
                         {{#str}}marker, mod_assign{{/str}}
                     </label>
@@ -95,7 +95,7 @@
                 </div>
             {{/markingallocation}}
             {{#suspendedparticipants}}
-                <div class="d-flex flex-wrap m-0 pb-3 pt-2 mx-1 align-items-center">
+                <div class="d-flex flex-wrap gap-2 m-0 pb-3 pt-2 mx-1 align-items-center">
                     <input type="hidden" name="suspendedparticipantsfilter" value="0" {{#active}}disabled{{/active}}>
                     <input type="checkbox" id="filter-suspended-participants-{{uniqid}}" name="suspendedparticipantsfilter" value="1" {{#active}}checked{{/active}}>
                     <label for="filter-suspended-participants-{{uniqid}}" class='m-0' >{{#str}} includesuspendedparticipants, mod_assign {{/str}}</label>