diff --git a/ui/src/layout/ActivityPanel.jsx b/ui/src/layout/ActivityPanel.jsx
index 6b50cee0c..18af8dc93 100644
--- a/ui/src/layout/ActivityPanel.jsx
+++ b/ui/src/layout/ActivityPanel.jsx
@@ -75,14 +75,25 @@ const ActivityPanel = () => {
     scanStatus.scanning,
     scanStatus.elapsedTime,
   )
-  const classes = useStyles({ up: up && !scanStatus.error })
+  const [acknowledgedError, setAcknowledgedError] = useState(null)
+  const isErrorVisible =
+    scanStatus.error && scanStatus.error !== acknowledgedError
+  const classes = useStyles({
+    up: up && (!scanStatus.error || !isErrorVisible),
+  })
   const translate = useTranslate()
   const notify = useNotify()
   const [anchorEl, setAnchorEl] = useState(null)
   const open = Boolean(anchorEl)
   useInitialScanStatus()
 
-  const handleMenuOpen = (event) => setAnchorEl(event.currentTarget)
+  const handleMenuOpen = (event) => {
+    if (scanStatus.error) {
+      setAcknowledgedError(scanStatus.error)
+    }
+    setAnchorEl(event.currentTarget)
+  }
+
   const handleMenuClose = () => setAnchorEl(null)
   const triggerScan = (full) => () => subsonic.startScan({ fullScan: full })
 
@@ -111,10 +122,10 @@ const ActivityPanel = () => {
     <div className={classes.wrapper}>
       <Tooltip title={tooltipTitle}>
         <IconButton className={classes.button} onClick={handleMenuOpen}>
-          {!up || scanStatus.error ? (
-            <BiError size={'20'} />
+          {!up || isErrorVisible ? (
+            <BiError data-testid="activity-error-icon" size={'20'} />
           ) : (
-            <FiActivity size={'20'} />
+            <FiActivity data-testid="activity-ok-icon" size={'20'} />
           )}
         </IconButton>
       </Tooltip>
diff --git a/ui/src/layout/ActivityPanel.test.jsx b/ui/src/layout/ActivityPanel.test.jsx
new file mode 100644
index 000000000..c506fd08b
--- /dev/null
+++ b/ui/src/layout/ActivityPanel.test.jsx
@@ -0,0 +1,61 @@
+import React from 'react'
+import { render, screen, fireEvent } from '@testing-library/react'
+import { Provider } from 'react-redux'
+import { createStore, combineReducers } from 'redux'
+import { describe, it, beforeEach } from 'vitest'
+
+import ActivityPanel from './ActivityPanel'
+import { activityReducer } from '../reducers'
+import config from '../config'
+import subsonic from '../subsonic'
+
+vi.mock('../subsonic', () => ({
+  default: {
+    getScanStatus: vi.fn(() =>
+      Promise.resolve({
+        json: {
+          'subsonic-response': {
+            status: 'ok',
+            scanStatus: { error: 'Scan failed' },
+          },
+        },
+      }),
+    ),
+    startScan: vi.fn(),
+  },
+}))
+
+describe('<ActivityPanel />', () => {
+  let store
+
+  beforeEach(() => {
+    store = createStore(combineReducers({ activity: activityReducer }), {
+      activity: {
+        scanStatus: {
+          scanning: false,
+          folderCount: 0,
+          count: 0,
+          error: 'Scan failed',
+          elapsedTime: 0,
+        },
+        serverStart: { version: config.version, startTime: Date.now() },
+      },
+    })
+  })
+
+  it('clears the error icon after opening the panel', () => {
+    render(
+      <Provider store={store}>
+        <ActivityPanel />
+      </Provider>,
+    )
+
+    const button = screen.getByRole('button')
+    expect(screen.getByTestId('activity-error-icon')).toBeInTheDocument()
+
+    fireEvent.click(button)
+
+    expect(screen.getByTestId('activity-ok-icon')).toBeInTheDocument()
+    expect(screen.getByText('Scan failed')).toBeInTheDocument()
+  })
+})