diff --git a/src/frontend/src/features/rooms/livekit/components/controls/Options/PipOptionsMenu.tsx b/src/frontend/src/features/rooms/livekit/components/controls/Options/PipOptionsMenu.tsx
index a2e42b22..c9b0340c 100644
--- a/src/frontend/src/features/rooms/livekit/components/controls/Options/PipOptionsMenu.tsx
+++ b/src/frontend/src/features/rooms/livekit/components/controls/Options/PipOptionsMenu.tsx
@@ -1,4 +1,4 @@
-import React from 'react'
+import React, { useEffect } from 'react'
 import { RiMoreFill } from '@remixicon/react'
 import { Box, Button } from '@/primitives'
 import { css } from '@/styled-system/css'
@@ -11,12 +11,41 @@ type PipOptionsMenuProps = {
   label: string
 }
 
+// PiP-specific options menu positioned locally above the trigger button.
 export const PipOptionsMenu = ({
   wrapperRef,
   isOpen,
   setIsOpen,
   label,
 }: PipOptionsMenuProps) => {
+  // Close menu when a menu item action completes (e.g., transcription, effects).
+  useEffect(() => {
+    if (!isOpen) return
+    const doc = wrapperRef.current?.ownerDocument ?? document
+
+    const handleMenuItemClick = (event: MouseEvent) => {
+      const target = event.target as HTMLElement | null
+      const wrapper = wrapperRef.current
+      if (!wrapper || !target) return
+      
+      // Don't close if clicking the trigger button
+      if (wrapper.querySelector('button')?.contains(target)) return
+      
+      // Close if clicking a menu item (action will have fired)
+      if (target.closest('[role="menuitem"]')) {
+        // Use requestAnimationFrame to ensure action completes first, without visible delay
+        requestAnimationFrame(() => {
+          setIsOpen(false)
+        })
+      }
+    }
+
+    doc.addEventListener('click', handleMenuItemClick, true)
+    return () => {
+      doc.removeEventListener('click', handleMenuItemClick, true)
+    }
+  }, [isOpen, setIsOpen, wrapperRef])
+
   return (
     <div
       ref={wrapperRef}