diff --git a/packages/main/cypress/specs/ColorPalettePopover.cy.tsx b/packages/main/cypress/specs/ColorPalettePopover.cy.tsx
new file mode 100644
index 000000000000..4c68cbb3af18
--- /dev/null
+++ b/packages/main/cypress/specs/ColorPalettePopover.cy.tsx
@@ -0,0 +1,242 @@
+import Input from "../../src/Input.js";
+import Button from "../../src/Button.js";
+import ColorPaletteItem from "../../src/ColorPaletteItem.js";
+import ColorPalettePopover from "../../src/ColorPalettePopover.js";
+
+function ColorPaletteSample() {
+	return (
+		<>
+			<Button id="colorPaletteBtnTest">Open</Button>
+			<ColorPalettePopover
+				id="colorPalettePopoverTest"
+				showRecentColors={true}
+				showMoreColors={true}
+				showDefaultColor={true}
+				defaultColor="green"
+				opener="colorPaletteBtnTest"
+			>
+				<ColorPaletteItem value="pink" />
+				<ColorPaletteItem value="darkblue" />
+				<ColorPaletteItem value="#444444" />
+				<ColorPaletteItem value="rgb(0,200,0)" />
+				<ColorPaletteItem value="green" />
+				<ColorPaletteItem value="darkred" />
+				<ColorPaletteItem value="yellow" />
+				<ColorPaletteItem value="blue" />
+				<ColorPaletteItem value="cyan" />
+				<ColorPaletteItem value="orange" />
+				<ColorPaletteItem value="#5480e7" />
+				<ColorPaletteItem value="#ff6699" />
+			</ColorPalettePopover>
+		</>
+	);
+}
+
+describe("Color Palette Popover tests", () => {
+	it("Test if focusing first element works on initial open", () => {
+		cy.mount(<ColorPaletteSample />);
+
+		// use the command to open the color palette popover
+		cy.get("[ui5-color-palette-popover]")
+			.ui5ColorPalettePopoverOpen({ opener: "colorPaletteBtnTest" });
+
+		// get elements and assert focus
+		cy.get("#colorPalettePopoverTest")
+			.ui5GetColorPaletteInPopover()
+			.ui5GetColorPaletteDefaultButton()
+			.should("have.focus");
+
+		// close popover
+		cy.get("#colorPalettePopoverTest")
+			.ui5GetColorPaletteInPopover()
+			.ui5GetColorPaletteDefaultButton()
+			.realClick();
+	});
+
+	it("Test if default color functionality works", () => {
+		cy.mount(<ColorPaletteSample />);
+		const DEFAULT_COLOR = "green";
+
+		// open color palette popover
+		cy.get("[ui5-color-palette-popover]")
+			.ui5ColorPalettePopoverOpen({ opener: "colorPaletteBtnTest" });
+
+		// get color palette within popover
+		cy.get("#colorPalettePopoverTest")
+			.ui5GetColorPaletteInPopover()
+			.as("colorPalette");
+
+		// find and click default color button
+		cy.get("@colorPalette")
+			.ui5GetColorPaletteDefaultButton()
+			.realPress("Space"); // simulate space key press
+
+		// "green" is selected as default color
+		cy.get("@colorPalette")
+			.invoke("prop", "selectedColor")
+			.should("equal", DEFAULT_COLOR);
+	});
+
+	it("Test if keyboard navigation on elements works correctly", () => {
+		const EXPECTED_COLOR = "pink";
+		cy.mount(<ColorPaletteSample />);
+
+		// open color palette popover
+		cy.get("[ui5-color-palette-popover]")
+			.ui5ColorPalettePopoverOpen({ opener: "colorPaletteBtnTest" });
+
+		// get color palette within popover
+		cy.get("#colorPalettePopoverTest")
+			.ui5GetColorPaletteInPopover()
+			.as("colorPalette");
+
+		// get default button and perform keyboard navigation
+		cy.get("@colorPalette")
+			.ui5GetColorPaletteDefaultButton()
+			.realPress("ArrowDown");
+
+		// find first color palette item and press space
+		cy.get("@colorPalette")
+			.ui5GetColorPaletteFirstItem()
+			.realPress("Space");
+
+		// "pink" is selected
+		cy.get("@colorPalette")
+			.invoke("prop", "selectedColor")
+			.should("equal", EXPECTED_COLOR);
+	});
+
+	it("Test if keyboard navigation on elements works correctly", () => {
+		cy.mount(<ColorPaletteSample />);
+
+		// open color palette popover
+		cy.get("[ui5-color-palette-popover]")
+			.ui5ColorPalettePopoverOpen({ opener: "colorPaletteBtnTest" });
+
+		// get color palette within popover
+		cy.get("#colorPalettePopoverTest")
+			.ui5GetColorPaletteInPopover()
+			.as("colorPalette");
+
+		// get default button and perform keyboard navigation up
+		cy.get("@colorPalette")
+			.ui5GetColorPaletteDefaultButton()
+			.realPress("ArrowUp");
+
+		// more Colors button is focused
+		cy.get("@colorPalette")
+			.ui5GetColorPaletteMoreColorsButton()
+			.should("have.focus");
+
+		// close popover
+		cy.get("@colorPalette")
+			.ui5GetColorPaletteDefaultButton()
+			.realClick();
+	});
+
+	it("Test 'close' event fired when popover closes", () => {
+		cy.mount(
+			<>
+				<Button id="colorPaletteBtnTest6">Open</Button>
+				<Input id="inpOpenChangeCounter" placeholder="'close' event count"></Input>
+				<Button id="btnFocusOut">Press</Button>
+				<ColorPalettePopover
+					id="colorPalettePopoverTest6"
+					showRecentColors={true}
+					showMoreColors={true}
+					showDefaultColor={true}
+					defaultColor="green"
+					opener="colorPaletteBtnTest6"
+				>
+					<ColorPaletteItem value="pink"></ColorPaletteItem>
+					<ColorPaletteItem value="darkblue"></ColorPaletteItem>
+					<ColorPaletteItem value="#444444"></ColorPaletteItem>
+					<ColorPaletteItem value="rgb(0,200,0)"></ColorPaletteItem>
+					<ColorPaletteItem value="green"></ColorPaletteItem>
+					<ColorPaletteItem value="darkred"></ColorPaletteItem>
+					<ColorPaletteItem value="yellow"></ColorPaletteItem>
+					<ColorPaletteItem value="blue"></ColorPaletteItem>
+					<ColorPaletteItem value="cyan"></ColorPaletteItem>
+					<ColorPaletteItem value="orange"></ColorPaletteItem>
+					<ColorPaletteItem value="#5480e7"></ColorPaletteItem>
+					<ColorPaletteItem value="#ff6699"></ColorPaletteItem>
+				</ColorPalettePopover>
+			</>
+		);
+
+		// listener to increment the counter on popover close
+		cy.get("#colorPalettePopoverTest6").ui5RegisterCloseCounter("#inpOpenChangeCounter");
+
+		// open popover and close it by clicking outside
+		cy.get("[ui5-color-palette-popover]").ui5ColorPalettePopoverOpen({ opener: "colorPaletteBtnTest6" });
+		cy.get("#btnFocusOut").realClick();
+
+		// verify that the close event fired
+		cy.get("#inpOpenChangeCounter").should("have.attr", "value", "1");
+
+		// open the color palette popover again
+		cy.get("[ui5-color-palette-popover]").ui5ColorPalettePopoverOpen({ opener: "colorPaletteBtnTest6" });
+
+		// close the popover
+		cy.get("#colorPalettePopoverTest6").ui5ColorPalettePopoverClose();
+
+		cy.get("#inpOpenChangeCounter").should("have.attr", "value", "2");
+	});
+
+	// the item is focused but the assertion fails
+	it.skip("After selecting an item, opening the popover again should focus the selected item", () => {
+		cy.mount(<ColorPaletteSample />);
+
+		// open the popover and select the first item using keyboard navigation
+		cy.get("[ui5-color-palette-popover]")
+			.ui5ColorPalettePopoverOpen({ opener: "colorPaletteBtnTest" });
+		cy.get("#colorPalettePopoverTest")
+			.ui5GetColorPaletteInPopover()
+			.as("colorPalette");
+
+		// navigate from the default button to the first palette item
+		cy.get("@colorPalette")
+			.realPress("ArrowDown")
+			.realPress("Space");
+
+		// close the popover by clicking the opener button
+		cy.get("#colorPaletteBtnTest").realClick();
+
+		// re-open the popover
+		cy.get("[ui5-color-palette-popover]")
+			.ui5ColorPalettePopoverOpen({ opener: "colorPaletteBtnTest" });
+
+		// verify that the previously selected item is focused
+		cy.get("#colorPalettePopoverTest")
+			.ui5GetColorPaletteInPopover()
+			.ui5GetColorPaletteFirstItem()
+			.should("be.focused");
+	});
+
+	it("Clicking default button and opening the popover again should focus the default button", () => {
+		cy.mount(<ColorPaletteSample />);
+
+		// open the popover
+		cy.get("[ui5-color-palette-popover]")
+			.ui5ColorPalettePopoverOpen({ opener: "colorPaletteBtnTest" });
+
+		// click on the default button inside the popover
+		cy.get("#colorPalettePopoverTest")
+			.ui5GetColorPaletteInPopover()
+			.ui5GetColorPaletteDefaultButton()
+			.realClick();
+
+		// close the popover by clicking the opener button
+		cy.get("#colorPaletteBtnTest").realClick();
+
+		// re-open the popover
+		cy.get("[ui5-color-palette-popover]")
+			.ui5ColorPalettePopoverOpen({ opener: "colorPaletteBtnTest" });
+
+		// assert that the default button is focused
+		cy.get("#colorPalettePopoverTest")
+			.ui5GetColorPaletteInPopover()
+			.ui5GetColorPaletteDefaultButton()
+			.should("have.focus");
+	});
+});
diff --git a/packages/main/cypress/support/commands.ts b/packages/main/cypress/support/commands.ts
index 95ab78647721..f1ff67f7a7e5 100644
--- a/packages/main/cypress/support/commands.ts
+++ b/packages/main/cypress/support/commands.ts
@@ -38,8 +38,9 @@
 
 import { internals, isPhone } from "@ui5/webcomponents-base/dist/Device.js";
 import "./commands/Menu.commands.js";
-import "./commands/ColorPicker.commands.js";
 import "./commands/ColorPalette.commands.js";
+import "./commands/ColorPalettePopover.commands.js";
+import "./commands/ColorPicker.commands.js";
 
 type SimulationDevices = "phone"
 
@@ -56,6 +57,14 @@ declare global {
 			ui5ColorPickerUpdateInput(name: string, value: string): Chainable<void>
 			ui5ColorPaletteCheckSelectedColor(colorPaletteItem: string, values: {r: string, g: string, b: string, a: string}): Chainable<void>
 			ui5ColorPaletteNavigateAndCheckSelectedColor(colorPalette: string, startIndex: number, key: string, expectedValue: string): Chainable<void>
+			ui5ColorPalettePopoverOpened(): Chainable<void>
+			ui5ColorPalettePopoverOpen(options?: { opener?: string }): Chainable<void>
+			ui5GetColorPaletteInPopover(): Chainable<void>
+			ui5GetColorPaletteDefaultButton(): Chainable<void>
+			ui5GetColorPaletteFirstItem(): Chainable<void>
+			ui5GetColorPaletteMoreColorsButton(): Chainable<void>
+			ui5RegisterCloseCounter(inputSelector: string): Chainable<void>
+			ui5ColorPalettePopoverClose(): Chainable<void>
 		}
 	}
 }
diff --git a/packages/main/cypress/support/commands/ColorPalettePopover.commands.ts b/packages/main/cypress/support/commands/ColorPalettePopover.commands.ts
new file mode 100644
index 000000000000..af2efb14a093
--- /dev/null
+++ b/packages/main/cypress/support/commands/ColorPalettePopover.commands.ts
@@ -0,0 +1,84 @@
+Cypress.Commands.add("ui5ColorPalettePopoverOpen", { prevSubject: true }, (prevSubject, options) => {
+	cy.wrap(prevSubject)
+		.as("colorPalettePopover")
+		.then(popover => {
+			if (options?.opener) {
+				cy.wrap(popover)
+					.invoke("attr", "opener", options.opener);
+			}
+
+			cy.wrap(popover)
+				.invoke("attr", "open", true);
+		});
+
+	cy.get("@colorPalettePopover")
+		.ui5ColorPalettePopoverOpened();
+});
+
+Cypress.Commands.add("ui5ColorPalettePopoverOpened", { prevSubject: true }, subject => {
+	cy.wrap(subject)
+		.as("colorPalettePopover");
+
+	cy.get("@colorPalettePopover")
+		.should("have.attr", "open");
+
+	cy.get("@colorPalettePopover")
+		.shadow()
+		.find("[ui5-responsive-popover]")
+		.should(respPopover => {
+			expect(respPopover.is(":popover-open")).to.be.true;
+			expect(respPopover.width()).to.not.equal(0);
+			expect(respPopover.height()).to.not.equal(0);
+		})
+		.and("have.attr", "open");
+});
+
+Cypress.Commands.add("ui5GetColorPaletteInPopover", { prevSubject: true }, subject => {
+	cy.wrap(subject)
+		.shadow()
+		.find("[ui5-responsive-popover]")
+		.find("[ui5-color-palette]");
+});
+
+Cypress.Commands.add("ui5GetColorPaletteDefaultButton", { prevSubject: true }, subject => {
+	cy.wrap(subject)
+		.shadow()
+		.find(".ui5-cp-default-color-button");
+});
+
+Cypress.Commands.add("ui5GetColorPaletteFirstItem", { prevSubject: true }, subject => {
+	cy.wrap(subject)
+		.shadow()
+		.find("ui5-color-palette-item")
+		.first();
+});
+
+Cypress.Commands.add("ui5GetColorPaletteMoreColorsButton", { prevSubject: true }, subject => {
+	cy.wrap(subject)
+		.shadow()
+		.find(".ui5-cp-more-colors");
+});
+
+Cypress.Commands.add("ui5ColorPalettePopoverClose", { prevSubject: true }, subject => {
+	cy.wrap(subject).as("colorPalettePopover");
+
+	// close the popover
+	cy.get("@colorPalettePopover")
+		.realPress("Escape");
+
+	cy.get("@colorPalettePopover")
+		.should("not.have.attr", "open");
+});
+
+Cypress.Commands.add("ui5RegisterCloseCounter", { prevSubject: true }, (subject, inputSelector: string) => {
+	cy.wrap(subject).then(element => {
+		const popoverElement = element[0];
+		let openChangeCounter = 0;
+
+		popoverElement.addEventListener("ui5-close", () => {
+			// increment the value of the input field, indicating that the event close was fired
+			openChangeCounter++;
+			Cypress.$(inputSelector).val(`${openChangeCounter}`);
+		});
+	});
+});