diff --git a/packages/app/e2e/regression/directory-picker.spec.ts b/packages/app/e2e/regression/directory-picker.spec.ts
new file mode 100644
index 00000000000..7d61a2eb0ba
--- /dev/null
+++ b/packages/app/e2e/regression/directory-picker.spec.ts
@@ -0,0 +1,39 @@
+import { expect, test } from "@playwright/test"
+import { fileNode, openSettings } from "../utils/workspace"
+
+test.use({ viewport: { width: 1440, height: 900 } })
+
+test("the folder picker's tree scrolls with the mouse wheel inside the modal", async ({ page }) => {
+  const directory = "/projects/big"
+  let listing = false
+
+  await openSettings(page, {
+    name: "Picker",
+    directory,
+    fileList: () =>
+      listing
+        ? Array.from({ length: 500 }, (_, index) =>
+            fileNode(directory, `dir-${String(index).padStart(3, "0")}`, "directory"),
+          )
+        : [],
+    seed: { tabs: [] },
+  })
+  await page.getByTestId("settings-screen").getByRole("tab", { name: "Projects", exact: true }).click()
+  listing = true
+  await page.getByRole("button", { name: "Add project", exact: true }).click()
+  const picker = page.getByRole("dialog", { name: "Open project", exact: true })
+
+  const scrollTop = () =>
+    page.evaluate(
+      () =>
+        document
+          .querySelector(".directory-picker-tree")
+          ?.shadowRoot?.querySelector<HTMLElement>("[data-file-tree-virtualized-scroll]")?.scrollTop,
+    )
+
+  await expect.poll(scrollTop).toBe(0)
+  const browser = await picker.locator(".directory-picker-browser").boundingBox()
+  await page.mouse.move(browser!.x + browser!.width / 2, browser!.y + browser!.height / 2)
+  await page.mouse.wheel(0, 300)
+  await expect.poll(scrollTop).toBeGreaterThan(0)
+})
diff --git a/packages/app/src/workspaces/selection/dialog.tsx b/packages/app/src/workspaces/selection/dialog.tsx
index 5d5830ba2b1..2c355f31cd7 100644
--- a/packages/app/src/workspaces/selection/dialog.tsx
+++ b/packages/app/src/workspaces/selection/dialog.tsx
@@ -14,7 +14,6 @@ import {
   activeTreeNavigation,
   advanceTreePreload,
   nextSuggestionIndex,
-  nextTreeScrollTop,
   pickerFileSearchQuery,
   pickerAbsoluteInput,
   pickerMode,
@@ -389,27 +388,10 @@ export function DirectoryPickerDialog(props: DirectoryPickerDialogProps) {
         <div
           class="directory-picker-browser"
           ref={container}
-          // The modal's scroll lock sees only the shadow host, not the tree's inner scroller.
+          // The modal's scroll lock sees only the shadow host, not the tree's inner scroller. Stopping the event here
+          // keeps the lock from cancelling it, and the passive listener leaves the scroller to the compositor.
           on:touchmove={(event) => event.stopPropagation()}
-          onWheel={(event) => {
-            const scroller = tree
-              ?.getFileTreeContainer()
-              ?.shadowRoot?.querySelector<HTMLElement>("[data-file-tree-virtualized-scroll]")
-
-            if (!scroller) return
-
-            const next = nextTreeScrollTop(
-              scroller.scrollTop,
-              event.deltaY,
-              scroller.scrollHeight,
-              scroller.clientHeight,
-            )
-
-            if (next === scroller.scrollTop) return
-            event.preventDefault()
-            scroller.scrollTop = next
-            scroller.dispatchEvent(new Event("scroll"))
-          }}
+          on:wheel={{ handleEvent: (event: WheelEvent) => event.stopPropagation(), passive: true }}
         >
           <Show when={loading()}>
             <div class="directory-picker-state">{language.t("common.loading")}</div>