diff --git a/src/components/ButtonWithDropdownMenu/index.tsx b/src/components/ButtonWithDropdownMenu/index.tsx
index 3c750512be87..afe40ec903ef 100644
--- a/src/components/ButtonWithDropdownMenu/index.tsx
+++ b/src/components/ButtonWithDropdownMenu/index.tsx
@@ -184,6 +184,7 @@ function ButtonWithDropdownMenu<IValueType>({ref, ...props}: ButtonWithDropdownM
                         innerStyles={[innerStyleDropButton, !isSplitButton && styles.dropDownButtonCartIconView, isTextTooLong && shouldUseShortForm && {...styles.pl2, ...styles.pr1}]}
                         enterKeyEventListenerPriority={enterKeyEventListenerPriority}
                         iconRight={icons.DownArrow}
+                        iconRightStyles={isMenuVisible ? styles.flipUpsideDown : undefined}
                         shouldShowRightIcon={!isSplitButton && !isLoading && options?.length > 0}
                         testID={testID}
                         textStyles={[isTextTooLong && shouldUseShortForm ? {...styles.textExtraSmall, ...styles.textBold} : {}]}
@@ -229,8 +230,9 @@ function ButtonWithDropdownMenu<IValueType>({ref, ...props}: ButtonWithDropdownM
                                         width={shouldUseShortForm ? variables.iconSizeExtraSmall : undefined}
                                         height={shouldUseShortForm ? variables.iconSizeExtraSmall : undefined}
                                         src={icons.DownArrow}
-                                        additionalStyles={shouldUseShortForm ? [styles.pRelative, styles.t0] : undefined}
+                                        additionalStyles={[...(shouldUseShortForm ? [styles.pRelative, styles.t0] : []), isMenuVisible ? styles.flipUpsideDown : undefined]}
                                         fill={success ? theme.buttonSuccessText : theme.icon}
+                                        testID="dropdown-arrow-icon"
                                     />
                                 </View>
                             </View>
diff --git a/tests/ui/components/ButtonWithDropdownMenuTest.tsx b/tests/ui/components/ButtonWithDropdownMenuTest.tsx
index 4d62cc63cf68..55a8d989ad00 100644
--- a/tests/ui/components/ButtonWithDropdownMenuTest.tsx
+++ b/tests/ui/components/ButtonWithDropdownMenuTest.tsx
@@ -67,3 +67,59 @@ describe('ButtonWithDropdownMenu (single option)', () => {
         expect(screen.getByText('Test Option')).toBeTruthy();
     });
 });
+
+describe('ButtonWithDropdownMenu (dropdown arrow flip)', () => {
+    const mockOnPress = jest.fn();
+    const {result: icons} = renderHook(() => useMemoizedLazyExpensifyIcons(['Checkbox']));
+    const options = [
+        {value: 'one', text: 'Option One', icon: icons.current.Checkbox},
+        {value: 'two', text: 'Option Two', icon: icons.current.Checkbox},
+    ];
+
+    afterEach(() => {
+        jest.clearAllMocks();
+    });
+
+    it('flips the arrow icon when the dropdown menu is opened in split button mode', () => {
+        render(
+            <ButtonWithDropdownMenu
+                options={options}
+                onPress={mockOnPress}
+                isSplitButton
+            />,
+        );
+
+        const arrowIcon = screen.getByTestId('dropdown-arrow-icon', {includeHiddenElements: true});
+        expect(arrowIcon).not.toHaveStyle({transform: 'rotate(180deg)'});
+
+        const buttons = screen.getAllByRole('button');
+        const buttonToPress = buttons?.at(1);
+        if (buttonToPress) {
+            fireEvent.press(buttonToPress);
+        }
+        expect(arrowIcon).toHaveStyle({transform: 'rotate(180deg)'});
+    });
+
+    it('reverts the arrow icon when the dropdown menu is closed', () => {
+        render(
+            <ButtonWithDropdownMenu
+                options={options}
+                onPress={mockOnPress}
+                isSplitButton
+            />,
+        );
+
+        const arrowIcon = screen.getByTestId('dropdown-arrow-icon', {includeHiddenElements: true});
+        const buttons = screen.getAllByRole('button');
+        const buttonToPress = buttons?.at(1);
+        if (buttonToPress) {
+            fireEvent.press(buttonToPress);
+        }
+        expect(arrowIcon).toHaveStyle({transform: 'rotate(180deg)'});
+
+        if (buttonToPress) {
+            fireEvent.press(buttonToPress);
+        }
+        expect(arrowIcon).not.toHaveStyle({transform: 'rotate(180deg)'});
+    });
+});