diff --git a/packages/main/src/SplitButton.ts b/packages/main/src/SplitButton.ts
index 713d4a823b2f..baccf9fdb2ef 100644
--- a/packages/main/src/SplitButton.ts
+++ b/packages/main/src/SplitButton.ts
@@ -173,12 +173,12 @@ class SplitButton extends UI5Element {
 	_spacePressed = false;
 
 	/**
-	 * Indicates if there is SHIFT or ESCAPE key pressed
+	 * Indicates if there is Shift or Escape key pressed while Space key is down.
 	 * @default false
 	 * @private
 	 */
 	@property({ type: Boolean, noAttribute: true })
-	_shiftOrEscapePressed = false;
+	_shiftOrEscapePressedDuringSpace = false;
 
 	/**
 	 * Defines the active state of the text button
@@ -227,9 +227,6 @@ class SplitButton extends UI5Element {
 	@slot({ type: Node, "default": true })
 	text!: Array<Node>;
 
-	_isDefaultActionPressed = false;
-	_isKeyDownOperation = false;
-
 	@i18n("@ui5/webcomponents")
 	static i18nBundle: I18nBundle;
 
@@ -248,17 +245,10 @@ class SplitButton extends UI5Element {
 			return;
 		}
 
-		this._shiftOrEscapePressed = false;
+		this._resetActionButtonStates();
 		this._setTabIndexValue();
 	}
 
-	_onFocusIn() {
-		if (this.disabled || this.getFocusDomRef()!.matches(":has(:focus-within)")) {
-			return;
-		}
-		this._shiftOrEscapePressed = false;
-	}
-
 	handleTouchStart(e: TouchEvent | MouseEvent) {
 		e.stopPropagation();
 		this._textButtonActive = true;
@@ -273,59 +263,67 @@ class SplitButton extends UI5Element {
 	}
 
 	_onKeyDown(e: KeyboardEvent) {
-		this._isKeyDownOperation = true;
 		if (this._isArrowKeyAction(e)) {
 			this._handleArrowButtonAction(e);
 			this._activeArrowButton = true;
-		} else if (this._isDefaultAction(e)) {
+			return;
+		}
+
+		if (this._isDefaultAction(e)) {
 			this._handleDefaultAction(e);
-			this._isDefaultActionPressed = true;
+			return;
 		}
 
-		if (this._spacePressed && this._isShiftOrEscape(e)) {
-			this._handleShiftOrEscapePressed();
+		if ((isShift(e) || isEscape(e)) && this._spacePressed) {
+			e.preventDefault();
+			this._shiftOrEscapePressedDuringSpace = true;
 		}
 
-		// Handles button freeze issue when pressing Enter/Space and navigating with Tab/Shift+Tab simultaneously.
-		if (this._isDefaultActionPressed && (isTabNext(e) || isTabPrevious(e))) {
-			this._activeArrowButton = false;
-			this._textButtonActive = false;
+		if (isEscape(e)) {
+			this._resetActionButtonStates();
 		}
 
 		this._tabIndex = -1;
 	}
 
 	_onKeyUp(e: KeyboardEvent) {
-		this._isKeyDownOperation = false;
+		const target = e.target as Button;
 		if (this._isArrowKeyAction(e)) {
 			e.preventDefault();
 			this._activeArrowButton = false;
+			return;
+		}
+
+		if (isSpace(e)) {
+			e.preventDefault();
+			e.stopPropagation();
 			this._textButtonActive = false;
-		} else if (this._isDefaultAction(e)) {
-			this._isDefaultActionPressed = false;
-			this._textButtonActive = false;
-			if (isSpace(e)) {
-				e.preventDefault();
-				e.stopPropagation();
+			if (!this._shiftOrEscapePressedDuringSpace && target !== this.arrowButton) { // Do not fire click if Arrow button is focused by mouse and Space is pressed afterwards
 				this._fireClick();
-				this._spacePressed = false;
-				this._textButtonActive = false;
 			}
+
+			this._spacePressed = false;
+			return;
 		}
 
-		if (this._isShiftOrEscape(e)) {
-			this._handleShiftOrEscapePressed();
+		if (isEnter(e)) {
+			this._textButtonActive = false;
+			return;
 		}
 
-		this._tabIndex = -1;
+		if (isShift(e) && this._textButtonActive) {
+			this._textButtonActive = false;
+		}
+	}
+
+	_resetActionButtonStates() {
+		this._activeArrowButton = false;
+		this._textButtonActive = false;
 	}
 
 	_fireClick(e?: Event) {
 		e?.stopPropagation();
-		if (!this._shiftOrEscapePressed) {
-			this.fireDecoratorEvent("click");
-		}
-		this._shiftOrEscapePressed = false;
+		this.fireDecoratorEvent("click");
 	}
 
 	_fireArrowClick(e?: Event) {
@@ -383,15 +381,6 @@ class SplitButton extends UI5Element {
 		return isSpace(e) || isEnter(e);
 	}
 
-	/**
-	 * Checks if the pressed key is an escape key or shift key.
-	 * @param e - keyboard event
-	 * @private
-	 */
-	_isShiftOrEscape(e: KeyboardEvent): boolean {
-		return isEscape(e) || isShift(e);
-	}
-
 	/**
 	 * Handles the click event and the focus on the arrow button.
 	 * @param e - keyboard event
@@ -401,10 +390,6 @@ class SplitButton extends UI5Element {
 		e.preventDefault();
 
 		this._fireArrowClick(e);
-
-		if (isSpace((e as KeyboardEvent))) {
-			this._spacePressed = true;
-		}
 	}
 
 	/**
@@ -414,30 +399,30 @@ class SplitButton extends UI5Element {
 	 */
 	_handleDefaultAction(e: KeyboardEvent) {
 		e.preventDefault();
-		const wasSpacePressed = isSpace(e);
 		const target = e.target as Button;
 
 		if (this.arrowButton && target === this.arrowButton) {
 			this._activeArrowButton = true;
 			this._fireArrowClick();
-			if (wasSpacePressed) {
-				this._spacePressed = true;
-				this._textButtonActive = false;
-			}
-		} else {
-			this._textButtonActive = true;
-			if (wasSpacePressed) {
-				this._spacePressed = true;
-				return;
-			}
-			this._fireClick();
+			return;
 		}
-	}
 
-	_handleShiftOrEscapePressed() {
-		this._shiftOrEscapePressed = true;
-		this._textButtonActive = false;
-		this._isKeyDownOperation = false;
+		this._textButtonActive = true;
+
+		if (isSpace(e)) {
+			this._spacePressed = true;
+			this._shiftOrEscapePressedDuringSpace = false; // Reset whenever new Space action starts
+			return;
+		}
+
+		if (isEnter(e)) {
+			this._fireClick(e);
+			return;
+		}
+
+		if (isTabPrevious(e) || isTabNext(e)) {
+			this._resetActionButtonStates();
+		}
 	}
 
 	get effectiveActiveArrowButton() {
diff --git a/packages/main/src/SplitButtonTemplate.tsx b/packages/main/src/SplitButtonTemplate.tsx
index 8284ced6c30a..7fcc27baaaa6 100644
--- a/packages/main/src/SplitButtonTemplate.tsx
+++ b/packages/main/src/SplitButtonTemplate.tsx
@@ -10,7 +10,6 @@ export default function SplitButtonTemplate(this: SplitButton) {
 			tabindex={this._tabIndex}
 			aria-labelledby={`${this._id}-invisibleTextDefault ${this._id}}-invisibleText`}
 			onFocusOut={this._onFocusOut}
-			onFocusIn={this._onFocusIn}
 			onKeyDown={this._onKeyDown}
 			onKeyUp={this._onKeyUp}
 		>