diff --git a/packages/main/cypress/specs/ToolbarSelect.cy.tsx b/packages/main/cypress/specs/ToolbarSelect.cy.tsx
index 3da2eb1a5b6a..912973538ce2 100644
--- a/packages/main/cypress/specs/ToolbarSelect.cy.tsx
+++ b/packages/main/cypress/specs/ToolbarSelect.cy.tsx
@@ -1,6 +1,7 @@
 import Toolbar from "../../src/Toolbar.js";
 import ToolbarSelect from "../../src/ToolbarSelect.js";
 import ToolbarSelectOption from "../../src/ToolbarSelectOption.js";
+import Button from "../../src/Button.js";
 
 describe("Toolbar general interaction", () => {
 	it("Should render the select with the correct attributes", () => {
@@ -264,10 +265,10 @@ describe("Toolbar general interaction", () => {
 		cy.mount(
 			<Toolbar id="otb_d">
 				<ToolbarSelect style="width: 201px;" id="toolbar-select">
-						<ToolbarSelectOption>1</ToolbarSelectOption>
-						<ToolbarSelectOption selected>2</ToolbarSelectOption>
-						<ToolbarSelectOption>3</ToolbarSelectOption>
-					</ToolbarSelect>
+					<ToolbarSelectOption>1</ToolbarSelectOption>
+					<ToolbarSelectOption selected>2</ToolbarSelectOption>
+					<ToolbarSelectOption>3</ToolbarSelectOption>
+				</ToolbarSelect>
 			</Toolbar>
 		);
 		cy.viewport(220, 1080); // Set a small viewport width to trigger overflow
@@ -282,4 +283,47 @@ describe("Toolbar general interaction", () => {
 		// Verify the toolbar-select is rendered inside the popover
 		cy.get("ui5-toolbar-select").should("be.visible");
 	});
+
+	it("Should update ToolbarSelect value when option selected property changes via button click", () => {
+		cy.mount(
+			<>
+				<Toolbar>
+					<ToolbarSelect id="testSelect">
+						<ToolbarSelectOption id="opt1" selected>Option 1</ToolbarSelectOption>
+						<ToolbarSelectOption id="opt2">Option 2</ToolbarSelectOption>
+					</ToolbarSelect>
+				</Toolbar>
+				<Button id="btnNext">Next Step</Button>
+			</>
+		);
+
+		// Wait for component to render
+		cy.wait(500);
+
+		// Initial check - Option 1 should be selected
+		cy.get("[ui5-toolbar]")
+			.find("[ui5-toolbar-select]")
+			.should("have.prop", "value", "Option 1");
+
+		// Set up button click handler
+		cy.get("[ui5-button]").then($btn => {
+			$btn.get(0).addEventListener("click", () => {
+				const opt1 = document.getElementById("opt1") as ToolbarSelectOption;
+				const opt2 = document.getElementById("opt2") as ToolbarSelectOption;
+				opt1.selected = false;
+				opt2.selected = true;
+			});
+		});
+
+		// Click the button
+		cy.get("[ui5-button]").realClick();
+
+		// Wait for update
+		cy.wait(200);
+
+		// Verify the ToolbarSelect value property updated
+		cy.get("[ui5-toolbar]")
+			.find("[ui5-toolbar-select]")
+			.should("have.prop", "value", "Option 2");
+	});
 });
\ No newline at end of file
diff --git a/packages/main/src/ToolbarSelect.ts b/packages/main/src/ToolbarSelect.ts
index 2e8451f9973d..cb5ccdbe1b0b 100644
--- a/packages/main/src/ToolbarSelect.ts
+++ b/packages/main/src/ToolbarSelect.ts
@@ -4,6 +4,7 @@ import property from "@ui5/webcomponents-base/dist/decorators/property.js";
 import slot from "@ui5/webcomponents-base/dist/decorators/slot.js";
 import event from "@ui5/webcomponents-base/dist/decorators/event-strict.js";
 import type ValueState from "@ui5/webcomponents-base/dist/types/ValueState.js";
+import type { ChangeInfo } from "@ui5/webcomponents-base/dist/UI5Element.js";
 import ToolbarSelectCss from "./generated/themes/ToolbarSelect.css.js";
 import type Select from "./Select.js";
 
@@ -91,6 +92,7 @@ class ToolbarSelect extends ToolbarItem {
 	@slot({
 		"default": true,
 		type: HTMLElement,
+		invalidateOnChildChange: true,
 	})
 	options!: Array<ToolbarSelectOption>;
 
@@ -146,14 +148,19 @@ class ToolbarSelect extends ToolbarItem {
 	 */
 	@property()
 	set value(newValue: string) {
-		if (this.select && this.select.value !== newValue) {
-			this.select.value = newValue;
-		}
 		this._value = newValue;
+		const selectElement = this.select;
+		if (selectElement && selectElement.value !== newValue) {
+			selectElement.value = newValue;
+		}
 	}
 
 	get value(): string | undefined {
-		return this.select ? this.select.value : this._value;
+		// Always return _value if it's set, as it represents the source of truth
+		if (this._value !== undefined && this._value !== "") {
+			return this._value;
+		}
+		return this.select ? this.select.value : undefined;
 	}
 
 	get select(): Select | null {
@@ -163,6 +170,30 @@ class ToolbarSelect extends ToolbarItem {
 	// Internal value storage, in case the composite select is not rendered on the the assignment happens
 	_value: string = "";
 
+	onInvalidation(changeInfo: ChangeInfo) {
+		// When a child ToolbarSelectOption's selected property changes, update the value
+		if (changeInfo.reason === "childchange") {
+			const selectedOption = this.options.find(option => option.selected);
+			if (selectedOption) {
+				const newValue = selectedOption.textContent || "";
+				// Update both internal value and the select component's value
+				this._value = newValue;
+				// Cache the select reference to avoid multiple DOM queries
+				const selectElement = this.select;
+				if (selectElement && selectElement.value !== newValue) {
+					selectElement.value = newValue;
+				}
+			} else {
+				// If no option is selected, clear the value
+				this._value = "";
+				const selectElement = this.select;
+				if (selectElement) {
+					selectElement.value = "";
+				}
+			}
+		}
+	}
+
 	onClick(e: Event): void {
 		e.stopImmediatePropagation();
 		const prevented = !this.fireDecoratorEvent("click", { targetRef: e.target as HTMLElement });
@@ -189,12 +220,16 @@ class ToolbarSelect extends ToolbarItem {
 
 	onChange(e: CustomEvent<SelectChangeEventDetail>): void {
 		e.stopImmediatePropagation();
+
+		// Update internal value BEFORE firing the change event
+		// so that when event listeners read this.value, they get the updated value
+		this._value = e.detail.selectedOption?.textContent || "";
+		this._syncOptions(e.detail.selectedOption);
+
 		const prevented = !this.fireDecoratorEvent("change", { ...e.detail, targetRef: e.target as HTMLElement });
 		if (!prevented) {
 			this.fireDecoratorEvent("close-overflow");
 		}
-
-		this._syncOptions(e.detail.selectedOption);
 	}
 
 	_syncOptions(selectedOption: HTMLElement): void {