diff --git a/apps/browser/src/_locales/en/messages.json b/apps/browser/src/_locales/en/messages.json
index 6607550454..c438df932f 100644
--- a/apps/browser/src/_locales/en/messages.json
+++ b/apps/browser/src/_locales/en/messages.json
@@ -1725,7 +1725,7 @@
     "placeholders": {
       "domain": {
         "content": "$1",
-        "example": "googlecom"
+        "example": "google.com"
       }
     }
   },
@@ -2727,9 +2727,6 @@
   "yourPasskeyIsLocked": {
     "message": "Authentication required to use passkey. Verify your identity to continue."
   },
-  "useBrowserName": {
-    "message": "Use browser"
-  },
   "multifactorAuthenticationCancelled": {
     "message": "Multifactor authentication cancelled"
   },
@@ -2823,5 +2820,23 @@
   },
   "hostedAt": {
     "message": "hosted at"
+  },
+  "useDeviceOrHardwareKey": {
+    "message": "Use your device or hardware key"
+  },
+  "justOnce": {
+    "message": "Just once"
+  },
+  "alwaysForThisSite": {
+    "message": "Always for this site"
+  },
+  "domainAddedToExcludedDomains": {
+    "message": "$DOMAIN$ added to excluded domains.",
+    "placeholders": {
+      "domain": {
+        "content": "$1",
+        "example": "google.com"
+      }
+    }
   }
 }
diff --git a/apps/browser/src/popup/scss/pages.scss b/apps/browser/src/popup/scss/pages.scss
index 8c2e69092b..3c651682c1 100644
--- a/apps/browser/src/popup/scss/pages.scss
+++ b/apps/browser/src/popup/scss/pages.scss
@@ -153,14 +153,6 @@ body.body-full {
   margin: 15px 0 15px 0;
 }
 
-.useBrowserlink {
-  padding: 0 10px 5px 10px;
-  position: fixed;
-  bottom: 10px;
-  left: 0;
-  right: 0;
-}
-
 app-options {
   .box {
     margin: 10px 0;
@@ -184,6 +176,52 @@ app-vault-attachments {
   }
 }
 
+.useBrowserlink {
+  margin-left: 5px;
+  margin-top: 20px;
+
+  span {
+    font-weight: 700;
+    font-size: $font-size-small;
+  }
+}
+
+.fido2-browser-selector-dropdown {
+  @include themify($themes) {
+    background-color: themed("boxBackgroundColor");
+  }
+  padding: 8px;
+  width: 100%;
+  box-shadow:
+    0 2px 2px 0 rgba(0, 0, 0, 0.14),
+    0 3px 1px -2px rgba(0, 0, 0, 0.12),
+    0 1px 5px 0 rgba(0, 0, 0, 0.2);
+  border-radius: $border-radius;
+}
+
+.fido2-browser-selector-dropdown-item {
+  @include themify($themes) {
+    color: themed("textColor") !important;
+  }
+  width: 100%;
+  text-align: left;
+  padding: 0px 15px 0px 5px;
+  margin-bottom: 5px;
+  border-radius: 3px;
+  border: 1px solid transparent;
+  transition: all 0.2s ease-in-out;
+
+  &:hover {
+    @include themify($themes) {
+      background-color: themed("listItemBackgroundHoverColor") !important;
+    }
+  }
+
+  &:last-child {
+    margin-bottom: 0;
+  }
+}
+
 app-fido2 {
   .auth-wrapper {
     display: flex;
@@ -266,7 +304,6 @@ app-fido2 {
       align-items: flex-start;
       flex-direction: column;
       margin-top: 32px;
-      margin-bottom: 32px;
 
       .subtitle {
         font-family: Open Sans;
diff --git a/apps/browser/src/vault/fido2/browser-fido2-user-interface.service.ts b/apps/browser/src/vault/fido2/browser-fido2-user-interface.service.ts
index c22c043fb9..a45b0153a3 100644
--- a/apps/browser/src/vault/fido2/browser-fido2-user-interface.service.ts
+++ b/apps/browser/src/vault/fido2/browser-fido2-user-interface.service.ts
@@ -46,6 +46,7 @@ export function fido2PopoutSessionData$() {
       sessionId: queryParams.sessionId as string,
       fallbackSupported: queryParams.fallbackSupported === "true",
       userVerification: queryParams.userVerification === "true",
+      senderUrl: queryParams.senderUrl as string,
     })),
   );
 }
diff --git a/apps/browser/src/vault/popup/components/fido2/fido2-use-browser-link.component.html b/apps/browser/src/vault/popup/components/fido2/fido2-use-browser-link.component.html
index 3e71675aa2..9f6c0aca50 100644
--- a/apps/browser/src/vault/popup/components/fido2/fido2-use-browser-link.component.html
+++ b/apps/browser/src/vault/popup/components/fido2/fido2-use-browser-link.component.html
@@ -1,5 +1,52 @@
-<div class="useBrowserlink" *ngIf="(fido2PopoutSessionData$ | async).fallbackSupported">
-  <button appStopClick type="button" (click)="abort()">
-    {{ "useBrowserName" | i18n }}
-  </button>
-</div>
+<ng-container *ngIf="(fido2PopoutSessionData$ | async).fallbackSupported">
+  <div class="useBrowserlink">
+    <button
+      type="button"
+      (click)="toggle()"
+      cdkOverlayOrigin
+      #trigger="cdkOverlayOrigin"
+      aria-haspopup="dialog"
+      aria-controls="cdk-overlay-container"
+    >
+      <span class="text-primary">
+        {{ "useDeviceOrHardwareKey" | i18n }}
+      </span>
+      <i class="bwi bwi-fw bwi-sm bwi-angle-down" aria-hidden="true"></i>
+    </button>
+  </div>
+
+  <ng-template
+    cdkConnectedOverlay
+    [cdkConnectedOverlayOrigin]="trigger"
+    [cdkConnectedOverlayOpen]="isOpen"
+    [cdkConnectedOverlayPositions]="overlayPosition"
+    [cdkConnectedOverlayHasBackdrop]="true"
+    [cdkConnectedOverlayBackdropClass]="'cdk-overlay-transparent-backdrop'"
+    (backdropClick)="isOpen = false"
+    (detach)="close()"
+  >
+    <div class="box-content">
+      <div
+        class="fido2-browser-selector-dropdown"
+        [@transformPanel]="'open'"
+        cdkTrapFocus
+        cdkTrapFocusAutoCapture
+        role="dialog"
+        aria-modal="true"
+      >
+        <button type="button" class="fido2-browser-selector-dropdown-item" (click)="abort(false)">
+          <span>{{ "justOnce" | i18n }}</span>
+        </button>
+        <br />
+        <button type="button" class="fido2-browser-selector-dropdown-item" (click)="abort()">
+          <span>{{ "alwaysForThisSite" | i18n }}</span>
+        </button>
+      </div>
+    </div>
+  </ng-template>
+
+  <div
+    *ngIf="showOverlay"
+    class="tw-absolute tw-w-full tw-h-full tw-bg-background-alt tw-inset-0 tw-bg-opacity-80 tw-z-50"
+  ></div>
+</ng-container>
diff --git a/apps/browser/src/vault/popup/components/fido2/fido2-use-browser-link.component.ts b/apps/browser/src/vault/popup/components/fido2/fido2-use-browser-link.component.ts
index aaebb225b8..7af90125db 100644
--- a/apps/browser/src/vault/popup/components/fido2/fido2-use-browser-link.component.ts
+++ b/apps/browser/src/vault/popup/components/fido2/fido2-use-browser-link.component.ts
@@ -1,6 +1,13 @@
+import { animate, state, style, transition, trigger } from "@angular/animations";
+import { ConnectedPosition } from "@angular/cdk/overlay";
 import { Component } from "@angular/core";
 import { firstValueFrom } from "rxjs";
 
+import { I18nService } from "@bitwarden/common/platform/abstractions/i18n.service";
+import { PlatformUtilsService } from "@bitwarden/common/platform/abstractions/platform-utils.service";
+import { StateService } from "@bitwarden/common/platform/abstractions/state.service";
+import { Utils } from "@bitwarden/common/platform/misc/utils";
+
 import {
   BrowserFido2UserInterfaceSession,
   fido2PopoutSessionData$,
@@ -9,13 +16,99 @@ import {
 @Component({
   selector: "app-fido2-use-browser-link",
   templateUrl: "fido2-use-browser-link.component.html",
+  animations: [
+    trigger("transformPanel", [
+      state(
+        "void",
+        style({
+          opacity: 0,
+        }),
+      ),
+      transition(
+        "void => open",
+        animate(
+          "100ms linear",
+          style({
+            opacity: 1,
+          }),
+        ),
+      ),
+      transition("* => void", animate("100ms linear", style({ opacity: 0 }))),
+    ]),
+  ],
 })
 export class Fido2UseBrowserLinkComponent {
+  showOverlay: boolean = false;
+  isOpen = false;
+  overlayPosition: ConnectedPosition[] = [
+    {
+      originX: "start",
+      originY: "bottom",
+      overlayX: "start",
+      overlayY: "top",
+      offsetY: 5,
+    },
+  ];
+
   protected fido2PopoutSessionData$ = fido2PopoutSessionData$();
 
-  protected async abort() {
+  constructor(
+    private stateService: StateService,
+    private platformUtilsService: PlatformUtilsService,
+    private i18nService: I18nService,
+  ) {}
+
+  toggle() {
+    this.isOpen = !this.isOpen;
+  }
+
+  close() {
+    this.isOpen = false;
+  }
+
+  /**
+   * Aborts the current FIDO2 session and fallsback to the browser.
+   * @param excludeDomain - Identifies if the domain should be excluded from future FIDO2 prompts.
+   */
+  protected async abort(excludeDomain = true) {
+    this.close();
     const sessionData = await firstValueFrom(this.fido2PopoutSessionData$);
-    BrowserFido2UserInterfaceSession.abortPopout(sessionData.sessionId, true);
-    return;
+
+    if (!excludeDomain) {
+      this.abortSession(sessionData.sessionId);
+      return;
+    }
+    // Show overlay to prevent the user from interacting with the page.
+    this.showOverlay = true;
+    await this.handleDomainExclusion(sessionData.senderUrl);
+    // Give the user a chance to see the toast before closing the popout.
+    await Utils.delay(2000);
+    this.abortSession(sessionData.sessionId);
+  }
+
+  /**
+   * Excludes the domain from future FIDO2 prompts.
+   * @param uri - The domain uri to exclude from future FIDO2 prompts.
+   */
+  private async handleDomainExclusion(uri: string) {
+    const exisitingDomains = await this.stateService.getNeverDomains();
+
+    const validDomain = Utils.getHostname(uri);
+    const savedDomains: { [name: string]: unknown } = {
+      ...exisitingDomains,
+    };
+    savedDomains[validDomain] = null;
+
+    this.stateService.setNeverDomains(savedDomains);
+
+    this.platformUtilsService.showToast(
+      "success",
+      null,
+      this.i18nService.t("domainAddedToExcludedDomains", validDomain),
+    );
+  }
+
+  private abortSession(sessionId: string) {
+    BrowserFido2UserInterfaceSession.abortPopout(sessionId, true);
   }
 }
diff --git a/apps/browser/src/vault/popup/components/fido2/fido2.component.html b/apps/browser/src/vault/popup/components/fido2/fido2.component.html
index fa49192c72..9036d6d991 100644
--- a/apps/browser/src/vault/popup/components/fido2/fido2.component.html
+++ b/apps/browser/src/vault/popup/components/fido2/fido2.component.html
@@ -130,10 +130,7 @@
         </button>
       </ng-container>
     </ng-container>
-    <div class="useBrowserlink">
-      <button *ngIf="data.fallbackSupported" appStopClick type="button" (click)="abort(true)">
-        {{ "useBrowserName" | i18n }}
-      </button>
-    </div>
+
+    <app-fido2-use-browser-link></app-fido2-use-browser-link>
   </div>
 </ng-container>
diff --git a/apps/browser/src/vault/popup/components/fido2/fido2.component.ts b/apps/browser/src/vault/popup/components/fido2/fido2.component.ts
index 9311b6f18a..a0cc808a6f 100644
--- a/apps/browser/src/vault/popup/components/fido2/fido2.component.ts
+++ b/apps/browser/src/vault/popup/components/fido2/fido2.component.ts
@@ -49,8 +49,6 @@ interface ViewData {
 export class Fido2Component implements OnInit, OnDestroy {
   private destroy$ = new Subject<void>();
   private hasSearched = false;
-  private searchTimeout: any = null;
-  private hasLoadedAllCiphers = false;
 
   protected cipher: CipherView;
   protected searchTypeSearch = false;
diff --git a/apps/browser/src/vault/popup/utils/vault-popout-window.spec.ts b/apps/browser/src/vault/popup/utils/vault-popout-window.spec.ts
index 84b6101c1c..ee0918eab0 100644
--- a/apps/browser/src/vault/popup/utils/vault-popout-window.spec.ts
+++ b/apps/browser/src/vault/popup/utils/vault-popout-window.spec.ts
@@ -161,7 +161,7 @@ describe("VaultPopoutWindow", () => {
           singleActionKey: `${VaultPopoutType.fido2Popout}_sessionId`,
           senderWindowId: 1,
           forceCloseExistingWindows: true,
-          windowOptions: { height: 450 },
+          windowOptions: { height: 570 },
         },
       );
       expect(returnedWindowId).toEqual(10);
diff --git a/apps/browser/src/vault/popup/utils/vault-popout-window.ts b/apps/browser/src/vault/popup/utils/vault-popout-window.ts
index 00cb4a71b8..36fddadef7 100644
--- a/apps/browser/src/vault/popup/utils/vault-popout-window.ts
+++ b/apps/browser/src/vault/popup/utils/vault-popout-window.ts
@@ -154,7 +154,7 @@ async function openFido2Popout(
     singleActionKey: `${VaultPopoutType.fido2Popout}_${sessionId}`,
     senderWindowId: senderTab.windowId,
     forceCloseExistingWindows: true,
-    windowOptions: { height: 450 },
+    windowOptions: { height: 570 },
   });
 
   return popoutWindow.id;