diff --git a/browser/ui/brave_browser.cc b/browser/ui/brave_browser.cc
index 5bddc22a420a..a3417a5b9d1b 100644
--- a/browser/ui/brave_browser.cc
+++ b/browser/ui/brave_browser.cc
@@ -83,8 +83,13 @@ void BraveBrowser::OnTabStripModelChanged(
   Browser::OnTabStripModelChanged(tab_strip_model, change, selection);
 
 #if BUILDFLAG(ENABLE_SIDEBAR)
-  // We need to update sidebar UI whenever active tab is changed.
-  if (selection.active_tab_changed() && sidebar_controller_)
+  if (!sidebar_controller_)
+    return;
+  // We need to update sidebar UI whenever active tab is changed or
+  // inactive tab is added/removed.
+  if (change.type() == TabStripModelChange::Type::kInserted ||
+      change.type() == TabStripModelChange::Type::kRemoved ||
+      selection.active_tab_changed())
     sidebar_controller_->sidebar()->UpdateSidebar();
 #endif
 }
diff --git a/browser/ui/sidebar/sidebar_browsertest.cc b/browser/ui/sidebar/sidebar_browsertest.cc
index fc18e094ca13..057e95920bd8 100644
--- a/browser/ui/sidebar/sidebar_browsertest.cc
+++ b/browser/ui/sidebar/sidebar_browsertest.cc
@@ -155,9 +155,11 @@ IN_PROC_BROWSER_TEST_F(SidebarBrowserTest,
 
 IN_PROC_BROWSER_TEST_F(SidebarBrowserTest, IterateBuiltInWebTypeTest) {
   // Click builtin wallet item and it's loaded at current active tab.
+  auto item = model()->GetAllSidebarItems()[1];
+  EXPECT_FALSE(controller()->DoesBrowserHaveOpenedTabForItem(item));
   controller()->ActivateItemAt(1);
+  EXPECT_TRUE(controller()->DoesBrowserHaveOpenedTabForItem(item));
   EXPECT_EQ(0, tab_model()->active_index());
-  auto item = model()->GetAllSidebarItems()[1];
   EXPECT_EQ(tab_model()->GetWebContentsAt(0)->GetVisibleURL().host(),
             item.url.host());
 
diff --git a/browser/ui/sidebar/sidebar_controller.cc b/browser/ui/sidebar/sidebar_controller.cc
index 786e849ea9b9..ba434d80def3 100644
--- a/browser/ui/sidebar/sidebar_controller.cc
+++ b/browser/ui/sidebar/sidebar_controller.cc
@@ -55,6 +55,12 @@ bool SidebarController::IsActiveIndex(int index) const {
   return sidebar_model_->active_index() == index;
 }
 
+bool SidebarController::DoesBrowserHaveOpenedTabForItem(
+    const SidebarItem& item) const {
+  DCHECK(!item.open_in_panel);
+  return !GetAllExistingTabIndexForHost(browser_, item.url.host()).empty();
+}
+
 void SidebarController::ActivateItemAt(int index) {
   // -1 means there is no active item.
   DCHECK_GE(index, -1);
diff --git a/browser/ui/sidebar/sidebar_controller.h b/browser/ui/sidebar/sidebar_controller.h
index 7c7945fda3ac..b230e69675b6 100644
--- a/browser/ui/sidebar/sidebar_controller.h
+++ b/browser/ui/sidebar/sidebar_controller.h
@@ -47,6 +47,8 @@ class SidebarController : public SidebarService::Observer {
 
   bool IsActiveIndex(int index) const;
 
+  bool DoesBrowserHaveOpenedTabForItem(const SidebarItem& item) const;
+
   void SetSidebar(Sidebar* sidebar);
   Sidebar* sidebar() const { return sidebar_; }
 
diff --git a/browser/ui/views/sidebar/sidebar_control_view.cc b/browser/ui/views/sidebar/sidebar_control_view.cc
index 4611beb0164e..5d5c563d3193 100644
--- a/browser/ui/views/sidebar/sidebar_control_view.cc
+++ b/browser/ui/views/sidebar/sidebar_control_view.cc
@@ -210,6 +210,7 @@ void SidebarControlView::OnButtonPressed(views::View* view) {
 
 void SidebarControlView::Update() {
   UpdateItemAddButtonState();
+  sidebar_items_view_->Update();
 }
 
 void SidebarControlView::UpdateItemAddButtonState() {
diff --git a/browser/ui/views/sidebar/sidebar_items_contents_view.cc b/browser/ui/views/sidebar/sidebar_items_contents_view.cc
index 7fc5bbcb452f..ed9eefb91531 100644
--- a/browser/ui/views/sidebar/sidebar_items_contents_view.cc
+++ b/browser/ui/views/sidebar/sidebar_items_contents_view.cc
@@ -88,6 +88,11 @@ gfx::Size SidebarItemsContentsView::CalculatePreferredSize() const {
 void SidebarItemsContentsView::OnThemeChanged() {
   View::OnThemeChanged();
 
+  // BuiltIn items use different icon set based on theme.
+  UpdateAllBuiltInItemsViewState();
+}
+
+void SidebarItemsContentsView::Update() {
   UpdateAllBuiltInItemsViewState();
 }
 
@@ -97,13 +102,27 @@ void SidebarItemsContentsView::UpdateAllBuiltInItemsViewState() {
   if (children().size() != items.size())
     return;
 
-  // BuiltIn items different colored images depends on theme.
   const int active_index = sidebar_model_->active_index();
-  int index = 0;
-  for (const auto& item : items) {
-    if (sidebar::IsBuiltInType(item))
-      UpdateItemViewStateAt(index, index == active_index);
-    index++;
+  const int items_num = items.size();
+  for (int item_index = 0; item_index < items_num; ++item_index) {
+    const auto item = items[item_index];
+    if (!sidebar::IsBuiltInType(item))
+      continue;
+
+    if (item.open_in_panel) {
+      UpdateItemViewStateAt(item_index, item_index == active_index);
+      continue;
+    }
+
+    // If browser window has tab that loads brave talk, brave talk panel icon
+    // will use colored one for normal state also.
+    if (item.built_in_item_type ==
+        sidebar::SidebarItem::BuiltInItemType::kBraveTalk) {
+      UpdateItemViewStateAt(
+          item_index,
+          browser_->sidebar_controller()->DoesBrowserHaveOpenedTabForItem(
+              item));
+    }
   }
 }
 
diff --git a/browser/ui/views/sidebar/sidebar_items_contents_view.h b/browser/ui/views/sidebar/sidebar_items_contents_view.h
index 146f3157da59..50068e531932 100644
--- a/browser/ui/views/sidebar/sidebar_items_contents_view.h
+++ b/browser/ui/views/sidebar/sidebar_items_contents_view.h
@@ -75,6 +75,7 @@ class SidebarItemsContentsView : public views::View,
   void ClearDragIndicator();
 
   bool IsBubbleVisible() const;
+  void Update();
 
  private:
   enum ContextMenuIDs {
diff --git a/browser/ui/views/sidebar/sidebar_items_scroll_view.cc b/browser/ui/views/sidebar/sidebar_items_scroll_view.cc
index 32a3645b47dd..e93c97bddacb 100644
--- a/browser/ui/views/sidebar/sidebar_items_scroll_view.cc
+++ b/browser/ui/views/sidebar/sidebar_items_scroll_view.cc
@@ -459,3 +459,7 @@ bool SidebarItemsScrollView::IsItemReorderingInProgress() const {
 bool SidebarItemsScrollView::IsBubbleVisible() const {
   return contents_view_->IsBubbleVisible();
 }
+
+void SidebarItemsScrollView::Update() {
+  contents_view_->Update();
+}
diff --git a/browser/ui/views/sidebar/sidebar_items_scroll_view.h b/browser/ui/views/sidebar/sidebar_items_scroll_view.h
index 129b8ffd5ebf..26c39d2ed31f 100644
--- a/browser/ui/views/sidebar/sidebar_items_scroll_view.h
+++ b/browser/ui/views/sidebar/sidebar_items_scroll_view.h
@@ -81,6 +81,7 @@ class SidebarItemsScrollView : public views::View,
 
   bool IsItemReorderingInProgress() const;
   bool IsBubbleVisible() const;
+  void Update();
 
  private:
   void UpdateArrowViewsTheme();