diff --git a/WordPress/src/main/java/org/wordpress/android/ui/reader/ReaderReadingPreferencesDialogFragment.kt b/WordPress/src/main/java/org/wordpress/android/ui/reader/ReaderReadingPreferencesDialogFragment.kt
index 6e75a63af686..cf95d934f78f 100644
--- a/WordPress/src/main/java/org/wordpress/android/ui/reader/ReaderReadingPreferencesDialogFragment.kt
+++ b/WordPress/src/main/java/org/wordpress/android/ui/reader/ReaderReadingPreferencesDialogFragment.kt
@@ -2,6 +2,7 @@ package org.wordpress.android.ui.reader
 
 import android.app.Dialog
 import android.content.DialogInterface
+import android.graphics.Color
 import android.os.Bundle
 import android.view.LayoutInflater
 import android.view.View
@@ -14,6 +15,7 @@ import androidx.compose.ui.platform.ComposeView
 import androidx.fragment.app.FragmentManager
 import androidx.fragment.app.viewModels
 import androidx.lifecycle.lifecycleScope
+import com.google.android.material.bottomsheet.BottomSheetBehavior
 import com.google.android.material.bottomsheet.BottomSheetDialog
 import com.google.android.material.bottomsheet.BottomSheetDialogFragment
 import dagger.hilt.android.AndroidEntryPoint
@@ -61,7 +63,7 @@ class ReaderReadingPreferencesDialogFragment : BottomSheetDialogFragment() {
                 val isFeedbackEnabled by viewModel.isFeedbackEnabled.collectAsState()
                 ReadingPreferencesScreen(
                     currentReadingPreferences = readerPreferences,
-                    onCloseClick = viewModel::saveReadingPreferencesAndClose,
+                    onCloseClick = viewModel::onExitActionClick,
                     onSendFeedbackClick = viewModel::onSendFeedbackClick,
                     onThemeClick = viewModel::onThemeClick,
                     onFontFamilyClick = viewModel::onFontFamilyClick,
@@ -81,33 +83,53 @@ class ReaderReadingPreferencesDialogFragment : BottomSheetDialogFragment() {
 
     override fun onCreateDialog(savedInstanceState: Bundle?): Dialog =
         super.onCreateDialog(savedInstanceState).apply {
-            (this as? BottomSheetDialog)?.fillScreen()
+            (this as? BottomSheetDialog)?.apply {
+                fillScreen(isDraggable = true)
+
+                behavior.addBottomSheetCallback(object : BottomSheetBehavior.BottomSheetCallback() {
+                    private var isStatusBarTransparent = false
+                    override fun onStateChanged(bottomSheet: View, newState: Int) {
+                        if (newState == BottomSheetBehavior.STATE_EXPANDED && isStatusBarTransparent) {
+                            isStatusBarTransparent = false
+                            val currentTheme = viewModel.currentReadingPreferences.value.theme
+                            handleUpdateStatusBarColor(currentTheme)
+                        } else if (newState != BottomSheetBehavior.STATE_EXPANDED && !isStatusBarTransparent) {
+                            isStatusBarTransparent = true
+                            dialog?.window?.setWindowStatusBarColor(Color.TRANSPARENT)
+                        }
+
+                        if (newState == BottomSheetBehavior.STATE_HIDDEN) {
+                            viewModel.onBottomSheetHidden()
+                        }
+                    }
+
+                    override fun onSlide(bottomSheet: View, slideOffset: Float) {
+                        // no-op
+                    }
+                })
+            }
 
             (this as ComponentDialog).onBackPressedDispatcher.addCallback(this@ReaderReadingPreferencesDialogFragment) {
-                viewModel.saveReadingPreferencesAndClose()
+                viewModel.onExitActionClick()
             }
         }
 
     override fun onDismiss(dialog: DialogInterface) {
-        super.onDismiss(dialog)
         viewModel.onScreenClosed()
+        super.onDismiss(dialog)
     }
 
     private fun observeActionEvents() {
         viewModel.actionEvents.onEach {
             when (it) {
+                is ActionEvent.Close -> dismiss()
+                is ActionEvent.UpdatePostDetails -> postDetailViewModel.onReadingPreferencesThemeChanged()
                 is ActionEvent.UpdateStatusBarColor -> handleUpdateStatusBarColor(it.theme)
-                is ActionEvent.Close -> handleClose(it.isDirty)
                 is ActionEvent.OpenWebView -> handleOpenWebView(it.url)
             }
         }.launchIn(viewLifecycleOwner.lifecycleScope)
     }
 
-    private fun handleClose(isDirty: Boolean) {
-        if (isDirty) postDetailViewModel.onReadingPreferencesThemeChanged()
-        dismiss()
-    }
-
     private fun handleUpdateStatusBarColor(theme: ReaderReadingPreferences.Theme) {
         val context = requireContext()
         val themeValues = ReaderReadingPreferences.ThemeValues.from(context, theme)
diff --git a/WordPress/src/main/java/org/wordpress/android/ui/reader/viewmodels/ReaderReadingPreferencesViewModel.kt b/WordPress/src/main/java/org/wordpress/android/ui/reader/viewmodels/ReaderReadingPreferencesViewModel.kt
index c4e16cafa5d5..2865b81c803c 100644
--- a/WordPress/src/main/java/org/wordpress/android/ui/reader/viewmodels/ReaderReadingPreferencesViewModel.kt
+++ b/WordPress/src/main/java/org/wordpress/android/ui/reader/viewmodels/ReaderReadingPreferencesViewModel.kt
@@ -47,6 +47,12 @@ class ReaderReadingPreferencesViewModel @Inject constructor(
     }
 
     fun onScreenClosed() {
+        if (isDirty()) {
+            // here we assume the code for saving preferences has been called before reaching this point
+            launch {
+                _actionEvents.emit(ActionEvent.UpdatePostDetails)
+            }
+        }
         readingPreferencesTracker.trackScreenClosed()
     }
 
@@ -65,15 +71,24 @@ class ReaderReadingPreferencesViewModel @Inject constructor(
         readingPreferencesTracker.trackItemTapped(fontSize)
     }
 
-    fun saveReadingPreferencesAndClose() {
+    /**
+     * An exit action has been triggered by the user. This means that we need to save the current preferences and emit
+     * the close event, so the dialog is dismissed.
+     */
+    fun onExitActionClick() {
         launch {
-            val currentPreferences = currentReadingPreferences.value
-            val isDirty = currentPreferences != originalReadingPreferences
-            if (isDirty) {
-                saveReadingPreferences(currentPreferences)
-                readingPreferencesTracker.trackSaved(currentPreferences)
-            }
-            _actionEvents.emit(ActionEvent.Close(isDirty))
+            saveReadingPreferencesInternal()
+            _actionEvents.emit(ActionEvent.Close)
+        }
+    }
+
+    /**
+     * The bottom sheet has been hidden by the user, which means the dismiss process is already on its way. All we need
+     * to do is save the current preferences.
+     */
+    fun onBottomSheetHidden() {
+        launch {
+            saveReadingPreferencesInternal()
         }
     }
 
@@ -84,8 +99,19 @@ class ReaderReadingPreferencesViewModel @Inject constructor(
         }
     }
 
+    private suspend fun saveReadingPreferencesInternal() {
+        val currentPreferences = currentReadingPreferences.value
+        if (isDirty()) {
+            saveReadingPreferences(currentPreferences)
+            readingPreferencesTracker.trackSaved(currentPreferences)
+        }
+    }
+
+    private fun isDirty(): Boolean = currentReadingPreferences.value != originalReadingPreferences
+
     sealed interface ActionEvent {
-        data class Close(val isDirty: Boolean) : ActionEvent
+        data object Close : ActionEvent
+        data object UpdatePostDetails : ActionEvent
         data class UpdateStatusBarColor(val theme: ReaderReadingPreferences.Theme) : ActionEvent
         data class OpenWebView(val url: String) : ActionEvent
     }
diff --git a/WordPress/src/main/java/org/wordpress/android/ui/reader/views/compose/readingpreferences/ReadingPreferencesScreen.kt b/WordPress/src/main/java/org/wordpress/android/ui/reader/views/compose/readingpreferences/ReadingPreferencesScreen.kt
index f7ae9bbac88b..b72cd7c503fe 100644
--- a/WordPress/src/main/java/org/wordpress/android/ui/reader/views/compose/readingpreferences/ReadingPreferencesScreen.kt
+++ b/WordPress/src/main/java/org/wordpress/android/ui/reader/views/compose/readingpreferences/ReadingPreferencesScreen.kt
@@ -30,8 +30,10 @@ import androidx.compose.ui.Modifier
 import androidx.compose.ui.graphics.Color
 import androidx.compose.ui.graphics.toArgb
 import androidx.compose.ui.hapticfeedback.HapticFeedbackType
+import androidx.compose.ui.input.nestedscroll.nestedScroll
 import androidx.compose.ui.platform.LocalContext
 import androidx.compose.ui.platform.LocalHapticFeedback
+import androidx.compose.ui.platform.rememberNestedScrollInteropConnection
 import androidx.compose.ui.res.stringResource
 import androidx.compose.ui.semantics.onClick
 import androidx.compose.ui.semantics.semantics
@@ -88,7 +90,9 @@ fun ReadingPreferencesScreen(
     val haptics = LocalHapticFeedback.current.takeIf { isHapticsFeedbackEnabled }
 
     Column(
-        modifier = Modifier.fillMaxSize(),
+        modifier = Modifier
+            .fillMaxSize()
+            .nestedScroll(rememberNestedScrollInteropConnection()),
         verticalArrangement = Arrangement.Top,
         horizontalAlignment = Alignment.CenterHorizontally,
     ) {
diff --git a/WordPress/src/main/res/values/styles.xml b/WordPress/src/main/res/values/styles.xml
index 859f0431d63f..996e5f7ae12a 100644
--- a/WordPress/src/main/res/values/styles.xml
+++ b/WordPress/src/main/res/values/styles.xml
@@ -1371,6 +1371,7 @@
     </style>
 
     <style name="ReaderReadingPreferencesDialogFragment" parent="WordPress.NoActionBar">
+        <item name="android:windowBackground">@android:color/transparent</item>
         <item name="android:windowFullscreen">false</item>
         <item name="android:windowIsFloating">false</item>
         <item name="android:windowAnimationStyle">
diff --git a/WordPress/src/test/java/org/wordpress/android/ui/reader/viewmodels/ReaderReadingPreferencesViewModelTest.kt b/WordPress/src/test/java/org/wordpress/android/ui/reader/viewmodels/ReaderReadingPreferencesViewModelTest.kt
index e37042061b1d..9a5e8a3e8865 100644
--- a/WordPress/src/test/java/org/wordpress/android/ui/reader/viewmodels/ReaderReadingPreferencesViewModelTest.kt
+++ b/WordPress/src/test/java/org/wordpress/android/ui/reader/viewmodels/ReaderReadingPreferencesViewModelTest.kt
@@ -13,6 +13,7 @@ import org.junit.Test
 import org.mockito.Mock
 import org.mockito.kotlin.argThat
 import org.mockito.kotlin.verify
+import org.mockito.kotlin.verifyNoInteractions
 import org.mockito.kotlin.whenever
 import org.wordpress.android.BaseUnitTest
 import org.wordpress.android.ui.reader.models.ReaderReadingPreferences
@@ -127,43 +128,89 @@ class ReaderReadingPreferencesViewModelTest : BaseUnitTest() {
     }
 
     @Test
-    fun `when saveReadingPreferencesAndClose is called then it emits Close action event`() = test {
+    fun `when onExitActionClick is called then it emits Close action event`() = test {
         // When
-        viewModel.saveReadingPreferencesAndClose()
+        viewModel.onExitActionClick()
 
         // Then
-        val closeEvent = collectedEvents.last() as ActionEvent.Close
-        assertThat(closeEvent.isDirty).isFalse()
+        val closeEvent = collectedEvents.last()
+        assertThat(closeEvent).isEqualTo(ActionEvent.Close)
     }
 
     @Test
-    fun `when saveReadingPreferencesAndClose is called with updated preferences then it emit Close action event`() =
+    fun `when onExitActionClick is called with original preferences then it doesn't save them`() =
         test {
-            // Given
-            val newTheme = ReaderReadingPreferences.Theme.SEPIA
-            viewModel.onThemeClick(newTheme)
+            // When
+            viewModel.onExitActionClick()
+
+            // Then
+            verifyNoInteractions(saveReadingPreferences)
+        }
+
+    @Test
+    fun `when onExitActionClick is called with updated preferences then it saves them`() = test {
+        // Given
+        val newTheme = ReaderReadingPreferences.Theme.SOFT
+        viewModel.onThemeClick(newTheme)
 
+        // When
+        viewModel.onExitActionClick()
+
+        // Then
+        verify(saveReadingPreferences).invoke(argThat { theme == newTheme })
+    }
+
+    @Test
+    fun `when onBottomSheetHidden is called with original preferences then it doesn't save them`() =
+        test {
             // When
-            viewModel.saveReadingPreferencesAndClose()
+            viewModel.onBottomSheetHidden()
 
             // Then
-            val closeEvent = collectedEvents.last() as ActionEvent.Close
-            assertThat(closeEvent.isDirty).isTrue()
+            verifyNoInteractions(saveReadingPreferences)
         }
 
     @Test
-    fun `when saveReadingPreferencesAndClose is called with updated preferences then it saves them`() = test {
+    fun `when onBottomSheetHidden is called with updated preferences then it saves them`() = test {
         // Given
         val newTheme = ReaderReadingPreferences.Theme.SOFT
         viewModel.onThemeClick(newTheme)
 
         // When
-        viewModel.saveReadingPreferencesAndClose()
+        viewModel.onBottomSheetHidden()
 
         // Then
         verify(saveReadingPreferences).invoke(argThat { theme == newTheme })
     }
 
+    @Test
+    fun `when onScreenClosed is called with original preferences then it doesn't emit UpdatePostDetail`() = test {
+        // Given
+        viewModel.onExitActionClick()
+
+        // When
+        viewModel.onScreenClosed()
+
+        // Then
+        val updateEvent = collectedEvents.last()
+        assertThat(updateEvent).isNotEqualTo(ActionEvent.UpdatePostDetails)
+    }
+
+    @Test
+    fun `when onScreenClosed is called with updated preferences then it emits UpdatePostDetail`() = test {
+        // Given
+        val newTheme = ReaderReadingPreferences.Theme.SOFT
+        viewModel.onThemeClick(newTheme)
+        viewModel.onExitActionClick()
+
+        // When
+        viewModel.onScreenClosed()
+
+        // Then
+        val updateEvent = collectedEvents.last()
+        assertThat(updateEvent).isEqualTo(ActionEvent.UpdatePostDetails)
+    }
+
     @Test
     fun `when onSendFeedbackClick is called then it emits OpenWebView action event`() = test {
         // When
@@ -270,7 +317,7 @@ class ReaderReadingPreferencesViewModelTest : BaseUnitTest() {
         viewModel.onThemeClick(newTheme)
 
         // When
-        viewModel.saveReadingPreferencesAndClose()
+        viewModel.onExitActionClick()
 
         // Then
         verify(readingPreferencesTracker).trackSaved(argThat { theme == newTheme })