diff --git a/apps/browser/src/vault/popup/settings/appearance-v2.component.ts b/apps/browser/src/vault/popup/settings/appearance-v2.component.ts
index 102d1c02b4a..c995b13ec69 100644
--- a/apps/browser/src/vault/popup/settings/appearance-v2.component.ts
+++ b/apps/browser/src/vault/popup/settings/appearance-v2.component.ts
@@ -117,7 +117,7 @@ export class AppearanceV2Component implements OnInit {
     this.appearanceForm.controls.compactMode.valueChanges
       .pipe(takeUntilDestroyed(this.destroyRef))
       .subscribe((compactMode) => {
-        this.designSystemService.compactMode.set(true);
+        this.designSystemService.compactMode.set(compactMode);
       });
   }