diff --git a/packages/e2e-tests/specs/editor/various/list-view.test.js b/packages/e2e-tests/specs/editor/various/list-view.test.js
index aef74c82a20921..21b512dd8c94f4 100644
--- a/packages/e2e-tests/specs/editor/various/list-view.test.js
+++ b/packages/e2e-tests/specs/editor/various/list-view.test.js
@@ -5,6 +5,7 @@ import {
 	createNewPost,
 	insertBlock,
 	getEditedPostContent,
+	openListView,
 	pressKeyWithModifier,
 	pressKeyTimes,
 } from '@wordpress/e2e-test-utils';
@@ -20,6 +21,10 @@ async function dragAndDrop( draggableElement, targetElement, offsetY ) {
 	return await page.mouse.dragAndDrop( draggablePoint, targetPoint );
 }
 
+async function getBlockListLeafNodes() {
+	return await page.$$( '.block-editor-list-view-leaf' );
+}
+
 describe( 'List view', () => {
 	beforeAll( async () => {
 		await page.setDragInterception( true );
@@ -97,4 +102,46 @@ describe( 'List view', () => {
 		// https://github.com/WordPress/gutenberg/issues/38763.
 		expect( console ).not.toHaveErrored();
 	} );
+
+	it( 'should expand nested list items', async () => {
+		// Insert some blocks of different types.
+		await insertBlock( 'Cover' );
+
+		// Click first color option from the block placeholder's color picker to make the inner blocks appear.
+		const colorPickerButton = await page.waitForSelector(
+			'.wp-block-cover__placeholder-background-options .components-circular-option-picker__option-wrapper:first-child button'
+		);
+		await colorPickerButton.click();
+
+		// Open list view.
+		await openListView();
+
+		// Things start off expanded.
+		expect( await getBlockListLeafNodes() ).toHaveLength( 2 );
+
+		const blockListExpanders = await page.$$(
+			'.block-editor-list-view__expander'
+		);
+
+		// Collapse the first block
+		await blockListExpanders[ 0 ].click();
+
+		// Check that we're collapsed
+		expect( await getBlockListLeafNodes() ).toHaveLength( 1 );
+
+		// Click the cover title placeholder.
+		const coverTitle = await page.waitForSelector(
+			'.wp-block-cover .wp-block-paragraph'
+		);
+
+		await coverTitle.click();
+
+		// The block list should contain two leafs and the second should be selected (and be a paragraph).
+		const selectedElementText = await page.$eval(
+			'.block-editor-list-view-leaf:nth-child(2).is-selected a',
+			( element ) => element.innerText
+		);
+
+		expect( selectedElementText ).toContain( 'Paragraph' );
+	} );
 } );