diff --git a/crates/collab_ui/src/collab_panel.rs b/crates/collab_ui/src/collab_panel.rs
index df8f2a251fdf4d86ff05f0eaa8052c34317435bb..b9946d6cac97c2c03c8315bc6d59b710516040b4 100644
--- a/crates/collab_ui/src/collab_panel.rs
+++ b/crates/collab_ui/src/collab_panel.rs
@@ -2228,47 +2228,6 @@ impl CollabPanel {
             None
         };
 
-        let button_container = |cx: &mut ViewContext<Self>| {
-            h_stack()
-                .absolute()
-                // We're using a negative coordinate for the right anchor to
-                // counteract the padding of the `ListItem`.
-                //
-                // This prevents a gap from showing up between the background
-                // of this element and the edge of the collab panel.
-                .right(rems(-0.5))
-                // HACK: Without this the channel name clips on top of the icons, but I'm not sure why.
-                .z_index(10)
-                .bg(cx.theme().colors().panel_background)
-                .when(is_selected || is_active, |this| {
-                    this.bg(cx.theme().colors().ghost_element_selected)
-                })
-        };
-
-        let messages_button = |cx: &mut ViewContext<Self>| {
-            IconButton::new("channel_chat", IconName::MessageBubbles)
-                .icon_size(IconSize::Small)
-                .icon_color(if has_messages_notification {
-                    Color::Default
-                } else {
-                    Color::Muted
-                })
-                .on_click(cx.listener(move |this, _, cx| this.join_channel_chat(channel_id, cx)))
-                .tooltip(|cx| Tooltip::text("Open channel chat", cx))
-        };
-
-        let notes_button = |cx: &mut ViewContext<Self>| {
-            IconButton::new("channel_notes", IconName::File)
-                .icon_size(IconSize::Small)
-                .icon_color(if has_notes_notification {
-                    Color::Default
-                } else {
-                    Color::Muted
-                })
-                .on_click(cx.listener(move |this, _, cx| this.open_channel_notes(channel_id, cx)))
-                .tooltip(|cx| Tooltip::text("Open channel notes", cx))
-        };
-
         let width = self.width.unwrap_or(px(240.));
 
         div()
@@ -2326,58 +2285,58 @@ impl CollabPanel {
                     .child(
                         h_stack()
                             .id(channel_id as usize)
-                            // HACK: This is a dirty hack to help with the positioning of the button container.
-                            //
-                            // We're using a pixel width for the elements but then allowing the contents to
-                            // overflow. This means that the label and facepile will be shown, but will not
-                            // push the button container off the edge of the panel.
-                            .w_px()
                             .child(Label::new(channel.name.clone()))
                             .children(face_pile.map(|face_pile| face_pile.render(cx))),
-                    )
-                    .end_slot::<Div>(
-                        // If we have a notification for either button, we want to show the corresponding
-                        // button(s) as indicators.
-                        if has_messages_notification || has_notes_notification {
-                            Some(
-                                button_container(cx).child(
-                                    h_stack()
-                                        .px_1()
-                                        .children(
-                                            // We only want to render the messages button if there are unseen messages.
-                                            // This way we don't take up any space that might overlap the channel name
-                                            // when there are no notifications.
-                                            has_messages_notification.then(|| messages_button(cx)),
-                                        )
-                                        .child(
-                                            // We always want the notes button to take up space to prevent layout
-                                            // shift when hovering over the channel.
-                                            // However, if there are is no notes notification we just show an empty slot.
-                                            notes_button(cx)
-                                                .when(!has_notes_notification, |this| {
-                                                    this.visible_on_hover("")
-                                                }),
-                                        ),
-                                ),
+                    ),
+            )
+            .child(
+                h_stack()
+                    .absolute()
+                    .right(rems(0.))
+                    .h_full()
+                    // HACK: Without this the channel name clips on top of the icons, but I'm not sure why.
+                    .z_index(10)
+                    .child(
+                        h_stack()
+                            .h_full()
+                            .gap_1()
+                            .px_1()
+                            .child(
+                                IconButton::new("channel_chat", IconName::MessageBubbles)
+                                    .style(ButtonStyle::Filled)
+                                    .size(ButtonSize::Compact)
+                                    .icon_size(IconSize::Small)
+                                    .icon_color(if has_messages_notification {
+                                        Color::Default
+                                    } else {
+                                        Color::Muted
+                                    })
+                                    .on_click(cx.listener(move |this, _, cx| {
+                                        this.join_channel_chat(channel_id, cx)
+                                    }))
+                                    .tooltip(|cx| Tooltip::text("Open channel chat", cx))
+                                    .when(!has_messages_notification, |this| {
+                                        this.visible_on_hover("")
+                                    }),
                             )
-                        } else {
-                            None
-                        },
-                    )
-                    .end_hover_slot(
-                        // When we hover the channel entry we want to always show both buttons.
-                        button_container(cx).child(
-                            h_stack()
-                                .px_1()
-                                // The element hover background has a slight transparency to it, so we
-                                // need to apply it to the inner element so that it blends with the solid
-                                // background color of the absolutely-positioned element.
-                                .group_hover("", |style| {
-                                    style.bg(cx.theme().colors().ghost_element_hover)
-                                })
-                                .child(messages_button(cx))
-                                .child(notes_button(cx)),
-                        ),
+                            .child(
+                                IconButton::new("channel_notes", IconName::File)
+                                    .style(ButtonStyle::Filled)
+                                    .size(ButtonSize::Compact)
+                                    .icon_size(IconSize::Small)
+                                    .icon_color(if has_notes_notification {
+                                        Color::Default
+                                    } else {
+                                        Color::Muted
+                                    })
+                                    .on_click(cx.listener(move |this, _, cx| {
+                                        this.open_channel_notes(channel_id, cx)
+                                    }))
+                                    .tooltip(|cx| Tooltip::text("Open channel notes", cx))
+                                    .when(!has_notes_notification, |this| {
+                                        this.visible_on_hover("")
+                                    }),
+                            ),
                     ),
             )
             .tooltip(|cx| Tooltip::text("Join channel", cx))