diff --git a/.changeset/seven-donuts-confess.md b/.changeset/seven-donuts-confess.md
new file mode 100644
index 00000000000..7926c2b699c
--- /dev/null
+++ b/.changeset/seven-donuts-confess.md
@@ -0,0 +1,5 @@
+---
+'@rocket.chat/meteor': patch
+---
+
+Fixes an issue where user custom status text is being overwritten, causing it not being updated in real time
diff --git a/apps/meteor/app/api/server/v1/users.ts b/apps/meteor/app/api/server/v1/users.ts
index c84c5a361d3..913efc63267 100644
--- a/apps/meteor/app/api/server/v1/users.ts
+++ b/apps/meteor/app/api/server/v1/users.ts
@@ -1317,10 +1317,14 @@ API.v1.addRoute(
 				return API.v1.forbidden();
 			}
 
+			const { _id, username, roles, name } = user;
+			let { statusText } = user;
+
 			// TODO refactor to not update the user twice (one inside of `setStatusText` and then later just the status + statusDefault)
 
 			if (this.bodyParams.message || this.bodyParams.message === '') {
 				await setStatusText(user._id, this.bodyParams.message);
+				statusText = this.bodyParams.message;
 			}
 			if (this.bodyParams.status) {
 				const validStatus = ['online', 'away', 'offline', 'busy'];
@@ -1343,7 +1347,6 @@ API.v1.addRoute(
 						},
 					);
 
-					const { _id, username, statusText, roles, name } = user;
 					void api.broadcast('presence.status', {
 						user: { status, _id, username, statusText, roles, name },
 						previousStatus: user.status,
diff --git a/apps/meteor/client/sidebar/header/EditStatusModal.tsx b/apps/meteor/client/sidebar/header/EditStatusModal.tsx
index 04b678e1606..d4ec342c8f5 100644
--- a/apps/meteor/client/sidebar/header/EditStatusModal.tsx
+++ b/apps/meteor/client/sidebar/header/EditStatusModal.tsx
@@ -21,7 +21,7 @@ import {
 import { useLocalStorage, useEffectEvent } from '@rocket.chat/fuselage-hooks';
 import { useToastMessageDispatch, useSetting, useTranslation, useEndpoint } from '@rocket.chat/ui-contexts';
 import type { ReactElement, ChangeEvent, ComponentProps, FormEvent } from 'react';
-import { useState, useCallback } from 'react';
+import { useState, useCallback, useId } from 'react';
 
 import UserStatusMenu from '../../components/UserStatusMenu';
 import { USER_STATUS_TEXT_MAX_LENGTH } from '../../lib/constants';
@@ -39,6 +39,7 @@ const EditStatusModal = ({ onClose, userStatus, userStatusText }: EditStatusModa
 	const initialStatusText = customStatus || userStatusText;
 
 	const t = useTranslation();
+	const modalId = useId();
 	const [statusText, setStatusText] = useState(initialStatusText);
 	const [statusType, setStatusType] = useState(userStatus);
 	const [statusTextError, setStatusTextError] = useState<string | undefined>();
@@ -71,6 +72,7 @@ const EditStatusModal = ({ onClose, userStatus, userStatusText }: EditStatusModa
 
 	return (
 		<Modal
+			aria-labelledby={`${modalId}-title`}
 			wrapperFunction={(props: ComponentProps<typeof Box>) => (
 				<Box
 					is='form'
@@ -84,15 +86,17 @@ const EditStatusModal = ({ onClose, userStatus, userStatusText }: EditStatusModa
 		>
 			<ModalHeader>
 				<ModalIcon name='info' />
-				<ModalTitle>{t('Edit_Status')}</ModalTitle>
+				<ModalTitle id={`${modalId}-title`}>{t('Edit_Status')}</ModalTitle>
 				<ModalClose onClick={onClose} />
 			</ModalHeader>
 			<ModalContent fontScale='p2'>
 				<FieldGroup>
 					<Field>
-						<FieldLabel>{t('StatusMessage')}</FieldLabel>
+						<FieldLabel htmlFor={`${modalId}-status-message`}>{t('StatusMessage')}</FieldLabel>
 						<FieldRow>
 							<TextInput
+								id={`${modalId}-status-message`}
+								aria-label={t('StatusMessage')}
 								error={statusTextError}
 								disabled={!allowUserStatusMessageChange}
 								flexGrow={1}
diff --git a/apps/meteor/client/sidebar/header/UserMenuHeader.tsx b/apps/meteor/client/sidebar/header/UserMenuHeader.tsx
index 16e7b094bf8..c2ff3196d5d 100644
--- a/apps/meteor/client/sidebar/header/UserMenuHeader.tsx
+++ b/apps/meteor/client/sidebar/header/UserMenuHeader.tsx
@@ -21,7 +21,11 @@ const UserMenuHeader = ({ user }: { user: IUser }) => {
 			<Box mis={4} display='flex' overflow='hidden' flexDirection='column' fontScale='p2' mb='neg-x4' flexGrow={1} flexShrink={1}>
 				<Box withTruncatedText w='full' display='flex' alignItems='center' flexDirection='row'>
 					<Margins inline={4}>
-						<UserStatus status={presenceDisabled ? 'disabled' : user.status} />
+						<UserStatus
+							role='status'
+							aria-label={presenceDisabled ? t('user_status_disabled') : t(user?.status ?? 'offline')}
+							status={presenceDisabled ? 'disabled' : user.status}
+						/>
 						<Box is='span' withTruncatedText display='inline-block' fontWeight='700'>
 							{displayName}
 						</Box>
diff --git a/apps/meteor/tests/e2e/e2e-encryption.spec.ts b/apps/meteor/tests/e2e/e2e-encryption.spec.ts
index 6e8b1cce989..cd356bc4296 100644
--- a/apps/meteor/tests/e2e/e2e-encryption.spec.ts
+++ b/apps/meteor/tests/e2e/e2e-encryption.spec.ts
@@ -1056,7 +1056,7 @@ test.describe.serial('e2ee room setup', () => {
 		await expect(poHomeChannel.content.lastUserMessageBody).toHaveText('hello world');
 		await expect(poHomeChannel.content.lastUserMessage.locator('.rcx-icon--name-key')).toBeVisible();
 
-		await poHomeChannel.sidenav.userProfileMenu.click();
+		await poHomeChannel.sidenav.btnUserProfileMenu.click();
 		await poHomeChannel.sidenav.accountProfileOption.click();
 
 		await page.locator('role=navigation >> a:has-text("Security")').click();
diff --git a/apps/meteor/tests/e2e/page-objects/fragments/home-sidenav.ts b/apps/meteor/tests/e2e/page-objects/fragments/home-sidenav.ts
index b278f8473d5..ba46c281085 100644
--- a/apps/meteor/tests/e2e/page-objects/fragments/home-sidenav.ts
+++ b/apps/meteor/tests/e2e/page-objects/fragments/home-sidenav.ts
@@ -46,10 +46,18 @@ export class HomeSidenav {
 		return this.page.locator('role=search >> role=searchbox').first();
 	}
 
-	get userProfileMenu(): Locator {
+	get btnUserProfileMenu(): Locator {
 		return this.page.getByRole('button', { name: 'User menu', exact: true });
 	}
 
+	get userProfileMenu(): Locator {
+		return this.page.getByRole('menu', { name: 'User menu' });
+	}
+
+	getUserProfileMenuOption(name: string): Locator {
+		return this.userProfileMenu.getByRole('menuitemcheckbox', { name });
+	}
+
 	get sidebarChannelsList(): Locator {
 		return this.page.getByRole('list', { name: 'Channels' });
 	}
@@ -152,12 +160,12 @@ export class HomeSidenav {
 	}
 
 	async logout(): Promise<void> {
-		await this.userProfileMenu.click();
+		await this.btnUserProfileMenu.click();
 		await this.page.locator('//*[contains(@class, "rcx-option__content") and contains(text(), "Logout")]').click();
 	}
 
 	async switchStatus(status: 'offline' | 'online'): Promise<void> {
-		await this.userProfileMenu.click();
+		await this.btnUserProfileMenu.click();
 		await this.page.locator(`role=menuitemcheckbox[name="${status}"]`).click();
 	}
 
diff --git a/apps/meteor/tests/e2e/page-objects/index.ts b/apps/meteor/tests/e2e/page-objects/index.ts
index dfcd5434675..e503d367e87 100644
--- a/apps/meteor/tests/e2e/page-objects/index.ts
+++ b/apps/meteor/tests/e2e/page-objects/index.ts
@@ -19,4 +19,5 @@ export * from './omnichannel-settings';
 export * from './omnichannel-business-hours';
 export * from './omnichannel-tags';
 export * from './utils';
+export * from './modal';
 export * from './marketplace';
diff --git a/apps/meteor/tests/e2e/page-objects/modal.ts b/apps/meteor/tests/e2e/page-objects/modal.ts
index c8a66d71fa1..8eaa2a42911 100644
--- a/apps/meteor/tests/e2e/page-objects/modal.ts
+++ b/apps/meteor/tests/e2e/page-objects/modal.ts
@@ -7,6 +7,10 @@ export class Modal {
 		this.page = page;
 	}
 
+	getModalByName(name: string): Locator {
+		return this.page.getByRole('dialog', { name });
+	}
+
 	get textInput(): Locator {
 		return this.page.locator('[name="modal_input"]');
 	}
diff --git a/apps/meteor/tests/e2e/presence.spec.ts b/apps/meteor/tests/e2e/presence.spec.ts
index 4f5dfe7a6db..61a8efb7714 100644
--- a/apps/meteor/tests/e2e/presence.spec.ts
+++ b/apps/meteor/tests/e2e/presence.spec.ts
@@ -1,14 +1,17 @@
 import { DEFAULT_USER_CREDENTIALS, IS_EE } from './config/constants';
 import { Users } from './fixtures/userStates';
-import { Registration } from './page-objects';
+import { Registration, HomeChannel } from './page-objects';
+import { Modal } from './page-objects/modal';
 import { setSettingValueById } from './utils/setSettingValueById';
 import { test, expect } from './utils/test';
 
 test.describe.serial('Presence', () => {
 	let poRegistration: Registration;
+	let poHomeChannel: HomeChannel;
 
 	test.beforeEach(async ({ page }) => {
 		poRegistration = new Registration(page);
+		poHomeChannel = new HomeChannel(page);
 
 		await page.goto('/home');
 	});
@@ -22,12 +25,44 @@ test.describe.serial('Presence', () => {
 	});
 
 	test.describe('Login using default settings', () => {
-		test('expect user to be online after log in', async ({ page }) => {
-			await poRegistration.username.type('user1');
-			await poRegistration.inputPassword.type(DEFAULT_USER_CREDENTIALS.password);
+		test('should user be online after log in', async () => {
+			await poRegistration.username.fill('user1');
+			await poRegistration.inputPassword.fill(DEFAULT_USER_CREDENTIALS.password);
 			await poRegistration.btnLogin.click();
 
-			await expect(page.getByRole('button', { name: 'User menu' }).locator('.rcx-status-bullet--online')).toBeVisible();
+			await expect(poHomeChannel.sidenav.btnUserProfileMenu).toBeVisible();
+		});
+	});
+
+	test.describe('Custom status', () => {
+		test.use({ storageState: Users.admin.state });
+
+		test('should user custom status be reactive', async ({ browser }) => {
+			await test.step('user1 custom status should be empty', async () => {
+				await poHomeChannel.sidenav.openChat('user1');
+
+				await expect(poHomeChannel.content.channelHeader).not.toContainText('new status');
+			});
+
+			await test.step('update user1 custom status', async () => {
+				const user1Page = await browser.newPage({ storageState: Users.user1.state });
+				await user1Page.goto('/home');
+				const user1Channel = new HomeChannel(user1Page);
+				const user1Modal = new Modal(user1Page);
+
+				await user1Channel.sidenav.btnUserProfileMenu.click();
+				await user1Channel.sidenav.getUserProfileMenuOption('Custom Status').click();
+				await user1Modal.getModalByName('Edit Status').getByRole('textbox', { name: 'Status message' }).fill('new status');
+				await user1Modal.getModalByName('Edit Status').getByRole('button', { name: 'Save' }).click();
+
+				await user1Page.close();
+			});
+
+			await test.step('should user1 custom status be updated', async () => {
+				await poHomeChannel.sidenav.openChat('user1');
+
+				await expect(poHomeChannel.content.channelHeader).toContainText('new status');
+			});
 		});
 	});
 
diff --git a/apps/meteor/tests/e2e/sidebar.spec.ts b/apps/meteor/tests/e2e/sidebar.spec.ts
index b45f2caa7f8..f8b273d4f15 100644
--- a/apps/meteor/tests/e2e/sidebar.spec.ts
+++ b/apps/meteor/tests/e2e/sidebar.spec.ts
@@ -23,7 +23,7 @@ test.describe.serial('sidebar', () => {
 	});
 
 	test('should navigate on sidebar toolbar using arrow keys', async ({ page }) => {
-		await poHomeChannel.sidenav.userProfileMenu.focus();
+		await poHomeChannel.sidenav.btnUserProfileMenu.focus();
 		await page.keyboard.press('Tab');
 		await page.keyboard.press('ArrowRight');
 
diff --git a/apps/meteor/tests/e2e/user-required-password-change.spec.ts b/apps/meteor/tests/e2e/user-required-password-change.spec.ts
index 0135d21d67d..539a558dcc6 100644
--- a/apps/meteor/tests/e2e/user-required-password-change.spec.ts
+++ b/apps/meteor/tests/e2e/user-required-password-change.spec.ts
@@ -68,7 +68,7 @@ test.describe('User - Password change required', () => {
 		});
 
 		await test.step('verify user is properly logged in', async () => {
-			await expect(poSidenav.userProfileMenu).toBeVisible();
+			await expect(poSidenav.btnUserProfileMenu).toBeVisible();
 			await expect(poSidenav.sidebarChannelsList).toBeVisible();
 		});
 	});
@@ -159,7 +159,7 @@ test.describe('User - Password change not required', () => {
 
 		await test.step('verify user is properly logged in', async () => {
 			await page.waitForURL('/home');
-			await expect(poSidenav.userProfileMenu).toBeVisible();
+			await expect(poSidenav.btnUserProfileMenu).toBeVisible();
 			await expect(poSidenav.sidebarChannelsList).toBeVisible();
 		});
 	});