diff --git a/src/state/CallViewModel/CallViewModel.test.ts b/src/state/CallViewModel/CallViewModel.test.ts
index 76be5f65..ef59270f 100644
--- a/src/state/CallViewModel/CallViewModel.test.ts
+++ b/src/state/CallViewModel/CallViewModel.test.ts
@@ -267,7 +267,7 @@ describe("CallViewModel", () => {
     });
   });
 
-  it.skip("screen sharing activates spotlight layout", () => {
+  test("screen sharing activates spotlight layout", () => {
     withTestScheduler(({ behavior, schedule, expectObservable }) => {
       // Start with no screen shares, then have Alice and Bob share their screens,
       // then return to no screen shares, then have just Alice share for a bit
diff --git a/src/state/CallViewModel/CallViewModel.ts b/src/state/CallViewModel/CallViewModel.ts
index 506eca1b..55e004df 100644
--- a/src/state/CallViewModel/CallViewModel.ts
+++ b/src/state/CallViewModel/CallViewModel.ts
@@ -15,9 +15,9 @@ import {
 } from "livekit-client";
 import { type Room as MatrixRoom } from "matrix-js-sdk";
 import {
+  BehaviorSubject,
   combineLatest,
   distinctUntilChanged,
-  EMPTY,
   filter,
   fromEvent,
   map,
@@ -28,7 +28,6 @@ import {
   pairwise,
   race,
   scan,
-  skip,
   skipWhile,
   startWith,
   Subject,
@@ -992,7 +991,7 @@ export function createCallViewModel$(
     spotlightExpandedToggle$.pipe(accumulate(false, (expanded) => !expanded)),
   );
 
-  const gridModeUserSelection$ = new Subject<GridMode>();
+  const gridModeUserSelection$ = new BehaviorSubject<GridMode>("grid");
   /**
    * The layout mode of the media tile grid.
    */
@@ -1001,20 +1000,30 @@ export function createCallViewModel$(
     // automatically switch to spotlight mode and reset when screen sharing ends
     scope.behavior<GridMode>(
       gridModeUserSelection$.pipe(
-        switchMap((userSelection) =>
-          (userSelection === "spotlight"
-            ? EMPTY
-            : combineLatest([hasRemoteScreenShares$, windowMode$]).pipe(
-                skip(userSelection === null ? 0 : 1),
-                map(
-                  ([hasScreenShares, windowMode]): GridMode =>
-                    hasScreenShares || windowMode === "flat"
-                      ? "spotlight"
-                      : "grid",
-                ),
-              )
-          ).pipe(startWith(userSelection ?? "grid")),
-        ),
+        switchMap((userSelection): Observable<GridMode> => {
+          if (userSelection === "spotlight") {
+            // If already in spotlight mode, stay there
+            return of("spotlight");
+          } else {
+            // Otherwise, check if there is a remote screen share active
+            // as this could force us into spotlight mode.
+            return combineLatest([hasRemoteScreenShares$, windowMode$]).pipe(
+              map(([hasScreenShares, windowMode]): GridMode => {
+                const isFlatMode = windowMode === "flat";
+                if (hasScreenShares || isFlatMode) {
+                  logger.debug(
+                    `Forcing spotlight mode, hasScreenShares=${hasScreenShares} windowMode=${windowMode}`,
+                  );
+                  // override to spotlight mode
+                  return "spotlight";
+                } else {
+                  // respect user choice
+                  return "grid";
+                }
+              }),
+            );
+          }
+        }),
       ),
       "grid",
     );