diff --git a/test/automation/src/extensions.ts b/test/automation/src/extensions.ts
index b2bedb8f5c8..3e71563a202 100644
--- a/test/automation/src/extensions.ts
+++ b/test/automation/src/extensions.ts
@@ -24,10 +24,6 @@ export class Extensions extends Viewlet {
 		await this.code.waitForActiveElement(SEARCH_BOX);
 	}
 
-	async waitForExtensionsViewlet(): Promise<any> {
-		await this.code.waitForElement(SEARCH_BOX);
-	}
-
 	async searchForExtension(id: string): Promise<any> {
 		await this.code.waitAndClick(SEARCH_BOX);
 		await this.code.waitForActiveElement(SEARCH_BOX);
@@ -40,6 +36,10 @@ export class Extensions extends Viewlet {
 		await this.code.waitAndClick(`div.extensions-viewlet[id="workbench.view.extensions"] .monaco-list-row[data-extension-id="${id}"]`);
 	}
 
+	async closeExtension(title: string): Promise<any> {
+		await this.code.waitAndClick(`.tabs-container div.tab[title="Extension: ${title}"] div.tab-actions a.action-label.codicon.codicon-close`);
+	}
+
 	async installExtension(id: string, waitUntilEnabled: boolean): Promise<void> {
 		await this.searchForExtension(id);
 		await this.code.waitAndClick(`div.extensions-viewlet[id="workbench.view.extensions"] .monaco-list-row[data-extension-id="${id}"] .extension-list-item .monaco-action-bar .action-item:not(.disabled) .extension-action.install`);
diff --git a/test/smoke/src/areas/extensions/extensions.test.ts b/test/smoke/src/areas/extensions/extensions.test.ts
index 1abdd6ee13c..1ae9d679eec 100644
--- a/test/smoke/src/areas/extensions/extensions.test.ts
+++ b/test/smoke/src/areas/extensions/extensions.test.ts
@@ -10,32 +10,19 @@ export function setup() {
 		it(`install and activate vscode-smoketest-check extension`, async function () {
 			const app = this.app as Application;
 
-			if (app.quality === Quality.Dev || app.web /* https://github.com/microsoft/vscode/issues/118443 */) {
+			if (app.quality === Quality.Dev) {
 				this.skip();
-				return;
-			}
-
-			if (!app.web) {
-				await app.workbench.settingsEditor.addUserSetting('webview.experimental.useIframes', 'true');
 			}
 
 			await app.workbench.extensions.openExtensionsViewlet();
 
 			await app.workbench.extensions.installExtension('michelkaporin.vscode-smoketest-check', true);
 
-			await app.workbench.extensions.waitForExtensionsViewlet();
+			// Close extension editor because keybindings dispatch is not working when web views are opened and focused
+			// https://github.com/microsoft/vscode/issues/110276
+			await app.workbench.extensions.closeExtension('vscode-smoketest-check');
 
 			await app.workbench.quickaccess.runCommand('Smoke Test Check');
-			await app.workbench.statusbar.waitForStatusbarText('smoke test', 'VS Code Smoke Test Check');
-		});
-
-		after(async function () {
-			const app = this.app as Application;
-			if (app.web) {
-				return;
-			}
-
-			await app.workbench.settingsEditor.clearUserSettings();
 		});
 
 	});