--- a/browser/themes/shared/tabs.inc.css
+++ b/browser/themes/shared/tabs.inc.css
@@ -769,16 +769,22 @@
 .all-tabs-secondary-button:hover {
   opacity: 1;
 }
 
 .all-tabs-item:hover {
   background-color: var(--arrowpanel-dimmed)
 }
 
+.all-tabs-item:hover > .all-tabs-button,
+.all-tabs-item:hover > .all-tabs-secondary-button {
+  /* Since the background is set on the item, don't set it on the children. */
+  background-color: transparent !important;
+}
+
 .all-tabs-item > .all-tabs-button > .tab-throbber-fallback {
   display: block;
   margin-inline-end: 0;
 }
 
 .all-tabs-item[selected] {
   box-shadow: inset 4px 0 var(--blue-40);
 }
@@ -786,21 +792,16 @@
 .all-tabs-item[tabIsVisible] {
   box-shadow: inset -4px 0 ThreeDShadow;
 }
 
 .all-tabs-item[selected][tabIsVisible] {
   box-shadow: inset -4px 0 ThreeDShadow, inset 4px 0 var(--blue-40);
 }
 
-.all-tabs-button,
-.all-tabs-secondary-button {
-  background-color: transparent !important;
-}
-
 .all-tabs-secondary-button > label {
   display: none;
   margin: 0 5.5px;
 }
 
 .all-tabs-secondary-button[soundplaying] {
   list-style-image: url(chrome://browser/skin/tabbrowser/tab-audio-playing.svg);
 }