diff --git a/docs/components/content/examples/PopoverExampleOpen.vue b/docs/components/content/examples/PopoverExampleOpen.vue
index 98ee0651..41fc3470 100644
--- a/docs/components/content/examples/PopoverExampleOpen.vue
+++ b/docs/components/content/examples/PopoverExampleOpen.vue
@@ -1,18 +1,19 @@
 <script setup>
-const open = ref(false)
+const open = ref(true)
+
+defineShortcuts({
+  o: () => open.value = !open.value
+})
 </script>
 
 <template>
-  <div class="flex gap-4 items-center">
-    <UToggle v-model="open" />
-    <UPopover :open="open">
-      <UButton color="white" label="Open" trailing-icon="i-heroicons-chevron-down-20-solid" />
+  <UPopover v-model:open="open">
+    <UButton color="white" :label="open.toString()" trailing-icon="i-heroicons-chevron-down-20-solid" />
 
-      <template #panel>
-        <div class="p-4">
-          <Placeholder class="h-20 w-48" />
-        </div>
-      </template>
-    </UPopover>
-  </div>
+    <template #panel>
+      <div class="p-4">
+        <Placeholder class="h-20 w-48" />
+      </div>
+    </template>
+  </UPopover>
 </template>
diff --git a/docs/components/content/examples/PopoverExampleOverlay.vue b/docs/components/content/examples/PopoverExampleOverlay.vue
index c829d78c..908e023f 100644
--- a/docs/components/content/examples/PopoverExampleOverlay.vue
+++ b/docs/components/content/examples/PopoverExampleOverlay.vue
@@ -1,13 +1,11 @@
 <template>
-  <div class="flex gap-4 items-center">
-    <UPopover overlay>
-      <UButton color="white" label="Open" trailing-icon="i-heroicons-chevron-down-20-solid" />
+  <UPopover overlay>
+    <UButton color="white" label="Open" trailing-icon="i-heroicons-chevron-down-20-solid" />
 
-      <template #panel>
-        <div class="p-4">
-          <Placeholder class="h-20 w-48" />
-        </div>
-      </template>
-    </UPopover>
-  </div>
+    <template #panel>
+      <div class="p-4">
+        <Placeholder class="h-20 w-48" />
+      </div>
+    </template>
+  </UPopover>
 </template>
diff --git a/docs/content/6.overlays/3.popover.md b/docs/content/6.overlays/3.popover.md
index 31346e8d..2c810118 100644
--- a/docs/content/6.overlays/3.popover.md
+++ b/docs/content/6.overlays/3.popover.md
@@ -21,7 +21,7 @@ Use the `mode` prop to switch between `click` and `hover` modes.
 
 ### Manual
 
-Use the `open` prop to manually control showing the panel.
+Use a `v-model:open` to manually control the state. In this example, press :shortcut{value="O"} to toggle the popover.
 
 :component-example{component="popover-example-open"}
 
@@ -29,10 +29,6 @@ Use the `open` prop to manually control showing the panel.
 
 :component-example{component="popover-example-overlay"}
 
-::callout{icon="i-heroicons-light-bulb"}
-  Clicking on the `overlay` emits `update:open`. If you are manually controlling the `open` prop, you will need to use a [`v-model` argument](https://vuejs.org/guide/components/v-model.html#v-model-arguments) (`v-model:open`).
-::
-
 ## Popper
 
 Use the `popper` prop to customize the popper instance.
diff --git a/src/runtime/components/overlays/Popover.vue b/src/runtime/components/overlays/Popover.vue
index 44299957..aa579d0b 100644
--- a/src/runtime/components/overlays/Popover.vue
+++ b/src/runtime/components/overlays/Popover.vue
@@ -1,5 +1,6 @@
 <template>
-  <HPopover ref="popover" v-slot="{ open: headlessOpen, close }" :class="ui.wrapper" v-bind="attrs" @mouseleave="onMouseLeave">
+  <!-- eslint-disable-next-line vue/no-template-shadow -->
+  <HPopover ref="popover" v-slot="{ open, close }" :class="ui.wrapper" v-bind="attrs" @mouseleave="onMouseLeave">
     <HPopoverButton
       ref="trigger"
       as="div"
@@ -8,7 +9,7 @@
       role="button"
       @mouseover="onMouseOver"
     >
-      <slot :open="(open !== undefined) ? open : headlessOpen" :close="close">
+      <slot :open="open" :close="close">
         <button :disabled="disabled">
           Open
         </button>
@@ -16,16 +17,16 @@
     </HPopoverButton>
 
     <Transition v-if="overlay" appear v-bind="ui.overlay.transition">
-      <div v-if="(open !== undefined) ? open : headlessOpen" :class="[ui.overlay.base, ui.overlay.background]" @click="$emit('update:open')" />
+      <div v-if="open" :class="[ui.overlay.base, ui.overlay.background]" />
     </Transition>
 
-    <div v-if="(open !== undefined) ? open : headlessOpen" ref="container" :class="[ui.container, ui.width]" :style="containerStyle" @mouseover="onMouseOver">
+    <div v-if="open" ref="container" :class="[ui.container, ui.width]" :style="containerStyle" @mouseover="onMouseOver">
       <Transition appear v-bind="ui.transition">
         <div>
           <div v-if="popper.arrow" data-popper-arrow :class="Object.values(ui.arrow)" />
 
           <HPopoverPanel :class="[ui.base, ui.background, ui.ring, ui.rounded, ui.shadow]" static>
-            <slot name="panel" :open="(open !== undefined) ? open : headlessOpen" :close="close" />
+            <slot name="panel" :open="open" :close="close" />
           </HPopoverPanel>
         </div>
       </Transition>
@@ -94,7 +95,7 @@ export default defineComponent({
       default: () => ({})
     }
   },
-  emits: ['update:open', 'open', 'close'],
+  emits: ['update:open'],
   setup (props, { emit }) {
     const { ui, attrs } = useUI('popover', toRef(props, 'ui'), config, toRef(props, 'class'))
 
@@ -102,8 +103,8 @@ export default defineComponent({
 
     const [trigger, container] = usePopper(popper.value)
 
-    // https://github.com/tailwindlabs/headlessui/blob/f66f4926c489fc15289d528294c23a3dc2aee7b1/packages/%40headlessui-vue/src/components/popover/popover.ts#L151
     const popover = ref<any>(null)
+    // https://github.com/tailwindlabs/headlessui/blob/f66f4926c489fc15289d528294c23a3dc2aee7b1/packages/%40headlessui-vue/src/components/popover/popover.ts#L151
     const popoverApi = ref<any>(null)
 
     let openTimeout: NodeJS.Timeout | null = null
@@ -116,6 +117,10 @@ export default defineComponent({
       }
       const popoverProvidesSymbols = Object.getOwnPropertySymbols(popoverProvides)
       popoverApi.value = popoverProvidesSymbols.length && popoverProvides[popoverProvidesSymbols[0]]
+
+      if (props.open) {
+        popoverApi.value?.togglePopover()
+      }
     })
 
     const containerStyle = computed(() => {
@@ -170,9 +175,22 @@ export default defineComponent({
       }, props.closeDelay)
     }
 
+    watch(() => props.open, (newValue: boolean, oldValue: boolean) => {
+      if (!popoverApi.value) return
+      if (oldValue === undefined || newValue === oldValue) return
+
+      if (newValue) {
+        // No `openPopover` method and `popoverApi.value.togglePopover` won't work because of the `watch` below
+        popoverApi.value.popoverState = 0
+      } else {
+        popoverApi.value.closePopover()
+      }
+    })
+
     watch(() => popoverApi.value?.popoverState, (newValue: number, oldValue: number) => {
-      if (oldValue === undefined) return
-      emit(newValue === 0 ? 'open' : 'close')
+      if (oldValue === undefined || newValue === oldValue) return
+
+      emit('update:open', newValue === 0)
     })
 
     return {