diff --git a/.changeset/great-pumas-rush.md b/.changeset/great-pumas-rush.md
new file mode 100644
index 000000000..033efd1ae
--- /dev/null
+++ b/.changeset/great-pumas-rush.md
@@ -0,0 +1,5 @@
+---
+'@lion/ui': patch
+---
+
+[core] rerender direct host child with right slot attr when root is switched
diff --git a/packages/ui/components/core/src/SlotMixin.js b/packages/ui/components/core/src/SlotMixin.js
index 0acafb5e9..d56d936c5 100644
--- a/packages/ui/components/core/src/SlotMixin.js
+++ b/packages/ui/components/core/src/SlotMixin.js
@@ -182,6 +182,21 @@ const SlotMixinImplementation = superclass =>
       // Providing all options breaks Safari: we keep host and creationScope
       const { creationScope, host } = this.renderOptions;
       render(template, rerenderTarget, { creationScope, host, renderBefore });
+
+      // Assume we had this config:
+      // `'my-slot': () => ({ template: myBool ? html`<div id=a></div>` : html`<span id=b></span>`, renderAsDirectHostChild: true })`
+      // If myBool started as true, <div id=a></div> would be rendered in first render above, a slot would be applied,
+      // resulting in <div id=a slot=my-slot></div>
+      // However, when myBool changes to false, the <span id=b></span> would be rendered as root instead...
+      // We need to make sure that this "replaced root" gets the slot applied as well => <span id=b slot=my-slot></span>
+      const isRerenderingRootOfTemplate =
+        renderAsDirectHostChild &&
+        renderBefore.previousElementSibling &&
+        !renderBefore.previousElementSibling.slot;
+
+      if (isRerenderingRootOfTemplate) {
+        renderBefore.previousElementSibling.slot = slotName;
+      }
     }
 
     /**
diff --git a/packages/ui/components/core/test/SlotMixin.test.js b/packages/ui/components/core/test/SlotMixin.test.js
index c6bb70779..2f664ae05 100644
--- a/packages/ui/components/core/test/SlotMixin.test.js
+++ b/packages/ui/components/core/test/SlotMixin.test.js
@@ -345,6 +345,56 @@ describe('SlotMixin', () => {
       expect(isActiveElement(el._focusableNode._buttonNode, { deep: true })).to.be.true;
     });
 
+    it('allows for switching template root in slot as a direct child', async () => {
+      const tagName = defineCE(
+        // @ts-expect-error
+        class extends SlotMixin(LitElement) {
+          static properties = { isSwitched: Boolean };
+
+          constructor() {
+            super();
+            this.isSwitched = false;
+          }
+
+          get slots() {
+            return {
+              ...super.slots,
+              'my-root-switcher-node': () => ({
+                template: this.isSwitched
+                  ? html`<div id="is-switched"></div>`
+                  : html`<span id="is-not-switched"> </span> `,
+                renderAsDirectHostChild: true,
+              }),
+            };
+          }
+
+          render() {
+            return html`<slot name="my-root-switcher-node"></slot>`;
+          }
+
+          get _myRootSwitcherNode() {
+            return /** @type HTMLSpanElement */ (
+              Array.from(this.children).find(elm => elm.slot === 'my-root-switcher-node')
+            );
+          }
+        },
+      );
+      const el = /** @type {* & SlotHost} */ (await fixture(`<${tagName}></${tagName}>`));
+
+      expect(el._myRootSwitcherNode.id).to.equal('is-not-switched');
+      expect(el.innerHTML).to.equal(
+        `<!--_start_slot_my-root-switcher-node_--><!----><span id="is-not-switched" slot="my-root-switcher-node"> </span> <!--_end_slot_my-root-switcher-node_-->`,
+      );
+
+      el.isSwitched = true;
+      await el.updateComplete;
+
+      expect(el._myRootSwitcherNode.id).to.equal('is-switched');
+      expect(el.innerHTML).to.equal(
+        `<!--_start_slot_my-root-switcher-node_--><!----><div id="is-switched" slot="my-root-switcher-node"></div><!--_end_slot_my-root-switcher-node_-->`,
+      );
+    });
+
     describe('firstRenderOnConnected (for backwards compatibility)', () => {
       it('does render on connected when firstRenderOnConnected:true', async () => {
         // Start with elem that does not render on connectedCallback
diff --git a/packages/ui/components/input-tel-dropdown/src/LionInputTelDropdown.js b/packages/ui/components/input-tel-dropdown/src/LionInputTelDropdown.js
index 603382a49..ca7057b61 100644
--- a/packages/ui/components/input-tel-dropdown/src/LionInputTelDropdown.js
+++ b/packages/ui/components/input-tel-dropdown/src/LionInputTelDropdown.js
@@ -181,7 +181,7 @@ export class LionInputTelDropdown extends LionInputTel {
 
         return {
           template: templates.dropdown(this._templateDataDropdown),
-          renderAsDirectHostChild: Boolean,
+          renderAsDirectHostChild: true,
         };
       },
     };