diff --git a/app/client/src/widgets/WidgetUtils.test.ts b/app/client/src/widgets/WidgetUtils.test.ts
index d6a90203a8..aeec7138e3 100644
--- a/app/client/src/widgets/WidgetUtils.test.ts
+++ b/app/client/src/widgets/WidgetUtils.test.ts
@@ -26,6 +26,7 @@ import {
   isAutoHeightEnabledForWidgetWithLimits,
   getWidgetMaxAutoHeight,
   getWidgetMinAutoHeight,
+  isCompactMode,
 } from "./WidgetUtils";
 import {
   getCustomTextColor,
@@ -696,4 +697,10 @@ describe("Should Update Widget Height Automatically?", () => {
     const result = shouldUpdateWidgetHeightAutomatically(input, props);
     expect(result).toStrictEqual(expected);
   });
+  it("should return correct value for isCompactMode", () => {
+    const compactHeight = 40;
+    const unCompactHeight = 41;
+    expect(isCompactMode(compactHeight)).toBeTruthy();
+    expect(isCompactMode(unCompactHeight)).toBeFalsy();
+  });
 });
diff --git a/app/client/src/widgets/WidgetUtils.ts b/app/client/src/widgets/WidgetUtils.ts
index 31761b438a..8f60f05e20 100644
--- a/app/client/src/widgets/WidgetUtils.ts
+++ b/app/client/src/widgets/WidgetUtils.ts
@@ -921,7 +921,7 @@ const findReactInstanceProps = (domElement: any) => {
 
 export function isCompactMode(componentHeight: number) {
   return (
-    componentHeight <
+    componentHeight <=
     COMPACT_MODE_MIN_ROWS * GridDefaults.DEFAULT_GRID_ROW_HEIGHT
   );
 }