diff --git a/app/src/main/java/org/mozilla/fenix/tabstray/browser/InactiveTabViewHolder.kt b/app/src/main/java/org/mozilla/fenix/tabstray/browser/InactiveTabViewHolder.kt
index 68fee1b8e5..93e22b3685 100644
--- a/app/src/main/java/org/mozilla/fenix/tabstray/browser/InactiveTabViewHolder.kt
+++ b/app/src/main/java/org/mozilla/fenix/tabstray/browser/InactiveTabViewHolder.kt
@@ -6,6 +6,7 @@ package org.mozilla.fenix.tabstray.browser
 
 import android.view.View
 import androidx.annotation.StringRes
+import androidx.core.view.updatePadding
 import androidx.recyclerview.widget.RecyclerView
 import mozilla.components.browser.toolbar.MAX_URI_LENGTH
 import mozilla.components.concept.tabstray.Tab
@@ -17,6 +18,7 @@ import org.mozilla.fenix.databinding.InactiveTabListItemBinding
 import org.mozilla.fenix.ext.components
 import org.mozilla.fenix.ext.loadIntoView
 import org.mozilla.fenix.ext.toShortUrl
+import org.mozilla.fenix.home.sessioncontrol.viewholders.topsites.dpToPx
 import org.mozilla.fenix.tabstray.browser.AutoCloseInterval.Manual
 import org.mozilla.fenix.tabstray.browser.AutoCloseInterval.OneDay
 import org.mozilla.fenix.tabstray.browser.AutoCloseInterval.OneMonth
@@ -42,6 +44,11 @@ sealed class InactiveTabViewHolder(itemView: View) : RecyclerView.ViewHolder(ite
 
                     it.isActivated = newState
                     binding.chevron.rotation = ROTATION_DEGREE
+
+                    // When the header is collapsed we use its bottom border instead of the footer's
+                    binding.inactiveHeaderBorder.updatePadding(
+                        bottom = binding.root.context.dpToPx(if (it.isActivated) 0f else 1f)
+                    )
                 }
             }
         }
diff --git a/app/src/main/res/layout/inactive_footer_item.xml b/app/src/main/res/layout/inactive_footer_item.xml
index 68c1d774e4..955ff5b42a 100644
--- a/app/src/main/res/layout/inactive_footer_item.xml
+++ b/app/src/main/res/layout/inactive_footer_item.xml
@@ -2,40 +2,50 @@
    - License, v. 2.0. If a copy of the MPL was not distributed with this
    - file, You can obtain one at http://mozilla.org/MPL/2.0/. -->
 
-<androidx.constraintlayout.widget.ConstraintLayout xmlns:android="http://schemas.android.com/apk/res/android"
-    xmlns:app="http://schemas.android.com/apk/res-auto"
-    xmlns:tools="http://schemas.android.com/tools"
+<FrameLayout xmlns:android="http://schemas.android.com/apk/res/android"
     android:layout_width="match_parent"
     android:layout_height="wrap_content"
     android:layout_marginStart="16dp"
     android:layout_marginEnd="16dp"
     android:layout_marginBottom="8dp"
     android:background="@drawable/rounded_bottom_corners"
-    android:paddingBottom="8dp">
+    android:backgroundTint="@color/photonLightGrey30"
+    android:importantForAccessibility="no"
+    android:paddingStart="1dp"
+    android:paddingEnd="1dp"
+    android:paddingBottom="1dp">
 
-    <View
-        android:id="@+id/top_divider"
+    <androidx.constraintlayout.widget.ConstraintLayout xmlns:app="http://schemas.android.com/apk/res-auto"
+        xmlns:tools="http://schemas.android.com/tools"
         android:layout_width="match_parent"
-        android:layout_height="1dp"
-        android:background="?neutralFaded"
-        app:layout_constraintEnd_toEndOf="parent"
-        app:layout_constraintStart_toStartOf="parent"
-        app:layout_constraintTop_toTopOf="parent" />
-
-    <TextView
-        android:id="@+id/inactive_description"
-        android:layout_width="wrap_content"
         android:layout_height="wrap_content"
-        android:paddingStart="16dp"
-        android:paddingTop="8dp"
-        android:paddingEnd="16dp"
-        android:paddingBottom="8dp"
-        android:textColor="?secondaryText"
-        android:textSize="12sp"
-        app:layout_constraintBottom_toBottomOf="parent"
-        app:layout_constraintEnd_toEndOf="parent"
-        app:layout_constraintStart_toStartOf="parent"
-        app:layout_constraintTop_toBottomOf="@id/top_divider"
-        tools:text="@string/inactive_tabs_description" />
+        android:background="@drawable/rounded_bottom_corners"
+        android:paddingBottom="8dp">
+
+        <View
+            android:id="@+id/top_divider"
+            android:layout_width="match_parent"
+            android:layout_height="1dp"
+            android:background="?neutralFaded"
+            app:layout_constraintEnd_toEndOf="parent"
+            app:layout_constraintStart_toStartOf="parent"
+            app:layout_constraintTop_toTopOf="parent" />
+
+        <TextView
+            android:id="@+id/inactive_description"
+            android:layout_width="wrap_content"
+            android:layout_height="wrap_content"
+            android:paddingStart="16dp"
+            android:paddingTop="8dp"
+            android:paddingEnd="16dp"
+            android:paddingBottom="8dp"
+            android:textColor="?secondaryText"
+            android:textSize="12sp"
+            app:layout_constraintBottom_toBottomOf="parent"
+            app:layout_constraintEnd_toEndOf="parent"
+            app:layout_constraintStart_toStartOf="parent"
+            app:layout_constraintTop_toBottomOf="@id/top_divider"
+            tools:text="@string/inactive_tabs_description" />
 
-</androidx.constraintlayout.widget.ConstraintLayout>
\ No newline at end of file
+    </androidx.constraintlayout.widget.ConstraintLayout>
+</FrameLayout>
\ No newline at end of file
diff --git a/app/src/main/res/layout/inactive_header_item.xml b/app/src/main/res/layout/inactive_header_item.xml
index 2af0c5d37a..a0a84b1a6e 100644
--- a/app/src/main/res/layout/inactive_header_item.xml
+++ b/app/src/main/res/layout/inactive_header_item.xml
@@ -1,46 +1,58 @@
 <?xml version="1.0" encoding="utf-8"?><!-- This Source Code Form is subject to the terms of the Mozilla Public
    - License, v. 2.0. If a copy of the MPL was not distributed with this
    - file, You can obtain one at http://mozilla.org/MPL/2.0/. -->
-<androidx.constraintlayout.widget.ConstraintLayout xmlns:android="http://schemas.android.com/apk/res/android"
-    xmlns:app="http://schemas.android.com/apk/res-auto"
-    xmlns:tools="http://schemas.android.com/tools"
+
+<FrameLayout xmlns:android="http://schemas.android.com/apk/res/android"
+    android:id="@+id/inactive_header_border"
     android:layout_width="match_parent"
-    android:layout_height="48dp"
+    android:layout_height="wrap_content"
     android:layout_marginStart="16dp"
     android:layout_marginTop="12dp"
     android:layout_marginEnd="16dp"
     android:background="@drawable/card_list_row_background"
-    android:clickable="false"
-    android:clipToPadding="false"
-    android:focusable="true"
-    android:foreground="?android:attr/selectableItemBackground"
-    android:paddingStart="16dp"
-    android:paddingEnd="16dp">
+    android:backgroundTint="@color/photonLightGrey30"
+    android:importantForAccessibility="no"
+    android:paddingStart="1dp"
+    android:paddingTop="1dp"
+    android:paddingEnd="1dp">
+
+    <androidx.constraintlayout.widget.ConstraintLayout xmlns:app="http://schemas.android.com/apk/res-auto"
+        xmlns:tools="http://schemas.android.com/tools"
+        android:layout_width="match_parent"
+        android:layout_height="48dp"
+        android:background="@drawable/card_list_row_background"
+        android:clickable="false"
+        android:clipToPadding="false"
+        android:focusable="true"
+        android:foreground="?android:attr/selectableItemBackground"
+        android:paddingStart="16dp"
+        android:paddingEnd="16dp">
 
-    <TextView
-        android:id="@+id/inactive_title"
-        android:layout_width="wrap_content"
-        android:layout_height="wrap_content"
-        android:ellipsize="end"
-        android:gravity="start"
-        android:maxLines="1"
-        android:minLines="1"
-        android:text="@string/inactive_tabs_title"
-        android:textAppearance="@style/Header16TextStyle"
-        app:layout_constraintBottom_toBottomOf="parent"
-        app:layout_constraintStart_toStartOf="parent"
-        app:layout_constraintTop_toTopOf="parent"
-        tools:text="Inactive tabs" />
+        <TextView
+            android:id="@+id/inactive_title"
+            android:layout_width="wrap_content"
+            android:layout_height="wrap_content"
+            android:ellipsize="end"
+            android:gravity="start"
+            android:maxLines="1"
+            android:minLines="1"
+            android:text="@string/inactive_tabs_title"
+            android:textAppearance="@style/Header16TextStyle"
+            app:layout_constraintBottom_toBottomOf="parent"
+            app:layout_constraintStart_toStartOf="parent"
+            app:layout_constraintTop_toTopOf="parent"
+            tools:text="Inactive tabs" />
 
-    <ImageView
-        android:id="@+id/chevron"
-        android:layout_width="24dp"
-        android:layout_height="24dp"
-        android:rotation="180"
-        android:contentDescription="@string/tab_menu"
-        app:layout_constraintBottom_toBottomOf="parent"
-        app:layout_constraintEnd_toEndOf="parent"
-        app:layout_constraintTop_toTopOf="parent"
-        app:srcCompat="@drawable/ic_chevron" />
+        <ImageView
+            android:id="@+id/chevron"
+            android:layout_width="24dp"
+            android:layout_height="24dp"
+            android:contentDescription="@string/tab_menu"
+            android:rotation="180"
+            app:layout_constraintBottom_toBottomOf="parent"
+            app:layout_constraintEnd_toEndOf="parent"
+            app:layout_constraintTop_toTopOf="parent"
+            app:srcCompat="@drawable/ic_chevron" />
 
-</androidx.constraintlayout.widget.ConstraintLayout>
\ No newline at end of file
+    </androidx.constraintlayout.widget.ConstraintLayout>
+</FrameLayout>
\ No newline at end of file
diff --git a/app/src/main/res/layout/inactive_recently_closed_item.xml b/app/src/main/res/layout/inactive_recently_closed_item.xml
index 0c008f1093..7f019216e3 100644
--- a/app/src/main/res/layout/inactive_recently_closed_item.xml
+++ b/app/src/main/res/layout/inactive_recently_closed_item.xml
@@ -1,45 +1,54 @@
 <?xml version="1.0" encoding="utf-8"?><!-- This Source Code Form is subject to the terms of the Mozilla Public
    - License, v. 2.0. If a copy of the MPL was not distributed with this
    - file, You can obtain one at http://mozilla.org/MPL/2.0/. -->
-<androidx.constraintlayout.widget.ConstraintLayout xmlns:android="http://schemas.android.com/apk/res/android"
-    xmlns:app="http://schemas.android.com/apk/res-auto"
-    xmlns:tools="http://schemas.android.com/tools"
-    android:id="@+id/inactive_recently_closed"
+<FrameLayout xmlns:android="http://schemas.android.com/apk/res/android"
     android:layout_width="match_parent"
     android:layout_height="wrap_content"
     android:layout_marginStart="16dp"
     android:layout_marginEnd="16dp"
-    android:background="?above"
-    android:foreground="?android:attr/selectableItemBackground"
-    android:minHeight="@dimen/mozac_widget_site_item_height">
+    android:background="@color/photonLightGrey30"
+    android:importantForAccessibility="no"
+    android:paddingStart="1dp"
+    android:paddingEnd="1dp">
 
-
-    <TextView
-        android:id="@+id/inactive_recently_closed_text"
-        style="@style/Mozac.Widgets.SiteItem.Label"
-        android:layout_width="0dp"
+    <androidx.constraintlayout.widget.ConstraintLayout xmlns:app="http://schemas.android.com/apk/res-auto"
+        xmlns:tools="http://schemas.android.com/tools"
+        android:id="@+id/inactive_recently_closed"
+        android:layout_width="match_parent"
         android:layout_height="wrap_content"
-        android:layout_marginStart="16dp"
-        android:layout_marginEnd="16dp"
-        android:importantForAccessibility="no"
-        android:text="@string/tab_tray_inactive_recently_closed"
-        app:layout_constraintBottom_toBottomOf="parent"
-        app:layout_constraintEnd_toStartOf="@+id/arrowhead_right"
-        app:layout_constraintHorizontal_bias="0.0"
-        app:layout_constraintStart_toStartOf="parent"
-        app:layout_constraintTop_toTopOf="parent"
-        tools:text="RecentlyClosed" />
+        android:background="?above"
+        android:foreground="?android:attr/selectableItemBackground"
+        android:minHeight="@dimen/mozac_widget_site_item_height">
 
-    <ImageView
-        android:id="@+id/arrowhead_right"
-        android:layout_width="wrap_content"
-        android:layout_height="wrap_content"
-        android:layout_marginStart="12dp"
-        android:layout_marginEnd="12dp"
-        android:importantForAccessibility="no"
-        app:srcCompat="@drawable/ic_arrowhead_right"
-        app:layout_constraintBottom_toBottomOf="parent"
-        app:layout_constraintEnd_toEndOf="parent"
-        app:layout_constraintTop_toTopOf="parent" />
 
-</androidx.constraintlayout.widget.ConstraintLayout>
+        <TextView
+            android:id="@+id/inactive_recently_closed_text"
+            style="@style/Mozac.Widgets.SiteItem.Label"
+            android:layout_width="0dp"
+            android:layout_height="wrap_content"
+            android:layout_marginStart="16dp"
+            android:layout_marginEnd="16dp"
+            android:importantForAccessibility="no"
+            android:text="@string/tab_tray_inactive_recently_closed"
+            app:layout_constraintBottom_toBottomOf="parent"
+            app:layout_constraintEnd_toStartOf="@+id/arrowhead_right"
+            app:layout_constraintHorizontal_bias="0.0"
+            app:layout_constraintStart_toStartOf="parent"
+            app:layout_constraintTop_toTopOf="parent"
+            tools:text="RecentlyClosed" />
+
+        <ImageView
+            android:id="@+id/arrowhead_right"
+            android:layout_width="wrap_content"
+            android:layout_height="wrap_content"
+            android:layout_marginStart="12dp"
+            android:layout_marginEnd="12dp"
+            android:importantForAccessibility="no"
+            app:layout_constraintBottom_toBottomOf="parent"
+            app:layout_constraintEnd_toEndOf="parent"
+            app:layout_constraintTop_toTopOf="parent"
+            app:srcCompat="@drawable/ic_arrowhead_right" />
+
+    </androidx.constraintlayout.widget.ConstraintLayout>
+</FrameLayout>
+
diff --git a/app/src/main/res/layout/inactive_tab_list_item.xml b/app/src/main/res/layout/inactive_tab_list_item.xml
index 8a576c788a..3a83e2d677 100644
--- a/app/src/main/res/layout/inactive_tab_list_item.xml
+++ b/app/src/main/res/layout/inactive_tab_list_item.xml
@@ -1,14 +1,22 @@
-<?xml version="1.0" encoding="utf-8"?>
-<!-- This Source Code Form is subject to the terms of the Mozilla Public
+<?xml version="1.0" encoding="utf-8"?><!-- This Source Code Form is subject to the terms of the Mozilla Public
    - License, v. 2.0. If a copy of the MPL was not distributed with this
    - file, You can obtain one at http://mozilla.org/MPL/2.0/. -->
-<mozilla.components.ui.widgets.WidgetSiteItemView
-    xmlns:android="http://schemas.android.com/apk/res/android"
-    android:id="@+id/site_list_item"
+
+<FrameLayout xmlns:android="http://schemas.android.com/apk/res/android"
     android:layout_width="match_parent"
     android:layout_height="wrap_content"
     android:layout_marginStart="16dp"
     android:layout_marginEnd="16dp"
-    android:background="?above"
-    android:foreground="?android:attr/selectableItemBackground"
-    android:minHeight="@dimen/mozac_widget_site_item_height" />
+    android:background="@color/photonLightGrey30"
+    android:importantForAccessibility="no"
+    android:paddingStart="1dp"
+    android:paddingEnd="1dp">
+
+    <mozilla.components.ui.widgets.WidgetSiteItemView
+        android:id="@+id/site_list_item"
+        android:layout_width="match_parent"
+        android:layout_height="wrap_content"
+        android:background="?above"
+        android:foreground="?android:attr/selectableItemBackground"
+        android:minHeight="@dimen/mozac_widget_site_item_height" />
+</FrameLayout>
\ No newline at end of file