diff --git a/packages/main/cypress/specs/List.cy.tsx b/packages/main/cypress/specs/List.cy.tsx
index 7b50bb97b3bc..8effeab5314c 100644
--- a/packages/main/cypress/specs/List.cy.tsx
+++ b/packages/main/cypress/specs/List.cy.tsx
@@ -1286,6 +1286,114 @@ describe("List Tests", () => {
 		cy.get("[ui5-li-custom]").first().should("be.focused");
 	});
 
+	it("keyboard handling on F7", () => {
+		cy.mount(
+			<List>
+				<ListItemCustom>
+					<Button>First</Button>
+					<Button>Second</Button>
+				</ListItemCustom>
+			</List>
+		);
+
+		cy.get("[ui5-li-custom]").click();
+		cy.get("[ui5-li-custom]").should("be.focused");
+
+		// F7 goes to first focusable element
+		cy.realPress("F7");
+		cy.get("[ui5-button]").first().should("be.focused");
+
+		// Tab to second button
+		cy.realPress("Tab");
+		cy.get("[ui5-button]").last().should("be.focused");
+
+		// F7 returns to list item
+		cy.realPress("F7");
+		cy.get("[ui5-li-custom]").should("be.focused");
+
+		// F7 remembers last focused element (second button)
+		cy.realPress("F7");
+		cy.get("[ui5-button]").last().should("be.focused");
+	});
+
+	it("keyboard handling on F7 after TAB navigation", () => {
+		cy.mount(
+			<div>
+				<button>Before</button>
+				<List>
+					<ListItemCustom>
+						<Button>First</Button>
+						<Button>Second</Button>
+					</ListItemCustom>
+				</List>
+			</div>
+		);
+
+		cy.get("button").click();
+		cy.get("button").should("be.focused");
+
+		// Tab into list item
+		cy.realPress("Tab");
+		cy.get("[ui5-li-custom]").should("be.focused");
+
+		// Tab into internal elements (goes to first button)
+		cy.realPress("Tab");
+		cy.get("[ui5-button]").first().should("be.focused");
+
+		// Tab to second button
+		cy.realPress("Tab");
+		cy.get("[ui5-button]").last().should("be.focused");
+
+		// F7 should store current element and return to list item
+		cy.realPress("F7");
+		cy.get("[ui5-li-custom]").should("be.focused");
+
+		// F7 should remember the second button (not go to first)
+		cy.realPress("F7");
+		cy.get("[ui5-button]").last().should("be.focused");
+	});
+
+	it("keyboard handling on F7 maintains focus position across list items", () => {
+		cy.mount(
+			<List>
+				<ListItemCustom>
+					<Button>Item 1 - First</Button>
+					<Button>Item 1 - Second</Button>
+					<Button>Item 1 - Third</Button>
+				</ListItemCustom>
+				<ListItemCustom>
+					<Button>Item 2 - First</Button>
+					<Button>Item 2 - Second</Button>
+					<Button>Item 2 - Third</Button>
+				</ListItemCustom>
+			</List>
+		);
+
+		// Focus first list item
+		cy.get("[ui5-li-custom]").first().click();
+		cy.get("[ui5-li-custom]").first().should("be.focused");
+
+		// F7 to enter (should go to first button)
+		cy.realPress("F7");
+		cy.get("[ui5-button]").eq(0).should("be.focused");
+
+		// Tab to second button
+		cy.realPress("Tab");
+		cy.get("[ui5-button]").eq(1).should("be.focused");
+
+		// F7 to exit back to list item
+		cy.realPress("F7");
+		cy.get("[ui5-li-custom]").first().should("be.focused");
+
+		// Navigate to second list item with ArrowDown
+		cy.realPress("ArrowDown");
+		cy.get("[ui5-li-custom]").last().should("be.focused");
+
+		// F7 should focus the second button (same index as previous item)
+		cy.realPress("F7");
+		cy.get("[ui5-button]").eq(4).should("be.focused").and("contain", "Item 2 - Second");
+	});
+
 	it("keyboard handling on TAB when 2 level nested UI5Element is focused", () => {
 		cy.mount(
 			<div>
diff --git a/packages/main/src/List.ts b/packages/main/src/List.ts
index 9ef8a7e49ebd..e419bbf8f230 100644
--- a/packages/main/src/List.ts
+++ b/packages/main/src/List.ts
@@ -534,6 +534,7 @@ class List extends UI5Element {
 	_beforeElement?: HTMLElement | null;
 	_afterElement?: HTMLElement | null;
 	_startMarkerOutOfView: boolean = false;
+	_lastFocusedElementIndex?: number;
 
 	handleResizeCallback: ResizeObserverCallback;
 	onItemFocusedBound: (e: CustomEvent) => void;
diff --git a/packages/main/src/ListItem.ts b/packages/main/src/ListItem.ts
index ee24d52adc80..995f3f7c7027 100644
--- a/packages/main/src/ListItem.ts
+++ b/packages/main/src/ListItem.ts
@@ -1,11 +1,12 @@
 import customElement from "@ui5/webcomponents-base/dist/decorators/customElement.js";
 import {
-	isSpace, isEnter, isDelete, isF2,
+	isSpace, isEnter, isDelete, isF2, isF7,
 } from "@ui5/webcomponents-base/dist/Keys.js";
 import type I18nBundle from "@ui5/webcomponents-base/dist/i18nBundle.js";
 import jsxRenderer from "@ui5/webcomponents-base/dist/renderer/JsxRenderer.js";
 import getActiveElement from "@ui5/webcomponents-base/dist/util/getActiveElement.js";
 import { getFirstFocusableElement } from "@ui5/webcomponents-base/dist/util/FocusableElements.js";
+import { getTabbableElements } from "@ui5/webcomponents-base/dist/util/TabbableElements.js";
 import type { AccessibilityAttributes, AriaRole, AriaHasPopup } from "@ui5/webcomponents-base";
 import property from "@ui5/webcomponents-base/dist/decorators/property.js";
 import event from "@ui5/webcomponents-base/dist/decorators/event-strict.js";
@@ -21,6 +22,7 @@ import ListItemBase from "./ListItemBase.js";
 import type RadioButton from "./RadioButton.js";
 import type CheckBox from "./CheckBox.js";
 import type { IButton } from "./Button.js";
+import type List from "./List.js";
 import {
 	DELETE,
 	ARIA_LABEL_LIST_ITEM_CHECKBOX,
@@ -255,7 +257,7 @@ abstract class ListItem extends ListItemBase {
 		document.removeEventListener("touchend", this.deactivate);
 	}
 
-	async _onkeydown(e: KeyboardEvent) {
+	_onkeydown(e: KeyboardEvent) {
 		if ((isSpace(e) || isEnter(e)) && this._isTargetSelfFocusDomRef(e)) {
 			return;
 		}
@@ -270,15 +272,11 @@ abstract class ListItem extends ListItemBase {
 		}
 
 		if (isF2(e)) {
-			const activeElement = getActiveElement();
-			const focusDomRef = this.getFocusDomRef()!;
-
-			if (activeElement === focusDomRef) {
-				const firstFocusable = await getFirstFocusableElement(focusDomRef);
-				firstFocusable?.focus();
-			} else {
-				focusDomRef.focus();
-			}
+			this._handleF2();
+		}
+
+		if (isF7(e)) {
+			this._handleF7(e);
 		}
 	}
 
@@ -518,6 +516,74 @@ abstract class ListItem extends ListItemBase {
 	get _listItem() {
 		return this.shadowRoot!.querySelector("li");
 	}
+
+	_getList(): List | null {
+		return this.closest("[ui5-list]");
+	}
+
+	_handleF7(e: KeyboardEvent) {
+		e.preventDefault();
+
+		const focusDomRef = this.getFocusDomRef()!;
+		const activeElement = getActiveElement();
+		const list = this._getList();
+
+		if (activeElement === focusDomRef) {
+			this._focusInternalElement(list);
+		} else {
+			if (activeElement) {
+				this._updateStoredFocusIndex(list, activeElement as HTMLElement);
+			}
+			focusDomRef.focus();
+		}
+	}
+
+	async _handleF2() {
+		const focusDomRef = this.getFocusDomRef()!;
+		const activeElement = getActiveElement();
+
+		if (activeElement === focusDomRef) {
+			const firstFocusable = await getFirstFocusableElement(focusDomRef);
+			firstFocusable?.focus();
+		} else {
+			focusDomRef.focus();
+		}
+	}
+
+	_getFocusableElements(): HTMLElement[] {
+		const focusDomRef = this.getFocusDomRef()!;
+		return getTabbableElements(focusDomRef);
+	}
+
+	_focusInternalElement(list: List | null) {
+		const focusables = this._getFocusableElements();
+		if (!focusables.length) {
+			return;
+		}
+
+		const targetIndex = list?._lastFocusedElementIndex ?? 0;
+		const safeIndex = Math.min(targetIndex, focusables.length - 1);
+		const elementToFocus = focusables[safeIndex];
+
+		elementToFocus.focus();
+
+		if (list) {
+			list._lastFocusedElementIndex = safeIndex;
+		}
+	}
+
+	_updateStoredFocusIndex(list: List | null, activeElement: HTMLElement) {
+		if (!list) {
+			return;
+		}
+
+		const focusables = this._getFocusableElements();
+		const currentIndex = focusables.indexOf(activeElement);
+
+		if (currentIndex !== -1) {
+			list._lastFocusedElementIndex = currentIndex;
+		}
+	}
 }
 
 export default ListItem;
diff --git a/packages/main/src/ListItemCustom.ts b/packages/main/src/ListItemCustom.ts
index 55a3d929ce60..f581290f16c3 100644
--- a/packages/main/src/ListItemCustom.ts
+++ b/packages/main/src/ListItemCustom.ts
@@ -1,4 +1,6 @@
-import { isTabNext, isTabPrevious, isF2 } from "@ui5/webcomponents-base/dist/Keys.js";
+import {
+	isTabNext, isTabPrevious, isF2, isF7,
+} from "@ui5/webcomponents-base/dist/Keys.js";
 import jsxRenderer from "@ui5/webcomponents-base/dist/renderer/JsxRenderer.js";
 import type { ClassMap } from "@ui5/webcomponents-base/dist/types.js";
 import customElement from "@ui5/webcomponents-base/dist/decorators/customElement.js";
@@ -54,22 +56,22 @@ class ListItemCustom extends ListItem {
 	@property()
 	declare accessibleName?: string;
 
-	async _onkeydown(e: KeyboardEvent) {
+	_onkeydown(e: KeyboardEvent) {
 		const isTab = isTabNext(e) || isTabPrevious(e);
 		const isFocused = this.matches(":focus");
 
-		if (!isTab && !isFocused && !isF2(e)) {
+		if (!isTab && !isFocused && !isF2(e) && !isF7(e)) {
 			return;
 		}
 
-		await super._onkeydown(e);
+		super._onkeydown(e);
 	}
 
 	_onkeyup(e: KeyboardEvent) {
 		const isTab = isTabNext(e) || isTabPrevious(e);
 		const isFocused = this.matches(":focus");
 
-		if (!isTab && !isFocused && !isF2(e)) {
+		if (!isTab && !isFocused && !isF2(e) && !isF7(e)) {
 			return;
 		}
 
diff --git a/packages/main/src/TreeItemBase.ts b/packages/main/src/TreeItemBase.ts
index 01f888782388..274dae32e5fb 100644
--- a/packages/main/src/TreeItemBase.ts
+++ b/packages/main/src/TreeItemBase.ts
@@ -313,8 +313,8 @@ class TreeItemBase extends ListItem {
 		this.fireDecoratorEvent("toggle", { item: this });
 	}
 
-	async _onkeydown(e: KeyboardEvent) {
-		await super._onkeydown(e);
+	_onkeydown(e: KeyboardEvent) {
+		super._onkeydown(e);
 
 		if (!this._fixed && this.showToggleButton && isRight(e)) {
 			if (!this.expanded) {
diff --git a/packages/main/src/TreeItemCustom.ts b/packages/main/src/TreeItemCustom.ts
index 68d5b65b7191..c24d2dff598d 100644
--- a/packages/main/src/TreeItemCustom.ts
+++ b/packages/main/src/TreeItemCustom.ts
@@ -57,7 +57,7 @@ class TreeItemCustom extends TreeItemBase {
 	@slot()
 	content!: Array<HTMLElement>;
 
-	async _onkeydown(e: KeyboardEvent) {
+	_onkeydown(e: KeyboardEvent) {
 		if (isDown(e) && this.content?.some(el => el.contains(e.target as Node))) {
 			e.stopPropagation();
 			return;
@@ -69,7 +69,7 @@ class TreeItemCustom extends TreeItemBase {
 			return;
 		}
 
-		await super._onkeydown(e);
+		super._onkeydown(e);
 	}
 
 	_onkeyup(e: KeyboardEvent) {
diff --git a/packages/main/test/pages/ListItemCustomF7.html b/packages/main/test/pages/ListItemCustomF7.html
new file mode 100644
index 000000000000..a15d6f950b9f
--- /dev/null
+++ b/packages/main/test/pages/ListItemCustomF7.html
@@ -0,0 +1,93 @@
+<!DOCTYPE html>
+<html lang="en">
+
+<head>
+	<meta charset="UTF-8">
+	<meta name="viewport" content="width=device-width, initial-scale=1.0">
+	<title>F7/F2 Key Test</title>
+	<script src="%VITE_BUNDLE_PATH%" type="module"></script>
+	<style>
+		body {
+			margin: 0;
+			padding: 2rem;
+			font-family: "72", "72full", Arial, sans-serif;
+		}
+
+		.instructions {
+			padding: 1rem;
+			margin-bottom: 2rem;
+			border: 1px solid #ccc;
+			background: #f9f9f9;
+		}
+
+		.buttons {
+			display: flex;
+			gap: 1rem;
+			align-items: center;
+		}
+
+		#test-list {
+			width: 400px;
+		}
+	</style>
+</head>
+
+<body>
+	<div class="instructions">
+		<h2>F7/F2 Key Test</h2>
+		<p><strong>F7 vs F2 Behavior:</strong></p>
+		<ul>
+			<li><strong>F2:</strong> Simple navigation - always goes to first focusable element</li>
+			<li><strong>F7:</strong> Smart navigation - remembers last focused element position across items</li>
+		</ul>
+
+		<p><strong>Test Steps:</strong></p>
+		<ol>
+			<li>Click on first list item</li>
+			<li>Press <strong>F7</strong> → should go to first button</li>
+			<li>Press <strong>TAB</strong> to move to second button</li>
+			<li>Press <strong>F7</strong> → should return to list item</li>
+			<li>Press <strong>ArrowDown</strong> → should go to second list item</li>
+			<li>Press <strong>F7</strong> → should go to SECOND button (maintains position!)</li>
+			<li>Test <strong>F2</strong> → should always go to first button (no memory)</li>
+		</ol>
+	</div>
+
+	<ui5-list id="test-list" header-text="List with Custom Items">
+		<ui5-li-custom>
+			<div class="buttons">
+				<ui5-button>First Button</ui5-button>
+				<ui5-button>Second Button</ui5-button>
+				<ui5-input placeholder="Input Field" style="width: 120px;"></ui5-input>
+			</div>
+		</ui5-li-custom>
+		<ui5-li-custom>
+			<div class="buttons">
+				<ui5-button>Button A</ui5-button>
+				<ui5-button>Button B</ui5-button>
+				<ui5-input placeholder="Text Input" style="width: 120px;"></ui5-input>
+			</div>
+		</ui5-li-custom>
+	</ui5-list>
+
+	<script>
+		document.addEventListener('focusin', function (e) {
+			const tag = e.target.tagName.toLowerCase();
+			let label = e.target.textContent?.trim() || e.target.placeholder || tag;
+
+			if (tag === 'ui5-li-custom') {
+				const index = Array.from(document.querySelectorAll('ui5-li-custom')).indexOf(e.target);
+				label = `Item ${index + 1}`;
+			}
+
+			console.log('Focus:', label);
+		});
+
+		document.addEventListener('keydown', function (e) {
+			if (e.key === 'F7') console.log('F7 pressed');
+			if (e.key === 'F2') console.log('F2 pressed');
+		});
+	</script>
+</body>
+
+</html>
\ No newline at end of file