diff --git a/packages/calcite-components/src/components/list-item/list-item.tsx b/packages/calcite-components/src/components/list-item/list-item.tsx
index 2a640e48c65..aba22ad1ddd 100644
--- a/packages/calcite-components/src/components/list-item/list-item.tsx
+++ b/packages/calcite-components/src/components/list-item/list-item.tsx
@@ -86,6 +86,11 @@ export class ListItem
   /** When `true`, hides the component. */
   @Prop({ reflect: true, mutable: true }) closed = false;
 
+  @Watch("closed")
+  handleClosedChange(): void {
+    this.emitCalciteInternalListItemChange();
+  }
+
   /**
    * A description for the component. Displays below the label text.
    */
@@ -96,6 +101,11 @@ export class ListItem
    */
   @Prop({ reflect: true }) disabled = false;
 
+  @Watch("disabled")
+  handleDisabledChange(): void {
+    this.emitCalciteInternalListItemChange();
+  }
+
   /**
    * The label text of the component. Displays above the description text.
    */
@@ -210,6 +220,12 @@ export class ListItem
    */
   @Event({ cancelable: false }) calciteInternalFocusPreviousItem: EventEmitter<void>;
 
+  /**
+   *
+   * @internal
+   */
+  @Event({ cancelable: false }) calciteInternalListItemChange: EventEmitter<void>;
+
   // --------------------------------------------------------------------------
   //
   //  Private Properties
@@ -541,6 +557,10 @@ export class ListItem
   //
   // --------------------------------------------------------------------------
 
+  private emitCalciteInternalListItemChange(): void {
+    this.calciteInternalListItemChange.emit();
+  }
+
   closeClickHandler = (): void => {
     this.closed = true;
     this.calciteListItemClose.emit();
diff --git a/packages/calcite-components/src/components/list/list.e2e.ts b/packages/calcite-components/src/components/list/list.e2e.ts
index 4f37de97f68..72b562be576 100755
--- a/packages/calcite-components/src/components/list/list.e2e.ts
+++ b/packages/calcite-components/src/components/list/list.e2e.ts
@@ -5,6 +5,7 @@ import { newE2EPage } from "@stencil/core/testing";
 import { debounceTimeout } from "./resources";
 import { CSS } from "../list-item/resources";
 import { DEBOUNCE_TIMEOUT as FILTER_DEBOUNCE_TIMEOUT } from "../filter/resources";
+import { isElementFocused } from "../../tests/utils";
 
 const placeholder = placeholderImage({
   width: 140,
@@ -209,13 +210,14 @@ describe("calcite-list", () => {
     await page.waitForChanges();
     await page.waitForTimeout(listDebounceTimeout);
 
+    const list = await page.find("calcite-list");
     const items = await page.findAll("calcite-list-item");
 
     expect(await items[0].getProperty("active")).toBe(true);
     expect(await items[1].getProperty("active")).toBe(false);
     expect(await items[2].getProperty("active")).toBe(false);
 
-    const eventSpy = await page.spyOnEvent("calciteInternalListItemActive");
+    const eventSpy = await list.spyOnEvent("calciteInternalListItemActive");
 
     await items[1].click();
 
@@ -229,13 +231,12 @@ describe("calcite-list", () => {
   });
 
   it("should prevent de-selection of selected item in single-persist mode", async () => {
-    const page = await newE2EPage({
-      html: html`<calcite-list selection-mode="single-persist">
-        <calcite-list-item id="item-1" label="hello" description="world"></calcite-list-item>
-        <calcite-list-item id="item-2" label="hello 2" description="world 2"></calcite-list-item>
-        <calcite-list-item id="item-3" selected label="hello 3" description="world 3"></calcite-list-item>
-      </calcite-list>`
-    });
+    const page = await newE2EPage();
+    await page.setContent(html`<calcite-list selection-mode="single-persist">
+      <calcite-list-item id="item-1" label="hello" description="world"></calcite-list-item>
+      <calcite-list-item id="item-2" label="hello 2" description="world 2"></calcite-list-item>
+      <calcite-list-item id="item-3" selected label="hello 3" description="world 3"></calcite-list-item>
+    </calcite-list>`);
 
     await page.waitForChanges();
     await page.waitForTimeout(listDebounceTimeout);
@@ -260,13 +261,12 @@ describe("calcite-list", () => {
   });
 
   it("should correctly allow de-selection and change of selected item in single mode", async () => {
-    const page = await newE2EPage({
-      html: html`<calcite-list selection-mode="single">
-        <calcite-list-item id="item-1" label="hello" description="world"></calcite-list-item>
-        <calcite-list-item id="item-2" label="hello 2" description="world 2"></calcite-list-item>
-        <calcite-list-item id="item-3" selected label="hello 3" description="world 3"></calcite-list-item>
-      </calcite-list>`
-    });
+    const page = await newE2EPage();
+    await page.setContent(html`<calcite-list selection-mode="single">
+      <calcite-list-item id="item-1" label="hello" description="world"></calcite-list-item>
+      <calcite-list-item id="item-2" label="hello 2" description="world 2"></calcite-list-item>
+      <calcite-list-item id="item-3" selected label="hello 3" description="world 3"></calcite-list-item>
+    </calcite-list>`);
 
     await page.waitForChanges();
     await page.waitForTimeout(listDebounceTimeout);
@@ -301,14 +301,13 @@ describe("calcite-list", () => {
   });
 
   it("should emit calciteListChange on selection change", async () => {
-    const page = await newE2EPage({
-      html: html`
-        <calcite-list selection-mode="single">
-          <calcite-list-item value="one" label="One" description="hello world"></calcite-list-item>
-          <calcite-list-item value="two" label="Two" description="hello world"></calcite-list-item>
-        </calcite-list>
-      `
-    });
+    const page = await newE2EPage();
+    await page.setContent(html`
+      <calcite-list selection-mode="single">
+        <calcite-list-item value="one" label="One" description="hello world"></calcite-list-item>
+        <calcite-list-item value="two" label="Two" description="hello world"></calcite-list-item>
+      </calcite-list>
+    `);
     await page.waitForChanges();
     const list = await page.find("calcite-list");
     const listItemOne = await page.find(`calcite-list-item[value=one]`);
@@ -339,4 +338,79 @@ describe("calcite-list", () => {
     expect(await listItemOne.getProperty("selected")).toBe(false);
     expect(await list.getProperty("selectedItems")).toHaveLength(0);
   });
+
+  describe("keyboard navigation", () => {
+    it("should navigate via ArrowUp, ArrowDown, Home, and End", async () => {
+      const page = await newE2EPage();
+      await page.setContent(html`
+        <calcite-list>
+          <calcite-list-item id="one" value="one" label="One" description="hello world"></calcite-list-item>
+          <calcite-list-item id="two" value="two" label="Two" description="hello world"></calcite-list-item>
+          <calcite-list-item
+            disabled
+            id="three"
+            value="three"
+            label="three"
+            description="hello world"
+          ></calcite-list-item>
+          <calcite-list-item
+            closable
+            closed
+            id="four"
+            value="four"
+            label="four"
+            description="hello world"
+          ></calcite-list-item>
+        </calcite-list>
+      `);
+      await page.waitForChanges();
+      const list = await page.find("calcite-list");
+      await list.callMethod("setFocus");
+      await page.waitForChanges();
+
+      await isElementFocused(page, "#one");
+
+      await list.press("ArrowDown");
+
+      await isElementFocused(page, "#two");
+
+      await list.press("ArrowDown");
+
+      await isElementFocused(page, "#two");
+
+      await list.press("ArrowUp");
+
+      await isElementFocused(page, "#one");
+
+      await list.press("ArrowDown");
+
+      await isElementFocused(page, "#two");
+
+      const listItemThree = await page.find("#three");
+      listItemThree.setProperty("disabled", false);
+      await page.waitForChanges();
+      await page.waitForTimeout(listDebounceTimeout);
+
+      await list.press("ArrowDown");
+
+      await isElementFocused(page, "#three");
+
+      const listItemFour = await page.find("#four");
+      listItemFour.setProperty("closed", false);
+      await page.waitForChanges();
+      await page.waitForTimeout(listDebounceTimeout);
+
+      await list.press("ArrowDown");
+
+      await isElementFocused(page, "#four");
+
+      await list.press("Home");
+
+      await isElementFocused(page, "#one");
+
+      await list.press("End");
+
+      await isElementFocused(page, "#four");
+    });
+  });
 });
diff --git a/packages/calcite-components/src/components/list/list.tsx b/packages/calcite-components/src/components/list/list.tsx
index 427d41eb922..3f8d8cebda3 100755
--- a/packages/calcite-components/src/components/list/list.tsx
+++ b/packages/calcite-components/src/components/list/list.tsx
@@ -175,6 +175,7 @@ export class List implements InteractiveComponent, LoadableComponent {
 
   @Listen("calciteInternalListItemActive")
   handleCalciteInternalListItemActive(event: CustomEvent): void {
+    event.stopPropagation();
     const target = event.target as HTMLCalciteListItemElement;
     const { listItems } = this;
 
@@ -190,6 +191,7 @@ export class List implements InteractiveComponent, LoadableComponent {
 
   @Listen("calciteInternalListItemSelect")
   handleCalciteInternalListItemSelect(event: CustomEvent): void {
+    event.stopPropagation();
     const target = event.target as HTMLCalciteListItemElement;
     const { listItems, selectionMode } = this;
 
@@ -200,8 +202,9 @@ export class List implements InteractiveComponent, LoadableComponent {
     this.updateSelectedItems();
   }
 
-  @Listen("calciteListItemClose")
-  handleCalciteListItemClose(): void {
+  @Listen("calciteInternalListItemChange")
+  handleCalciteInternalListItemChange(event: CustomEvent): void {
+    event.stopPropagation();
     this.updateListItems(true);
   }