diff --git a/app/src/main/java/org/mozilla/fenix/tabstray/TabsTrayFragment.kt b/app/src/main/java/org/mozilla/fenix/tabstray/TabsTrayFragment.kt
index 130ed9ab9..cfc6c8360 100644
--- a/app/src/main/java/org/mozilla/fenix/tabstray/TabsTrayFragment.kt
+++ b/app/src/main/java/org/mozilla/fenix/tabstray/TabsTrayFragment.kt
@@ -5,6 +5,7 @@
 package org.mozilla.fenix.tabstray
 
 import android.content.Context
+import android.content.res.Configuration
 import android.os.Bundle
 import android.view.LayoutInflater
 import android.view.View
@@ -27,6 +28,8 @@ import kotlinx.android.synthetic.main.tabstray_multiselect_items.*
 import kotlinx.android.synthetic.main.tabstray_multiselect_items.view.*
 import kotlinx.coroutines.Dispatchers
 import kotlinx.coroutines.plus
+import mozilla.components.browser.state.selector.normalTabs
+import mozilla.components.browser.state.selector.privateTabs
 import mozilla.components.concept.tabstray.Tab
 import mozilla.components.support.base.feature.ViewBoundFeatureWrapper
 import org.mozilla.fenix.HomeActivity
@@ -34,8 +37,10 @@ import org.mozilla.fenix.NavGraphDirections
 import org.mozilla.fenix.R
 import org.mozilla.fenix.components.StoreProvider
 import org.mozilla.fenix.components.metrics.Event
+import org.mozilla.fenix.ext.components
 import org.mozilla.fenix.ext.navigateBlockingForAsyncNavGraph
 import org.mozilla.fenix.ext.requireComponents
+import org.mozilla.fenix.ext.settings
 import org.mozilla.fenix.home.HomeScreenViewModel
 import org.mozilla.fenix.tabstray.browser.BrowserTrayInteractor
 import org.mozilla.fenix.tabstray.browser.DefaultBrowserTrayInteractor
@@ -44,6 +49,7 @@ import org.mozilla.fenix.tabstray.browser.SelectionBannerBinding
 import org.mozilla.fenix.tabstray.browser.SelectionBannerBinding.VisibilityModifier
 import org.mozilla.fenix.tabstray.ext.showWithTheme
 import org.mozilla.fenix.tabstray.syncedtabs.SyncedTabsInteractor
+import kotlin.math.max
 
 @Suppress("TooManyFunctions", "LargeClass")
 class TabsTrayFragment : AppCompatDialogFragment(), TabsTrayInteractor {
@@ -150,11 +156,18 @@ class TabsTrayFragment : AppCompatDialogFragment(), TabsTrayInteractor {
             dismissAllowingStateLoss()
         }
 
-        behavior.addBottomSheetCallback(
-            TraySheetBehaviorCallback(
-                behavior,
-                navigationInteractor
-            )
+        behavior.setUpTrayBehavior(
+            isLandscape = requireContext().resources.configuration.orientation == Configuration.ORIENTATION_LANDSCAPE,
+            maxNumberOfTabs = max(
+                requireContext().components.core.store.state.normalTabs.size,
+                requireContext().components.core.store.state.privateTabs.size
+            ),
+            numberForExpandingTray = if (requireContext().settings().gridTabView) {
+                EXPAND_AT_GRID_SIZE
+            } else {
+                EXPAND_AT_LIST_SIZE
+            },
+            navigationInteractor = navigationInteractor
         )
 
         tabsTrayCtaBinding.set(
@@ -335,4 +348,12 @@ class TabsTrayFragment : AppCompatDialogFragment(), TabsTrayInteractor {
         dismissAllowingStateLoss()
         requireComponents.analytics.metrics.track(Event.TabsTrayClosed)
     }
+
+    companion object {
+        // Minimum number of list items for which to show the tabs tray as expanded.
+        const val EXPAND_AT_LIST_SIZE = 4
+
+        // Minimum number of grid items for which to show the tabs tray as expanded.
+        private const val EXPAND_AT_GRID_SIZE = 3
+    }
 }
diff --git a/app/src/main/java/org/mozilla/fenix/tabstray/TraySheetBehaviorCallback.kt b/app/src/main/java/org/mozilla/fenix/tabstray/TraySheetBehaviorCallback.kt
index 413e84976..5c92df303 100644
--- a/app/src/main/java/org/mozilla/fenix/tabstray/TraySheetBehaviorCallback.kt
+++ b/app/src/main/java/org/mozilla/fenix/tabstray/TraySheetBehaviorCallback.kt
@@ -26,3 +26,19 @@ class TraySheetBehaviorCallback(
 
     override fun onSlide(bottomSheet: View, slideOffset: Float) = Unit
 }
+
+fun BottomSheetBehavior<ConstraintLayout>.setUpTrayBehavior(
+    isLandscape: Boolean,
+    maxNumberOfTabs: Int,
+    numberForExpandingTray: Int,
+    navigationInteractor: DefaultNavigationInteractor
+) {
+    addBottomSheetCallback(
+        TraySheetBehaviorCallback(this, navigationInteractor)
+    )
+    state = if (isLandscape || maxNumberOfTabs >= numberForExpandingTray) {
+        BottomSheetBehavior.STATE_EXPANDED
+    } else {
+        BottomSheetBehavior.STATE_COLLAPSED
+    }
+}
diff --git a/app/src/test/java/org/mozilla/fenix/tabstray/TraySheetBehaviorCallbackTest.kt b/app/src/test/java/org/mozilla/fenix/tabstray/TraySheetBehaviorCallbackTest.kt
index 6d62dbf98..d388290a2 100644
--- a/app/src/test/java/org/mozilla/fenix/tabstray/TraySheetBehaviorCallbackTest.kt
+++ b/app/src/test/java/org/mozilla/fenix/tabstray/TraySheetBehaviorCallbackTest.kt
@@ -14,6 +14,7 @@ import com.google.android.material.bottomsheet.BottomSheetBehavior.STATE_SETTLIN
 import com.google.android.material.bottomsheet.BottomSheetBehavior.STATE_EXPANDED
 import io.mockk.Called
 import io.mockk.mockk
+import io.mockk.spyk
 import io.mockk.verify
 import org.junit.Test
 
@@ -53,4 +54,40 @@ class TraySheetBehaviorCallbackTest {
         verify { behavior wasNot Called }
         verify { interactor wasNot Called }
     }
+
+    @Test
+    fun `GIVEN portraitMode and 5 tabs WHEN setUpTrayBehavior THEN add TraySheetBehaviorCallback and STATE_COLLAPSED`() {
+        // given
+        val behavior = spyk(BottomSheetBehavior<ConstraintLayout>())
+        val interactor = mockk<DefaultNavigationInteractor>(relaxed = true)
+
+        // when
+        behavior.setUpTrayBehavior(
+            isLandscape = false,
+            maxNumberOfTabs = 5,
+            numberForExpandingTray = TabsTrayFragment.EXPAND_AT_LIST_SIZE,
+            navigationInteractor = interactor
+        )
+
+        // then
+        assert(behavior.state == STATE_EXPANDED)
+    }
+
+    @Test
+    fun `GIVEN portraitMode and 2 tabs WHEN setUpTrayBehavior THEN add TraySheetBehaviorCallback and STATE_COLLAPSED`() {
+        // given
+        val behavior = spyk(BottomSheetBehavior<ConstraintLayout>())
+        val interactor = mockk<DefaultNavigationInteractor>(relaxed = true)
+
+        // when
+        behavior.setUpTrayBehavior(
+            isLandscape = false,
+            maxNumberOfTabs = 2,
+            numberForExpandingTray = TabsTrayFragment.EXPAND_AT_LIST_SIZE,
+            navigationInteractor = interactor
+        )
+
+        // then
+        assert(behavior.state == STATE_COLLAPSED)
+    }
 }