diff --git a/packages/frontend-2/components/viewer/controls/Left.vue b/packages/frontend-2/components/viewer/controls/Left.vue
index 9cbda8335..a4a46e20e 100644
--- a/packages/frontend-2/components/viewer/controls/Left.vue
+++ b/packages/frontend-2/components/viewer/controls/Left.vue
@@ -133,7 +133,7 @@
       :style="`width: ${widthClass};`"
     >
       <KeepAlive v-show="activePanel === 'models'">
-        <ViewerModelsPanel />
+        <ViewerModelsPanel v-model:sub-view="modelsSubView" />
       </KeepAlive>
       <KeepAlive v-show="resourceItems.length !== 0 && activePanel === 'filters'">
         <ViewerFiltersPanel />
@@ -167,6 +167,7 @@ import { useIntercomEnabled } from '~~/lib/intercom/composables/enabled'
 import { viewerDocsRoute } from '~~/lib/common/helpers/route'
 import { useAreSavedViewsEnabled } from '~/lib/viewer/composables/savedViews/general'
 import { Camera } from 'lucide-vue-next'
+import { ModelsSubView } from '~~/lib/viewer/helpers/sceneExplorer'
 
 type ActivePanel =
   | 'none'
@@ -237,6 +238,7 @@ const { $intercom } = useNuxtApp()
 const { hasActiveFilters } = useFilterUtilities()
 
 const activePanel = ref<ActivePanel>('none')
+const modelsSubView = ref<ModelsSubView>(ModelsSubView.Main)
 
 const hasActivePanel = computed(() => activePanel.value !== 'none')
 
@@ -277,7 +279,28 @@ registerShortcuts({
 
 const toggleActivePanel = (panel: ActivePanel) => {
   const wasNone = activePanel.value === 'none'
-  activePanel.value = activePanel.value === panel ? 'none' : panel
+
+  if (panel === 'models') {
+    if (activePanel.value === 'models') {
+      if (
+        modelsSubView.value === ModelsSubView.Versions ||
+        modelsSubView.value === ModelsSubView.Diff
+      ) {
+        // Go back to main models view instead of closing
+        modelsSubView.value = ModelsSubView.Main
+        return
+      } else {
+        activePanel.value = 'none'
+      }
+    } else {
+      // Open models panel and reset to main view
+      activePanel.value = 'models'
+      modelsSubView.value = ModelsSubView.Main
+    }
+  } else {
+    activePanel.value = activePanel.value === panel ? 'none' : panel
+    modelsSubView.value = ModelsSubView.Main
+  }
 
   // If a panel is being opened (not closed) on mobile, emit event to parent
   if (wasNone && activePanel.value !== 'none' && isMobile.value) {
diff --git a/packages/frontend-2/components/viewer/models/Panel.vue b/packages/frontend-2/components/viewer/models/Panel.vue
index 26d7b63ed..f40c714a6 100644
--- a/packages/frontend-2/components/viewer/models/Panel.vue
+++ b/packages/frontend-2/components/viewer/models/Panel.vue
@@ -1,7 +1,12 @@
 <template>
   <div class="select-none h-full">
+    <ViewerCompareChangesPanel
+      v-if="subView === 'diff'"
+      :clear-on-back="false"
+      @close="handleDiffClose"
+    />
     <ViewerModelsVersions
-      v-if="showVersions"
+      v-else-if="subView === 'versions'"
       :expanded-model-id="expandedModelId"
       @close="handleVersionsClose"
     />
@@ -15,7 +20,7 @@
         <ViewerModelsActions
           v-if="!hasObjects"
           :hide-versions="resourceItems.length === 0 && objects.length === 0"
-          @show-versions="showVersions = true"
+          @show-versions="subView = ModelsSubView.Versions"
           @add-model="showAddModel = true"
         />
       </template>
@@ -106,7 +111,7 @@ import {
   useInjectedViewerState
 } from '~~/lib/viewer/composables/setup'
 
-import type { ExplorerNode } from '~~/lib/viewer/helpers/sceneExplorer'
+import { ModelsSubView, type ExplorerNode } from '~~/lib/viewer/helpers/sceneExplorer'
 import type { ViewerLoadedResourcesQuery } from '~~/lib/common/generated/gql/graphql'
 import type { Get } from 'type-fest'
 import { useDiffUtilities, useSelectionUtilities } from '~~/lib/viewer/composables/ui'
@@ -118,12 +123,11 @@ import { useVirtualList, useDebounceFn } from '@vueuse/core'
 
 type ModelItem = NonNullable<Get<ViewerLoadedResourcesQuery, 'project.models.items[0]'>>
 
-defineEmits(['close'])
-
-const showVersions = ref(false)
-const showAddModel = ref(false)
+const subView = defineModel<ModelsSubView>('subView', { default: ModelsSubView.Main })
 const expandedModelId = ref<string | null>(null)
 
+const showAddModel = ref(false)
+
 const expandedNodes = ref<Set<string>>(new Set())
 const expandedModels = ref<Set<string>>(new Set())
 const disableScrollOnNextSelection = ref(false)
@@ -139,7 +143,8 @@ const {
 const {
   resources: {
     response: { resourceItems: stateResourceItems }
-  }
+  },
+  ui: { diff: diffState }
 } = useInjectedViewerState()
 const {
   objects: selectedObjects,
@@ -147,7 +152,7 @@ const {
   clearSelection,
   removeFromSelection
 } = useSelectionUtilities()
-const { diffModelVersions } = useDiffUtilities()
+const { diffModelVersions, endDiff } = useDiffUtilities()
 const {
   flattenModelTree,
   getRootNodesForModel,
@@ -211,22 +216,31 @@ const modelHeaderPositions = computed(() => {
   return headers
 })
 
+const hasDiffActive = computed(() => {
+  return !!(diffState.oldVersion.value && diffState.newVersion.value)
+})
+
 const handleShowVersions = (modelId: string) => {
   expandedModelId.value = modelId
-  showVersions.value = true
+  subView.value = ModelsSubView.Versions
 }
 
 const handleShowDiff = async (modelId: string, versionA: string, versionB: string) => {
   await diffModelVersions(modelId, versionA, versionB)
   expandedModelId.value = modelId
-  showVersions.value = true
+  subView.value = ModelsSubView.Diff
 }
 
 const handleVersionsClose = () => {
-  showVersions.value = false
+  subView.value = ModelsSubView.Main
   expandedModelId.value = null
 }
 
+const handleDiffClose = async () => {
+  await endDiff()
+  subView.value = ModelsSubView.Versions
+}
+
 const toggleModelExpansion = (modelId: string) => {
   if (expandedModels.value.has(modelId)) {
     expandedModels.value.delete(modelId)
@@ -383,6 +397,18 @@ const handleScroll = (e: Event) => {
 
 watch(selectedObjects, handleSelectionChange, { deep: true })
 
+watch(subView, (newSubView) => {
+  if (newSubView === ModelsSubView.Main) {
+    expandedModelId.value = null
+  }
+})
+
+watch(hasDiffActive, (isActive) => {
+  if (isActive && subView.value !== ModelsSubView.Diff) {
+    subView.value = ModelsSubView.Diff
+  }
+})
+
 // Initialize and update sticky header when models change
 watch(
   unifiedVirtualItems,
diff --git a/packages/frontend-2/components/viewer/models/versions/Versions.vue b/packages/frontend-2/components/viewer/models/versions/Versions.vue
index b3773f815..1f0e1b06f 100644
--- a/packages/frontend-2/components/viewer/models/versions/Versions.vue
+++ b/packages/frontend-2/components/viewer/models/versions/Versions.vue
@@ -1,58 +1,51 @@
 <template>
-  <div class="h-full">
-    <ViewerCompareChangesPanel
-      v-if="showDiff"
-      :clear-on-back="false"
-      @close="handleDiffClose"
-    />
-    <ViewerLayoutSidePanel v-else>
-      <template #title>
-        <div class="flex items-center gap-x-1">
-          <FormButton
-            :icon-left="ChevronLeftIcon"
-            color="subtle"
-            class="-ml-3"
-            hide-text
-            size="sm"
-            @click="handleClose"
+  <ViewerLayoutSidePanel>
+    <template #title>
+      <div class="flex items-center gap-x-1">
+        <FormButton
+          :icon-left="ChevronLeftIcon"
+          color="subtle"
+          class="-ml-3"
+          hide-text
+          size="sm"
+          @click="handleClose"
+        >
+          Exit versions
+        </FormButton>
+        Versions
+      </div>
+    </template>
+
+    <div class="flex flex-col h-full">
+      <template v-if="resourceItems.length">
+        <!-- Versions with single scroll container for sticky headers -->
+        <div class="flex-1 overflow-y-auto simple-scrollbar">
+          <div
+            v-for="({ model, versionId }, index) in modelsAndVersionIds"
+            :key="model.id"
           >
-            Exit versions
-          </FormButton>
-          Versions
+            <ViewerModelsVersionsCard
+              :model="model"
+              :version-id="versionId"
+              :last="index === modelsAndVersionIds.length - 1"
+              :initially-expanded="
+                props.expandedModelId === model.id || modelsAndVersionIds.length === 1
+              "
+            />
+          </div>
+          <template v-if="objects.length !== 0">
+            <ViewerResourcesObjectCard
+              v-for="object in objects"
+              :key="object.objectId"
+              :object="object"
+              :show-remove="false"
+              @remove="(id: string) => removeModel(id)"
+            />
+          </template>
         </div>
       </template>
-
-      <div class="flex flex-col h-full">
-        <template v-if="resourceItems.length">
-          <!-- Versions with single scroll container for sticky headers -->
-          <div class="flex-1 overflow-y-auto simple-scrollbar">
-            <div
-              v-for="({ model, versionId }, index) in modelsAndVersionIds"
-              :key="model.id"
-            >
-              <ViewerModelsVersionsCard
-                :model="model"
-                :version-id="versionId"
-                :last="index === modelsAndVersionIds.length - 1"
-                :initially-expanded="
-                  props.expandedModelId === model.id || modelsAndVersionIds.length === 1
-                "
-              />
-            </div>
-            <template v-if="objects.length !== 0">
-              <ViewerResourcesObjectCard
-                v-for="object in objects"
-                :key="object.objectId"
-                :object="object"
-                :show-remove="false"
-                @remove="(id: string) => removeModel(id)"
-              />
-            </template>
-          </div>
-        </template>
-      </div>
-    </ViewerLayoutSidePanel>
-  </div>
+    </div>
+  </ViewerLayoutSidePanel>
 </template>
 
 <script setup lang="ts">
@@ -84,19 +77,10 @@ const { endDiff } = useDiffUtilities()
 
 const mp = useMixpanel()
 
-const showDiff = ref(false)
-
 const hasDiffActive = computed(() => {
   return !!(diffState.oldVersion.value && diffState.newVersion.value)
 })
 
-const handleDiffClose = async () => {
-  showDiff.value = false
-  if (hasDiffActive.value) {
-    await endDiff()
-  }
-}
-
 const handleClose = async () => {
   if (hasDiffActive.value) {
     await endDiff()
@@ -129,15 +113,4 @@ const refhack = ref(1)
 useViewerEventListener(ViewerEvent.LoadComplete, () => {
   refhack.value++
 })
-
-// Watch for diff becoming active and show it
-watch(
-  hasDiffActive,
-  (newVal) => {
-    if (newVal) {
-      showDiff.value = true
-    }
-  },
-  { immediate: true }
-)
 </script>
diff --git a/packages/frontend-2/lib/viewer/helpers/sceneExplorer.ts b/packages/frontend-2/lib/viewer/helpers/sceneExplorer.ts
index 68473ea58..604cb7fea 100644
--- a/packages/frontend-2/lib/viewer/helpers/sceneExplorer.ts
+++ b/packages/frontend-2/lib/viewer/helpers/sceneExplorer.ts
@@ -32,3 +32,9 @@ export type TreeItemComponentModel = {
 }
 
 export type { SpeckleObject, SpeckleReference }
+
+export enum ModelsSubView {
+  Main = 'main',
+  Versions = 'versions',
+  Diff = 'diff'
+}