diff --git a/packages/eui/changelogs/upcoming/7999.md b/packages/eui/changelogs/upcoming/7999.md
new file mode 100644
index 00000000000..6a8dcaed011
--- /dev/null
+++ b/packages/eui/changelogs/upcoming/7999.md
@@ -0,0 +1,4 @@
+**Bug fixes**
+
+- Fixed a visual bug in compact density `EuiDataGrid`s, where the header cell height would increase when the actions button became visible
+
diff --git a/packages/eui/src/components/datagrid/body/header/_data_grid_header_row.scss b/packages/eui/src/components/datagrid/body/header/_data_grid_header_row.scss
index 627d823fc37..74d6bd427ae 100644
--- a/packages/eui/src/components/datagrid/body/header/_data_grid_header_row.scss
+++ b/packages/eui/src/components/datagrid/body/header/_data_grid_header_row.scss
@@ -91,6 +91,8 @@
     .euiPopover-isOpen {
       .euiDataGridHeaderCell__button {
         padding: $euiSizeXS;
+        // balance out additional button target size in header height, prevents increased header cell height
+        margin-block: -$euiSizeXS;
       }
 
       .euiDataGridHeaderCell__icon {