diff --git a/.changeset/tidy-boxes-hide.md b/.changeset/tidy-boxes-hide.md
new file mode 100644
index 000000000000..33b8f0c812d0
--- /dev/null
+++ b/.changeset/tidy-boxes-hide.md
@@ -0,0 +1,5 @@
+---
+'@rocket.chat/meteor': patch
+---
+
+Fixes special characters not being escaped on sidepanel extended view
diff --git a/apps/meteor/client/views/room/Sidepanel/hooks/useItemData.tsx b/apps/meteor/client/views/room/Sidepanel/hooks/useItemData.tsx
index 8e8cb798d2f7..bdf3ceb65ee6 100644
--- a/apps/meteor/client/views/room/Sidepanel/hooks/useItemData.tsx
+++ b/apps/meteor/client/views/room/Sidepanel/hooks/useItemData.tsx
@@ -48,7 +48,7 @@ export const useItemData = (
 			time,
 			badges,
 			avatar: AvatarTemplate && <AvatarTemplate {...room} />,
-			subtitle: message,
+			subtitle: message ? <span className='message-body--unstyled' dangerouslySetInnerHTML={{ __html: message }} /> : null,
 		}),
 		[AvatarTemplate, badges, highlighted, icon, message, openedRoom, room, time],
 	);
diff --git a/apps/meteor/tests/e2e/feature-preview.spec.ts b/apps/meteor/tests/e2e/feature-preview.spec.ts
index cc48b4271777..4e6b62827c85 100644
--- a/apps/meteor/tests/e2e/feature-preview.spec.ts
+++ b/apps/meteor/tests/e2e/feature-preview.spec.ts
@@ -254,8 +254,7 @@ test.describe.serial('feature preview', () => {
 			await expect(poHomeChannel.sidepanel.getExtendedItem(sidepanelTeam, message)).toBeVisible();
 		});
 
-		// remove .fail after fix
-		test.fail('should escape special characters on item subtitle', async ({ page }) => {
+		test('should escape special characters on item subtitle', async ({ page }) => {
 			await page.goto('/home');
 			const message = 'hello > world';
 			const parsedWrong = 'hello &gt; world';