diff --git a/docusaurus/docs/React/custom-code-examples/channel-search.mdx b/docusaurus/docs/React/custom-code-examples/channel-search.mdx
index 7490bdf8b7..6d47b9b865 100644
--- a/docusaurus/docs/React/custom-code-examples/channel-search.mdx
+++ b/docusaurus/docs/React/custom-code-examples/channel-search.mdx
@@ -339,3 +339,92 @@ const customSearchFunction = async (props: ChannelSearchFunctionParams, event: {
   additionalChannelSearchProps={{searchFunction: customSearchFunction}}
 />
 ```
+
+### Adding menu
+
+As of the version 10.0.0, users can add app menu into the `SearchBar`. In case you would like to display menu button next to the search input, you can do that by adding [`AppMenu` component](../utility-components/channel-search.mdx/#appmenu) to the `ChannelSearch` props. The display of `AppMenu` is then toggled by clicking on the menu button. `AppMenu` can be rendered as a drop-down or even a modal. In our example we will render a drop-down menu.
+
+:::caution
+The SDK does not provide any default `AppMenu` component and so you will have to write your CSS for it to be styled correctly.
+:::
+
+```tsx
+import React, { useCallback } from 'react';
+import type { AppMenuProps } from 'stream-chat-react';
+
+import './AppMenu.scss';
+
+export const AppMenu = ({close}: AppMenuProps) => {
+
+  const handleSelect = useCallback(() => {
+    // custom logic...
+    close?.();
+  }, [close]);
+
+  return (
+    <div className='app-menu__container'>
+      <ul className='app-menu__item-list'>
+        <li className='app-menu__item' onClick={handleSelect}>Profile</li>
+        <li className='app-menu__item' onClick={handleSelect}>New Group</li>
+        <li className='app-menu__item' onClick={handleSelect}>Sign Out</li>
+      </ul>
+    </div>
+  );
+}
+```
+
+```scss
+.str-chat__channel-search-bar-button.str-chat__channel-search-bar-button--menu {
+  position: relative;
+}
+
+.app-menu {
+  &__container {
+    position: absolute;
+    top: 50px;
+    left: 10px;
+    background-color: white;
+    border-radius: 5px;
+    box-shadow: 0 0 8px var(--str-chat__box-shadow-color);
+  }
+
+  &__item-list {
+    list-style: none;
+    margin: 0;
+    padding: 0;
+  }
+
+  &__item {
+    list-style: none;
+    margin: 0;
+    padding: .5rem 1rem;
+
+    &:hover {
+      background-color: lightgrey;
+      cursor: pointer;
+    }
+  }
+}
+```
+
+```jsx
+import { AppMenu } from './components/AppMenu';
+
+const App = () => (
+    <Chat client={chatClient}>
+      <ChannelList
+        // highlight-next-line
+        additionalChannelSearchProps={{AppMenu}}
+        showChannelSearch
+      />
+      <Channel>
+        <Window>
+          <ChannelHeader />
+          <MessageList />
+          <MessageInput />
+        </Window>
+        <Thread />
+      </Channel>
+    </Chat>
+);
+```
diff --git a/docusaurus/docs/React/utility-components/channel-search.mdx b/docusaurus/docs/React/utility-components/channel-search.mdx
index 2e635f4be8..19ecef47d3 100644
--- a/docusaurus/docs/React/utility-components/channel-search.mdx
+++ b/docusaurus/docs/React/utility-components/channel-search.mdx
@@ -158,11 +158,11 @@ The `ChannelSearch` offers possibility to keep the search results open meanwhile
 
 ### AppMenu
 
-Application menu / drop-down to be displayed  when clicked on [`MenuIcon`](./#menuicon). Prop is consumed only by the [`SearchBar` component](./#searchbar). The `SearchBar` component is rendered with `themeVersion` `'2'` only.  No default component provided by the SDK. The library does not provide any CSS for `AppMenu`.
+Application menu / drop-down to be displayed  when clicked on [`MenuIcon`](./#menuicon). Prop is consumed only by the [`SearchBar` component](./#searchbar). The `SearchBar` component is only available with the use of the [theming v2](../theming/introduction.mdx).  No default component is provided by the SDK. The library does not provide any CSS for `AppMenu`. Consult the customization tutorial on how to [add AppMenu to your application](../custom-code-examples/channel-search.mdx/#adding-menu). The component is passed a prop `close`, which is a function that can be called to hide the app menu (e.g. on menu item selection).
 
-|         Type        |    Default   |
-| ------------------- | ------------ |
-| `React.ComponentType` |  `undefined`   |
+| Type                  | Default     |
+|-----------------------|-------------|
+| `React.ComponentType` | `undefined` |
 
 ### channelType
 
diff --git a/package.json b/package.json
index fa407f47c2..65c15616e4 100644
--- a/package.json
+++ b/package.json
@@ -30,7 +30,7 @@
   "dependencies": {
     "@braintree/sanitize-url": "6.0.0",
     "@popperjs/core": "^2.11.5",
-    "@stream-io/stream-chat-css": "^3.1.0",
+    "@stream-io/stream-chat-css": "3.1.1",
     "clsx": "^1.1.1",
     "dayjs": "^1.10.4",
     "emoji-mart": "3.0.1",
diff --git a/src/components/ChannelList/hooks/usePaginatedChannels.ts b/src/components/ChannelList/hooks/usePaginatedChannels.ts
index 14665451b5..4f9dc5f3d0 100644
--- a/src/components/ChannelList/hooks/usePaginatedChannels.ts
+++ b/src/components/ChannelList/hooks/usePaginatedChannels.ts
@@ -26,6 +26,7 @@ export const usePaginatedChannels = <
   const [channels, setChannels] = useState<Array<Channel<StreamChatGenerics>>>([]);
   const [hasNextPage, setHasNextPage] = useState(true);
 
+  // memoize props
   const filterString = useMemo(() => JSON.stringify(filters), [filters]);
   const sortString = useMemo(() => JSON.stringify(sort), [sort]);
 
diff --git a/src/components/ChannelSearch/SearchBar.tsx b/src/components/ChannelSearch/SearchBar.tsx
index 83d679767f..40aa584900 100644
--- a/src/components/ChannelSearch/SearchBar.tsx
+++ b/src/components/ChannelSearch/SearchBar.tsx
@@ -16,6 +16,10 @@ import {
 } from './icons';
 import { SearchInput as DefaultSearchInput, SearchInputProps } from './SearchInput';
 
+export type AppMenuProps = {
+  close?: () => void;
+};
+
 type SearchBarButtonProps = {
   className?: string;
   onClick?: MouseEventHandler<HTMLButtonElement>;
@@ -48,7 +52,7 @@ export type SearchBarController = {
 
 export type AdditionalSearchBarProps = {
   /** Application menu to be displayed  when clicked on MenuIcon */
-  AppMenu?: React.ComponentType;
+  AppMenu?: React.ComponentType<AppMenuProps>;
   /** Custom icon component used to clear the input value on click. Displayed within the search input wrapper. */
   ClearInputIcon?: React.ComponentType;
   /** Custom icon component used to terminate the search UI session on click. */
@@ -133,6 +137,8 @@ export const SearchBar = (props: SearchBarProps) => {
     inputProps.inputRef.current?.focus();
   }, []);
 
+  const closeAppMenu = useCallback(() => setMenuIsOpen(false), []);
+
   return (
     <div className='str-chat__channel-search-bar' data-testid='search-bar' ref={searchBarRef}>
       {inputIsFocused ? (
@@ -172,7 +178,7 @@ export const SearchBar = (props: SearchBarProps) => {
       </div>
       {menuIsOpen && AppMenu && (
         <div ref={appMenuRef}>
-          <AppMenu />
+          <AppMenu close={closeAppMenu} />
         </div>
       )}
     </div>
diff --git a/src/components/ChannelSearch/__tests__/SearchBar.test.js b/src/components/ChannelSearch/__tests__/SearchBar.test.js
index 977b4deea5..9632443b14 100644
--- a/src/components/ChannelSearch/__tests__/SearchBar.test.js
+++ b/src/components/ChannelSearch/__tests__/SearchBar.test.js
@@ -22,7 +22,12 @@ jest.spyOn(window, 'getComputedStyle').mockReturnValue({
 let client;
 const inputText = new Date().getTime().toString();
 
-const AppMenu = () => <div>AppMenu</div>;
+const AppMenu = ({ close }) => (
+  <div>
+    AppMenu
+    <div data-testid='menu-item' onClick={close} />
+  </div>
+);
 const ClearInputIcon = () => <div>CustomClearInputIcon</div>;
 const MenuIcon = () => <div>CustomMenuIcon</div>;
 const SearchInputIcon = () => <div>CustomSearchInputIcon</div>;
@@ -301,6 +306,30 @@ describe('SearchBar', () => {
     });
   });
 
+  it('should close the app menu on menu item click', async () => {
+    await act(() => {
+      renderComponent({
+        client,
+        props: { AppMenu },
+        searchParams: { disabled: false },
+      });
+    });
+    const menuIcon = screen.queryByTestId('menu-icon');
+    await act(() => {
+      fireEvent.click(menuIcon);
+    });
+
+    const menuItem = screen.queryByTestId('menu-item');
+
+    await act(() => {
+      fireEvent.click(menuItem);
+    });
+
+    await waitFor(() => {
+      expect(screen.queryByText('AppMenu')).not.toBeInTheDocument();
+    });
+  });
+
   it.each([
     [
       'on click outside',
diff --git a/src/components/ChannelSearch/index.ts b/src/components/ChannelSearch/index.ts
index e8561aae22..ee626c4f79 100644
--- a/src/components/ChannelSearch/index.ts
+++ b/src/components/ChannelSearch/index.ts
@@ -1,4 +1,5 @@
 export * from './ChannelSearch';
+export * from './SearchBar';
 export * from './SearchInput';
 export * from './SearchResults';
 export * from './utils';
diff --git a/src/components/MessageList/VirtualizedMessageList.tsx b/src/components/MessageList/VirtualizedMessageList.tsx
index f1bfcaf033..1abcc1886e 100644
--- a/src/components/MessageList/VirtualizedMessageList.tsx
+++ b/src/components/MessageList/VirtualizedMessageList.tsx
@@ -196,7 +196,7 @@ const VirtualizedMessageListWithContext = <
   const groupStylesFn = groupStyles || getGroupStyles;
   const messageGroupStyles = useMemo(
     () =>
-      processedMessages.reduce((acc, message, i) => {
+      processedMessages.reduce<Record<string, GroupStyle>>((acc, message, i) => {
         const style = groupStylesFn(
           message,
           processedMessages[i - 1],
@@ -205,7 +205,8 @@ const VirtualizedMessageListWithContext = <
         );
         if (style) acc[message.id] = style;
         return acc;
-      }, {} as Record<string, GroupStyle>),
+      }, {}),
+    // processedMessages were incorrectly rebuilt with a new object identity at some point, hence the .length usage
     [processedMessages.length, shouldGroupByUser],
   );
 
@@ -234,6 +235,7 @@ const VirtualizedMessageListWithContext = <
     virtuoso,
     processedMessages,
     setNewMessagesNotification,
+    // processedMessages were incorrectly rebuilt with a new object identity at some point, hence the .length usage
     processedMessages.length,
     hasMoreNewer,
     jumpToLatestMessage,
@@ -375,8 +377,9 @@ const VirtualizedMessageListWithContext = <
     return Item;
   }, [
     customClasses?.virtualMessage,
-    Object.keys(messageGroupStyles),
+    messageGroupStyles,
     numItemsPrepended,
+    // processedMessages were incorrectly rebuilt with a new object identity at some point, hence the .length usage
     processedMessages.length,
   ]);
 
diff --git a/src/components/MessageList/hooks/useEnrichedMessages.ts b/src/components/MessageList/hooks/useEnrichedMessages.ts
index 95d24b9731..7db78b4486 100644
--- a/src/components/MessageList/hooks/useEnrichedMessages.ts
+++ b/src/components/MessageList/hooks/useEnrichedMessages.ts
@@ -65,7 +65,7 @@ export const useEnrichedMessages = <
   const groupStylesFn = groupStyles || getGroupStyles;
   const messageGroupStyles = useMemo(
     () =>
-      messagesWithDates.reduce((acc, message, i) => {
+      messagesWithDates.reduce<Record<string, GroupStyle>>((acc, message, i) => {
         const style = groupStylesFn(
           message,
           messagesWithDates[i - 1],
@@ -74,7 +74,7 @@ export const useEnrichedMessages = <
         );
         if (style) acc[message.id] = style;
         return acc;
-      }, {} as Record<string, GroupStyle>),
+      }, {}),
     [messagesWithDates, noGroupByUser],
   );
 
diff --git a/src/components/Reactions/hooks/useProcessReactions.tsx b/src/components/Reactions/hooks/useProcessReactions.tsx
index bc15e2e2d3..d253ebba14 100644
--- a/src/components/Reactions/hooks/useProcessReactions.tsx
+++ b/src/components/Reactions/hooks/useProcessReactions.tsx
@@ -55,21 +55,21 @@ export const useProcessReactions = <
 
   const latestReactionTypes = useMemo(
     () =>
-      latestReactions.reduce((reactionTypes, { type }) => {
+      latestReactions.reduce<string[]>((reactionTypes, { type }) => {
         if (reactionTypes.indexOf(type) === -1) {
           reactionTypes.push(type);
         }
         return reactionTypes;
-      }, [] as string[]),
+      }, []),
     [latestReactions],
   );
 
   const supportedReactionMap = useMemo(
     () =>
-      reactionOptions.reduce((acc, { id }) => {
+      reactionOptions.reduce<Record<string, boolean>>((acc, { id }) => {
         acc[id] = true;
         return acc;
-      }, {} as Record<string, boolean>),
+      }, {}),
     [reactionOptions],
   );
 
diff --git a/yarn.lock b/yarn.lock
index 655988bf52..5d56ee00f6 100644
--- a/yarn.lock
+++ b/yarn.lock
@@ -2078,10 +2078,10 @@
     crypto-browserify "^3.11.0"
     process-es6 "^0.11.2"
 
-"@stream-io/stream-chat-css@^3.1.0":
-  version "3.1.0"
-  resolved "https://registry.yarnpkg.com/@stream-io/stream-chat-css/-/stream-chat-css-3.1.0.tgz#f04c71f7eff7c98801656a4c791b19f25f1114f4"
-  integrity sha512-rcyKzSsA4NGbOjzdDGayFHEJNX8/a8dtwZkVVIhqaIc7lO1Zpoph3wVYByKmtQxHl1SUIw/LYJLf0SHfsTZlYg==
+"@stream-io/stream-chat-css@3.1.1":
+  version "3.1.1"
+  resolved "https://registry.yarnpkg.com/@stream-io/stream-chat-css/-/stream-chat-css-3.1.1.tgz#c19271b12cfb5a1f62bd5e2547d7be1ab7fc49b1"
+  integrity sha512-/K8QJGeIqluDpTvCmimenZRnET/LMMmqo5a/8Wam+gupHPTOBWB5+noB3x3FlKzg0w1CuKEufdRK1BZxhQK7wA==
 
 "@stream-io/transliterate@^1.5.5":
   version "1.5.5"