diff --git a/src/framework/theme/components/sidebar/sidebar.component.ts b/src/framework/theme/components/sidebar/sidebar.component.ts
index e36614744c..e438f661ec 100644
--- a/src/framework/theme/components/sidebar/sidebar.component.ts
+++ b/src/framework/theme/components/sidebar/sidebar.component.ts
@@ -338,15 +338,8 @@ export class NbSidebarComponent implements OnChanges, OnInit, OnDestroy {
     const menu = this.element.nativeElement.querySelector('nb-menu');
 
     if (menu && menu.contains(event.target)) {
-      let link = event.target;
-      const linkChildren = ['span', 'i'];
+      const link = this.getMenuLink(event.target);
 
-      // if we clicked on span - get the link
-      if (linkChildren.includes(link.tagName.toLowerCase()) && link.parentNode) {
-        link = event.target.parentNode;
-      }
-
-      // we only expand if an item has children
       if (link && link.nextElementSibling && link.nextElementSibling.classList.contains('menu-items')) {
         this.expand();
       }
@@ -430,4 +423,16 @@ export class NbSidebarComponent implements OnChanges, OnInit, OnDestroy {
   protected responsiveEnabled(): boolean {
     return this.responsiveValue;
   }
+
+  protected getMenuLink(element: HTMLElement): HTMLElement | undefined {
+    if (!element || element.tagName.toLowerCase() === 'nb-menu') {
+      return;
+    }
+
+    if (element.tagName.toLowerCase() === 'a') {
+      return element;
+    }
+
+    return this.getMenuLink(element.parentElement);
+  }
 }
diff --git a/src/framework/theme/components/sidebar/sidebar.spec.ts b/src/framework/theme/components/sidebar/sidebar.spec.ts
new file mode 100644
index 0000000000..676691955a
--- /dev/null
+++ b/src/framework/theme/components/sidebar/sidebar.spec.ts
@@ -0,0 +1,134 @@
+import { Component, DebugElement } from '@angular/core';
+import { ComponentFixture, TestBed } from '@angular/core/testing';
+import { By } from '@angular/platform-browser';
+import { RouterTestingModule } from '@angular/router/testing';
+import { NoopAnimationsModule } from '@angular/platform-browser/animations';
+import {
+  NbSidebarComponent,
+  NbMenuModule,
+  NbMenuItem,
+  NbSidebarModule,
+  NbMenuComponent,
+  NbThemeModule,
+  NbMenuItemComponent, NbIconComponent,
+} from '@nebular/theme';
+
+@Component({
+  template: `
+    <nb-sidebar>
+      <button id="button-outside-menu"></button>
+      <nb-menu [items]="menuItems"></nb-menu>
+    </nb-sidebar>
+  `,
+})
+export class SidebarExpandTestComponent {
+  menuItems: NbMenuItem[] = [
+    {
+      title: 'no children',
+    },
+    {
+      title: 'parent',
+      children: [ { title: 'child' } ],
+    },
+    {
+      title: 'group',
+      group: true,
+    },
+  ];
+}
+
+describe('NbSidebarComponent', () => {
+  beforeEach(() => {
+    TestBed.configureTestingModule({
+      imports: [
+        RouterTestingModule.withRoutes([]),
+        NoopAnimationsModule,
+        NbThemeModule.forRoot(),
+        NbSidebarModule.forRoot(),
+        NbMenuModule.forRoot(),
+      ],
+      declarations: [ SidebarExpandTestComponent ],
+    });
+  });
+
+  describe('States (expanded, collapsed, compacted)', () => {
+    let fixture: ComponentFixture<SidebarExpandTestComponent>;
+    let sidebarComponent: NbSidebarComponent;
+
+    beforeEach(() => {
+      fixture = TestBed.createComponent(SidebarExpandTestComponent);
+      fixture.detectChanges();
+
+      sidebarComponent = fixture.debugElement.query(By.directive(NbSidebarComponent)).componentInstance;
+    });
+
+    it(`should collapse when collapse method called`, () => {
+      sidebarComponent.collapse();
+      fixture.detectChanges();
+
+      expect(sidebarComponent.expanded).toEqual(false);
+    });
+
+    it('should become compacted when compact method called', () => {
+      sidebarComponent.compact();
+      fixture.detectChanges();
+
+      expect(sidebarComponent.compacted).toEqual(true);
+    });
+
+    it('should not expand when clicked outside menu', () => {
+      const buttonOutsideMenu: DebugElement = fixture.debugElement.query(By.css('#button-outside-menu'));
+      sidebarComponent.compact();
+      fixture.detectChanges();
+
+      buttonOutsideMenu.nativeElement.click();
+      fixture.detectChanges();
+
+      expect(sidebarComponent.compacted).toEqual(true);
+    });
+
+    it('should not expand when clicked on menu item without children', () => {
+      sidebarComponent.compact();
+      fixture.detectChanges();
+
+      const menuItemWithNoChildren: DebugElement = fixture.debugElement.query(By.directive(NbMenuComponent));
+      menuItemWithNoChildren.nativeElement.click();
+      fixture.detectChanges();
+
+      expect(sidebarComponent.compacted).toEqual(true);
+    });
+
+    it('should not expand when clicked on menu group', () => {
+      sidebarComponent.compact();
+      fixture.detectChanges();
+
+      const menuGroup: DebugElement = fixture.debugElement.queryAll(By.directive(NbMenuItemComponent))[3];
+      menuGroup.query(By.css('span')).nativeElement.click();
+      fixture.detectChanges();
+
+      expect(sidebarComponent.compacted).toEqual(true);
+    });
+
+    it('should expand when icon of menu item with child items clicked', () => {
+      sidebarComponent.compact();
+      fixture.detectChanges();
+
+      const menuItemWithChildren: DebugElement = fixture.debugElement.queryAll(By.directive(NbMenuItemComponent))[1];
+      menuItemWithChildren.query(By.directive(NbIconComponent)).nativeElement.click();
+      fixture.detectChanges();
+
+      expect(sidebarComponent.expanded).toEqual(true);
+    });
+
+    it('should expand when link of menu item with child items clicked', () => {
+      sidebarComponent.compact();
+      fixture.detectChanges();
+
+      const menuItemWithChildren: DebugElement = fixture.debugElement.queryAll(By.directive(NbMenuItemComponent))[1];
+      menuItemWithChildren.query(By.css('a')).nativeElement.click();
+      fixture.detectChanges();
+
+      expect(sidebarComponent.expanded).toEqual(true);
+    });
+  });
+});