diff --git a/coderd/workspaces.go b/coderd/workspaces.go
index 10d0dc9281882..e01d4292cb800 100644
--- a/coderd/workspaces.go
+++ b/coderd/workspaces.go
@@ -1147,16 +1147,34 @@ func convertWorkspaces(workspaces []database.Workspace, data workspaceData) ([]c
 			&owner,
 		))
 	}
-	sort.Slice(apiWorkspaces, func(i, j int) bool {
-		iw := apiWorkspaces[i]
-		jw := apiWorkspaces[j]
+
+	sortWorkspaces(apiWorkspaces)
+
+	return apiWorkspaces, nil
+}
+
+func sortWorkspaces(workspaces []codersdk.Workspace) {
+	sort.Slice(workspaces, func(i, j int) bool {
+		iw := workspaces[i]
+		jw := workspaces[j]
+
+		if iw.LatestBuild.Status == codersdk.WorkspaceStatusRunning && jw.LatestBuild.Status != codersdk.WorkspaceStatusRunning {
+			return true
+		}
+
+		if jw.LatestBuild.Status == codersdk.WorkspaceStatusRunning && iw.LatestBuild.Status != codersdk.WorkspaceStatusRunning {
+			return false
+		}
+
+		if iw.OwnerID != jw.OwnerID {
+			return iw.OwnerName < jw.OwnerName
+		}
+
 		if jw.LastUsedAt.IsZero() && iw.LastUsedAt.IsZero() {
 			return iw.Name < jw.Name
 		}
 		return iw.LastUsedAt.After(jw.LastUsedAt)
 	})
-
-	return apiWorkspaces, nil
 }
 
 func convertWorkspace(
diff --git a/coderd/workspaces_internal_test.go b/coderd/workspaces_internal_test.go
index 44c1699309c4c..62a5091539330 100644
--- a/coderd/workspaces_internal_test.go
+++ b/coderd/workspaces_internal_test.go
@@ -4,6 +4,7 @@ import (
 	"testing"
 	"time"
 
+	"github.com/google/uuid"
 	"github.com/stretchr/testify/require"
 
 	"github.com/coder/coder/coderd/database"
@@ -80,3 +81,96 @@ func Test_calculateDeletingAt(t *testing.T) {
 		})
 	}
 }
+
+func TestSortWorkspaces(t *testing.T) {
+	// the correct sorting order is:
+	// 1. first show workspaces that are currently running,
+	// 2. then sort by user_name,
+	// 3. then sort by last_used_at (descending),
+	t.Parallel()
+
+	workspaceFactory := func(t *testing.T, name string, ownerID uuid.UUID, ownerName string, status codersdk.WorkspaceStatus, lastUsedAt time.Time) codersdk.Workspace {
+		t.Helper()
+		return codersdk.Workspace{
+			ID:        uuid.New(),
+			OwnerID:   ownerID,
+			OwnerName: ownerName,
+			LatestBuild: codersdk.WorkspaceBuild{
+				Status: status,
+			},
+			Name:       name,
+			LastUsedAt: lastUsedAt,
+		}
+	}
+
+	userAuuid := uuid.New()
+
+	workspaceRunningUserA := workspaceFactory(t, "running-userA", userAuuid, "userA", codersdk.WorkspaceStatusRunning, time.Now())
+	workspaceRunningUserB := workspaceFactory(t, "running-userB", uuid.New(), "userB", codersdk.WorkspaceStatusRunning, time.Now())
+	workspacePendingUserC := workspaceFactory(t, "pending-userC", uuid.New(), "userC", codersdk.WorkspaceStatusPending, time.Now())
+	workspaceRunningUserA2 := workspaceFactory(t, "running-userA2", userAuuid, "userA", codersdk.WorkspaceStatusRunning, time.Now().Add(time.Minute))
+	workspaceRunningUserZ := workspaceFactory(t, "running-userZ", uuid.New(), "userZ", codersdk.WorkspaceStatusRunning, time.Now())
+	workspaceRunningUserA3 := workspaceFactory(t, "running-userA3", userAuuid, "userA", codersdk.WorkspaceStatusRunning, time.Now().Add(time.Hour))
+
+	testCases := []struct {
+		name          string
+		input         []codersdk.Workspace
+		expectedOrder []string
+	}{
+		{
+			name: "Running workspaces should be first",
+			input: []codersdk.Workspace{
+				workspaceRunningUserB,
+				workspacePendingUserC,
+				workspaceRunningUserA,
+			},
+			expectedOrder: []string{
+				"running-userA",
+				"running-userB",
+				"pending-userC",
+			},
+		},
+		{
+			name: "then sort by owner name",
+			input: []codersdk.Workspace{
+				workspaceRunningUserZ,
+				workspaceRunningUserA,
+				workspaceRunningUserB,
+			},
+			expectedOrder: []string{
+				"running-userA",
+				"running-userB",
+				"running-userZ",
+			},
+		},
+		{
+			name: "then sort by last used at (recent first)",
+			input: []codersdk.Workspace{
+				workspaceRunningUserA,
+				workspaceRunningUserA2,
+				workspaceRunningUserA3,
+			},
+			expectedOrder: []string{
+				"running-userA3",
+				"running-userA2",
+				"running-userA",
+			},
+		},
+	}
+
+	for _, tc := range testCases {
+		tc := tc
+		t.Run(tc.name, func(t *testing.T) {
+			t.Parallel()
+			workspaces := tc.input
+			sortWorkspaces(workspaces)
+
+			var resultNames []string
+			for _, workspace := range workspaces {
+				resultNames = append(resultNames, workspace.Name)
+			}
+
+			require.Equal(t, tc.expectedOrder, resultNames, tc.name)
+		})
+	}
+}