diff --git a/.changeset/itchy-readers-yell.md b/.changeset/itchy-readers-yell.md
new file mode 100644
index 00000000000..510cde71b43
--- /dev/null
+++ b/.changeset/itchy-readers-yell.md
@@ -0,0 +1,5 @@
+---
+"@primer/react": patch
+---
+
+fix(SelectPanel): do not bubble up keyboard events
diff --git a/packages/react/src/SelectPanel/SelectPanel.tsx b/packages/react/src/SelectPanel/SelectPanel.tsx
index 4c7dae093d9..0bc994590c7 100644
--- a/packages/react/src/SelectPanel/SelectPanel.tsx
+++ b/packages/react/src/SelectPanel/SelectPanel.tsx
@@ -1,5 +1,5 @@
 import {SearchIcon, TriangleDownIcon, XIcon, type IconProps} from '@primer/octicons-react'
-import React, {useCallback, useEffect, useMemo, useRef, useState} from 'react'
+import React, {useCallback, useEffect, useMemo, useRef, useState, type KeyboardEventHandler} from 'react'
 import type {AnchoredOverlayProps} from '../AnchoredOverlay'
 import {AnchoredOverlay} from '../AnchoredOverlay'
 import type {AnchoredOverlayWrapperAnchorProps} from '../AnchoredOverlay/AnchoredOverlay'
@@ -27,6 +27,7 @@ import {debounce} from '@github/mini-throttle'
 import {useResponsiveValue} from '../hooks/useResponsiveValue'
 import type {ButtonProps, LinkButtonProps} from '../Button/types'
 import {Banner} from '../Banner'
+import {isAlphabetKey} from '../hooks/useMnemonics'
 
 // we add a delay so that it does not interrupt default screen reader announcement and queues after it
 const SHORT_DELAY_MS = 500
@@ -215,6 +216,7 @@ function Panel({
   const usingFullScreenOnNarrow = disableFullscreenOnNarrow ? false : featureFlagFullScreenOnNarrow
   const shouldOrderSelectedFirst =
     useFeatureFlag('primer_react_select_panel_order_selected_at_top') && showSelectedOptionsFirst
+  const usingRemoveActiveDescendant = useFeatureFlag('primer_react_select_panel_remove_active_descendant')
 
   // Single select modals work differently, they have an intermediate state where the user has selected an item but
   // has not yet confirmed the selection. This is the only time the user can cancel the selection.
@@ -741,6 +743,26 @@ function Panel({
     'anchored',
   )
 
+  const preventBubbling =
+    (customOnKeyDown: KeyboardEventHandler<HTMLDivElement> | undefined) =>
+    (event: React.KeyboardEvent<HTMLDivElement>) => {
+      // skip if a TextInput has focus
+      customOnKeyDown?.(event)
+
+      const activeElement = document.activeElement as HTMLElement
+      if (activeElement.tagName === 'INPUT' || activeElement.tagName === 'TEXTAREA') return
+
+      // skip if used with modifier to preserve shortcuts like ⌘ + F
+      const hasModifier = event.ctrlKey || event.altKey || event.metaKey
+      if (hasModifier) return
+
+      // skip if it's not a alphabet key
+      if (!isAlphabetKey(event.nativeEvent as KeyboardEvent)) return
+
+      // if this is a typeahead event, don't propagate outside of menu
+      event.stopPropagation()
+    }
+
   return (
     <>
       <AnchoredOverlay
@@ -773,6 +795,7 @@ function Panel({
                 }
               : {}),
           } as React.CSSProperties,
+          onKeyDown: usingRemoveActiveDescendant ? preventBubbling(overlayProps?.onKeyDown) : overlayProps?.onKeyDown,
         }}
         focusTrapSettings={focusTrapSettings}
         focusZoneSettings={focusZoneSettings}
diff --git a/packages/react/src/hooks/useMnemonics.ts b/packages/react/src/hooks/useMnemonics.ts
index d99c8f798ad..7c417a3c267 100644
--- a/packages/react/src/hooks/useMnemonics.ts
+++ b/packages/react/src/hooks/useMnemonics.ts
@@ -82,9 +82,9 @@ export const useMnemonics = (open: boolean, providedRef?: React.RefObject<HTMLEl
     [open, containerRef],
   )
 
-  const isAlphabetKey = (event: KeyboardEvent) => {
-    return event.key.length === 1 && /[a-z\d]/i.test(event.key)
-  }
-
   return {containerRef}
 }
+
+export const isAlphabetKey = (event: KeyboardEvent) => {
+  return event.key.length === 1 && /[a-z\d]/i.test(event.key)
+}