diff --git a/packages/react/src/SelectPanel/SelectPanel.interactions.stories.tsx b/packages/react/src/SelectPanel/SelectPanel.interactions.stories.tsx
new file mode 100644
index 00000000000..81eddc7fe02
--- /dev/null
+++ b/packages/react/src/SelectPanel/SelectPanel.interactions.stories.tsx
@@ -0,0 +1,277 @@
+import type {Meta, StoryObj} from '@storybook/react-vite'
+import React, {useState} from 'react'
+import {within, userEvent, expect} from 'storybook/test'
+import {SelectPanel, type SelectPanelProps} from './SelectPanel'
+import type {ItemInput} from '.'
+import {TriangleDownIcon} from '@primer/octicons-react'
+import {Button} from '../Button'
+import FormControl from '../FormControl'
+import {FeatureFlags} from '../FeatureFlags'
+
+export default {
+  title: 'Components/SelectPanel/Interactions',
+} as Meta
+
+const delay = (ms = 500) => new Promise(resolve => setTimeout(resolve, ms))
+
+function getColorCircle(color: string) {
+  return function () {
+    return (
+      <div
+        style={{
+          backgroundColor: color,
+          borderColor: color,
+          width: 14,
+          height: 14,
+          borderRadius: '50%',
+          border: '1px solid',
+        }}
+      />
+    )
+  }
+}
+
+const items = [
+  {leadingVisual: getColorCircle('#a2eeef'), text: 'enhancement', id: 1},
+  {leadingVisual: getColorCircle('#d73a4a'), text: 'bug', id: 2},
+  {leadingVisual: getColorCircle('#0cf478'), text: 'good first issue', id: 3},
+  {leadingVisual: getColorCircle('#ffd78e'), text: 'design', id: 4},
+  {leadingVisual: getColorCircle('#ff0000'), text: 'blocker', id: 5},
+  {leadingVisual: getColorCircle('#a4f287'), text: 'backend', id: 6},
+  {leadingVisual: getColorCircle('#8dc6fc'), text: 'frontend', id: 7},
+]
+
+const KeyboardNavigationStory = () => {
+  const [selected, setSelected] = useState<ItemInput[]>([])
+  const [filter, setFilter] = useState('')
+  const filteredItems = items.filter(item => item.text.toLowerCase().startsWith(filter.toLowerCase()))
+  const [open, setOpen] = useState(false)
+
+  return (
+    <FormControl>
+      <FormControl.Label>Select labels</FormControl.Label>
+      <SelectPanel
+        title="Select labels"
+        placeholder="Select labels"
+        subtitle="Use labels to organize issues and pull requests"
+        renderAnchor={({children, ...anchorProps}) => (
+          <Button trailingAction={TriangleDownIcon} {...anchorProps}>
+            {children}
+          </Button>
+        )}
+        open={open}
+        onOpenChange={setOpen}
+        items={filteredItems}
+        selected={selected}
+        onSelectedChange={setSelected}
+        onFilterChange={setFilter}
+        width="medium"
+      />
+    </FormControl>
+  )
+}
+
+const KeyboardNavigationWithFeatureFlagStory = () => {
+  const [selected, setSelected] = useState<ItemInput[]>([])
+  const [filter, setFilter] = useState('')
+  const filteredItems = items.filter(item => item.text.toLowerCase().startsWith(filter.toLowerCase()))
+  const [open, setOpen] = useState(false)
+
+  return (
+    <FeatureFlags flags={{primer_react_select_panel_remove_active_descendant: true}}>
+      <FormControl>
+        <FormControl.Label>Select labels</FormControl.Label>
+        <SelectPanel
+          title="Select labels"
+          placeholder="Select labels"
+          subtitle="Use labels to organize issues and pull requests"
+          renderAnchor={({children, ...anchorProps}) => (
+            <Button trailingAction={TriangleDownIcon} {...anchorProps}>
+              {children}
+            </Button>
+          )}
+          open={open}
+          onOpenChange={setOpen}
+          items={filteredItems}
+          selected={selected}
+          onSelectedChange={setSelected}
+          onFilterChange={setFilter}
+          width="medium"
+        />
+      </FormControl>
+    </FeatureFlags>
+  )
+}
+
+export const KeyboardNavigation: StoryObj<SelectPanelProps> = {
+  render: KeyboardNavigationStory,
+  play: async ({canvasElement}: {canvasElement: HTMLElement}) => {
+    const canvas = within(canvasElement)
+
+    // Wait for initial render
+    await delay(300)
+
+    // Find and click the button to open the panel
+    const button = canvas.getByRole('button', {name: /select labels/i})
+    await userEvent.click(button)
+
+    // Wait for panel to open
+    await delay(500)
+
+    // Find the search input
+    const searchInput = canvas.getByRole('combobox', {name: /filter items/i})
+    expect(searchInput).toBeInTheDocument()
+
+    // Type to filter items
+    await delay(300)
+    await userEvent.type(searchInput, 'b')
+
+    // Wait for filtering to occur
+    await delay(500)
+
+    // Get all visible options (should be filtered to items starting with 'b')
+    const options = canvas.getAllByRole('option')
+    expect(options).toHaveLength(3) // bug, blocker, backend
+
+    // Use arrow keys to navigate
+    await delay(300)
+    await userEvent.keyboard('{ArrowDown}')
+
+    await delay(300)
+    await userEvent.keyboard('{ArrowDown}')
+
+    await delay(300)
+    await userEvent.keyboard('{ArrowDown}')
+
+    // Navigate back up
+    await delay(300)
+    await userEvent.keyboard('{ArrowUp}')
+
+    await delay(300)
+    await userEvent.keyboard('{ArrowUp}')
+
+    // Select an item with Space or Enter
+    await delay(300)
+    await userEvent.keyboard('{Enter}')
+
+    // Wait to show the selection
+    await delay(500)
+
+    // Clear the filter with backspace
+    await delay(500)
+    await userEvent.keyboard('{Backspace}')
+
+    await delay(500)
+    await userEvent.type(searchInput, 'b')
+
+    await delay(500)
+    await userEvent.type(searchInput, 'u')
+
+    await delay(500)
+    await userEvent.keyboard('{Enter}')
+
+    // Escape to close the panel
+    await delay(500)
+    await userEvent.keyboard('{Escape}')
+  },
+}
+
+export const KeyboardNavigationWithRovingTabindex: StoryObj<SelectPanelProps> = {
+  render: KeyboardNavigationWithFeatureFlagStory,
+  play: async ({canvasElement}: {canvasElement: HTMLElement}) => {
+    const canvas = within(canvasElement)
+
+    // Wait for initial render
+    await delay(300)
+
+    // Find and click the button to open the panel
+    const button = canvas.getByRole('button', {name: /select labels/i})
+    await userEvent.click(button)
+
+    // Wait for panel to open
+    await delay(500)
+
+    // Find the search input
+    const searchInput = canvas.getByRole('combobox', {name: /Filter items/i})
+    expect(searchInput).toBeInTheDocument()
+
+    // Type to filter items
+    await delay(500)
+    await userEvent.type(searchInput, 'f')
+
+    await delay(500)
+    await userEvent.type(searchInput, 'r')
+
+    // Wait for filtering to occur
+    await delay(500)
+
+    // Get all visible options (should be filtered to items starting with 'f')
+    const options = canvas.getAllByRole('option')
+    expect(options).toHaveLength(1) // frontend
+
+    // Clear the filter to see more items
+    await delay(300)
+    await userEvent.clear(searchInput)
+
+    await delay(300)
+    await userEvent.type(searchInput, 'e')
+
+    // Wait for filtering
+    await delay(500)
+
+    // Use arrow keys to navigate (roving tabindex behavior)
+    await delay(300)
+    await userEvent.keyboard('{ArrowDown}')
+
+    await delay(300)
+    await userEvent.keyboard('{ArrowDown}')
+
+    await delay(300)
+    await userEvent.keyboard('{ArrowDown}')
+
+    // Navigate back up
+    await delay(300)
+    await userEvent.keyboard('{ArrowUp}')
+
+    await delay(300)
+    await userEvent.keyboard('{ArrowUp}')
+
+    // Select an item with Space or Enter
+    await delay(300)
+    await userEvent.keyboard('{Enter}')
+
+    // Wait to show the selection
+    await delay(500)
+
+    // Shift+Tab to go back to the search input
+    await delay(300)
+    await userEvent.keyboard('{Shift}{Tab}')
+
+    // Backspace to clear the filter
+    await delay(300)
+    await userEvent.keyboard('{Backspace}')
+
+    // Select another option
+    // Type to filter items
+    await delay(500)
+    await userEvent.type(searchInput, 'b')
+
+    await delay(500)
+    await userEvent.type(searchInput, 'u')
+
+    // Wait for filtering to occur
+    await delay(500)
+
+    // Use arrow keys to navigate (roving tabindex behavior)
+    await delay(300)
+    await userEvent.keyboard('{ArrowDown}')
+
+    // Select an item with Space or Enter
+    await delay(300)
+    await userEvent.keyboard('{Enter}')
+
+    // Escape to close the panel
+    await delay(500)
+    await userEvent.keyboard('{Escape}')
+  },
+}