diff --git a/.changeset/large-actors-reply.md b/.changeset/large-actors-reply.md
new file mode 100644
index 0000000000..6635de2fc3
--- /dev/null
+++ b/.changeset/large-actors-reply.md
@@ -0,0 +1,7 @@
+---
+'@primer/view-components': minor
+---
+
+Fix multi-select behavior when ActionMenus are embedded in dialogs
+
+<!-- Changed components: Primer::Alpha::ActionMenu -->
diff --git a/app/components/primer/alpha/action_menu/action_menu_element.ts b/app/components/primer/alpha/action_menu/action_menu_element.ts
index f13539c9ce..66815487b0 100644
--- a/app/components/primer/alpha/action_menu/action_menu_element.ts
+++ b/app/components/primer/alpha/action_menu/action_menu_element.ts
@@ -172,11 +172,6 @@ export class ActionMenuElement extends HTMLElement {
       return
     }
 
-    // Ignore events within dialogs within menus
-    if ((event.target as Element)?.closest('dialog') || (event.target as Element)?.closest('modal-dialog')) {
-      return
-    }
-
     if (event.type === 'focusout') {
       if (this.#invokerBeingClicked) return
 
diff --git a/test/system/alpha/action_menu_test.rb b/test/system/alpha/action_menu_test.rb
index 95c066fc3a..557e192591 100644
--- a/test/system/alpha/action_menu_test.rb
+++ b/test/system/alpha/action_menu_test.rb
@@ -346,7 +346,7 @@ def test_opens_dialog
       click_on_invoker_button
       click_on_second_item
 
-      assert_selector "modal-dialog#my-dialog"
+      assert_selector "modal-dialog[open]"
 
       # opening the dialog should close the menu
       refute_selector "action-menu ul li"
@@ -523,6 +523,9 @@ def test_deferred_dialog_opens
       click_on_fourth_item
 
       assert_selector "modal-dialog[open]"
+
+      # menu should close
+      refute_selector "action-menu ul li"
     end
 
     def test_opening_second_menu_closes_first_menu