diff --git a/libs/components/src/menu/menu-trigger-for.directive.ts b/libs/components/src/menu/menu-trigger-for.directive.ts
index bc174d14d23..528697600c4 100644
--- a/libs/components/src/menu/menu-trigger-for.directive.ts
+++ b/libs/components/src/menu/menu-trigger-for.directive.ts
@@ -1,5 +1,6 @@
 // FIXME: Update this file to be type safe and remove this and next line
 // @ts-strict-ignore
+import { hasModifierKey } from "@angular/cdk/keycodes";
 import { Overlay, OverlayConfig, OverlayRef } from "@angular/cdk/overlay";
 import { TemplatePortal } from "@angular/cdk/portal";
 import {
@@ -76,6 +77,13 @@ export class MenuTriggerForDirective implements OnDestroy {
     this.overlayRef.attach(templatePortal);
 
     this.closedEventsSub = this.getClosedEvents().subscribe((event: KeyboardEvent | undefined) => {
+      // Closing the menu is handled in this.destroyMenu, so we want to prevent the escape key
+      // from doing its normal default action, which would otherwise cause a parent component
+      // (like a dialog) or extension window to close
+      if (event?.key === "Escape" && !hasModifierKey(event)) {
+        event.preventDefault();
+      }
+
       if (["Tab", "Escape"].includes(event?.key)) {
         // Required to ensure tab order resumes correctly
         this.elementRef.nativeElement.focus();
diff --git a/libs/components/src/select/select.component.html b/libs/components/src/select/select.component.html
index 84de9827b97..6d4c431f234 100644
--- a/libs/components/src/select/select.component.html
+++ b/libs/components/src/select/select.component.html
@@ -9,6 +9,7 @@
   [clearable]="false"
   (close)="onClose()"
   appendTo="body"
+  [keyDownFn]="onKeyDown"
 >
   <ng-template ng-option-tmp let-item="item">
     <div class="tw-flex" [title]="item.label">
diff --git a/libs/components/src/select/select.component.ts b/libs/components/src/select/select.component.ts
index d2c48bf0f6e..909566bf1f8 100644
--- a/libs/components/src/select/select.component.ts
+++ b/libs/components/src/select/select.component.ts
@@ -1,6 +1,7 @@
 // FIXME: Update this file to be type safe and remove this and next line
 // @ts-strict-ignore
 
+import { hasModifierKey } from "@angular/cdk/keycodes";
 import {
   Component,
   ContentChildren,
@@ -185,4 +186,20 @@ export class SelectComponent<T> implements BitFormFieldControl, ControlValueAcce
   protected onClose() {
     this.closed.emit();
   }
+
+  /**
+   * Prevent Escape key press from propagating to parent components
+   * (for example, parent dialog should not close when Escape is pressed in the select)
+   *
+   * @returns true to keep default key behavior; false to prevent default key behavior
+   *
+   * Needs to be arrow function to retain `this` scope.
+   */
+  protected onKeyDown = (event: KeyboardEvent) => {
+    if (this.select.isOpen && event.key === "Escape" && !hasModifierKey(event)) {
+      event.stopPropagation();
+    }
+
+    return true;
+  };
 }