diff --git a/packages/calcite-components/src/components/dialog/dialog.e2e.ts b/packages/calcite-components/src/components/dialog/dialog.e2e.ts
index d9acdb326c8..c96ed09dfbc 100644
--- a/packages/calcite-components/src/components/dialog/dialog.e2e.ts
+++ b/packages/calcite-components/src/components/dialog/dialog.e2e.ts
@@ -1,6 +1,6 @@
 // @ts-strict-ignore
 import { newE2EPage, E2EPage } from "@arcgis/lumina-compiler/puppeteerTesting";
-import { describe, expect, it, vi } from "vitest";
+import { beforeEach, describe, expect, it, vi } from "vitest";
 import {
   accessible,
   defaults,
@@ -1160,4 +1160,59 @@ describe("calcite-dialog", () => {
       expect(await dialog.getProperty("open")).toBe(true);
     });
   });
+
+  describe("focusTrap", () => {
+    let page: E2EPage;
+
+    beforeEach(async () => {
+      page = await newE2EPage();
+      await page.setContent(html`
+        <calcite-dialog width-scale="s" focus-trap-disabled open closable
+          ><button id="insideEl">inside</button></calcite-dialog
+        >
+        <button id="outsideEl">outside</button>
+      `);
+
+      await skipAnimations(page);
+      await page.waitForChanges();
+    });
+
+    it("can tab out of non-modal dialog when focusTrapDisabled=true", async () => {
+      const dialog = await page.find("calcite-dialog >>> .container");
+      const action = await page.find("calcite-dialog >>> calcite-action");
+      const outsideEl = await page.find("#outsideEl");
+
+      expect(await dialog.isVisible()).toBe(true);
+
+      await action.callMethod("setFocus");
+      await page.waitForChanges();
+
+      await page.keyboard.press("Tab");
+      await page.waitForChanges();
+      await page.keyboard.press("Tab");
+      await page.waitForChanges();
+      await page.keyboard.press("Tab");
+      await page.waitForChanges();
+
+      const activeElementId = await page.evaluate(() => document.activeElement.id);
+      expect(activeElementId).toBe(await outsideEl.getProperty("id"));
+    });
+
+    it("cannot tab out of dialog when modal=true and focusTrapDisabled=true", async () => {
+      const dialog = await page.find("calcite-dialog >>> .container");
+      const insideEl = await page.find("#insideEl");
+
+      expect(await dialog.isVisible()).toBe(true);
+
+      await page.keyboard.press("Tab");
+      await page.waitForChanges();
+      await page.keyboard.press("Tab");
+      await page.waitForChanges();
+      await page.keyboard.press("Tab");
+      await page.waitForChanges();
+
+      const activeElementId = await page.evaluate(() => document.activeElement.id);
+      expect(activeElementId).toBe(await insideEl.getProperty("id"));
+    });
+  });
 });
diff --git a/packages/calcite-components/src/components/dialog/dialog.tsx b/packages/calcite-components/src/components/dialog/dialog.tsx
index 1b1f65df7b2..40466cd0856 100644
--- a/packages/calcite-components/src/components/dialog/dialog.tsx
+++ b/packages/calcite-components/src/components/dialog/dialog.tsx
@@ -187,6 +187,9 @@ export class Dialog
   /** When `true`, displays a scrim blocking interaction underneath the component. */
   @property({ reflect: true }) modal = false;
 
+  /** When `true` and `modal` is `false`, prevents focus trapping. */
+  @property({ reflect: true }) focusTrapDisabled = false;
+
   /** When `true`, displays and positions the component. */
   @property({ reflect: true })
   get open(): boolean {
@@ -270,6 +273,11 @@ export class Dialog
     updateFocusTrapElements(this);
   }
 
+  /** When defined, provides a condition to disable focus trapping. When `true`, prevents focus trapping. */
+  focusTrapDisabledOverride(): boolean {
+    return !this.modal && this.focusTrapDisabled;
+  }
+
   // #endregion
 
   // #region Events
@@ -328,6 +336,9 @@ export class Dialog
     if (changes.has("modal") && (this.hasUpdated || this.modal !== false)) {
       this.updateOverflowHiddenClass();
     }
+    if ((changes.has("modal") || changes.has("focusTrapDisabled")) && this.hasUpdated) {
+      this.handleFocusTrapDisabled();
+    }
 
     if (
       (changes.has("open") && (this.hasUpdated || this.open !== false)) ||
@@ -366,6 +377,15 @@ export class Dialog
   // #endregion
 
   // #region Private Methods
+
+  private handleFocusTrapDisabled(): void {
+    if (!this.open) {
+      return;
+    }
+
+    activateFocusTrap(this);
+  }
+
   private updateAssistiveText(): void {
     const { messages } = this;
     this.assistiveText =
@@ -380,7 +400,7 @@ export class Dialog
 
   onOpen(): void {
     this.calciteDialogOpen.emit();
-    activateFocusTrap(this);
+    this.handleFocusTrapDisabled();
   }
 
   onBeforeClose(): void {
diff --git a/packages/calcite-components/src/utils/focusTrapComponent.spec.ts b/packages/calcite-components/src/utils/focusTrapComponent.spec.ts
index 8fd9f02b5b1..993f81c215d 100644
--- a/packages/calcite-components/src/utils/focusTrapComponent.spec.ts
+++ b/packages/calcite-components/src/utils/focusTrapComponent.spec.ts
@@ -112,4 +112,37 @@ describe("focusTrapComponent", () => {
       expect(customFocusTrapStack).toHaveLength(1);
     });
   });
+  describe("focusTrapDisabledOverride", () => {
+    it("should activate focus trap when focusTrapDisabledOverride returns false", () => {
+      const fakeComponent = {} as FocusTrapComponent;
+      fakeComponent.el = document.createElement("div");
+
+      connectFocusTrap(fakeComponent);
+
+      const activateSpy = vi.fn();
+      fakeComponent.focusTrap.activate = activateSpy;
+
+      fakeComponent.focusTrapDisabledOverride = () => false;
+
+      activateFocusTrap(fakeComponent);
+
+      expect(activateSpy).toHaveBeenCalledTimes(1);
+    });
+
+    it("should not activate focus trap when focusTrapDisabledOverride returns true", () => {
+      const fakeComponent = {} as FocusTrapComponent;
+      fakeComponent.el = document.createElement("div");
+
+      connectFocusTrap(fakeComponent);
+
+      const activateSpy = vi.fn();
+      fakeComponent.focusTrap.activate = activateSpy;
+
+      fakeComponent.focusTrapDisabledOverride = () => true;
+
+      activateFocusTrap(fakeComponent);
+
+      expect(activateSpy).toHaveBeenCalledTimes(0);
+    });
+  });
 });
diff --git a/packages/calcite-components/src/utils/focusTrapComponent.ts b/packages/calcite-components/src/utils/focusTrapComponent.ts
index 8c5c560526e..d41fffadb3c 100644
--- a/packages/calcite-components/src/utils/focusTrapComponent.ts
+++ b/packages/calcite-components/src/utils/focusTrapComponent.ts
@@ -10,6 +10,9 @@ export interface FocusTrapComponent {
   /** When `true`, prevents focus trapping. */
   focusTrapDisabled?: boolean;
 
+  /** When defined, provides a condition to disable focus trapping. When `true`, prevents focus trapping. */
+  focusTrapDisabledOverride?: () => boolean;
+
   /** The focus trap instance. */
   focusTrap: FocusTrap;
 
@@ -73,7 +76,7 @@ export function activateFocusTrap(
   component: FocusTrapComponent,
   options?: Parameters<_FocusTrap["activate"]>[0],
 ): void {
-  if (!component.focusTrapDisabled) {
+  if (component.focusTrapDisabledOverride ? !component.focusTrapDisabledOverride() : !component.focusTrapDisabled) {
     component.focusTrap?.activate(options);
   }
 }