diff --git a/packages/components/CHANGELOG.md b/packages/components/CHANGELOG.md
index e06b7218c7b5d..a72abbabaee24 100644
--- a/packages/components/CHANGELOG.md
+++ b/packages/components/CHANGELOG.md
@@ -4,6 +4,7 @@
 
 ### Breaking Changes
 
+-   `CustomGradientPicker`: Remove deprecated `__nextHasNoMargin` prop and promote to default behavior ([#58699](https://github.com/WordPress/gutenberg/pull/58699)).
 -   `AnglePickerControl`: Remove deprecated `__nextHasNoMarginBottom` prop and promote to default behavior ([#58700](https://github.com/WordPress/gutenberg/pull/58700)).
 
 ### Enhancements
diff --git a/packages/components/src/custom-gradient-picker/index.tsx b/packages/components/src/custom-gradient-picker/index.tsx
index da777692e4db4..66add261ce5e6 100644
--- a/packages/components/src/custom-gradient-picker/index.tsx
+++ b/packages/components/src/custom-gradient-picker/index.tsx
@@ -1,13 +1,11 @@
 /**
  * External dependencies
  */
-import classnames from 'classnames';
 import type gradientParser from 'gradient-parser';
 
 /**
  * WordPress dependencies
  */
-import deprecated from '@wordpress/deprecated';
 import { __ } from '@wordpress/i18n';
 
 /**
@@ -140,8 +138,6 @@ const GradientTypePicker = ( {
  * ```
  */
 export function CustomGradientPicker( {
-	/** Start opting into the new margin-free styles that will become the default in a future version. */
-	__nextHasNoMargin = false,
 	value,
 	onChange,
 	__experimentalIsRenderedInSidebar = false,
@@ -165,24 +161,8 @@ export function CustomGradientPicker( {
 		};
 	} );
 
-	if ( ! __nextHasNoMargin ) {
-		deprecated(
-			'Outer margin styles for wp.components.CustomGradientPicker',
-			{
-				since: '6.1',
-				version: '6.4',
-				hint: 'Set the `__nextHasNoMargin` prop to true to start opting into the new styles, which will become the default in a future version',
-			}
-		);
-	}
-
 	return (
-		<VStack
-			spacing={ 4 }
-			className={ classnames( 'components-custom-gradient-picker', {
-				'is-next-has-no-margin': __nextHasNoMargin,
-			} ) }
-		>
+		<VStack spacing={ 4 } className="components-custom-gradient-picker">
 			<CustomGradientBar
 				__experimentalIsRenderedInSidebar={
 					__experimentalIsRenderedInSidebar
diff --git a/packages/components/src/custom-gradient-picker/stories/index.story.tsx b/packages/components/src/custom-gradient-picker/stories/index.story.tsx
index 6d19157238d28..3be8eb36e5a3c 100644
--- a/packages/components/src/custom-gradient-picker/stories/index.story.tsx
+++ b/packages/components/src/custom-gradient-picker/stories/index.story.tsx
@@ -40,6 +40,3 @@ const CustomGradientPickerWithState: StoryFn<
 };
 
 export const Default = CustomGradientPickerWithState.bind( {} );
-Default.args = {
-	__nextHasNoMargin: true,
-};
diff --git a/packages/components/src/custom-gradient-picker/style.scss b/packages/components/src/custom-gradient-picker/style.scss
index a1a9a699a71a4..e7828127ff8d3 100644
--- a/packages/components/src/custom-gradient-picker/style.scss
+++ b/packages/components/src/custom-gradient-picker/style.scss
@@ -1,12 +1,5 @@
 $components-custom-gradient-picker__padding: $grid-unit-20; // 48px container, 16px handles inside, that leaves 32px padding, half of which is 1å6.
 
-.components-custom-gradient-picker {
-	&:not(.is-next-has-no-margin) {
-		margin-top: $grid-unit-15;
-		margin-bottom: $grid-unit-30;
-	}
-}
-
 .components-custom-gradient-picker__gradient-bar {
 	border-radius: $radius-block-ui;
 	width: 100%;
diff --git a/packages/components/src/custom-gradient-picker/types.ts b/packages/components/src/custom-gradient-picker/types.ts
index f0dc50094a5b6..f9efb90799daf 100644
--- a/packages/components/src/custom-gradient-picker/types.ts
+++ b/packages/components/src/custom-gradient-picker/types.ts
@@ -10,6 +10,8 @@ export type CustomGradientPickerProps = {
 	 * can be safely removed once this happens.)
 	 *
 	 * @default false
+	 * @deprecated Default behavior since WP 6.5. Prop can be safely removed.
+	 * @ignore
 	 */
 	__nextHasNoMargin?: boolean;
 	/**
diff --git a/packages/components/src/gradient-picker/index.tsx b/packages/components/src/gradient-picker/index.tsx
index 52e7e716642da..be6289eb5776d 100644
--- a/packages/components/src/gradient-picker/index.tsx
+++ b/packages/components/src/gradient-picker/index.tsx
@@ -249,7 +249,6 @@ export function GradientPicker( {
 			<VStack spacing={ gradients.length ? 4 : 0 }>
 				{ ! disableCustomGradients && (
 					<CustomGradientPicker
-						__nextHasNoMargin
 						__experimentalIsRenderedInSidebar={
 							__experimentalIsRenderedInSidebar
 						}
diff --git a/packages/components/src/palette-edit/index.tsx b/packages/components/src/palette-edit/index.tsx
index 694b7ad951190..5c9d0cf77be8a 100644
--- a/packages/components/src/palette-edit/index.tsx
+++ b/packages/components/src/palette-edit/index.tsx
@@ -152,7 +152,6 @@ function ColorPickerPopover< T extends Color | Gradient >( {
 			{ isGradient && (
 				<div className="components-palette-edit__popover-gradient-picker">
 					<CustomGradientPicker
-						__nextHasNoMargin
 						__experimentalIsRenderedInSidebar
 						value={ element.gradient }
 						onChange={ ( newGradient ) => {