diff --git a/src/internal/components/selectable-item/styles.scss b/src/internal/components/selectable-item/styles.scss
index a621b07121..b71c4e06a1 100644
--- a/src/internal/components/selectable-item/styles.scss
+++ b/src/internal/components/selectable-item/styles.scss
@@ -206,6 +206,60 @@
     &:first-of-type:not(.selected, .highlighted) {
       border-block-start-color: awsui.$color-border-dropdown-item-top;
     }
+
+    // When using virtual scrolling, use box-shadows to mimic changing border
+    // width and set the actual border to a fixed width to prevent jumping
+    // behaviour when hovering selectable items
+
+    $virtual-border-offset: calc(#{awsui.$border-item-width} - #{awsui.$border-divider-list-width});
+    $virtual-border-offset-double: calc(2 * #{awsui.$border-item-width} - #{awsui.$border-divider-list-width});
+
+    &.highlighted:not(.selected),
+    &.selected {
+      border-width: awsui.$border-divider-list-width;
+      padding-block: calc(#{styles.$option-padding-vertical} + #{$virtual-border-offset});
+      padding-inline: calc(#{styles.$control-padding-horizontal} + #{$virtual-border-offset});
+
+      &.pad-bottom {
+        padding-block-end: calc(#{styles.$option-padding-vertical} + #{awsui.$space-xxxs} + #{$virtual-border-offset});
+      }
+
+      &.child {
+        padding-inline-start: calc(#{awsui.$space-xxl} + #{$virtual-border-offset});
+      }
+
+      &.parent.interactiveGroups {
+        padding-block: calc(#{styles.$group-option-padding-vertical} + #{$virtual-border-offset});
+      }
+    }
+
+    &.highlighted:not(.selected) {
+      box-shadow: inset 0 0 0 $virtual-border-offset awsui.$color-border-dropdown-item-hover;
+
+      &.is-keyboard {
+        box-shadow: inset 0 0 0 $virtual-border-offset awsui.$color-border-dropdown-item-focused;
+      }
+    }
+
+    &.selected {
+      box-shadow: inset 0 0 0 $virtual-border-offset awsui.$color-border-dropdown-item-selected;
+
+      &.highlighted {
+        box-shadow:
+          inset 0 0 0 $virtual-border-offset awsui.$color-border-dropdown-item-selected,
+          inset 0 0 0 $virtual-border-offset-double awsui.$color-border-dropdown-item-hover;
+
+        &.is-keyboard {
+          box-shadow:
+            inset 0 0 0 $virtual-border-offset awsui.$color-border-dropdown-item-selected,
+            inset 0 0 0 $virtual-border-offset-double awsui.$color-border-dropdown-item-focused;
+        }
+      }
+    }
+
+    &.parent:not(.interactiveGroups) {
+      border-block-start-color: awsui.$color-border-dropdown-group;
+    }
   }
 }
 
diff --git a/src/select/parts/virtual-list.tsx b/src/select/parts/virtual-list.tsx
index 5db64cda75..c6b0e8be62 100644
--- a/src/select/parts/virtual-list.tsx
+++ b/src/select/parts/virtual-list.tsx
@@ -100,6 +100,10 @@ const VirtualListOpen = forwardRef(
       withScrollbar,
     });
 
+    // Adjust totalSize to account for 1px overlap per item (matching the position adjustment in renderOptions)
+    const overlapAdjustment = filteredOptions.length;
+    const adjustedTotalSize = totalSize - overlapAdjustment;
+
     return (
       <OptionsList {...menuProps} stickyItemBlockSize={stickySize} ref={menuRef}>
         {finalOptions}
@@ -107,7 +111,7 @@ const VirtualListOpen = forwardRef(
           aria-hidden="true"
           key="total-size"
           className={styles['layout-strut']}
-          style={{ height: totalSize - stickySize }}
+          style={{ height: adjustedTotalSize - stickySize }}
         />
         {listBottom ? (
           <div role="option" className={styles['list-bottom']}>
diff --git a/src/select/utils/render-options.tsx b/src/select/utils/render-options.tsx
index 614f0d2dd6..580c1a06c9 100644
--- a/src/select/utils/render-options.tsx
+++ b/src/select/utils/render-options.tsx
@@ -65,11 +65,15 @@ export const renderOptions = ({
     const ListItem = useInteractiveGroups ? MultiselectItem : Item;
     const isSticky = firstOptionSticky && globalIndex === 0;
 
+    // Adjust virtual position to create 1px overlap between items (matching non-virtual behavior)
+    // Subtract globalIndex to shift each item up by 1px per item
+    const adjustedVirtualPosition = virtualItem ? virtualItem.start - globalIndex : undefined;
+
     return (
       <ListItem
         key={globalIndex}
         {...props}
-        virtualPosition={virtualItem && virtualItem.start}
+        virtualPosition={adjustedVirtualPosition}
         ref={isSticky && stickyOptionRef ? stickyOptionRef : virtualItem && virtualItem.measureRef}
         padBottom={padBottom}
         screenReaderContent={screenReaderContent}