diff --git a/.changeset/cold-worlds-notice.md b/.changeset/cold-worlds-notice.md
new file mode 100644
index 00000000000..26319a386e3
--- /dev/null
+++ b/.changeset/cold-worlds-notice.md
@@ -0,0 +1,11 @@
+---
+"@hashicorp/design-system-components": major
+---
+
+<!-- START components/dropdown -->
+
+`Dropdown` - Removed the deprecated `@text` argument from the `HdsDropdownListItemInteractive` component.
+
+To migrate run the codemod `v4/dropdown-list-item-interactive` (see [readme file](https://github.com/hashicorp/design-system/tree/main/packages/codemods/transforms/v4/dropdown-list-item-interactive))
+
+<!-- END -->
diff --git a/packages/components/src/components/hds/dropdown/list-item/interactive.hbs b/packages/components/src/components/hds/dropdown/list-item/interactive.hbs
index 53fc34e1b9f..f62914dc95f 100644
--- a/packages/components/src/components/hds/dropdown/list-item/interactive.hbs
+++ b/packages/components/src/components/hds/dropdown/list-item/interactive.hbs
@@ -9,11 +9,7 @@
         <Hds::Icon @name="loading" />
       </div>
       <Hds::Text::Body @tag="div" @size="100" @weight="regular" class="hds-dropdown-list-item__interactive-text">
-        {{#if (has-block)}}
-          {{yield (hash Badge=(component "hds/badge" size="small"))}}
-        {{else}}
-          {{this.text}}
-        {{/if}}
+        {{yield (hash Badge=(component "hds/badge" size="small"))}}
       </Hds::Text::Body>
     </div>
   {{else}}
@@ -34,11 +30,7 @@
         </span>
       {{/if}}
       <Hds::Text::Body class="hds-dropdown-list-item__interactive-text" @tag="span" @size="200" @weight="medium">
-        {{#if (has-block)}}
-          {{yield (hash Badge=(component "hds/badge" size="small"))}}
-        {{else}}
-          {{this.text}}
-        {{/if}}
+        {{yield (hash Badge=(component "hds/badge" size="small"))}}
       </Hds::Text::Body>
       {{#if @trailingIcon}}
         <span class="hds-dropdown-list-item__interactive-icon hds-dropdown-list-item__interactive-icon--trailing">
diff --git a/packages/components/src/components/hds/dropdown/list-item/interactive.ts b/packages/components/src/components/hds/dropdown/list-item/interactive.ts
index 323942938b0..722866f4bc0 100644
--- a/packages/components/src/components/hds/dropdown/list-item/interactive.ts
+++ b/packages/components/src/components/hds/dropdown/list-item/interactive.ts
@@ -4,7 +4,7 @@
  */
 
 import Component from '@glimmer/component';
-import { assert, deprecate } from '@ember/debug';
+import { assert } from '@ember/debug';
 
 import { HdsDropdownListItemInteractiveColorValues } from './types.ts';
 
@@ -13,7 +13,6 @@ import type { HdsInteractiveSignature } from '../../interactive';
 import type { HdsDropdownListItemInteractiveColors } from './types.ts';
 import type { ComponentLike } from '@glint/template';
 import type { HdsBadgeSignature } from '../../badge/index.ts';
-import type Owner from '@ember/owner';
 
 export const DEFAULT_COLOR = HdsDropdownListItemInteractiveColorValues.Action;
 export const COLORS: HdsDropdownListItemInteractiveColors[] = Object.values(
@@ -25,10 +24,6 @@ export interface HdsDropdownListItemInteractiveSignature {
     color?: HdsDropdownListItemInteractiveColors;
     icon?: HdsIconSignature['Args']['name'];
     isLoading?: boolean;
-    /**
-     * @deprecated The `@text` argument for "Hds::Dropdown::ListItem::Interactive" has been deprecated. Please put text in the yielded block. See: https://helios.hashicorp.design/components/dropdown?tab=version%20history#4100
-     */
-    text?: string;
     trailingIcon?: HdsIconSignature['Args']['name'];
   };
   Blocks: {
@@ -42,41 +37,6 @@ export interface HdsDropdownListItemInteractiveSignature {
 }
 
 export default class HdsDropdownListItemInteractive extends Component<HdsDropdownListItemInteractiveSignature> {
-  constructor(
-    owner: Owner,
-    args: HdsDropdownListItemInteractiveSignature['Args']
-  ) {
-    super(owner, args);
-
-    if (args.text !== undefined) {
-      deprecate(
-        'The `@text` argument for "Hds::Dropdown::ListItem::Interactive" has been deprecated. Please put text in the yielded block.',
-        false,
-        {
-          id: 'hds.dropdown.list-item.interactive',
-          until: '5.0.0',
-          url: 'https://helios.hashicorp.design/components/dropdown?tab=version%20history#4100',
-          for: '@hashicorp/design-system-components',
-          since: {
-            available: '4.10.0',
-            enabled: '5.0.0',
-          },
-        }
-      );
-    }
-  }
-
-  get text(): string {
-    const { text } = this.args;
-
-    assert(
-      '@text for "Hds::Dropdown::ListItem::Interactive" must have a valid value',
-      text !== undefined
-    );
-
-    return text;
-  }
-
   get color(): HdsDropdownListItemInteractiveColors {
     const { color = DEFAULT_COLOR } = this.args;
 
diff --git a/showcase/app/components/mock/app/header/app-header.gts b/showcase/app/components/mock/app/header/app-header.gts
index 8f9d9f66ad4..226e101691b 100644
--- a/showcase/app/components/mock/app/header/app-header.gts
+++ b/showcase/app/components/mock/app/header/app-header.gts
@@ -96,7 +96,9 @@ export default class MockAppHeaderAppHeader extends Component<MockAppHeaderAppHe
           <dd.ToggleIcon @icon="user" @text="user menu" />
           <dd.Title @text="Signed In" />
           <dd.Description @text="email@domain.com" />
-          <dd.Interactive @href="#" @text="Account Settings" />
+          <dd.Interactive @href="#">
+            Account Settings
+          </dd.Interactive>
         </HdsDropdown>
       </:utilityActions>
     </HdsAppHeader>
diff --git a/showcase/app/components/page-components/dropdown/sub-sections/list-items/not-interactive.gts b/showcase/app/components/page-components/dropdown/sub-sections/list-items/not-interactive.gts
index 9c1734f77e5..a2414a80a74 100644
--- a/showcase/app/components/page-components/dropdown/sub-sections/list-items/not-interactive.gts
+++ b/showcase/app/components/page-components/dropdown/sub-sections/list-items/not-interactive.gts
@@ -43,10 +43,10 @@ const SubSectionListItemNotInteractive: TemplateOnlyComponent = <template>
             @text="A longer description that could span on multiple lines if the number of characters require more width than the dropdown provides by default."
           />
           <HdsDropdownListItemSeparator />
-          <HdsDropdownListItemInteractive
-            @route="index"
-            @text="A longer item that could span multiple lines if the characters surpass a certain length"
-          />
+          <HdsDropdownListItemInteractive @route="index">
+            A longer item that could span multiple lines if the characters
+            surpass a certain length
+          </HdsDropdownListItemInteractive>
         </ul>
       </div>
     </SF.Item>
@@ -60,10 +60,10 @@ const SubSectionListItemNotInteractive: TemplateOnlyComponent = <template>
             @text="A longer description that could span on multiple lines if the number of characters require more width than the dropdown provides by default."
           />
           <HdsDropdownListItemSeparator />
-          <HdsDropdownListItemInteractive
-            @route="index"
-            @text="A longer item that could span multiple lines if the characters surpass a certain length"
-          />
+          <HdsDropdownListItemInteractive @route="index">
+            A longer item that could span multiple lines if the characters
+            surpass a certain length
+          </HdsDropdownListItemInteractive>
         </ul>
       </div>
     </SF.Item>
diff --git a/showcase/tests/integration/components/hds/dropdown/list-item/interactive-test.js b/showcase/tests/integration/components/hds/dropdown/list-item/interactive-test.js
index 0a3873660f4..97ae809fa0c 100644
--- a/showcase/tests/integration/components/hds/dropdown/list-item/interactive-test.js
+++ b/showcase/tests/integration/components/hds/dropdown/list-item/interactive-test.js
@@ -23,7 +23,7 @@ module(
 
     test('it should render the component as a <li> element with a CSS class that matches the component name', async function (assert) {
       await render(
-        hbs`<Hds::Dropdown::ListItem::Interactive @text="interactive" />`,
+        hbs`<Hds::Dropdown::ListItem::Interactive>interactive</Hds::Dropdown::ListItem::Interactive>`,
       );
       assert.dom('.hds-dropdown-list-item').hasTagName('li');
       assert
@@ -35,19 +35,19 @@ module(
 
     test('it should render the "list-item" with a button by default"', async function (assert) {
       await render(
-        hbs`<Hds::Dropdown::ListItem::Interactive @text="interactive" />`,
+        hbs`<Hds::Dropdown::ListItem::Interactive>interactive</Hds::Dropdown::ListItem::Interactive>`,
       );
       assert.dom('.hds-dropdown-list-item > button').exists();
     });
     test('it should render the "list-item" with a link if it has a @route parameter"', async function (assert) {
       await render(
-        hbs`<Hds::Dropdown::ListItem::Interactive @text="interactive" @route="index" />`,
+        hbs`<Hds::Dropdown::ListItem::Interactive @route="index">interactive</Hds::Dropdown::ListItem::Interactive>`,
       );
       assert.dom('.hds-dropdown-list-item > a').exists();
     });
     test('it should render the "list-item" with a link if it has a @href argument"', async function (assert) {
       await render(
-        hbs`<Hds::Dropdown::ListItem::Interactive @text="interactive" @href="#" />`,
+        hbs`<Hds::Dropdown::ListItem::Interactive @href="#">interactive</Hds::Dropdown::ListItem::Interactive>`,
       );
       assert.dom('.hds-dropdown-list-item > a').exists();
     });
@@ -56,7 +56,7 @@ module(
 
     test('it should render the "action" color as the default if no color is declared"', async function (assert) {
       await render(
-        hbs`<Hds::Dropdown::ListItem::Interactive @text="interactive" />`,
+        hbs`<Hds::Dropdown::ListItem::Interactive>interactive</Hds::Dropdown::ListItem::Interactive>`,
       );
       assert
         .dom('.hds-dropdown-list-item')
@@ -64,7 +64,7 @@ module(
     });
     test('it should render the correct CSS color class if the @color prop is declared', async function (assert) {
       await render(
-        hbs`<Hds::Dropdown::ListItem::Interactive @color="critical" @text="interactive" @icon="trash" />`,
+        hbs`<Hds::Dropdown::ListItem::Interactive @color="critical" @icon="trash">interactive</Hds::Dropdown::ListItem::Interactive>`,
       );
       assert
         .dom('.hds-dropdown-list-item')
@@ -75,19 +75,19 @@ module(
 
     test('if an `@icon` is declared a leading icon should be rendered', async function (assert) {
       await render(
-        hbs`<Hds::Dropdown::ListItem::Interactive @icon="clipboard-copy" @text="interactive" />`,
+        hbs`<Hds::Dropdown::ListItem::Interactive @icon="clipboard-copy">interactive</Hds::Dropdown::ListItem::Interactive>`,
       );
       assert.dom('.hds-icon.hds-icon-clipboard-copy').exists();
     });
     test('if an `@trailingIcon` is declared a trailing icon should be rendered', async function (assert) {
       await render(
-        hbs`<Hds::Dropdown::ListItem::Interactive @trailingIcon="external-link" @text="interactive" />`,
+        hbs`<Hds::Dropdown::ListItem::Interactive @trailingIcon="external-link">interactive</Hds::Dropdown::ListItem::Interactive>`,
       );
       assert.dom('.hds-icon.hds-icon-external-link').exists();
     });
     test('if both an `@icon` and an `@trailingIcon` are declared both the leading and trailing icons should be rendered', async function (assert) {
       await render(
-        hbs`<Hds::Dropdown::ListItem::Interactive @icon="clipboard-copy" @trailingIcon="external-link" @text="interactive" />`,
+        hbs`<Hds::Dropdown::ListItem::Interactive @icon="clipboard-copy" @trailingIcon="external-link">interactive</Hds::Dropdown::ListItem::Interactive>`,
       );
       assert.dom('.hds-icon.hds-icon-clipboard-copy').exists();
       assert.dom('.hds-icon.hds-icon-external-link').exists();
@@ -95,12 +95,6 @@ module(
 
     // CONTENT
 
-    test('it should render the text passed as @text prop', async function (assert) {
-      await render(
-        hbs`<Hds::Dropdown::ListItem::Interactive @text="interactive text" />`,
-      );
-      assert.dom('.hds-dropdown-list-item').hasText('interactive text');
-    });
     test('it should render the yielded content', async function (assert) {
       await render(hbs`
         <Hds::Dropdown::ListItem::Interactive>
@@ -109,29 +103,9 @@ module(
       `);
       assert.dom('.hds-dropdown-list-item').hasText('interactive');
     });
-    test('it should render the text passed as @text prop if content is yielded', async function (assert) {
-      await render(hbs`
-        <Hds::Dropdown::ListItem::Interactive @text="erroneous">
-          interactive
-        </Hds::Dropdown::ListItem::Interactive>
-      `);
-      assert.dom('.hds-dropdown-list-item').doesNotContainText('erroneous');
-    });
 
     // ASSERTIONS
 
-    test('it should throw an assertion if @text is missing/has no value and the component does not yield content', async function (assert) {
-      const errorMessage =
-        '@text for "Hds::Dropdown::ListItem::Interactive" must have a valid value';
-      assert.expect(2);
-      setupOnerror(function (error) {
-        assert.strictEqual(error.message, `Assertion Failed: ${errorMessage}`);
-      });
-      await render(hbs`<Hds::Dropdown::ListItem::Interactive />`);
-      assert.throws(function () {
-        throw new Error(errorMessage);
-      });
-    });
     test('it should throw an assertion if an incorrect value for @color is provided', async function (assert) {
       const errorMessage =
         '@color for "Hds::Dropdown::ListItem::Interactive" must be one of the following: action, critical; received: foo';
@@ -140,7 +114,7 @@ module(
         assert.strictEqual(error.message, `Assertion Failed: ${errorMessage}`);
       });
       await render(
-        hbs`<Hds::Dropdown::ListItem::Interactive @color="foo" @text="interactive text" />`,
+        hbs`<Hds::Dropdown::ListItem::Interactive @color="foo">interactive text</Hds::Dropdown::ListItem::Interactive>`,
       );
       assert.throws(function () {
         throw new Error(errorMessage);
diff --git a/website/docs/components/dropdown/partials/code/component-api.md b/website/docs/components/dropdown/partials/code/component-api.md
index 4eb658a8d10..79eb1a3e1d4 100644
--- a/website/docs/components/dropdown/partials/code/component-api.md
+++ b/website/docs/components/dropdown/partials/code/component-api.md
@@ -209,9 +209,6 @@ It internally uses the [`Hds::Interactive`](/utilities/interactive) utility comp
   <C.Property @name="<[I].Badge>" @type="yielded component">
     The `Badge` component, yielded as contextual component inside `interactive` blocks of the `Dropdown`. It exposes the same API as the [`Badge` component](/components/badge).
   </C.Property>
-  <C.Property @name="text" @required={{true}} @deprecated={{true}} @type="string">
-    Text to be used in the item. If no text value is defined and no content is yielded, an error will be thrown.
-  </C.Property>
   <C.Property @name="color" @type="enum" @values={{array "action" "critical" }} @default="action">
     Color applied to the text and (optional) icons.
   </C.Property>