diff --git a/.changeset/salty-geese-say.md b/.changeset/salty-geese-say.md
new file mode 100644
index 00000000000..4ac8204b82a
--- /dev/null
+++ b/.changeset/salty-geese-say.md
@@ -0,0 +1,5 @@
+---
+'@primer/react': minor
+---
+
+Expose props to allow virtualization in the SelectPanel
diff --git a/package-lock.json b/package-lock.json
index 80e38040423..626bf0fda64 100644
--- a/package-lock.json
+++ b/package-lock.json
@@ -8431,6 +8431,35 @@
         "tslib": "^2.8.0"
       }
     },
+    "node_modules/@tanstack/react-virtual": {
+      "version": "3.13.12",
+      "resolved": "https://registry.npmjs.org/@tanstack/react-virtual/-/react-virtual-3.13.12.tgz",
+      "integrity": "sha512-Gd13QdxPSukP8ZrkbgS2RwoZseTTbQPLnQEn7HY/rqtM+8Zt95f7xKC7N0EsKs7aoz0WzZ+fditZux+F8EzYxA==",
+      "dev": true,
+      "license": "MIT",
+      "dependencies": {
+        "@tanstack/virtual-core": "3.13.12"
+      },
+      "funding": {
+        "type": "github",
+        "url": "https://github.com/sponsors/tannerlinsley"
+      },
+      "peerDependencies": {
+        "react": "^16.8.0 || ^17.0.0 || ^18.0.0 || ^19.0.0",
+        "react-dom": "^16.8.0 || ^17.0.0 || ^18.0.0 || ^19.0.0"
+      }
+    },
+    "node_modules/@tanstack/virtual-core": {
+      "version": "3.13.12",
+      "resolved": "https://registry.npmjs.org/@tanstack/virtual-core/-/virtual-core-3.13.12.tgz",
+      "integrity": "sha512-1YBOJfRHV4sXUmWsFSf5rQor4Ss82G8dQWLRbnk3GA4jeP8hQt1hxXh0tmflpC0dz3VgEv/1+qwPyLeWkQuPFA==",
+      "dev": true,
+      "license": "MIT",
+      "funding": {
+        "type": "github",
+        "url": "https://github.com/sponsors/tannerlinsley"
+      }
+    },
     "node_modules/@testing-library/dom": {
       "version": "10.4.0",
       "dev": true,
@@ -27176,6 +27205,7 @@
         "@storybook/addon-links": "^9.1.10",
         "@storybook/icons": "^1.6.0",
         "@storybook/react-vite": "^9.1.10",
+        "@tanstack/react-virtual": "^3.13.12",
         "@testing-library/dom": "^10.4.0",
         "@testing-library/jest-dom": "^6.4.5",
         "@testing-library/react": "^16.3.0",
diff --git a/packages/react/package.json b/packages/react/package.json
index 6686ebe2daf..d63ee809bcf 100644
--- a/packages/react/package.json
+++ b/packages/react/package.json
@@ -107,6 +107,7 @@
     "@figma/code-connect": "1.3.2",
     "@primer/css": "^21.5.1",
     "@primer/doc-gen": "^0.0.1",
+    "@tanstack/react-virtual": "^3.13.12",
     "@rollup/plugin-babel": "6.1.0",
     "@rollup/plugin-commonjs": "29.0.0",
     "@rollup/plugin-json": "6.1.0",
diff --git a/packages/react/src/FilteredActionList/FilteredActionList.tsx b/packages/react/src/FilteredActionList/FilteredActionList.tsx
index 4c2b59b2cc2..6cc5a08076d 100644
--- a/packages/react/src/FilteredActionList/FilteredActionList.tsx
+++ b/packages/react/src/FilteredActionList/FilteredActionList.tsx
@@ -5,7 +5,7 @@ import type React from 'react'
 import {useCallback, useEffect, useRef, useState} from 'react'
 import type {TextInputProps} from '../TextInput'
 import TextInput from '../TextInput'
-import {ActionList} from '../ActionList'
+import {ActionList, type ActionListProps} from '../ActionList'
 import type {GroupedListProps, ListPropsBase, ItemInput, RenderItemFn} from './'
 import {useFocusZone} from '../hooks/useFocusZone'
 import {useId} from '../hooks/useId'
@@ -17,7 +17,6 @@ import type {FilteredActionListLoadingType} from './FilteredActionListLoaders'
 import {FilteredActionListLoadingTypes, FilteredActionListBodyLoader} from './FilteredActionListLoaders'
 import classes from './FilteredActionList.module.css'
 import Checkbox from '../Checkbox'
-
 import {ActionListContainerContext} from '../ActionList/ActionListContainerContext'
 import {isValidElementType} from 'react-is'
 import {useAnnouncements} from './useAnnouncements'
@@ -33,6 +32,10 @@ export interface FilteredActionListProps extends Partial<Omit<GroupedListProps,
   onFilterChange: (value: string, e: React.ChangeEvent<HTMLInputElement> | null) => void
   onListContainerRefChanged?: (ref: HTMLElement | null) => void
   onInputRefChanged?: (ref: React.RefObject<HTMLInputElement>) => void
+  /**
+   * A ref assigned to the scrollable container wrapping the ActionList
+   */
+  scrollContainerRef?: React.Ref<HTMLDivElement | null>
   textInputProps?: Partial<Omit<TextInputProps, 'onChange'>>
   inputRef?: React.RefObject<HTMLInputElement>
   message?: React.ReactNode
@@ -44,6 +47,19 @@ export interface FilteredActionListProps extends Partial<Omit<GroupedListProps,
   announcementsEnabled?: boolean
   fullScreenOnNarrow?: boolean
   onSelectAllChange?: (checked: boolean) => void
+  /**
+   * Additional props to pass to the underlying ActionList component.
+   */
+  actionListProps?: Partial<ActionListProps>
+  /**
+   * Determines how keyboard focus behaves when navigating beyond the first or last item in the list.
+   *
+   * - `'stop'`: Focus will stop at the first or last item; further navigation in that direction will not move focus.
+   * - `'wrap'`: Focus will wrap around to the opposite end of the list when navigating past the boundaries (e.g., pressing Down on the last item moves focus to the first).
+   *
+   *  @default 'wrap'
+   */
+  focusOutBehavior?: 'stop' | 'wrap'
   /**
    * Private API for use internally only. Adds the ability to switch between
    * `active-descendant` and roving tabindex.
@@ -77,6 +93,7 @@ export function FilteredActionList({
   items,
   textInputProps,
   inputRef: providedInputRef,
+  scrollContainerRef: providedScrollContainerRef,
   groupMetadata,
   showItemDividers,
   message,
@@ -86,6 +103,8 @@ export function FilteredActionList({
   announcementsEnabled = true,
   fullScreenOnNarrow,
   onSelectAllChange,
+  actionListProps,
+  focusOutBehavior = 'wrap',
   _PrivateFocusManagement = 'active-descendant',
   ...listProps
 }: FilteredActionListProps): JSX.Element {
@@ -102,14 +121,16 @@ export function FilteredActionList({
   const inputAndListContainerRef = useRef<HTMLDivElement>(null)
   const listRef = useRef<HTMLUListElement>(null)
 
-  const scrollContainerRef = useRef<HTMLDivElement>(null)
+  const scrollContainerRef = useProvidedRefOrCreate<HTMLDivElement>(
+    providedScrollContainerRef as React.RefObject<HTMLDivElement>,
+  )
   const inputRef = useProvidedRefOrCreate<HTMLInputElement>(providedInputRef)
 
   const usingRovingTabindex = _PrivateFocusManagement === 'roving-tabindex'
   const [listContainerElement, setListContainerElement] = useState<HTMLUListElement | null>(null)
   const activeDescendantRef = useRef<HTMLElement>()
 
-  const listId = useId()
+  const listId = useId(actionListProps?.id)
   const inputDescriptionTextId = useId()
   const [isInputFocused, setIsInputFocused] = useState(false)
 
@@ -200,7 +221,7 @@ export function FilteredActionList({
       ? {
           containerRef: {current: listContainerElement},
           bindKeys: FocusKeys.ArrowVertical | FocusKeys.PageUpDown,
-          focusOutBehavior: 'wrap',
+          focusOutBehavior,
           focusableElementFilter: element => {
             return !(element instanceof HTMLInputElement)
           },
@@ -224,7 +245,7 @@ export function FilteredActionList({
         behavior: 'auto',
       })
     }
-  }, [items, inputRef])
+  }, [items, inputRef, scrollContainerRef])
 
   useEffect(() => {
     if (usingRovingTabindex) {
@@ -288,9 +309,10 @@ export function FilteredActionList({
         showDividers={showItemDividers}
         selectionVariant={selectionVariant}
         {...listProps}
+        {...actionListProps}
         role="listbox"
         id={listId}
-        className={classes.ActionList}
+        className={clsx(classes.ActionList, actionListProps?.className)}
       >
         {groupMetadata?.length
           ? groupMetadata.map((group, index) => {
diff --git a/packages/react/src/SelectPanel/SelectPanel.docs.json b/packages/react/src/SelectPanel/SelectPanel.docs.json
index aa55f1761c1..370af70ee9c 100644
--- a/packages/react/src/SelectPanel/SelectPanel.docs.json
+++ b/packages/react/src/SelectPanel/SelectPanel.docs.json
@@ -207,6 +207,24 @@
       "type": "'start' | 'end' | 'center'",
       "defaultValue": "'start'",
       "description": "Determines the alignment of the panel relative to the anchor. Defaults to 'start' which aligns the left edge of the panel with the left edge of the anchor."
+    },
+    {
+      "name": "scrollContainerRef",
+      "type": "React.Ref<HTMLDivElement | null>",
+      "defaultValue": "undefined",
+      "description": "A ref assigned to the scrollable container wrapping the ActionList"
+    },
+    {
+      "name": "actionListProps",
+      "type": "Partial<ActionListProps>",
+      "defaultValue": "undefined",
+      "description": "See [ActionList props](/react/ActionList#props)."
+    },  
+    {
+      "name": "focusOutBehavior",
+       "type": "'start' | 'wrap'",
+      "defaultValue": "'wrap'",
+      "description": "Determines how keyboard focus behaves when navigating beyond the first or last item in the list."
     }
   ],
   "subcomponents": []
diff --git a/packages/react/src/SelectPanel/SelectPanel.examples.stories.tsx b/packages/react/src/SelectPanel/SelectPanel.examples.stories.tsx
index 3141591f221..7ba9103e6f8 100644
--- a/packages/react/src/SelectPanel/SelectPanel.examples.stories.tsx
+++ b/packages/react/src/SelectPanel/SelectPanel.examples.stories.tsx
@@ -10,6 +10,7 @@ import FormControl from '../FormControl'
 import {Stack} from '../Stack'
 import {Dialog} from '../experimental'
 import styles from './SelectPanel.examples.stories.module.css'
+import {useVirtualizer} from '@tanstack/react-virtual'
 import Checkbox from '../Checkbox'
 import Label from '../Label'
 
@@ -472,7 +473,7 @@ export const WithDefaultMessage = () => {
   )
 }
 
-const NUMBER_OF_ITEMS = 500
+const NUMBER_OF_ITEMS = 1800
 const lotsOfItems = Array.from({length: NUMBER_OF_ITEMS}, (_, index) => {
   return {
     id: index,
@@ -583,3 +584,132 @@ export const RenderMoreOnScroll = () => {
     </form>
   )
 }
+
+const DEFAULT_VIRTUAL_ITEM_HEIGHT = 35
+
+export const Virtualized = () => {
+  const [selected, setSelected] = useState<ItemInput[]>([])
+  const [open, setOpen] = useState(false)
+  const [renderSubset, setRenderSubset] = useState(true)
+
+  const [filter, setFilter] = useState('')
+  const [scrollContainer, setScrollContainer] = useState<HTMLDivElement | null>(null)
+  const filteredItems = lotsOfItems.filter(item => item.text.toLowerCase().startsWith(filter.toLowerCase()))
+
+  /* perf measurement logic start */
+  const timeBeforeOpen = useRef<number>()
+  const timeAfterOpen = useRef<number>()
+  const [timeTakenToOpen, setTimeTakenToOpen] = useState<number>()
+
+  const onOpenChange = () => {
+    if (!open) timeBeforeOpen.current = performance.now()
+    setOpen(!open)
+  }
+  useEffect(
+    function measureTimeAfterOpen() {
+      if (open) {
+        timeAfterOpen.current = performance.now()
+        if (timeBeforeOpen.current) setTimeTakenToOpen(timeAfterOpen.current - timeBeforeOpen.current)
+      }
+    },
+    [open],
+  )
+
+  const virtualizer = useVirtualizer({
+    count: filteredItems.length,
+    getScrollElement: () => scrollContainer ?? null,
+    estimateSize: () => DEFAULT_VIRTUAL_ITEM_HEIGHT,
+    overscan: 10,
+    debug: true,
+    enabled: renderSubset,
+  })
+
+  const virtualizedContainerStyle = useMemo(
+    () =>
+      renderSubset
+        ? {
+            height: virtualizer.getTotalSize(),
+            width: '100%',
+            position: 'relative' as const,
+          }
+        : undefined,
+    [renderSubset, virtualizer],
+  )
+
+  const virtualizedItems = useMemo(
+    () =>
+      renderSubset
+        ? virtualizer.getVirtualItems().map(virtualItem => {
+            const item = filteredItems[virtualItem.index]
+
+            return {
+              ...item,
+              key: virtualItem.index,
+              style: {
+                position: 'absolute',
+                top: 0,
+                left: 0,
+                width: '100%',
+                height: `${virtualItem.size}px`,
+                transform: `translateY(${virtualItem.start}px)`,
+              },
+            }
+          })
+        : filteredItems,
+    [renderSubset, virtualizer, filteredItems],
+  )
+
+  return (
+    <form>
+      <FormControl>
+        <FormControl.Label>Render subset of items on initial open</FormControl.Label>
+        <FormControl.Caption>
+          {renderSubset
+            ? 'Uses virtualization to render visible items efficiently'
+            : `Loads all ${NUMBER_OF_ITEMS} items at once without virtualization`}
+        </FormControl.Caption>
+        <Checkbox
+          checked={renderSubset}
+          onChange={() => {
+            setRenderSubset(!renderSubset)
+            setTimeTakenToOpen(undefined)
+          }}
+        />
+      </FormControl>
+      <p>
+        Time taken (ms) to render initial {renderSubset ? 50 : NUMBER_OF_ITEMS} items:{' '}
+        {timeTakenToOpen ? <Label>{timeTakenToOpen.toFixed(2)} ms</Label> : '(click "Select Labels" to open)'}
+      </p>
+      <FormControl>
+        <FormControl.Label>Labels</FormControl.Label>
+        <SelectPanel
+          title="Select labels"
+          placeholder="Select labels"
+          subtitle="Use labels to organize issues and pull requests"
+          renderAnchor={({children, ...anchorProps}) => (
+            <Button trailingAction={TriangleDownIcon} {...anchorProps} aria-haspopup="dialog">
+              {children}
+            </Button>
+          )}
+          open={open}
+          onOpenChange={onOpenChange}
+          items={virtualizedItems}
+          selected={selected}
+          onSelectedChange={setSelected}
+          onFilterChange={setFilter}
+          width="medium"
+          height="large"
+          message={filteredItems.length === 0 ? NoResultsMessage(filter) : undefined}
+          overlayProps={{
+            id: 'select-labels-panel-dialog',
+          }}
+          focusOutBehavior="stop"
+          scrollContainerRef={node => setScrollContainer(node)}
+          actionListProps={{
+            style: virtualizedContainerStyle,
+          }}
+        />
+      </FormControl>
+    </form>
+  )
+}