diff --git a/packages/components/CHANGELOG.md b/packages/components/CHANGELOG.md
index ca2d278909aa78..5539a28a09e013 100644
--- a/packages/components/CHANGELOG.md
+++ b/packages/components/CHANGELOG.md
@@ -2,16 +2,13 @@
 
 ## Unreleased
 
-### Breaking changes
-
--   Make the `Popover.Slot` optional and render popovers at the bottom of the document's body by default. ([#53889](https://github.com/WordPress/gutenberg/pull/53889), [#53982](https://github.com/WordPress/gutenberg/pull/53982)).
-
 ### Enhancements
 
 -   Making Circular Option Picker a `listbox`. Note that while this changes some public API, new props are optional, and currently have default values; this will change in another patch ([#52255](https://github.com/WordPress/gutenberg/pull/52255)).
 -   `ToggleGroupControl`: Rewrite backdrop animation using framer motion shared layout animations, add better support for controlled and uncontrolled modes ([#50278](https://github.com/WordPress/gutenberg/pull/50278)).
 -   `Popover`: Add the `is-positioned` CSS class only after the popover has finished animating ([#54178](https://github.com/WordPress/gutenberg/pull/54178)).
 -   `Tooltip`: Replace the existing tooltip to simplify the implementation and improve accessibility while maintaining the same behaviors and API ([#48440](https://github.com/WordPress/gutenberg/pull/48440)).
+-   `Dropdown` and `DropdownMenu`: support controlled mode for the dropdown's open/closed state ([#54257](https://github.com/WordPress/gutenberg/pull/54257)).
 
 ### Bug Fix
 
@@ -32,9 +29,12 @@
 
 ## 25.7.0 (2023-08-31)
 
+### Breaking changes
+
+-   Make the `Popover.Slot` optional and render popovers at the bottom of the document's body by default. ([#53889](https://github.com/WordPress/gutenberg/pull/53889), [#53982](https://github.com/WordPress/gutenberg/pull/53982)).
+
 ### Enhancements
 
--   Make the `Popover.Slot` optional and render popovers at the bottom of the document's body by default. ([#53889](https://github.com/WordPress/gutenberg/pull/53889)).
 -   `ProgressBar`: Add transition to determinate indicator ([#53877](https://github.com/WordPress/gutenberg/pull/53877)).
 -   Prevent nested `SlotFillProvider` from rendering ([#53940](https://github.com/WordPress/gutenberg/pull/53940)).
 
diff --git a/packages/components/src/dropdown-menu/README.md b/packages/components/src/dropdown-menu/README.md
index e1e4c7bf031b0f..dcdb30997038eb 100644
--- a/packages/components/src/dropdown-menu/README.md
+++ b/packages/components/src/dropdown-menu/README.md
@@ -198,3 +198,21 @@ In some contexts, the arrow down key used to open the dropdown menu might need t
 
 -   Required: No
 -   Default: `false`
+
+### `defaultOpen`: `boolean`
+
+The open state of the dropdown menu when initially rendered. Use when you do not need to control its open state. It will be overridden by the `open` prop if it is specified on the component's first render.
+
+-   Required: No
+
+### `open`: `boolean`
+
+The controlled open state of the dropdown menu. Must be used in conjunction with `onToggle`.
+
+-   Required: No
+
+### `onToggle`: `( willOpen: boolean ) => void`
+
+A callback invoked when the state of the dropdown changes from open to closed and vice versa.
+
+-   Required: No
diff --git a/packages/components/src/dropdown-menu/index.tsx b/packages/components/src/dropdown-menu/index.tsx
index b5b7533e52bc40..b5ccd92d68b907 100644
--- a/packages/components/src/dropdown-menu/index.tsx
+++ b/packages/components/src/dropdown-menu/index.tsx
@@ -57,6 +57,10 @@ function UnconnectedDropdownMenu( dropdownMenuProps: DropdownMenuProps ) {
 		text,
 		noIcons,
 
+		open,
+		defaultOpen,
+		onToggle: onToggleProp,
+
 		// Context
 		variant,
 	} = useContextSystem< DropdownMenuProps & DropdownMenuInternalContext >(
@@ -211,6 +215,9 @@ function UnconnectedDropdownMenu( dropdownMenuProps: DropdownMenuProps ) {
 					</NavigableMenu>
 				);
 			} }
+			open={ open }
+			defaultOpen={ defaultOpen }
+			onToggle={ onToggleProp }
 		/>
 	);
 }
diff --git a/packages/components/src/dropdown-menu/stories/index.story.tsx b/packages/components/src/dropdown-menu/stories/index.story.tsx
index 0490636cfa2067..d4b856380db92a 100644
--- a/packages/components/src/dropdown-menu/stories/index.story.tsx
+++ b/packages/components/src/dropdown-menu/stories/index.story.tsx
@@ -2,6 +2,7 @@
  * External dependencies
  */
 import type { Meta, StoryFn } from '@storybook/react';
+
 /**
  * Internal dependencies
  */
@@ -25,6 +26,7 @@ const meta: Meta< typeof DropdownMenu > = {
 	title: 'Components/DropdownMenu',
 	component: DropdownMenu,
 	parameters: {
+		actions: { argTypesRegex: '^on.*' },
 		controls: { expanded: true },
 		docs: { canvas: { sourceState: 'shown' } },
 	},
@@ -34,6 +36,9 @@ const meta: Meta< typeof DropdownMenu > = {
 			mapping: { menu, chevronDown, more },
 			control: { type: 'select' },
 		},
+		open: { control: { type: null } },
+		defaultOpen: { control: { type: null } },
+		onToggle: { control: { type: null } },
 	},
 };
 export default meta;
diff --git a/packages/components/src/dropdown-menu/types.ts b/packages/components/src/dropdown-menu/types.ts
index 1063631c65113e..2e70557a7fe43e 100644
--- a/packages/components/src/dropdown-menu/types.ts
+++ b/packages/components/src/dropdown-menu/types.ts
@@ -140,6 +140,22 @@ export type DropdownMenuProps = {
 	 * A valid DropdownMenu must specify a `controls` or `children` prop, or both.
 	 */
 	controls?: DropdownOption[] | DropdownOption[][];
+	/**
+	 * The controlled open state of the dropdown menu.
+	 * Must be used in conjunction with `onToggle`.
+	 */
+	open?: boolean;
+	/**
+	 * The open state of the dropdown menu when initially rendered.
+	 * Use when you do not need to control its open state. It will be overridden
+	 * by the `open` prop if it is specified on the component's first render.
+	 */
+	defaultOpen?: boolean;
+	/**
+	 * A callback invoked when the state of the dropdown menu changes
+	 * from open to closed and vice versa.
+	 */
+	onToggle?: ( willOpen: boolean ) => void;
 };
 
 export type DropdownMenuInternalContext = {
diff --git a/packages/components/src/dropdown/README.md b/packages/components/src/dropdown/README.md
index 3dd321ed900128..5bb3ec2c3b6e0e 100644
--- a/packages/components/src/dropdown/README.md
+++ b/packages/components/src/dropdown/README.md
@@ -44,6 +44,12 @@ If you want to target the dropdown menu for styling purposes, you need to provid
 
 -   Required: No
 
+### `defaultOpen`: `boolean`
+
+The open state of the dropdown when initially rendered. Use when you do not need to control its open state. It will be overridden by the `open` prop if it is specified on the component's first render.
+
+-   Required: No
+
 ### `expandOnMobile`: `boolean`
 
 Opt-in prop to show popovers fullscreen on mobile.
@@ -74,11 +80,15 @@ A callback invoked when the popover should be closed.
 
 -   Required: No
 
-### `onToggle`: `( willOpen: boolean ) => void`
+### `open`: `boolean`
 
-A callback invoked when the state of the popover changes from open to closed and vice versa.
+The controlled open state of the dropdown. Must be used in conjunction with `onToggle`.
+
+-   Required: No
+
+### `onToggle`: `( willOpen: boolean ) => void`
 
-The callback receives a boolean as a parameter. If `true`, the popover will open. If `false`, the popover will close.
+A callback invoked when the state of the dropdown changes from open to closed and vice versa.
 
 -   Required: No
 
diff --git a/packages/components/src/dropdown/index.tsx b/packages/components/src/dropdown/index.tsx
index 2060254fa73c11..0a870049a5b697 100644
--- a/packages/components/src/dropdown/index.tsx
+++ b/packages/components/src/dropdown/index.tsx
@@ -7,7 +7,7 @@ import type { ForwardedRef } from 'react';
 /**
  * WordPress dependencies
  */
-import { useEffect, useRef, useState } from '@wordpress/element';
+import { useRef, useState } from '@wordpress/element';
 import { useMergeRefs } from '@wordpress/compose';
 import deprecated from '@wordpress/deprecated';
 
@@ -15,25 +15,10 @@ import deprecated from '@wordpress/deprecated';
  * Internal dependencies
  */
 import { contextConnect, useContextSystem } from '../ui/context';
+import { useControlledValue } from '../utils/hooks';
 import Popover from '../popover';
 import type { DropdownProps, DropdownInternalContext } from './types';
 
-function useObservableState(
-	initialState: boolean,
-	onStateChange?: ( newState: boolean ) => void
-) {
-	const [ state, setState ] = useState( initialState );
-	return [
-		state,
-		( value: boolean ) => {
-			setState( value );
-			if ( onStateChange ) {
-				onStateChange( value );
-			}
-		},
-	] as const;
-}
-
 const UnconnectedDropdown = (
 	props: DropdownProps,
 	forwardedRef: ForwardedRef< any >
@@ -51,6 +36,9 @@ const UnconnectedDropdown = (
 		onToggle,
 		style,
 
+		open,
+		defaultOpen,
+
 		// Deprecated props
 		position,
 
@@ -74,20 +62,12 @@ const UnconnectedDropdown = (
 	const [ fallbackPopoverAnchor, setFallbackPopoverAnchor ] =
 		useState< HTMLDivElement | null >( null );
 	const containerRef = useRef< HTMLDivElement >();
-	const [ isOpen, setIsOpen ] = useObservableState( false, onToggle );
-
-	useEffect(
-		() => () => {
-			if ( onToggle && isOpen ) {
-				onToggle( false );
-			}
-		},
-		[ onToggle, isOpen ]
-	);
 
-	function toggle() {
-		setIsOpen( ! isOpen );
-	}
+	const [ isOpen, setIsOpen ] = useControlledValue( {
+		defaultValue: defaultOpen,
+		value: open,
+		onChange: onToggle,
+	} );
 
 	/**
 	 * Closes the popover when focus leaves it unless the toggle was pressed or
@@ -112,13 +92,15 @@ const UnconnectedDropdown = (
 	}
 
 	function close() {
-		if ( onClose ) {
-			onClose();
-		}
+		onClose?.();
 		setIsOpen( false );
 	}
 
-	const args = { isOpen, onToggle: toggle, onClose: close };
+	const args = {
+		isOpen: !! isOpen,
+		onToggle: () => setIsOpen( ! isOpen ),
+		onClose: close,
+	};
 	const popoverPropsHaveAnchor =
 		!! popoverProps?.anchor ||
 		// Note: `anchorRef`, `getAnchorRect` and `anchorRect` are deprecated and
diff --git a/packages/components/src/dropdown/stories/index.story.tsx b/packages/components/src/dropdown/stories/index.story.tsx
index 0b29da916b8d89..894f62ee47f8d7 100644
--- a/packages/components/src/dropdown/stories/index.story.tsx
+++ b/packages/components/src/dropdown/stories/index.story.tsx
@@ -25,8 +25,13 @@ const meta: Meta< typeof Dropdown > = {
 		position: { control: { type: null } },
 		renderContent: { control: { type: null } },
 		renderToggle: { control: { type: null } },
+		open: { control: { type: null } },
+		defaultOpen: { control: { type: null } },
+		onToggle: { control: { type: null } },
+		onClose: { control: { type: null } },
 	},
 	parameters: {
+		actions: { argTypesRegex: '^on.*' },
 		controls: {
 			expanded: true,
 		},
@@ -34,13 +39,11 @@ const meta: Meta< typeof Dropdown > = {
 };
 export default meta;
 
-const Template: StoryFn< typeof Dropdown > = ( args ) => {
-	return (
-		<div style={ { height: 150 } }>
-			<Dropdown { ...args } />
-		</div>
-	);
-};
+const Template: StoryFn< typeof Dropdown > = ( args ) => (
+	<div style={ { height: 150 } }>
+		<Dropdown { ...args } />
+	</div>
+);
 
 export const Default = Template.bind( {} );
 Default.args = {
diff --git a/packages/components/src/dropdown/types.ts b/packages/components/src/dropdown/types.ts
index c95953f37b1fb1..b185ec6fe14f71 100644
--- a/packages/components/src/dropdown/types.ts
+++ b/packages/components/src/dropdown/types.ts
@@ -62,11 +62,8 @@ export type DropdownProps = {
 	 */
 	onClose?: () => void;
 	/**
-	 * A callback invoked when the state of the popover changes
+	 * A callback invoked when the state of the dropdown changes
 	 * from open to closed and vice versa.
-	 * The callback receives a boolean as a parameter.
-	 * If true, the popover will open.
-	 * If false, the popover will close.
 	 */
 	onToggle?: ( willOpen: boolean ) => void;
 	/**
@@ -111,6 +108,17 @@ export type DropdownProps = {
 	 * @deprecated
 	 */
 	position?: PopoverProps[ 'position' ];
+	/**
+	 * The controlled open state of the dropdown.
+	 * Must be used in conjunction with `onToggle`.
+	 */
+	open?: boolean;
+	/**
+	 * The open state of the dropdown when initially rendered.
+	 * Use when you do not need to control its open state. It will be overridden
+	 * by the `open` prop if it is specified on the component's first render.
+	 */
+	defaultOpen?: boolean;
 };
 
 export type DropdownInternalContext = {