diff --git a/packages/components/CHANGELOG.md b/packages/components/CHANGELOG.md
index 7314e7ecdce49f..82cd74a6b758d0 100644
--- a/packages/components/CHANGELOG.md
+++ b/packages/components/CHANGELOG.md
@@ -38,6 +38,7 @@
 -   `Popover`: Remove `scroll` and `resize` listeners for iframe overflow parents and rely on recently added native Floating UI support ([#54286](https://github.com/WordPress/gutenberg/pull/54286)).
 -   `Button`: Update documentation to remove the button `focus` prop ([#54397](https://github.com/WordPress/gutenberg/pull/54397)).
 -   `Toolbar/ToolbarGroup`: Convert component to TypeScript ([#54317](https://github.com/WordPress/gutenberg/pull/54317)).
+-   `Modal`: add more unit tests ([#54569](https://github.com/WordPress/gutenberg/pull/54569)).
 
 ### Experimental
 
diff --git a/packages/components/src/confirm-dialog/test/index.js b/packages/components/src/confirm-dialog/test/index.js
index 4aecd43f570861..adf19b292898f8 100644
--- a/packages/components/src/confirm-dialog/test/index.js
+++ b/packages/components/src/confirm-dialog/test/index.js
@@ -1,13 +1,7 @@
 /**
  * External dependencies
  */
-import {
-	render,
-	screen,
-	fireEvent,
-	waitForElementToBeRemoved,
-	waitFor,
-} from '@testing-library/react';
+import { render, screen } from '@testing-library/react';
 import userEvent from '@testing-library/user-event';
 
 /**
@@ -137,6 +131,7 @@ describe( 'Confirm', () => {
 			} );
 
 			it( 'should not render if dialog is closed by clicking the overlay, and the `onCancel` callback should be called', async () => {
+				const user = userEvent.setup();
 				const onCancel = jest.fn().mockName( 'onCancel()' );
 
 				render(
@@ -147,11 +142,9 @@ describe( 'Confirm', () => {
 
 				const confirmDialog = screen.getByRole( 'dialog' );
 
-				//The overlay click is handled by detecting an onBlur from the modal frame.
-				// TODO: replace with `@testing-library/user-event`
-				fireEvent.blur( confirmDialog );
-
-				await waitForElementToBeRemoved( confirmDialog );
+				// Disable reason: Semantic queries can’t reach the overlay.
+				// eslint-disable-next-line testing-library/no-node-access
+				await user.click( confirmDialog.parentElement );
 
 				expect( confirmDialog ).not.toBeInTheDocument();
 				expect( onCancel ).toHaveBeenCalled();
@@ -315,6 +308,7 @@ describe( 'Confirm', () => {
 		} );
 
 		it( 'should call the `onCancel` callback if the overlay is clicked', async () => {
+			const user = userEvent.setup();
 			const onCancel = jest.fn().mockName( 'onCancel()' );
 
 			render(
@@ -329,13 +323,11 @@ describe( 'Confirm', () => {
 
 			const confirmDialog = screen.getByRole( 'dialog' );
 
-			//The overlay click is handled by detecting an onBlur from the modal frame.
-			// TODO: replace with `@testing-library/user-event`
-			fireEvent.blur( confirmDialog );
+			// Disable reason: Semantic queries can’t reach the overlay.
+			// eslint-disable-next-line testing-library/no-node-access
+			await user.click( confirmDialog.parentElement );
 
-			// Wait for a DOM side effect here, so that the `queueBlurCheck` in the
-			// `useFocusOutside` hook properly executes its timeout task.
-			await waitFor( () => expect( onCancel ).toHaveBeenCalled() );
+			expect( onCancel ).toHaveBeenCalled();
 		} );
 
 		it( 'should call the `onCancel` callback if the `Escape` key is pressed', async () => {
diff --git a/packages/components/src/modal/test/index.tsx b/packages/components/src/modal/test/index.tsx
index c2ab277f721570..d3bd6aea888132 100644
--- a/packages/components/src/modal/test/index.tsx
+++ b/packages/components/src/modal/test/index.tsx
@@ -116,6 +116,113 @@ describe( 'Modal', () => {
 		expect( opener ).toHaveFocus();
 	} );
 
+	it( 'should request closing of any non nested modal when opened', async () => {
+		const user = userEvent.setup();
+		const onRequestClose = jest.fn();
+
+		const DismissAdjacent = () => {
+			const [ isShown, setIsShown ] = useState( false );
+			return (
+				<>
+					<Modal onRequestClose={ onRequestClose }>
+						<button onClick={ () => setIsShown( true ) }>💥</button>
+					</Modal>
+					{ isShown && (
+						<Modal onRequestClose={ () => setIsShown( false ) }>
+							<p>Adjacent modal content</p>
+						</Modal>
+					) }
+				</>
+			);
+		};
+		render( <DismissAdjacent /> );
+
+		await user.click( screen.getByRole( 'button', { name: '💥' } ) );
+		expect( onRequestClose ).toHaveBeenCalled();
+	} );
+
+	it( 'should support nested modals', async () => {
+		const user = userEvent.setup();
+		const onRequestClose = jest.fn();
+
+		const NestSupport = () => {
+			const [ isShown, setIsShown ] = useState( false );
+			return (
+				<>
+					<Modal onRequestClose={ onRequestClose }>
+						<button onClick={ () => setIsShown( true ) }>🪆</button>
+						{ isShown && (
+							<Modal onRequestClose={ () => setIsShown( false ) }>
+								<p>Nested modal content</p>
+							</Modal>
+						) }
+					</Modal>
+				</>
+			);
+		};
+		render( <NestSupport /> );
+
+		await user.click( screen.getByRole( 'button', { name: '🪆' } ) );
+		expect( onRequestClose ).not.toHaveBeenCalled();
+	} );
+
+	// TODO enable once nested modals hide outer modals.
+	it.skip( 'should accessibly hide and show siblings including outer modals', async () => {
+		const user = userEvent.setup();
+
+		const AriaDemo = () => {
+			const [ isOuterShown, setIsOuterShown ] = useState( false );
+			const [ isInnerShown, setIsInnerShown ] = useState( false );
+			return (
+				<>
+					<button onClick={ () => setIsOuterShown( true ) }>
+						Start
+					</button>
+					{ isOuterShown && (
+						<Modal
+							onRequestClose={ () => setIsOuterShown( false ) }
+						>
+							<button onClick={ () => setIsInnerShown( true ) }>
+								Nest
+							</button>
+							{ isInnerShown && (
+								<Modal
+									onRequestClose={ () =>
+										setIsInnerShown( false )
+									}
+								>
+									<p>Nested modal content</p>
+								</Modal>
+							) }
+						</Modal>
+					) }
+				</>
+			);
+		};
+		const { container } = render( <AriaDemo /> );
+
+		// Opens outer modal > hides container.
+		await user.click( screen.getByRole( 'button', { name: 'Start' } ) );
+		expect( container ).toHaveAttribute( 'aria-hidden', 'true' );
+
+		// Disable reason: No semantic query can reach the overlay.
+		// eslint-disable-next-line testing-library/no-node-access
+		const outer = screen.getByRole( 'dialog' ).parentElement!;
+
+		// Opens inner modal > hides outer modal.
+		await user.click( screen.getByRole( 'button', { name: 'Nest' } ) );
+		expect( outer ).toHaveAttribute( 'aria-hidden', 'true' );
+
+		// Closes inner modal > Unhides outer modal and container stays hidden.
+		await user.keyboard( '[Escape]' );
+		expect( outer ).not.toHaveAttribute( 'aria-hidden' );
+		expect( container ).toHaveAttribute( 'aria-hidden', 'true' );
+
+		// Closes outer modal > Unhides container.
+		await user.keyboard( '[Escape]' );
+		expect( container ).not.toHaveAttribute( 'aria-hidden' );
+	} );
+
 	it( 'should render `headerActions` React nodes', async () => {
 		render(
 			<Modal