diff --git a/.changeset/forty-ways-grab.md b/.changeset/forty-ways-grab.md
new file mode 100644
index 0000000000..a1daca9c62
--- /dev/null
+++ b/.changeset/forty-ways-grab.md
@@ -0,0 +1,5 @@
+---
+'@primer/view-components': minor
+---
+
+Change ActionMenu to accept and forward overlay arguments
diff --git a/app/components/primer/alpha/action_menu.rb b/app/components/primer/alpha/action_menu.rb
index 708989a7e7..c06e4c3ad5 100644
--- a/app/components/primer/alpha/action_menu.rb
+++ b/app/components/primer/alpha/action_menu.rb
@@ -187,6 +187,7 @@ class ActionMenu < Primer::Component
       # @param dynamic_label_prefix [String] If provided, the prefix is prepended to the dynamic label and displayed in the show button.
       # @param select_variant [Symbol] <%= one_of(Primer::Alpha::ActionMenu::SELECT_VARIANT_OPTIONS) %>
       # @param form_arguments [Hash] Allows an `ActionMenu` to act as a select list in multi- and single-select modes. Pass the `builder:` and `name:` options to this hash. `builder:` should be an instance of `ActionView::Helpers::FormBuilder`, which are created by the standard Rails `#form_with` and `#form_for` helpers. The `name:` option is the desired name of the field that will be included in the params sent to the server on form submission.
+      # @param overlay_arguments [Hash] Arguments to pass to the underlying %= link_to_component(Primer::Alpha::Overlay) %>
       # @param system_arguments [Hash] <%= link_to_system_arguments_docs %>.
       def initialize(
         menu_id: self.class.generate_id,
@@ -199,6 +200,7 @@ def initialize(
         dynamic_label_prefix: nil,
         select_variant: DEFAULT_SELECT_VARIANT,
         form_arguments: {},
+        overlay_arguments: {},
         **system_arguments
       )
         @menu_id = menu_id
@@ -221,7 +223,8 @@ def initialize(
           visually_hide_title: true,
           anchor_align: anchor_align,
           anchor_side: anchor_side,
-          size: size
+          size: size,
+          **overlay_arguments
         )
 
         @list = Primer::Alpha::ActionMenu::List.new(
diff --git a/test/components/alpha/action_menu_test.rb b/test/components/alpha/action_menu_test.rb
index b22baf18e8..c96f580f52 100644
--- a/test/components/alpha/action_menu_test.rb
+++ b/test/components/alpha/action_menu_test.rb
@@ -196,6 +196,14 @@ def test_single_select_form_items_have_role_none
         # one form per item
         assert_selector "form[role=none]", count: 2
       end
+
+      def test_forwards_overlay_arguments
+        render_inline(Primer::Alpha::ActionMenu.new(menu_id: "foo", overlay_arguments: { data: { foo: "bar" } })) do |menu|
+          menu.with_item { "foo" }
+        end
+
+        assert_selector "anchored-position[data-foo=bar]"
+      end
     end
   end
 end