diff --git a/.changeset/purple-pigs-check.md b/.changeset/purple-pigs-check.md
new file mode 100644
index 00000000000..08a4fa2cc92
--- /dev/null
+++ b/.changeset/purple-pigs-check.md
@@ -0,0 +1,7 @@
+---
+"@primer/react": patch
+---
+
+Fix: ActionMenu with overflow contains scrollbars within its rounded border
+
+
diff --git a/packages/react/src/ActionMenu/ActionMenu.module.css b/packages/react/src/ActionMenu/ActionMenu.module.css
index 15a2fbd9834..4c9b063d239 100644
--- a/packages/react/src/ActionMenu/ActionMenu.module.css
+++ b/packages/react/src/ActionMenu/ActionMenu.module.css
@@ -2,4 +2,46 @@
   &:where([data-variant='fullscreen']) {
     padding-top: var(--base-size-36);
   }
+
+  /* Overflow variants */
+  &:where([data-overflow-auto]) {
+    overflow: auto;
+  }
+
+  &:where([data-overflow-hidden]) {
+    overflow: hidden;
+  }
+
+  &:where([data-overflow-scroll]) {
+    overflow: scroll;
+  }
+
+  &:where([data-overflow-visible]) {
+    overflow: visible;
+  }
+
+  /* Max-height size tokens (mirror Overlay sizes) */
+  &:where([data-max-height-xsmall]) {
+    max-height: 192px;
+  }
+
+  &:where([data-max-height-small]) {
+    max-height: 256px;
+  }
+
+  &:where([data-max-height-medium]) {
+    max-height: 320px;
+  }
+
+  &:where([data-max-height-large]) {
+    max-height: 432px;
+  }
+
+  &:where([data-max-height-xlarge]) {
+    max-height: 600px;
+  }
+
+  &:where([data-max-height-fit-content]) {
+    max-height: fit-content;
+  }
 }
diff --git a/packages/react/src/ActionMenu/ActionMenu.tsx b/packages/react/src/ActionMenu/ActionMenu.tsx
index 2041d27f6e4..c2c722cb895 100644
--- a/packages/react/src/ActionMenu/ActionMenu.tsx
+++ b/packages/react/src/ActionMenu/ActionMenu.tsx
@@ -316,7 +316,13 @@ const Overlay: FCWithSlotMarker<React.PropsWithChildren<MenuOverlayProps>> = ({
       onPositionChange={onPositionChange}
       variant={variant}
     >
-      <div ref={containerRef} className={styles.ActionMenuContainer} data-variant={responsiveVariant}>
+      <div
+        ref={containerRef}
+        className={styles.ActionMenuContainer}
+        data-variant={responsiveVariant}
+        {...(overlayProps.overflow ? {[`data-overflow-${overlayProps.overflow}`]: ''} : {})}
+        {...(overlayProps.maxHeight ? {[`data-max-height-${overlayProps.maxHeight}`]: ''} : {})}
+      >
         <ActionListContainerContext.Provider
           value={{
             container: 'ActionMenu',