diff --git a/CHANGELOG.md b/CHANGELOG.md
index 8dda347..9611b81 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -1,6 +1,10 @@
 # Changelog
 
-## Unreleased
+## [Unreleased]
+
+### Fixed
+
+- Prevented Escape from dismissing an enclosing dialog while closing an open Combobox popup.
 
 ## [1.0.2] - 2026-07-06
 
diff --git a/site/src/docs/components/combobox.mdx b/site/src/docs/components/combobox.mdx
index 04864be..1611ec0 100644
--- a/site/src/docs/components/combobox.mdx
+++ b/site/src/docs/components/combobox.mdx
@@ -85,6 +85,8 @@ Combobox is input-first. The visible input filters the list; the hidden input st
   </Step>
 </Steps>
 
+Pressing Escape in the input closes an open suggestions popup without dismissing an enclosing dialog. Once the popup is closed, press Escape again to dismiss the dialog.
+
 ### HTML structure
 
 <dl>
diff --git a/src/js/combobox.js b/src/js/combobox.js
index 10f727c..5976b75 100644
--- a/src/js/combobox.js
+++ b/src/js/combobox.js
@@ -390,7 +390,11 @@
     }
 
     if (event.key === 'Escape') {
-      root.close(true);
+      if (isOpen) {
+        event.preventDefault();
+        event.stopPropagation();
+        root.close(true);
+      }
       return;
     }