diff --git a/.changeset/lovely-shirts-hope.md b/.changeset/lovely-shirts-hope.md
new file mode 100644
index 00000000000..d628f02357e
--- /dev/null
+++ b/.changeset/lovely-shirts-hope.md
@@ -0,0 +1,5 @@
+---
+'@primer/react': minor
+---
+
+TreeView: Adds indication of no nodes in a tree item, allows for `aria-expanded even if the item is empty.
diff --git a/packages/react/src/TreeView/TreeView.features.stories.tsx b/packages/react/src/TreeView/TreeView.features.stories.tsx
index b4d9a8181b4..b608bc51fb2 100644
--- a/packages/react/src/TreeView/TreeView.features.stories.tsx
+++ b/packages/react/src/TreeView/TreeView.features.stories.tsx
@@ -580,7 +580,7 @@ AsyncError.args = {
 }
 
 export const EmptyDirectories: StoryFn = () => {
-  const [state, setState] = React.useState<SubTreeState>('loading')
+  const [state, setState] = React.useState<SubTreeState>('initial')
   const timeoutId = React.useRef<ReturnType<typeof setTimeout> | null>(null)
 
   React.useEffect(() => {
@@ -597,6 +597,7 @@ export const EmptyDirectories: StoryFn = () => {
       <TreeView.Item
         id="src"
         onExpandedChange={expanded => {
+          setState('loading')
           if (expanded) {
             timeoutId.current = setTimeout(() => {
               setState('done')
diff --git a/packages/react/src/TreeView/TreeView.test.tsx b/packages/react/src/TreeView/TreeView.test.tsx
index 056b6714acb..78bfceae3ba 100644
--- a/packages/react/src/TreeView/TreeView.test.tsx
+++ b/packages/react/src/TreeView/TreeView.test.tsx
@@ -220,7 +220,7 @@ describe('Markup', () => {
     expect(treeitem).not.toHaveAttribute('aria-expanded')
 
     await user.click(getByText(/Item 2/))
-    expect(treeitem).not.toHaveAttribute('aria-expanded')
+    expect(treeitem).toHaveAttribute('aria-expanded', 'true')
   })
 
   it('should render with containIntrinsicSize', () => {
@@ -1537,7 +1537,7 @@ describe('Asyncronous loading', () => {
     expect(parentItem).toHaveAttribute('aria-expanded', 'true')
   })
 
-  it('should remove `aria-expanded` if no content is loaded in', async () => {
+  it('should update `aria-expanded` if no content is loaded in', async () => {
     function Example() {
       const [state, setState] = React.useState<SubTreeState>('loading')
       const timeoutId = React.useRef<ReturnType<typeof setTimeout> | null>(null)
@@ -1584,6 +1584,46 @@ describe('Asyncronous loading', () => {
       jest.runAllTimers()
     })
 
-    expect(treeitem).not.toHaveAttribute('aria-expanded')
+    expect(treeitem).toHaveAttribute('aria-expanded', 'true')
+    expect(getByLabelText('No items found')).toBeInTheDocument()
+  })
+
+  it('should have `aria-expanded` when directory is empty', async () => {
+    const {getByRole} = renderWithTheme(
+      <TreeView aria-label="Files changed">
+        <TreeView.Item id="src" defaultExpanded>
+          <TreeView.LeadingVisual>
+            <TreeView.DirectoryIcon />
+          </TreeView.LeadingVisual>
+          Parent
+          <TreeView.SubTree>
+            <TreeView.Item id="src/Avatar.tsx">child</TreeView.Item>
+            <TreeView.Item id="src/Button.tsx" current>
+              child current
+            </TreeView.Item>
+            <TreeView.Item id="src/Box.tsx">
+              empty child
+              <TreeView.SubTree />
+            </TreeView.Item>
+          </TreeView.SubTree>
+        </TreeView.Item>
+      </TreeView>,
+    )
+
+    const parentItem = getByRole('treeitem', {name: 'Parent'})
+
+    // Parent item should be expanded
+    expect(parentItem).toHaveAttribute('aria-expanded', 'true')
+
+    // Current child should not have `aria-expanded`
+    expect(getByRole('treeitem', {name: 'child current'})).not.toHaveAttribute('aria-expanded')
+
+    // Empty child should not have `aria-expanded` when closed
+    expect(getByRole('treeitem', {name: 'empty child'})).not.toHaveAttribute('aria-expanded')
+
+    fireEvent.click(getByRole('treeitem', {name: 'empty child'}))
+
+    // Empty child should have `aria-expanded` when opened
+    expect(getByRole('treeitem', {name: 'empty child'})).toHaveAttribute('aria-expanded')
   })
 })
diff --git a/packages/react/src/TreeView/TreeView.tsx b/packages/react/src/TreeView/TreeView.tsx
index b891aa97a74..71f41042722 100644
--- a/packages/react/src/TreeView/TreeView.tsx
+++ b/packages/react/src/TreeView/TreeView.tsx
@@ -361,7 +361,7 @@ export type TreeViewItemProps = {
   containIntrinsicSize?: string
   current?: boolean
   defaultExpanded?: boolean
-  expanded?: boolean
+  expanded?: boolean | null
   onExpandedChange?: (expanded: boolean) => void
   onSelect?: (event: React.MouseEvent<HTMLElement> | React.KeyboardEvent<HTMLElement>) => void
   className?: string
@@ -401,7 +401,7 @@ const Item = React.forwardRef<HTMLElement, TreeViewItemProps>(
       // If defaultExpanded is not provided, we default to false unless the item
       // is the current item, in which case we default to true.
       defaultValue: () => expandedStateCache.current?.get(itemId) ?? defaultExpanded ?? isCurrentItem,
-      value: expanded,
+      value: expanded === null ? false : expanded,
       onChange: onExpandedChange,
     })
     const {level} = React.useContext(ItemContext)
@@ -482,7 +482,7 @@ const Item = React.forwardRef<HTMLElement, TreeViewItemProps>(
           aria-labelledby={ariaLabel ? undefined : ariaLabelledby || labelId}
           aria-describedby={`${leadingVisualId} ${trailingVisualId}`}
           aria-level={level}
-          aria-expanded={isSubTreeEmpty ? undefined : isExpanded}
+          aria-expanded={(isSubTreeEmpty && (!isExpanded || !hasSubTree)) || expanded === null ? undefined : isExpanded}
           aria-current={isCurrentItem ? 'true' : undefined}
           aria-selected={isFocused ? 'true' : 'false'}
           data-has-leading-action={slots.leadingAction ? true : undefined}
@@ -697,6 +697,7 @@ const SubTree: React.FC<TreeViewSubTreeProps> = ({count, state, children}) => {
       ref={ref}
     >
       {state === 'loading' ? <LoadingItem ref={loadingItemRef} count={count} /> : children}
+      {isSubTreeEmpty && state !== 'loading' ? <EmptyItem /> : null}
     </ul>
   )
 }
@@ -785,6 +786,14 @@ const LoadingItem = React.forwardRef<HTMLElement, LoadingItemProps>(({count}, re
   )
 })
 
+const EmptyItem = React.forwardRef<HTMLElement>((props, ref) => {
+  return (
+    <Item expanded={null} id={useId()} ref={ref}>
+      <Text sx={{color: 'fg.muted'}}>No items found</Text>
+    </Item>
+  )
+})
+
 function useSubTree(children: React.ReactNode) {
   return React.useMemo(() => {
     const subTree = React.Children.toArray(children).find(