diff --git a/.changeset/sharp-eels-study.md b/.changeset/sharp-eels-study.md
new file mode 100644
index 00000000000..54d2b99f904
--- /dev/null
+++ b/.changeset/sharp-eels-study.md
@@ -0,0 +1,7 @@
+---
+'@primer/react': minor
+---
+
+Adds onSelectSuggestion callback to <InlineAutocomplete />
+
+<!-- Changed components: _none_ -->
diff --git a/src/drafts/InlineAutocomplete/InlineAutocomplete.docs.json b/src/drafts/InlineAutocomplete/InlineAutocomplete.docs.json
index e4d8c06dabd..eaded29db28 100644
--- a/src/drafts/InlineAutocomplete/InlineAutocomplete.docs.json
+++ b/src/drafts/InlineAutocomplete/InlineAutocomplete.docs.json
@@ -19,6 +19,12 @@
       "required": true,
       "description": "Register the triggers that can cause suggestions to appear."
     },
+    {
+      "name": "onSelectSuggestion",
+      "type": "(event: SelectSuggestionsEvent) => void",
+      "defaultValue": "",
+      "description": "Called when a suggestion is selected. This should be used only for performing side effects, not for modifying\nthe inserted text. Do not call `setState` in this handler or the user's cursor\nposition / undo history could be lost."
+    },
     {
       "name": "onShowSuggestions",
       "type": "(event: ShowSuggestionsEvent) => void",
diff --git a/src/drafts/InlineAutocomplete/InlineAutocomplete.features.stories.tsx b/src/drafts/InlineAutocomplete/InlineAutocomplete.features.stories.tsx
index 3f2f9c5a6ae..96ae45e30d1 100644
--- a/src/drafts/InlineAutocomplete/InlineAutocomplete.features.stories.tsx
+++ b/src/drafts/InlineAutocomplete/InlineAutocomplete.features.stories.tsx
@@ -56,6 +56,36 @@ export const SingleLine = ({loading, tabInserts}: ArgProps) => {
   )
 }
 
+export const OnSelectSuggestion = ({loading, tabInserts}: ArgProps) => {
+  const [suggestions, setSuggestions] = useState<Suggestions | null>(null)
+
+  const onShowSuggestions = (event: ShowSuggestionsEvent) => {
+    if (loading) {
+      setSuggestions('loading')
+      return
+    }
+
+    setSuggestions(filteredUsers(event.query).map(user => user.login))
+  }
+
+  return (
+    <FormControl>
+      <FormControl.Label>Inline Autocomplete Demo</FormControl.Label>
+      <FormControl.Caption>Try typing &apos;@&apos; to show user suggestions.</FormControl.Caption>
+      <InlineAutocomplete
+        triggers={[{triggerChar: '@'}]}
+        onSelectSuggestion={suggestion => window.alert(`Selected ${suggestion}`)}
+        suggestions={suggestions}
+        onShowSuggestions={onShowSuggestions}
+        onHideSuggestions={() => setSuggestions(null)}
+        tabInsertsSuggestions={tabInserts}
+      >
+        <TextInput sx={{lineHeight: 1.2}} />
+      </InlineAutocomplete>
+    </FormControl>
+  )
+}
+
 const UserSuggestion = ({user, ...props}: {user: User} & ActionListItemProps) => (
   <ActionList.Item {...props}>
     <ActionList.LeadingVisual>
diff --git a/src/drafts/InlineAutocomplete/InlineAutocomplete.tsx b/src/drafts/InlineAutocomplete/InlineAutocomplete.tsx
index cb49434177b..484fd8631a5 100644
--- a/src/drafts/InlineAutocomplete/InlineAutocomplete.tsx
+++ b/src/drafts/InlineAutocomplete/InlineAutocomplete.tsx
@@ -6,6 +6,7 @@ import {useSyntheticChange} from '../hooks/useSyntheticChange'
 import {getAbsoluteCharacterCoordinates} from '../utils/character-coordinates'
 
 import {
+  SelectSuggestionsEvent,
   ShowSuggestionsEvent,
   Suggestions,
   SuggestionsPlacement,
@@ -27,6 +28,16 @@ export type InlineAutocompleteProps = {
    * `suggestions` prop accordingly.
    */
   onShowSuggestions: (event: ShowSuggestionsEvent) => void
+
+  /**
+   * Called when a suggestion is selected.
+   *
+   * @note This should be used only for performing side effects, not for modifying
+   * the inserted text. Do not call `setState` in this handler or the user's cursor
+   * position / undo history could be lost.
+   */
+  onSelectSuggestion?: (event: SelectSuggestionsEvent) => void
+
   /** Called when suggestions should be hidden. Set `suggestions` to `null` in this case. */
   onHideSuggestions: () => void
   /**
@@ -96,6 +107,7 @@ const InlineAutocomplete = ({
   suggestions,
   onShowSuggestions,
   onHideSuggestions,
+  onSelectSuggestion,
   sx,
   children,
   tabInsertsSuggestions = false,
@@ -165,6 +177,8 @@ const InlineAutocomplete = ({
     if (!inputRef.current || !showEventRef.current) return
     const {query, trigger} = showEventRef.current
 
+    onSelectSuggestion?.({suggestion, trigger, query})
+
     const currentCaretPosition = getSelectionStart(inputRef.current) ?? 0
     const deleteLength = query.length + trigger.triggerChar.length
     const startIndex = currentCaretPosition - deleteLength
@@ -186,7 +200,7 @@ const InlineAutocomplete = ({
   })
 
   /**
-   * Even thoughn we apply all the aria attributes, screen readers don't fully support this
+   * Even though we apply all the aria attributes, screen readers don't fully support this
    * dynamic use case and so they don't have a native way to indicate to the user when
    * there are suggestions available. So we use some hidden text with aria-live to politely
    * indicate what's available and how to use it.
diff --git a/src/drafts/InlineAutocomplete/types.ts b/src/drafts/InlineAutocomplete/types.ts
index 2c4d22fb4f9..2b7334d1c26 100644
--- a/src/drafts/InlineAutocomplete/types.ts
+++ b/src/drafts/InlineAutocomplete/types.ts
@@ -16,6 +16,11 @@ export type Trigger = {
   keepTriggerCharOnCommit?: boolean
 }
 
+export type SelectSuggestionsEvent = ShowSuggestionsEvent & {
+  /** The suggestion that was selected. */
+  suggestion: Suggestion
+}
+
 export type ShowSuggestionsEvent = {
   /** The trigger that caused this query. */
   trigger: Trigger