diff --git a/client-src/overlay.js b/client-src/overlay.js
index 81b5f05de4..0de01e9834 100644
--- a/client-src/overlay.js
+++ b/client-src/overlay.js
@@ -644,11 +644,34 @@ const createOverlay = (options) => {
     }, trustedTypesPolicyName);
   }
 
+  /** @type {(event: KeyboardEvent) => void} */
+  let handleEscapeKey;
+
+  /**
+   * @returns {void}
+   */
+
+  const hideOverlayWithEscCleanup = () => {
+    window.removeEventListener("keydown", handleEscapeKey);
+    hide();
+  };
+
   const overlayService = createOverlayMachine({
     showOverlay: ({ level = "error", messages, messageSource }) =>
       show(level, messages, options.trustedTypesPolicyName, messageSource),
-    hideOverlay: hide,
+    hideOverlay: hideOverlayWithEscCleanup,
   });
+  /**
+   * ESC key press to dismiss the overlay.
+   * @param {KeyboardEvent} event Keydown event
+   */
+  handleEscapeKey = (event) => {
+    if (event.key === "Escape" || event.key === "Esc" || event.keyCode === 27) {
+      overlayService.send({ type: "DISMISS" });
+    }
+  };
+
+  window.addEventListener("keydown", handleEscapeKey);
 
   if (options.catchRuntimeError) {
     /**
diff --git a/test/client/ReactErrorBoundary.test.js b/test/client/ReactErrorBoundary.test.js
index 0313386b9c..8932de9a2c 100644
--- a/test/client/ReactErrorBoundary.test.js
+++ b/test/client/ReactErrorBoundary.test.js
@@ -232,4 +232,41 @@ describe("createOverlay", () => {
     });
     showOverlayMock.mockRestore();
   });
+  // ESC key test cases
+
+  it("should dismiss overlay when ESC key is pressed", () => {
+    const options = { trustedTypesPolicyName: null, catchRuntimeError: true };
+    const overlay = createOverlay(options);
+    const showOverlayMock = jest.spyOn(overlay, "send");
+
+    const escEvent = new KeyboardEvent("keydown", { key: "Escape" });
+    globalThis.window.dispatchEvent(escEvent);
+
+    expect(showOverlayMock).toHaveBeenCalledWith({ type: "DISMISS" });
+    showOverlayMock.mockRestore();
+  });
+
+  it("should dismiss overlay when 'Esc' key is pressed (older browsers)", () => {
+    const options = { trustedTypesPolicyName: null, catchRuntimeError: true };
+    const overlay = createOverlay(options);
+    const showOverlayMock = jest.spyOn(overlay, "send");
+
+    const escEvent = new KeyboardEvent("keydown", { key: "Esc" });
+    globalThis.window.dispatchEvent(escEvent);
+
+    expect(showOverlayMock).toHaveBeenCalledWith({ type: "DISMISS" });
+    showOverlayMock.mockRestore();
+  });
+
+  it("should not dismiss overlay for other keys", () => {
+    const options = { trustedTypesPolicyName: null, catchRuntimeError: true };
+    const overlay = createOverlay(options);
+    const showOverlayMock = jest.spyOn(overlay, "send");
+
+    const otherKeyEvent = new KeyboardEvent("keydown", { key: "Enter" });
+    globalThis.window.dispatchEvent(otherKeyEvent);
+
+    expect(showOverlayMock).not.toHaveBeenCalled();
+    showOverlayMock.mockRestore();
+  });
 });