diff --git a/community/components/form/select/multiselect.component.html b/community/components/form/select/multiselect.component.html
index b1c2aede5..c5f2bded1 100644
--- a/community/components/form/select/multiselect.component.html
+++ b/community/components/form/select/multiselect.component.html
@@ -89,7 +89,7 @@
   <tedi-card
     class="tedi-select__dropdown"
     spacing="none"
-    [style.width.px]="dropdownWidth()"
+    [style.width]="!!dropdownWidth() ? dropdownWidth() + 'px' : 'auto'"
   >
     <tedi-card-content>
       <ul
diff --git a/community/components/form/select/multiselect.component.ts b/community/components/form/select/multiselect.component.ts
index 08f7db57f..857d345f4 100644
--- a/community/components/form/select/multiselect.component.ts
+++ b/community/components/form/select/multiselect.component.ts
@@ -136,6 +136,13 @@ export class MultiselectComponent
    * @default true
    */
   clearable = input<boolean>(true);
+  /**
+   * Optional element reference to calculate dropdown width from.
+   * If provided but null, dropdown will use auto width.
+   * If not provided, defaults to the host element width.
+   * @default undefined
+   */
+  dropdownWidthRef = input<ElementRef | null>();
   feedbackText = input<ComponentInputs<FeedbackTextComponent>>();
 
   readonly specialOptionControls = specialOptionControls;
@@ -146,7 +153,7 @@ export class MultiselectComponent
   triggerRef = viewChild(CdkOverlayOrigin, { read: ElementRef });
   hostRef = inject(ElementRef);
   options = contentChildren(SelectOptionComponent);
-  dropdownWidth = signal(0);
+  dropdownWidth = signal<number | null>(0);
   disabled = signal(false);
 
   optionGroups = computed(() => {
@@ -220,8 +227,14 @@ export class MultiselectComponent
   }
 
   private setDropdownWidth(): void {
-    const computedWidth =
-      this.hostRef?.nativeElement?.getBoundingClientRect()?.width ?? 0;
+    const widthRef = this.dropdownWidthRef();
+    if (widthRef === null) {
+      this.dropdownWidth.set(null);
+      return;
+    }
+
+    const element = widthRef?.nativeElement ?? this.hostRef?.nativeElement;
+    const computedWidth = element?.getBoundingClientRect()?.width ?? 0;
     this.dropdownWidth.set(computedWidth);
   }
 
diff --git a/community/components/form/select/multiselect.stories.ts b/community/components/form/select/multiselect.stories.ts
index dfea3d56d..25e0a760e 100644
--- a/community/components/form/select/multiselect.stories.ts
+++ b/community/components/form/select/multiselect.stories.ts
@@ -370,3 +370,62 @@ export const multiselectNoOptions: Story = {
     },
   }),
 };
+
+export const multiselectAutoWidthDropdown: Story = {
+  render: (args) => ({
+    template: `
+      <tedi-multiselect
+        [inputId]="inputId"
+        [placeholder]="placeholder"
+        [label]="label"
+        [feedbackText]="feedbackText"
+        [required]="required"
+        [state]="state"
+        [size]="size"
+        [multiRow]="multiRow"
+        [clearableTags]="clearableTags"
+        [selectAll]="selectAll"
+        [selectableGroups]="selectableGroups"
+        [clearable]="clearable"
+        [dropdownWidthRef]="null"
+        [disabled]="disabled"
+      >
+        <tedi-select-option value="option1" label="Option 1" />
+        <tedi-select-option value="option2" label="Option 2" />
+        <tedi-select-option value="option3" label="Option 3" />
+        <tedi-select-option value="option4" label="Option 4" />
+        <tedi-select-option value="option5" label="Option 5" />
+      </tedi-multiselect>
+    `,
+    props: {
+      ...args,
+    },
+  }),
+};
+
+export const multiselectCustomWidthDropdown: Story = {
+  render: (args) => ({
+    template: `
+      <div #customWidthElement style="width: 400px; border: 1px solid black; padding: 8px; margin-bottom: 16px;">
+        This div sets the dropdown width to 400px
+      </div>
+      <tedi-multiselect
+        [inputId]="inputId"
+        [placeholder]="placeholder"
+        [label]="label"
+        [feedbackText]="feedbackText"
+        [dropdownWidthRef]="getElementRef(customWidthElement)"
+      >
+        <tedi-select-option value="option1" label="Option 1" />
+        <tedi-select-option value="option2" label="Option 2" />
+        <tedi-select-option value="option3" label="Option 3" />
+        <tedi-select-option value="option4" label="Option 4" />
+        <tedi-select-option value="option5" label="Option 5" />
+      </tedi-multiselect>
+    `,
+    props: {
+      ...args,
+      getElementRef: (element: HTMLElement) => ({ nativeElement: element }),
+    },
+  }),
+};
diff --git a/community/components/form/select/select.component.html b/community/components/form/select/select.component.html
index 6bdf3e12b..bdc41e476 100644
--- a/community/components/form/select/select.component.html
+++ b/community/components/form/select/select.component.html
@@ -77,14 +77,13 @@
   <tedi-card
     class="tedi-select__dropdown"
     spacing="none"
-    [style.width.px]="dropdownWidth()"
+    [style.width]="!!dropdownWidth() ? dropdownWidth() + 'px' : 'auto'"
   >
     <tedi-card-content>
       <ul
         [id]="listboxId"
         class="tedi-select__options"
         cdkListbox
-        cdkListboxUseActiveDescendant
         [cdkListboxValue]="selectedOptions()"
         (cdkListboxValueChange)="handleValueChange($event)"
       >
diff --git a/community/components/form/select/select.component.scss b/community/components/form/select/select.component.scss
index 8c9b1e4fe..d90d436e1 100644
--- a/community/components/form/select/select.component.scss
+++ b/community/components/form/select/select.component.scss
@@ -50,8 +50,6 @@
 
   &__dropdown {
     box-shadow: 0px 1px 5px 0px var(--alpha-20);
-    max-height: 300px;
-    overflow-y: auto;
 
     @include mixins.responsive-styles(margin-top, form-field-outer-spacing);
     @include mixins.responsive-styles(margin-bottom, form-field-outer-spacing);
@@ -60,6 +58,8 @@
   &__options {
     margin: 0;
     padding: 0;
+    max-height: 300px;
+    overflow-y: auto;
 
     &:focus .cdk-option-active {
       background: var(--dropdown-item-hover-background);
diff --git a/community/components/form/select/select.component.ts b/community/components/form/select/select.component.ts
index a1c7a48cf..efcb73ee0 100644
--- a/community/components/form/select/select.component.ts
+++ b/community/components/form/select/select.component.ts
@@ -107,6 +107,13 @@ export class SelectComponent
    * @default false
    */
   clearable = input<boolean>(true);
+  /**
+   * Optional element reference to calculate dropdown width from.
+   * If provided but null, dropdown will use auto width.
+   * If not provided, defaults to the host element width.
+   * @default undefined
+   */
+  dropdownWidthRef = input<ElementRef | null>();
   feedbackText = input<ComponentInputs<FeedbackTextComponent>>();
 
   isOpen = signal(false);
@@ -115,7 +122,7 @@ export class SelectComponent
   triggerRef = viewChild(CdkOverlayOrigin, { read: ElementRef });
   hostRef = inject(ElementRef);
   options = contentChildren(SelectOptionComponent);
-  dropdownWidth = signal(0);
+  dropdownWidth = signal<number | null>(null);
   disabled = signal(false);
 
   optionGroups = computed(() => {
@@ -186,8 +193,14 @@ export class SelectComponent
   });
 
   private setDropdownWidth(): void {
-    const computedWidth =
-      this.hostRef?.nativeElement?.getBoundingClientRect()?.width ?? 0;
+    const widthRef = this.dropdownWidthRef();
+    if (widthRef === null) {
+      this.dropdownWidth.set(null);
+      return;
+    }
+
+    const element = widthRef?.nativeElement ?? this.hostRef?.nativeElement;
+    const computedWidth = element?.getBoundingClientRect()?.width ?? 0;
     this.dropdownWidth.set(computedWidth);
   }
 
diff --git a/community/components/form/select/select.stories.ts b/community/components/form/select/select.stories.ts
index fb4a4687c..abe34bc4e 100644
--- a/community/components/form/select/select.stories.ts
+++ b/community/components/form/select/select.stories.ts
@@ -346,3 +346,63 @@ export const singleSelectGroupedOptions: Story = {
     },
   }),
 };
+
+export const dropdownWidthAuto: Story = {
+  render: (args) => ({
+    template: `
+      <tedi-select
+        [inputId]="inputId"
+        [placeholder]="placeholder"
+        [label]="label"
+        [feedbackText]="feedbackText"
+        [required]="required"
+        [disabled]="disabled"
+        [state]="state"
+        [size]="size"
+        [clearable]="clearable"
+        [dropdownWidthRef]="null"
+      >
+        <tedi-select-option value="option1" label="Option 1" group="Group 1"/>
+        <tedi-select-option value="option2" label="Option 2" group="Group 1"/>
+        <tedi-select-option value="option3" label="Option 3" group="Group 1"/>
+        <tedi-select-option value="option4" label="Option 4" group="Group 2"/>
+        <tedi-select-option value="option5" label="Option 5" group="Group 2"/>
+      </tedi-select>
+    `,
+    props: {
+      ...args,
+    },
+  }),
+};
+
+export const dropdownWidthCustomElement: Story = {
+  render: (args) => ({
+    template: `
+      <div #customWidthElement style="width: 400px; border: 1px solid black; padding: 8px; margin-bottom: 16px;">
+        This div sets the dropdown width to 400px
+      </div>
+      <tedi-select
+        [inputId]="inputId"
+        [placeholder]="placeholder"
+        [label]="label"
+        [feedbackText]="feedbackText"
+        [required]="required"
+        [disabled]="disabled"
+        [state]="state"
+        [size]="size"
+        [clearable]="clearable"
+        [dropdownWidthRef]="getElementRef(customWidthElement)"
+      >
+        <tedi-select-option value="option1" label="Option 1" group="Group 1"/>
+        <tedi-select-option value="option2" label="Option 2" group="Group 1"/>
+        <tedi-select-option value="option3" label="Option 3" group="Group 1"/>
+        <tedi-select-option value="option4" label="Option 4" group="Group 2"/>
+        <tedi-select-option value="option5" label="Option 5" group="Group 2"/>
+      </tedi-select>
+    `,
+    props: {
+      ...args,
+      getElementRef: (element: HTMLElement) => ({ nativeElement: element }),
+    },
+  }),
+};