diff --git a/src/components/stepper-item/stepper-item.e2e.ts b/src/components/stepper-item/stepper-item.e2e.ts
index e22e2759c7d..72140be2e1d 100644
--- a/src/components/stepper-item/stepper-item.e2e.ts
+++ b/src/components/stepper-item/stepper-item.e2e.ts
@@ -1,4 +1,7 @@
+import { newE2EPage } from "@stencil/core/testing";
+import { html } from "../../../support/formatting";
 import { disabled, renders, hidden } from "../../tests/commonTests";
+import { clickStepperItemContent, getSelectedItemId, itemClicker } from "../stepper/utils";
 
 describe("calcite-stepper-item", () => {
   it("renders", () => renders("calcite-stepper-item", { display: "flex" }));
@@ -6,4 +9,82 @@ describe("calcite-stepper-item", () => {
   it("honors hidden attribute", async () => hidden("calcite-stepper-item"));
 
   it("can be disabled", () => disabled("calcite-stepper-item"));
+
+  describe("should emit calciteStepperItemSelect on user interaction", () => {
+    const stepperPage = html`<calcite-stepper>
+      <calcite-stepper-item heading="Step 1" id="step-1">
+        <div>Step 1 content</div>
+      </calcite-stepper-item>
+      <calcite-stepper-item heading="Step 2" id="step-2">
+        <div>Step 2 content</div>
+      </calcite-stepper-item>
+      <calcite-stepper-item heading="Step 3" id="step-3" disabled>
+        <div>Step 3 content</div>
+      </calcite-stepper-item>
+      <calcite-stepper-item heading="Step 4" id="step-4">
+        <div>Step 4 content</div>
+      </calcite-stepper-item>
+    </calcite-stepper>`;
+
+    it("should emit calciteStepperItemSelect on mouse interaction", async () => {
+      const page = await newE2EPage();
+      await page.setContent(stepperPage);
+
+      const item1 = await page.find("calcite-stepper-item#step-1");
+      expect(await item1.getProperty("selected")).toBe(true);
+      expect(await getSelectedItemId(page)).toBe("step-1");
+
+      const item2 = await page.find("calcite-stepper-item#step-2");
+      const eventSpy = await item2.spyOnEvent("calciteStepperItemSelect");
+      item2.setProperty("selected", true);
+      await page.waitForChanges();
+      expect(await getSelectedItemId(page)).toBe("step-2");
+      expect(eventSpy).toHaveReceivedEventTimes(1);
+
+      await page.$eval("calcite-stepper-item#step-2", itemClicker);
+
+      expect(await getSelectedItemId(page)).toBe("step-2");
+      expect(eventSpy).toHaveReceivedEventTimes(1);
+    });
+
+    it("should emit calciteStepperItemSelect on keyboard interaction", async () => {
+      const page = await newE2EPage();
+      await page.setContent(stepperPage);
+
+      const item1 = await page.find("calcite-stepper-item#step-1");
+      expect(await item1.getProperty("selected")).toBe(true);
+      expect(await getSelectedItemId(page)).toBe("step-1");
+
+      const item4 = await page.find("calcite-stepper-item#step-4");
+      const eventSpy = await item4.spyOnEvent("calciteStepperItemSelect");
+      expect(eventSpy).toHaveReceivedEventTimes(0);
+
+      await page.keyboard.press("Tab");
+      await page.waitForChanges();
+      await page.keyboard.press("Tab");
+      await page.waitForChanges();
+      await page.keyboard.press("Tab");
+      await page.waitForChanges();
+      await page.keyboard.press("Enter");
+      await page.waitForChanges();
+      expect(eventSpy).toHaveReceivedEventTimes(1);
+      expect(await getSelectedItemId(page)).toBe("step-4");
+      expect(await item4.getProperty("selected")).toBe(true);
+      expect(await item1.getProperty("selected")).toBe(false);
+    });
+
+    it("should not emit calciteStepperItemSelect on user interaction with content", async () => {
+      const page = await newE2EPage();
+      await page.setContent(stepperPage);
+
+      const item1 = await page.find("calcite-stepper-item#step-1");
+      expect(await item1.getProperty("selected")).toBe(true);
+
+      const eventSpy = await item1.spyOnEvent("calciteStepperItemSelect");
+      expect(eventSpy).toHaveReceivedEventTimes(0);
+
+      await clickStepperItemContent(page, "#step-1");
+      expect(eventSpy).toHaveReceivedEventTimes(0);
+    });
+  });
 });
diff --git a/src/components/stepper-item/stepper-item.tsx b/src/components/stepper-item/stepper-item.tsx
index 1c97cca988f..d62254e51af 100644
--- a/src/components/stepper-item/stepper-item.tsx
+++ b/src/components/stepper-item/stepper-item.tsx
@@ -32,6 +32,7 @@ import {
   LoadableComponent,
   componentLoaded
 } from "../../utils/loadable";
+import { getItemPosition } from "../stepper/utils";
 
 /**
  * @slot - A slot for adding custom content.
@@ -142,10 +143,10 @@ export class StepperItem implements InteractiveComponent, LocalizedComponent, Lo
   calciteInternalStepperItemKeyEvent: EventEmitter<StepperItemKeyEventDetail>;
 
   /**
-   * @internal
+   * Emits when the component's header is selected.
    */
   @Event({ cancelable: false })
-  calciteInternalStepperItemSelect: EventEmitter<StepperItemEventDetail>;
+  calciteStepperItemSelect: EventEmitter<void>;
 
   /**
    * @internal
@@ -176,7 +177,7 @@ export class StepperItem implements InteractiveComponent, LocalizedComponent, Lo
     this.layout = getElementProp(this.el, "layout", false);
     this.scale = getElementProp(this.el, "scale", "m");
     this.parentStepperEl = this.el.parentElement as HTMLCalciteStepperElement;
-    this.itemPosition = this.getItemPosition();
+    this.itemPosition = getItemPosition(this.parentStepperEl, this.el);
     this.registerStepperItem();
 
     if (this.selected) {
@@ -332,15 +333,14 @@ export class StepperItem implements InteractiveComponent, LocalizedComponent, Lo
     ) {
       return;
     }
-
     this.emitUserRequestedItem();
   };
 
   private emitUserRequestedItem = (): void => {
-    this.emitRequestedItem();
     if (!this.disabled) {
       const position = this.itemPosition;
-
+      this.selectedPosition = getItemPosition(this.parentStepperEl, this.el);
+      this.determineSelectedItem();
       this.calciteInternalUserRequestedStepperItemSelect.emit({
         position
       });
@@ -349,20 +349,10 @@ export class StepperItem implements InteractiveComponent, LocalizedComponent, Lo
 
   private emitRequestedItem = (): void => {
     if (!this.disabled) {
-      const position = this.itemPosition;
-
-      this.calciteInternalStepperItemSelect.emit({
-        position
-      });
+      this.calciteStepperItemSelect.emit();
     }
   };
 
-  private getItemPosition(): number {
-    return Array.from(this.parentStepperEl?.querySelectorAll("calcite-stepper-item")).indexOf(
-      this.el
-    );
-  }
-
   renderNumbers(): string {
     numberStringFormatter.numberFormatOptions = {
       locale: this.effectiveLocale,
diff --git a/src/components/stepper/stepper.e2e.ts b/src/components/stepper/stepper.e2e.ts
index 946e1f4e8a0..4f3844cce0b 100644
--- a/src/components/stepper/stepper.e2e.ts
+++ b/src/components/stepper/stepper.e2e.ts
@@ -1,6 +1,7 @@
 import { E2EPage, newE2EPage } from "@stencil/core/testing";
 import { renders, hidden } from "../../tests/commonTests";
 import { html } from "../../../support/formatting";
+import { clickStepperItemContent, getSelectedItemId, itemClicker } from "./utils";
 
 // todo test the automatic setting of first item to selected
 describe("calcite-stepper", () => {
@@ -440,12 +441,6 @@ describe("calcite-stepper", () => {
       const eventSpy = await element.spyOnEvent("calciteStepperItemChange");
       const firstItem = await page.find("#step-1");
 
-      const getSelectedItemId = async (): Promise<string> => {
-        return await page.evaluate((): string => {
-          return document.querySelector("calcite-stepper")?.selectedItem?.id || "";
-        });
-      };
-
       let expectedEvents = 0;
 
       // non user interaction
@@ -453,23 +448,15 @@ describe("calcite-stepper", () => {
       await page.waitForChanges();
       expect(eventSpy).toHaveReceivedEventTimes(expectedEvents);
 
-      // we use browser-context function to click on items to workaround `E2EElement#click` error
-      async function itemClicker(item: HTMLCalciteStepperItemElement) {
-        item.click();
-      }
-
       await page.$eval("#step-2", itemClicker);
       expect(eventSpy).toHaveReceivedEventTimes(++expectedEvents);
-      expect(await getSelectedItemId()).toBe("step-2");
+      expect(await getSelectedItemId(page)).toBe("step-2");
 
       if (hasContent) {
-        await page.$eval("#step-1", (item: HTMLCalciteStepperItemElement) =>
-          item.shadowRoot.querySelector<HTMLElement>(".stepper-item-content").click()
-        );
-
+        await clickStepperItemContent(page, "#step-1");
         if (layout === "vertical") {
           expect(eventSpy).toHaveReceivedEventTimes(++expectedEvents);
-          expect(await getSelectedItemId()).toBe("step-1");
+          expect(await getSelectedItemId(page)).toBe("step-1");
         } else {
           // no events since horizontal layout moves content outside of item selection hit area
           expect(eventSpy).toHaveReceivedEventTimes(expectedEvents);
@@ -482,7 +469,7 @@ describe("calcite-stepper", () => {
 
       await page.$eval("#step-4", itemClicker);
       expect(eventSpy).toHaveReceivedEventTimes(++expectedEvents);
-      expect(await getSelectedItemId()).toBe("step-4");
+      expect(await getSelectedItemId(page)).toBe("step-4");
 
       await element.callMethod("prevStep");
       await page.waitForChanges();
diff --git a/src/components/stepper/stepper.tsx b/src/components/stepper/stepper.tsx
index 0b30ba3e60b..237046a7bcc 100644
--- a/src/components/stepper/stepper.tsx
+++ b/src/components/stepper/stepper.tsx
@@ -14,6 +14,7 @@ import { focusElementInGroup } from "../../utils/dom";
 import { NumberingSystem } from "../../utils/locale";
 import { Layout, Scale } from "../interfaces";
 import { StepperItemChangeEventDetail, StepperItemKeyEventDetail } from "./interfaces";
+import { getItemPosition } from "./utils";
 
 /**
  * @slot - A slot for adding `calcite-stepper-item` elements.
@@ -154,18 +155,18 @@ export class Stepper {
     event.stopPropagation();
   }
 
-  @Listen("calciteInternalStepperItemSelect")
+  @Listen("calciteStepperItemSelect")
   updateItem(event: CustomEvent): void {
-    const { position } = event.detail;
-
+    const stepperItemEl = event.target as HTMLCalciteStepperItemElement;
+    const position = getItemPosition(this.el, stepperItemEl);
     if (typeof position === "number") {
       this.currentPosition = position;
-      this.selectedItem = event.target as HTMLCalciteStepperItemElement;
-    }
+      this.selectedItem = stepperItemEl;
 
-    this.calciteInternalStepperItemChange.emit({
-      position
-    });
+      this.calciteInternalStepperItemChange.emit({
+        position
+      });
+    }
   }
 
   @Listen("calciteInternalUserRequestedStepperItemSelect")
diff --git a/src/components/stepper/utils.ts b/src/components/stepper/utils.ts
new file mode 100644
index 00000000000..8e016ec44da
--- /dev/null
+++ b/src/components/stepper/utils.ts
@@ -0,0 +1,25 @@
+import { E2EPage } from "@stencil/core/testing";
+
+export const getItemPosition = (
+  stepperEl: HTMLCalciteStepperElement,
+  stepperItemEl: HTMLCalciteStepperItemElement
+): number => {
+  return Array.from(stepperEl.querySelectorAll("calcite-stepper-item")).indexOf(stepperItemEl);
+};
+
+export const getSelectedItemId = async (page: E2EPage): Promise<string> => {
+  return await page.evaluate((): string => {
+    return document.querySelector("calcite-stepper")?.selectedItem?.id || "";
+  });
+};
+
+export const clickStepperItemContent = async (page: E2EPage, selector: string): Promise<void> => {
+  await page.$eval(selector, (item: HTMLCalciteStepperItemElement) =>
+    item.shadowRoot.querySelector<HTMLElement>(".stepper-item-content").click()
+  );
+};
+
+// we use browser-context function to click on items to workaround `E2EElement#click` error
+export const itemClicker = async (item: HTMLCalciteStepperItemElement): Promise<void> => {
+  item.click();
+};