diff --git a/packages/components/CHANGELOG.md b/packages/components/CHANGELOG.md
index 8a6d52e758283..ed33677b55a82 100644
--- a/packages/components/CHANGELOG.md
+++ b/packages/components/CHANGELOG.md
@@ -16,6 +16,7 @@
 
 -   `ToggleGroupControl`: react correctly to external controlled updates ([#56678](https://github.com/WordPress/gutenberg/pull/56678)).
 -   `ToolsPanel`: fix a performance issue ([#56770](https://github.com/WordPress/gutenberg/pull/56770)).
+-   `BorderControl`: adjust `BorderControlDropdown` Button size to fix misaligned border ([#56730](https://github.com/WordPress/gutenberg/pull/56730)).
 
 ## 25.13.0 (2023-11-29)
 
diff --git a/packages/components/src/border-control/border-control-dropdown/component.tsx b/packages/components/src/border-control/border-control-dropdown/component.tsx
index 4f43a6ed0ce55..3ee01bcda8f3b 100644
--- a/packages/components/src/border-control/border-control-dropdown/component.tsx
+++ b/packages/components/src/border-control/border-control-dropdown/component.tsx
@@ -149,6 +149,7 @@ const BorderControlDropdown = (
 		popoverControlsClassName,
 		resetButtonClassName,
 		showDropdownHeader,
+		size,
 		__unstablePopoverProps,
 		...otherProps
 	} = useBorderControlDropdown( props );
@@ -178,6 +179,7 @@ const BorderControlDropdown = (
 			tooltipPosition={ dropdownPosition }
 			label={ __( 'Border color and style picker' ) }
 			showTooltip={ true }
+			__next40pxDefaultSize={ size === '__unstable-large' ? true : false }
 		>
 			<span className={ indicatorWrapperClassName }>
 				<ColorIndicator
@@ -198,7 +200,7 @@ const BorderControlDropdown = (
 						<HStack>
 							<StyledLabel>{ __( 'Border color' ) }</StyledLabel>
 							<Button
-								isSmall
+								size="small"
 								label={ __( 'Close border color' ) }
 								icon={ closeSmall }
 								onClick={ onClose }
diff --git a/packages/components/src/border-control/border-control-dropdown/hook.ts b/packages/components/src/border-control/border-control-dropdown/hook.ts
index b60aa52a34e2e..5366babc266c6 100644
--- a/packages/components/src/border-control/border-control-dropdown/hook.ts
+++ b/packages/components/src/border-control/border-control-dropdown/hook.ts
@@ -57,8 +57,8 @@ export function useBorderControlDropdown(
 	// Generate class names.
 	const cx = useCx();
 	const classes = useMemo( () => {
-		return cx( styles.borderControlDropdown( size ), className );
-	}, [ className, cx, size ] );
+		return cx( styles.borderControlDropdown, className );
+	}, [ className, cx ] );
 
 	const indicatorClassName = useMemo( () => {
 		return cx( styles.borderColorIndicator );
@@ -95,6 +95,7 @@ export function useBorderControlDropdown(
 		popoverContentClassName,
 		popoverControlsClassName,
 		resetButtonClassName,
+		size,
 		__experimentalIsRenderedInSidebar,
 	};
 }
diff --git a/packages/components/src/border-control/styles.ts b/packages/components/src/border-control/styles.ts
index 322e9563d58a4..1a2263b9fb6ff 100644
--- a/packages/components/src/border-control/styles.ts
+++ b/packages/components/src/border-control/styles.ts
@@ -59,18 +59,11 @@ export const wrapperHeight = ( size?: 'default' | '__unstable-large' ) => {
 	`;
 };
 
-export const borderControlDropdown = (
-	size?: 'default' | '__unstable-large'
-) => css`
+export const borderControlDropdown = css`
 	background: #fff;
 
 	&& > button {
-		/*
-		 * Override button component styles to fit within BorderControl
-		 * regardless of size.
-		 */
-		height: ${ size === '__unstable-large' ? '40px' : '30px' };
-		width: ${ size === '__unstable-large' ? '40px' : '30px' };
+		aspect-ratio: 1;
 		padding: 0;
 		display: flex;
 		align-items: center;