diff --git a/packages/core/package.json b/packages/core/package.json
index c808788e80..19f1f5b1ed 100644
--- a/packages/core/package.json
+++ b/packages/core/package.json
@@ -34,9 +34,9 @@
     "@carbon/ibm-products-styles": "^2.33.0",
     "@carbon/layout": "^11.21.0",
     "@carbon/motion": "^11.17.0",
-    "@carbon/react": "^1.53.0",
+    "@carbon/react": "^1.55.0",
     "@carbon/storybook-addon-theme": "^2.0.8",
-    "@carbon/themes": "^11.33.0",
+    "@carbon/themes": "^11.34.0",
     "@carbon/type": "^11.26.0",
     "@storybook/addon-actions": "^7.6.10",
     "@storybook/addon-controls": "^7.6.10",
diff --git a/packages/ibm-products-community/package.json b/packages/ibm-products-community/package.json
index 064fe0239e..a2aa39459d 100644
--- a/packages/ibm-products-community/package.json
+++ b/packages/ibm-products-community/package.json
@@ -27,8 +27,8 @@
     "@carbon/grid": "^11.22.0",
     "@carbon/layout": "^11.21.0",
     "@carbon/motion": "^11.17.0",
-    "@carbon/react": "^1.53.0",
-    "@carbon/themes": "^11.33.0",
+    "@carbon/react": "^1.55.0",
+    "@carbon/themes": "^11.34.0",
     "@carbon/type": "^11.26.0",
     "react": "^18.2.0",
     "react-dom": "^18.2.0"
diff --git a/packages/ibm-products-styles/package.json b/packages/ibm-products-styles/package.json
index 1516ed5739..df3f22f4d4 100644
--- a/packages/ibm-products-styles/package.json
+++ b/packages/ibm-products-styles/package.json
@@ -64,7 +64,7 @@
     "@carbon/grid": "^11.22.0",
     "@carbon/layout": "^11.21.0",
     "@carbon/motion": "^11.17.0",
-    "@carbon/themes": "^11.33.0",
+    "@carbon/themes": "^11.34.0",
     "@carbon/type": "^11.26.0"
   },
   "dependencies": {
diff --git a/packages/ibm-products/package.json b/packages/ibm-products/package.json
index 1477badd37..c69a41697c 100644
--- a/packages/ibm-products/package.json
+++ b/packages/ibm-products/package.json
@@ -108,8 +108,8 @@
     "@carbon/grid": "^11.22.0",
     "@carbon/layout": "^11.21.0",
     "@carbon/motion": "^11.17.0",
-    "@carbon/react": "^1.53.0",
-    "@carbon/themes": "^11.33.0",
+    "@carbon/react": "^1.55.0",
+    "@carbon/themes": "^11.34.0",
     "@carbon/type": "^11.26.0",
     "react": "^16.8.6 || ^17.0.1 || ^18.2.0",
     "react-dom": "^16.8.6 || ^17.0.1 || ^18.2.0"
diff --git a/packages/ibm-products/src/components/SidePanel/SidePanel.stories.js b/packages/ibm-products/src/components/SidePanel/SidePanel.stories.js
index b51bc32773..6e41415911 100644
--- a/packages/ibm-products/src/components/SidePanel/SidePanel.stories.js
+++ b/packages/ibm-products/src/components/SidePanel/SidePanel.stories.js
@@ -522,11 +522,13 @@ WithActionToolbar.args = {
       label: 'Settings',
       icon: (props) => <Settings size={16} {...props} />,
       onClick: action('Toolbar button clicked: Settings'),
+      hasIconOnly: true,
     },
     {
       label: 'Delete',
       icon: (props) => <TrashCan size={16} {...props} />,
       onClick: action('Toolbar button clicked: Delete'),
+      hasIconOnly: true,
     },
   ],
   ...defaultStoryProps,
diff --git a/packages/ibm-products/src/components/SidePanel/SidePanel.tsx b/packages/ibm-products/src/components/SidePanel/SidePanel.tsx
index 5fecf7c8ef..59180286ff 100644
--- a/packages/ibm-products/src/components/SidePanel/SidePanel.tsx
+++ b/packages/ibm-products/src/components/SidePanel/SidePanel.tsx
@@ -739,7 +739,9 @@ export let SidePanel = React.forwardRef(
                 ({
                   label,
                   kind,
+                  hasIconOnly = false,
                   icon,
+                  renderIcon,
                   tooltipPosition,
                   tooltipAlignment,
                   leading,
@@ -753,11 +755,13 @@ export let SidePanel = React.forwardRef(
                     key={label}
                     kind={kind || 'ghost'}
                     size="sm"
-                    renderIcon={icon}
+                    renderIcon={renderIcon || icon}
                     iconDescription={label}
-                    tooltipPosition={tooltipPosition || 'bottom'}
-                    tooltipAlignment={tooltipAlignment || 'start'}
-                    hasIconOnly={!leading}
+                    {...(hasIconOnly && {
+                      tooltipPosition: tooltipPosition || 'bottom',
+                      tooltipAlignment: tooltipAlignment || 'start',
+                    })}
+                    hasIconOnly={hasIconOnly}
                     disabled={disabled}
                     className={cx([
                       `${blockClass}__action-toolbar-button`,
diff --git a/yarn.lock b/yarn.lock
index 4de926e537..4a575973c8 100644
--- a/yarn.lock
+++ b/yarn.lock
@@ -1913,12 +1913,12 @@ __metadata:
   languageName: node
   linkType: hard
 
-"@carbon/feature-flags@npm:^0.18.0":
-  version: 0.18.0
-  resolution: "@carbon/feature-flags@npm:0.18.0"
+"@carbon/feature-flags@npm:^0.19.0":
+  version: 0.19.0
+  resolution: "@carbon/feature-flags@npm:0.19.0"
   dependencies:
     "@ibm/telemetry-js": "npm:^1.2.1"
-  checksum: 66201ba5a5251a6b768e44f41618358e6b53f54b64f6d082def352531332e5762ede9309ce636d82f7b24abcfd29b2770a57321ed1401ab4e35116b7aa890a5c
+  checksum: a7724e969d7a6cd0ce1ebfaeb81eae610a15089040df1ee4c2cc0888e2ffc257d80535a9a78bc6e8d4537ea4a77cff9ae846781ae83d6183450ec1bb9ca8fbea
   languageName: node
   linkType: hard
 
@@ -1963,9 +1963,9 @@ __metadata:
     "@carbon/ibm-products-styles": "npm:^2.33.0"
     "@carbon/layout": "npm:^11.21.0"
     "@carbon/motion": "npm:^11.17.0"
-    "@carbon/react": "npm:^1.53.0"
+    "@carbon/react": "npm:^1.55.0"
     "@carbon/storybook-addon-theme": "npm:^2.0.8"
-    "@carbon/themes": "npm:^11.33.0"
+    "@carbon/themes": "npm:^11.34.0"
     "@carbon/type": "npm:^11.26.0"
     "@storybook/addon-actions": "npm:^7.6.10"
     "@storybook/addon-controls": "npm:^7.6.10"
@@ -2026,8 +2026,8 @@ __metadata:
     "@carbon/grid": ^11.22.0
     "@carbon/layout": ^11.21.0
     "@carbon/motion": ^11.17.0
-    "@carbon/react": ^1.53.0
-    "@carbon/themes": ^11.33.0
+    "@carbon/react": ^1.55.0
+    "@carbon/themes": ^11.34.0
     "@carbon/type": ^11.26.0
     react: ^18.2.0
     react-dom: ^18.2.0
@@ -2055,7 +2055,7 @@ __metadata:
     "@carbon/grid": ^11.22.0
     "@carbon/layout": ^11.21.0
     "@carbon/motion": ^11.17.0
-    "@carbon/themes": ^11.33.0
+    "@carbon/themes": ^11.34.0
     "@carbon/type": ^11.26.0
   languageName: unknown
   linkType: soft
@@ -2116,8 +2116,8 @@ __metadata:
     "@carbon/grid": ^11.22.0
     "@carbon/layout": ^11.21.0
     "@carbon/motion": ^11.17.0
-    "@carbon/react": ^1.53.0
-    "@carbon/themes": ^11.33.0
+    "@carbon/react": ^1.55.0
+    "@carbon/themes": ^11.34.0
     "@carbon/type": ^11.26.0
     react: ^16.8.6 || ^17.0.1 || ^18.2.0
     react-dom: ^16.8.6 || ^17.0.1 || ^18.2.0
@@ -2133,16 +2133,16 @@ __metadata:
   languageName: node
   linkType: hard
 
-"@carbon/icons-react@npm:^11.38.0":
-  version: 11.38.0
-  resolution: "@carbon/icons-react@npm:11.38.0"
+"@carbon/icons-react@npm:^11.39.0":
+  version: 11.39.0
+  resolution: "@carbon/icons-react@npm:11.39.0"
   dependencies:
     "@carbon/icon-helpers": "npm:^10.47.0"
     "@ibm/telemetry-js": "npm:^1.2.1"
     prop-types: "npm:^15.7.2"
   peerDependencies:
     react: ">=16"
-  checksum: 095e16d279b212c0a6eb478a0a8caeebd242b16971719de3dcc4bca804f2677c8fabf62bfa7129eb37656218d3a3a67fbc3d61bac087485a2136334acb752ebf
+  checksum: f4cd9b9df619bc5438d18b6dee491d081ad6191e954ffcffce04752417abfa7eeda5818575194d03b8410f41fea9012dd78b08a29c202b8872ee2a88b706bee7
   languageName: node
   linkType: hard
 
@@ -2164,19 +2164,20 @@ __metadata:
   languageName: node
   linkType: hard
 
-"@carbon/react@npm:^1.53.0":
-  version: 1.53.0
-  resolution: "@carbon/react@npm:1.53.0"
+"@carbon/react@npm:^1.55.0":
+  version: 1.55.0
+  resolution: "@carbon/react@npm:1.55.0"
   dependencies:
     "@babel/runtime": "npm:^7.18.3"
-    "@carbon/feature-flags": "npm:^0.18.0"
-    "@carbon/icons-react": "npm:^11.38.0"
+    "@carbon/feature-flags": "npm:^0.19.0"
+    "@carbon/icons-react": "npm:^11.39.0"
     "@carbon/layout": "npm:^11.21.0"
-    "@carbon/styles": "npm:^1.53.0"
+    "@carbon/styles": "npm:^1.55.0"
+    "@floating-ui/react": "npm:^0.26.0"
     "@ibm/telemetry-js": "npm:^1.2.1"
     classnames: "npm:2.5.1"
     copy-to-clipboard: "npm:^3.3.1"
-    downshift: "npm:8.4.0"
+    downshift: "npm:8.5.0"
     flatpickr: "npm:4.6.13"
     invariant: "npm:^2.2.3"
     lodash.debounce: "npm:^4.0.8"
@@ -2186,6 +2187,7 @@ __metadata:
     lodash.throttle: "npm:^4.1.1"
     prop-types: "npm:^15.7.2"
     react-is: "npm:^18.2.0"
+    tabbable: "npm:^6.2.0"
     use-resize-observer: "npm:^6.0.0"
     wicg-inert: "npm:^3.1.1"
     window-or-global: "npm:^1.0.1"
@@ -2193,7 +2195,7 @@ __metadata:
     react: ^16.8.6 || ^17.0.1 || ^18.2.0
     react-dom: ^16.8.6 || ^17.0.1 || ^18.2.0
     sass: ^1.33.0
-  checksum: 58b061c47f99d592c3eced8232ec4c9937f39484d0247735493e23046a28d27f6d7a540e459e0d39414f186d20ded7d95301c03ec4bff10d3784edbc585d822e
+  checksum: bc8437213c39a63d117c3adda633300d6fc5c8834e0e32dee7426a83fd9e9047331b76c1179f237b9cc911e063da045f9d2067c1474671d0e89c4e9f8f4c5417
   languageName: node
   linkType: hard
 
@@ -2223,16 +2225,16 @@ __metadata:
   languageName: unknown
   linkType: soft
 
-"@carbon/styles@npm:^1.53.0":
-  version: 1.53.0
-  resolution: "@carbon/styles@npm:1.53.0"
+"@carbon/styles@npm:^1.55.0":
+  version: 1.55.0
+  resolution: "@carbon/styles@npm:1.55.0"
   dependencies:
     "@carbon/colors": "npm:^11.21.0"
-    "@carbon/feature-flags": "npm:^0.18.0"
+    "@carbon/feature-flags": "npm:^0.19.0"
     "@carbon/grid": "npm:^11.22.0"
     "@carbon/layout": "npm:^11.21.0"
     "@carbon/motion": "npm:^11.17.0"
-    "@carbon/themes": "npm:^11.33.0"
+    "@carbon/themes": "npm:^11.34.0"
     "@carbon/type": "npm:^11.26.0"
     "@ibm/plex": "npm:6.0.0-next.6"
     "@ibm/telemetry-js": "npm:^1.2.1"
@@ -2241,7 +2243,7 @@ __metadata:
   peerDependenciesMeta:
     sass:
       optional: true
-  checksum: b13e02fd2dea494061ce3fbb4253e329a02174c1bb8b75f2cee4e95a60359eabbe8a853cf43f8429a1ef6ef198fad4f9d450ef287d0e8a4ca34619f6817f5b93
+  checksum: 20bdabab64b75fc384064beef36038b3e188548191a320bc6ba1150bfb8d00ef85d09c19982527ea8fdd5fd4f975a3dc93ac3245139c7bf40d4d65e34e04b091
   languageName: node
   linkType: hard
 
@@ -2254,16 +2256,16 @@ __metadata:
   languageName: node
   linkType: hard
 
-"@carbon/themes@npm:^11.33.0":
-  version: 11.33.0
-  resolution: "@carbon/themes@npm:11.33.0"
+"@carbon/themes@npm:^11.34.0":
+  version: 11.34.0
+  resolution: "@carbon/themes@npm:11.34.0"
   dependencies:
     "@carbon/colors": "npm:^11.21.0"
     "@carbon/layout": "npm:^11.21.0"
     "@carbon/type": "npm:^11.26.0"
     "@ibm/telemetry-js": "npm:^1.2.1"
     color: "npm:^4.0.0"
-  checksum: 6ec00956c02b405ed6460941533fbf3ef97c4b617ee0b509016520b53cb99b9618d0bb71302cbe68c6bda22dd32d71739a4c75835eaaf2d178a38c2af6089297
+  checksum: f686fb7a5c9d83055839ea1d6c8548b5c38e2fbc56d7f42ec3b44d5a4fa58b9b690da0d3aa98a1d0b488b491ae5798e424ef0bab895b1736a32897a5febfbc46
   languageName: node
   linkType: hard
 
@@ -3337,6 +3339,20 @@ __metadata:
   languageName: node
   linkType: hard
 
+"@floating-ui/react@npm:^0.26.0":
+  version: 0.26.12
+  resolution: "@floating-ui/react@npm:0.26.12"
+  dependencies:
+    "@floating-ui/react-dom": "npm:^2.0.0"
+    "@floating-ui/utils": "npm:^0.2.0"
+    tabbable: "npm:^6.0.0"
+  peerDependencies:
+    react: ">=16.8.0"
+    react-dom: ">=16.8.0"
+  checksum: da77f6b99ed0c8d5169f0ed287304615bef7c66b7a0011e4425e843016f6450a928bc27310a861fb14f8a1e58ef11fbdd92550583440f11af5d1a905968453a6
+  languageName: node
+  linkType: hard
+
 "@floating-ui/utils@npm:^0.2.0":
   version: 0.2.1
   resolution: "@floating-ui/utils@npm:0.2.1"
@@ -11159,9 +11175,9 @@ __metadata:
   languageName: node
   linkType: hard
 
-"downshift@npm:8.4.0":
-  version: 8.4.0
-  resolution: "downshift@npm:8.4.0"
+"downshift@npm:8.5.0":
+  version: 8.5.0
+  resolution: "downshift@npm:8.5.0"
   dependencies:
     "@babel/runtime": "npm:^7.22.15"
     compute-scroll-into-view: "npm:^3.0.3"
@@ -11170,7 +11186,7 @@ __metadata:
     tslib: "npm:^2.6.2"
   peerDependencies:
     react: ">=16.12.0"
-  checksum: 96a507693fe8a976f37696c962cac9f2561374090cb25962e35172db250a1adfbf9cc8486139c386ada07b6e7a9d1a962f00cc33c00de02cf52eec12574c3e59
+  checksum: 275f2b6868bf61aae276780c54e7511b2e4b3966c568ad9760df00bf306fef3a8aa76eae56a66d09526b062d8747a17358d21d9d8f60107f87e9f7398c85c92d
   languageName: node
   linkType: hard
 
@@ -23431,6 +23447,13 @@ __metadata:
   languageName: node
   linkType: hard
 
+"tabbable@npm:^6.0.0, tabbable@npm:^6.2.0":
+  version: 6.2.0
+  resolution: "tabbable@npm:6.2.0"
+  checksum: 980fa73476026e99dcacfc0d6e000d41d42c8e670faf4682496d30c625495e412c4369694f2a15cf1e5252d22de3c396f2b62edbe8d60b5dadc40d09e3f2dde3
+  languageName: node
+  linkType: hard
+
 "table@npm:^6.8.1":
   version: 6.8.1
   resolution: "table@npm:6.8.1"