diff --git a/.changeset/orange-news-flash.md b/.changeset/orange-news-flash.md
new file mode 100644
index 00000000000..6e15092c261
--- /dev/null
+++ b/.changeset/orange-news-flash.md
@@ -0,0 +1,17 @@
+---
+'braid-design-system': minor
+---
+
+---
+updated:
+  - Autosuggest
+---
+
+**Autosuggest:** Add `suggestionHighlight` prop
+
+Introduces the `suggestionHighlight` prop, which uses the input value to automatically highlight either the `matching` or `remaining` portion of each suggestion.
+
+**EXAMPLE USAGE:**
+```jsx
+<Autosuggest suggestionHighlight="matching">
+```
\ No newline at end of file
diff --git a/packages/braid-design-system/package.json b/packages/braid-design-system/package.json
index 0120fcbffb7..b798be1415b 100644
--- a/packages/braid-design-system/package.json
+++ b/packages/braid-design-system/package.json
@@ -193,7 +193,7 @@
     "@vanilla-extract/dynamic": "^2.0.3",
     "@vanilla-extract/sprinkles": "^1.5.1",
     "assert": "^2.0.0",
-    "autosuggest-highlight": "^3.1.1",
+    "autosuggest-highlight": "^3.3.4",
     "clsx": "^2.1.1",
     "csstype": "^3.0.6",
     "dedent": "^1.5.3",
diff --git a/packages/braid-design-system/src/lib/components/Autosuggest/Autosuggest.docs.tsx b/packages/braid-design-system/src/lib/components/Autosuggest/Autosuggest.docs.tsx
index 26703f50025..8d5be7a03ff 100644
--- a/packages/braid-design-system/src/lib/components/Autosuggest/Autosuggest.docs.tsx
+++ b/packages/braid-design-system/src/lib/components/Autosuggest/Autosuggest.docs.tsx
@@ -7,12 +7,18 @@ import {
   TextLink,
   Text,
   Strong,
-  Alert,
   List,
   Stack,
   Heading,
+  Notice,
+  Column,
+  Columns,
+  TextField,
+  Inline,
 } from '../';
 import { IconHelp, IconLanguage } from '../icons';
+import { highlightSuggestions } from './Autosuggest';
+import parseHighlights from 'autosuggest-highlight/parse';
 
 export const makeSuggestions = (
   suggestions: Array<string | { text: string; description?: string }>,
@@ -329,30 +335,6 @@ const docs: ComponentDocs = {
           </>,
         ),
     },
-    {
-      label: 'Client-side filtering',
-      description: (
-        <>
-          <Text>
-            The logic for filtering suggestions typically lives on the server
-            rather than the client because it’s impractical to send all possible
-            suggestions over the network. However, when prototyping in Playroom
-            or working with smaller datasets, you may want to perform this
-            filtering on the client instead. For this case, we provide a{' '}
-            <Strong>filterSuggestions</Strong> function to make this as painless
-            as possible.
-          </Text>
-          <Alert tone="info">
-            <Text>
-              All examples on this page use the{' '}
-              <Strong>filterSuggestions</Strong> function to demonstrate
-              real-world filtering behaviour, but this can be safely omitted if
-              the filtering is being performed server-side.
-            </Text>
-          </Alert>
-        </>
-      ),
-    },
     {
       label: 'Automatic selection',
       description: (
@@ -482,6 +464,132 @@ const docs: ComponentDocs = {
           </>,
         ),
     },
+    {
+      label: 'Suggestion highlights',
+      description: (
+        <Text>
+          Suggestion items can be highlighted based on the input value using the{' '}
+          <Strong>suggestionHighlight</Strong> prop. Choose between highlighting
+          the <Strong>matching</Strong> or <Strong>remaining</Strong> portion of
+          each suggestion.
+        </Text>
+      ),
+      Example: ({ id, setDefaultState, setState, getState }) =>
+        source(
+          <>
+            {setDefaultState('textfield', 'App')}
+            {setDefaultState('suggestion', 'Apples')}
+
+            <Stack space="large">
+              <TextField
+                label="Label"
+                id={id}
+                onChange={setState('textfield')}
+                value={getState('textfield')}
+              />
+              <Columns space="gutter">
+                {['matching', 'remaining'].map((highlightType) => (
+                  <Column key={highlightType}>
+                    <Stack space="small">
+                      <Text size="small" tone="secondary">
+                        Highlight <Strong>{highlightType}</Strong>
+                      </Text>
+                      <Inline space="none">
+                        {parseHighlights(
+                          getState('suggestion'),
+                          highlightSuggestions(
+                            getState('suggestion'),
+                            getState('textfield'),
+                            highlightType === 'matching'
+                              ? 'matching'
+                              : 'remaining',
+                          ).map(({ start, end }) => [start, end]),
+                        ).map((part, index) => (
+                          <Text
+                            key={index}
+                            weight={part.highlight ? 'strong' : 'regular'}
+                          >
+                            {part.text}
+                          </Text>
+                        ))}
+                      </Inline>
+                    </Stack>
+                  </Column>
+                ))}
+              </Columns>
+            </Stack>
+          </>,
+        ),
+      code: false,
+    },
+
+    {
+      description: (
+        <>
+          <Text>
+            If <Strong>suggestionHighlight</Strong> is not suitable for your use
+            case, you can provide explicit highlight ranges for each suggestion.
+          </Text>
+        </>
+      ),
+      Example: ({ id, setDefaultState, getState, setState, resetState }) =>
+        source(
+          <>
+            {setDefaultState('value', { text: 'App' })}
+
+            <Autosuggest
+              label="Label"
+              id={id}
+              value={getState('value')}
+              onChange={setState('value')}
+              onClear={() => resetState('value')}
+              suggestions={[
+                {
+                  text: 'Apples',
+                  value: 1,
+                  highlights: [{ start: 2, end: 6 }],
+                },
+                {
+                  text: 'Bananas',
+                  value: 2,
+                  highlights: [{ start: 0, end: 3 }],
+                },
+              ]}
+            />
+          </>,
+        ),
+    },
+    {
+      label: 'Client-side filtering',
+      description: (
+        <>
+          <Text>
+            The logic for filtering suggestions typically lives on the server
+            rather than the client because it’s impractical to send all possible
+            suggestions over the network. However, when prototyping in Playroom
+            or working with smaller datasets, you may want to perform this
+            filtering on the client instead.
+          </Text>
+          <Text>
+            For this case, we provide a <Strong>filterSuggestions</Strong>{' '}
+            function to make this as painless as possible. This also handles
+            highlights for you, using <Strong>suggestionHighlight</Strong> set
+            to <Strong>matching</Strong>.
+          </Text>
+          <Text>
+            If filtering is being performed on the server, this can be safely
+            omitted.
+          </Text>
+          <Notice tone="info">
+            <Text>
+              Most examples on this page use the{' '}
+              <Strong>filterSuggestions</Strong> function to demonstrate
+              real-world filtering behaviour.
+            </Text>
+          </Notice>
+        </>
+      ),
+    },
     {
       label: 'Clearable suggestions',
       description: (
diff --git a/packages/braid-design-system/src/lib/components/Autosuggest/Autosuggest.tsx b/packages/braid-design-system/src/lib/components/Autosuggest/Autosuggest.tsx
index 1cf891af4c1..96fe31f5713 100644
--- a/packages/braid-design-system/src/lib/components/Autosuggest/Autosuggest.tsx
+++ b/packages/braid-design-system/src/lib/components/Autosuggest/Autosuggest.tsx
@@ -14,6 +14,7 @@ import React, {
 } from 'react';
 import dedent from 'dedent';
 import parseHighlights from 'autosuggest-highlight/parse';
+import matchHighlights from 'autosuggest-highlight/match';
 import { Box } from '../Box/Box';
 import { Text } from '../Text/Text';
 import { Strong } from '../Strong/Strong';
@@ -277,6 +278,8 @@ interface LegacyMessageSuggestion {
   message: string;
 }
 
+type HighlightOptions = 'matching' | 'remaining';
+
 export type AutosuggestBaseProps<Value> = Omit<
   FieldBaseProps,
   'value' | 'autoComplete' | 'prefix'
@@ -292,6 +295,7 @@ export type AutosuggestBaseProps<Value> = Omit<
   onChange: (value: AutosuggestValue<Value>) => void;
   clearLabel?: string;
   automaticSelection?: boolean;
+  suggestionHighlight?: HighlightOptions;
   hideSuggestionsOnSelection?: boolean;
   showMobileBackdrop?: boolean;
   scrollToTopOnMobile?: boolean;
@@ -337,6 +341,21 @@ function normaliseNoSuggestionMessage<Value>(
   }
 }
 
+export function highlightSuggestions(
+  suggestion: string,
+  value: string,
+  variant: HighlightOptions = 'matching',
+): SuggestionMatch {
+  const matches = matchHighlights(suggestion, value);
+
+  const formattedMatches =
+    variant === 'remaining'
+      ? matches.map(([_, end]) => ({ start: end, end: suggestion.length }))
+      : matches.map(([start, end]) => ({ start, end }));
+
+  return formattedMatches;
+}
+
 export const Autosuggest = forwardRef(function <Value>(
   {
     id,
@@ -345,6 +364,7 @@ export const Autosuggest = forwardRef(function <Value>(
     noSuggestionsMessage: noSuggestionsMessageProp,
     onChange = noop,
     automaticSelection = false,
+    suggestionHighlight,
     showMobileBackdrop = false,
     scrollToTopOnMobile = true,
     hideSuggestionsOnSelection = true,
@@ -373,6 +393,23 @@ export const Autosuggest = forwardRef(function <Value>(
   );
   const hasItems = suggestions.length > 0 || Boolean(noSuggestionsMessage);
 
+  const hasExplicitHighlights = suggestions.some(
+    (suggestion) => 'highlights' in suggestion,
+  );
+
+  if (process.env.NODE_ENV !== 'production') {
+    if (suggestionHighlight && hasExplicitHighlights) {
+      // eslint-disable-next-line no-console
+      console.warn(
+        dedent`
+          In Autosuggest, you are using the "suggestionHighlight" prop with suggestions that have individual highlight ranges.
+          Your provided highlight ranges will be overridden.
+          If you want to use your own highlight ranges, remove the "suggestionHighlight" prop.
+          `,
+      );
+    }
+  }
+
   // We need a ref regardless so we can imperatively
   // focus the field when clicking the clear button
   const defaultRef = useRef<HTMLInputElement | null>(null);
@@ -568,7 +605,7 @@ export const Autosuggest = forwardRef(function <Value>(
       }
     }
     // re-running this effect if the suggestionCount changes
-    // to ensure asychronous updates aren't left out of view.
+    // to ensure asynchronous updates aren't left out of view.
   }, [isOpen, isMobile, suggestionCount]);
 
   const inputProps = {
@@ -804,6 +841,13 @@ export const Autosuggest = forwardRef(function <Value>(
                       ? normalisedSuggestions.map((suggestion, index) => {
                           const { text } = suggestion;
                           const groupHeading = groupHeadingIndexes.get(index);
+                          const highlights = suggestionHighlight
+                            ? highlightSuggestions(
+                                suggestion.text,
+                                value.text,
+                                suggestionHighlight,
+                              )
+                            : suggestion.highlights;
 
                           return (
                             <Fragment key={index + text}>
@@ -811,7 +855,10 @@ export const Autosuggest = forwardRef(function <Value>(
                                 <GroupHeading>{groupHeading}</GroupHeading>
                               ) : null}
                               <SuggestionItem
-                                suggestion={suggestion}
+                                suggestion={{
+                                  ...suggestion,
+                                  highlights,
+                                }}
                                 highlighted={highlightedIndex === index}
                                 selected={value === suggestion}
                                 onClick={() => {
diff --git a/packages/braid-design-system/src/lib/components/Autosuggest/filterSuggestions.ts b/packages/braid-design-system/src/lib/components/Autosuggest/filterSuggestions.ts
index 9ca17b028f4..628a84ea10f 100644
--- a/packages/braid-design-system/src/lib/components/Autosuggest/filterSuggestions.ts
+++ b/packages/braid-design-system/src/lib/components/Autosuggest/filterSuggestions.ts
@@ -1,10 +1,10 @@
 import assert from 'assert';
-import matchHighlights from 'autosuggest-highlight/match';
-import type {
-  AutosuggestValue,
-  Suggestion,
-  Suggestions,
-  GroupedSuggestions,
+import {
+  type AutosuggestValue,
+  type Suggestion,
+  type Suggestions,
+  type GroupedSuggestions,
+  highlightSuggestions,
 } from './Autosuggest';
 
 type FilterableSuggestion<Value> = Omit<Suggestion<Value>, 'highlights'>;
@@ -14,17 +14,16 @@ type FilterableGroupedSuggestions<Value> = Omit<
 > & { suggestions: Array<FilterableSuggestion<Value>> };
 
 function matchSuggestion<Value>(suggestion: Suggestion<Value>, query: string) {
-  const groupMatches = matchHighlights(
+  const highlights = highlightSuggestions(
     suggestion.label ?? suggestion.text,
     query,
-  ) as Array<[number, number]>;
-
-  return !groupMatches.length
-    ? null
-    : {
+  );
+  return highlights.length
+    ? {
         ...suggestion,
-        highlights: groupMatches.map(([start, end]) => ({ start, end })),
-      };
+        highlights,
+      }
+    : null;
 }
 
 type InputValue<Value> = string | AutosuggestValue<Value>;
diff --git a/packages/generate-component-docs/src/__snapshots__/contract.test.ts.snap b/packages/generate-component-docs/src/__snapshots__/contract.test.ts.snap
index d0b7de6f62d..bada0cbf16d 100644
--- a/packages/generate-component-docs/src/__snapshots__/contract.test.ts.snap
+++ b/packages/generate-component-docs/src/__snapshots__/contract.test.ts.snap
@@ -126,6 +126,9 @@ exports[`Autosuggest 1`] = `
     secondaryLabel?: ReactNode
     secondaryMessage?: ReactNode
     showMobileBackdrop?: boolean
+    suggestionHighlight?: 
+        | "matching"
+        | "remaining"
     suggestions: 
         | (value: AutosuggestValue<Value>) => LegacyMessageSuggestion | Suggestions<Value>
         | Suggestions<Value>
diff --git a/pnpm-lock.yaml b/pnpm-lock.yaml
index 45a67485624..92d2f6791ea 100644
--- a/pnpm-lock.yaml
+++ b/pnpm-lock.yaml
@@ -195,7 +195,7 @@ importers:
         specifier: ^2.0.0
         version: 2.1.0
       autosuggest-highlight:
-        specifier: ^3.1.1
+        specifier: ^3.3.4
         version: 3.3.4
       clsx:
         specifier: ^2.1.1