diff --git a/packages/@headlessui-react/CHANGELOG.md b/packages/@headlessui-react/CHANGELOG.md
index c7de49700c..8f6b3e5a06 100644
--- a/packages/@headlessui-react/CHANGELOG.md
+++ b/packages/@headlessui-react/CHANGELOG.md
@@ -21,6 +21,7 @@ and this project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0
 - Render hidden form input fields for `Checkbox`, `Switch` and `RadioGroup` components ([#3095](https://github.com/tailwindlabs/headlessui/pull/3095))
 - Ensure the `multiple` prop is typed correctly when passing explicit types to the `Combobox` component ([#3099](https://github.com/tailwindlabs/headlessui/pull/3099))
 - Omit `nullable` prop from `Combobox` component ([#3100](https://github.com/tailwindlabs/headlessui/pull/3100))
+- Ensure anchored components are properly stacked on top of `Dialog` components ([#3111](https://github.com/tailwindlabs/headlessui/pull/3111))
 
 ### Changed
 
diff --git a/packages/@headlessui-react/src/components/dialog/dialog.tsx b/packages/@headlessui-react/src/components/dialog/dialog.tsx
index dc6329fa95..0f250d27c9 100644
--- a/packages/@headlessui-react/src/components/dialog/dialog.tsx
+++ b/packages/@headlessui-react/src/components/dialog/dialog.tsx
@@ -390,7 +390,7 @@ function DialogFn<TTag extends ElementType = typeof DEFAULT_DIALOG_TAG>(
       enabled={dialogState === DialogStates.Open}
       element={internalDialogRef}
       onUpdate={useEvent((message, type) => {
-        if (type !== 'Dialog') return
+        if (type !== 'Dialog' && type !== 'Modal') return
 
         match(message, {
           [StackMessage.Add]: () => setNestedDialogCount((count) => count + 1),
diff --git a/packages/@headlessui-react/src/internal/modal.tsx b/packages/@headlessui-react/src/internal/modal.tsx
index 0d3570b5b9..baae8bdb06 100644
--- a/packages/@headlessui-react/src/internal/modal.tsx
+++ b/packages/@headlessui-react/src/internal/modal.tsx
@@ -27,6 +27,7 @@ import {
   type RefProp,
 } from '../utils/render'
 import { ForcePortalRoot } from './portal-force-root'
+import { StackProvider } from './stack-context'
 
 function useScrollLock(
   ownerDocument: Document | null,
@@ -171,7 +172,7 @@ function ModalFn<TTag extends ElementType = typeof DEFAULT_MODAL_TAG>(
   }
 
   return (
-    <>
+    <StackProvider type="Modal" enabled={enabled} element={internalModalRef}>
       <ForcePortalRoot force={true}>
         <Portal>
           <FocusTrap
@@ -201,7 +202,7 @@ function ModalFn<TTag extends ElementType = typeof DEFAULT_MODAL_TAG>(
       <HoistFormFields>
         <MainTreeNode />
       </HoistFormFields>
-    </>
+    </StackProvider>
   )
 }