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diff --git a/.yarn/cache/@floating-ui-react-dom-npm-2.0.2-6bf24b7b13-63a26f3c36.zip b/.yarn/cache/@floating-ui-react-dom-npm-2.0.2-6bf24b7b13-63a26f3c36.zip
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diff --git a/.yarn/cache/@floating-ui-react-npm-0.27.3-2e3a780fd2-91eef58241.zip b/.yarn/cache/@floating-ui-react-npm-0.27.3-2e3a780fd2-91eef58241.zip
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diff --git a/.yarn/cache/@floating-ui-utils-npm-0.2.5-9de23726fb-08df715c2a.zip b/.yarn/cache/@floating-ui-utils-npm-0.2.5-9de23726fb-08df715c2a.zip
deleted file mode 100644
index eae2cf7b7fec..000000000000
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diff --git a/.yarn/cache/@floating-ui-utils-npm-0.2.9-f2d9dffc79-0ca786347d.zip b/.yarn/cache/@floating-ui-utils-npm-0.2.9-f2d9dffc79-0ca786347d.zip
new file mode 100644
index 000000000000..a56372dd9017
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diff --git a/packages/react/package.json b/packages/react/package.json
index 63892c82e5da..e606eaed2523 100644
--- a/packages/react/package.json
+++ b/packages/react/package.json
@@ -54,7 +54,7 @@
     "@carbon/icons-react": "^11.54.0",
     "@carbon/layout": "^11.29.0",
     "@carbon/styles": "^1.74.0",
-    "@floating-ui/react": "^0.26.0",
+    "@floating-ui/react": "^0.27.0",
     "@ibm/telemetry-js": "^1.5.0",
     "classnames": "2.5.1",
     "copy-to-clipboard": "^3.3.1",
diff --git a/packages/react/src/components/Popover/Popover.stories.js b/packages/react/src/components/Popover/Popover.stories.js
index 069945e67e8e..df614d9ac99f 100644
--- a/packages/react/src/components/Popover/Popover.stories.js
+++ b/packages/react/src/components/Popover/Popover.stories.js
@@ -87,8 +87,8 @@ DefaultStory.argTypes = { ...sharedArgTypes };
 export const TabTip = (args) => {
   const [open, setOpen] = useState(true);
   const [openTwo, setOpenTwo] = useState(false);
-  const align = document?.dir === 'rtl' ? 'bottom-right' : 'bottom-left';
-  const alignTwo = document?.dir === 'rtl' ? 'bottom-left' : 'bottom-right';
+  const align = document?.dir === 'rtl' ? 'bottom-end' : 'bottom-start';
+  const alignTwo = document?.dir === 'rtl' ? 'bottom-start' : 'bottom-end';
   return (
     <div className="popover-tabtip-story" style={{ display: 'flex' }}>
       <Popover
@@ -351,9 +351,9 @@ export const ExperimentalAutoAlignBoundary = () => {
 };
 
 export const Test = () => {
-  const [open, setOpen] = useState();
-  const align = document?.dir === 'rtl' ? 'bottom-right' : 'bottom-left';
-  const alignTwo = document?.dir === 'rtl' ? 'bottom-left' : 'bottom-right';
+  const [open, setOpen] = useState(false);
+  const align = document?.dir === 'rtl' ? 'bottom-end' : 'bottom-start';
+
   return (
     <div style={{ display: 'flex', gap: '8rem' }}>
       <OverflowMenu
diff --git a/yarn.lock b/yarn.lock
index 07463a3be438..9bce036fc639 100644
--- a/yarn.lock
+++ b/yarn.lock
@@ -2009,7 +2009,7 @@ __metadata:
     "@carbon/test-utils": "npm:^10.35.0"
     "@carbon/themes": "npm:^11.46.0"
     "@figma/code-connect": "npm:^1.2.4"
-    "@floating-ui/react": "npm:^0.26.0"
+    "@floating-ui/react": "npm:^0.27.0"
     "@ibm/telemetry-js": "npm:^1.5.0"
     "@rollup/plugin-babel": "npm:^6.0.0"
     "@rollup/plugin-commonjs": "npm:^28.0.0"
@@ -3240,46 +3240,46 @@ __metadata:
   languageName: node
   linkType: hard
 
-"@floating-ui/dom@npm:^1.5.1, @floating-ui/dom@npm:^1.6.3":
-  version: 1.6.8
-  resolution: "@floating-ui/dom@npm:1.6.8"
+"@floating-ui/dom@npm:^1.0.0, @floating-ui/dom@npm:^1.6.3":
+  version: 1.6.13
+  resolution: "@floating-ui/dom@npm:1.6.13"
   dependencies:
     "@floating-ui/core": "npm:^1.6.0"
-    "@floating-ui/utils": "npm:^0.2.5"
-  checksum: 10/ebfc92b7a08addc1952d497174a197db80278d3701da7d7dedd3e1533daa80b12b7de02c19408de3f951195a3247f2f5c3cc10807071147e3193bbef469e90a5
+    "@floating-ui/utils": "npm:^0.2.9"
+  checksum: 10/4bb732baf3270007741bcdc91be1de767b2bb5d8b891eb838e5f1e7c4cccad998643dbdd4e8b8cec4c5d12c9898f80febc68e9793dd6e26a445283c4fb1b6a78
   languageName: node
   linkType: hard
 
-"@floating-ui/react-dom@npm:^2.0.0":
-  version: 2.0.2
-  resolution: "@floating-ui/react-dom@npm:2.0.2"
+"@floating-ui/react-dom@npm:^2.0.0, @floating-ui/react-dom@npm:^2.1.2":
+  version: 2.1.2
+  resolution: "@floating-ui/react-dom@npm:2.1.2"
   dependencies:
-    "@floating-ui/dom": "npm:^1.5.1"
+    "@floating-ui/dom": "npm:^1.0.0"
   peerDependencies:
     react: ">=16.8.0"
     react-dom: ">=16.8.0"
-  checksum: 10/63a26f3c36f00a2bdede202cb7a3be74b3c6599463c0a069745f6aed3181a33ce72936158209f6fd1c284d85fd494aa656e6cbc4266c096f3189ce1c13f83dfe
+  checksum: 10/2a67dc8499674e42ff32c7246bded185bb0fdd492150067caf9568569557ac4756a67787421d8604b0f241e5337de10762aee270d9aeef106d078a0ff13596c4
   languageName: node
   linkType: hard
 
-"@floating-ui/react@npm:^0.26.0":
-  version: 0.26.11
-  resolution: "@floating-ui/react@npm:0.26.11"
+"@floating-ui/react@npm:^0.27.0":
+  version: 0.27.3
+  resolution: "@floating-ui/react@npm:0.27.3"
   dependencies:
-    "@floating-ui/react-dom": "npm:^2.0.0"
-    "@floating-ui/utils": "npm:^0.2.0"
+    "@floating-ui/react-dom": "npm:^2.1.2"
+    "@floating-ui/utils": "npm:^0.2.9"
     tabbable: "npm:^6.0.0"
   peerDependencies:
-    react: ">=16.8.0"
-    react-dom: ">=16.8.0"
-  checksum: 10/182e65bc0b4986438fc100645ec35d68bf5b78943da0cb915ff5bf85cbab41657e07fc74b92bc23fd1dcb787360f9cb0a308d9d999c8097f9ed580b68632da03
+    react: ">=17.0.0"
+    react-dom: ">=17.0.0"
+  checksum: 10/91eef58241b2225420fa73dfc501934463310489e08f2a0681b320e0c639c9ee59044ab66645f2901b74a88328208ff4cc4afabe93917a7a28f9d18037965cb6
   languageName: node
   linkType: hard
 
-"@floating-ui/utils@npm:^0.2.0, @floating-ui/utils@npm:^0.2.5":
-  version: 0.2.5
-  resolution: "@floating-ui/utils@npm:0.2.5"
-  checksum: 10/08df715c2a3bfa9d757347df0b38c89a3bfa92b0a32ff67d3d713960c2e72c202e22a2b220aacadbde5451ac2bd4c10411a73a8ed3707ded792f0182592eb01f
+"@floating-ui/utils@npm:^0.2.5, @floating-ui/utils@npm:^0.2.9":
+  version: 0.2.9
+  resolution: "@floating-ui/utils@npm:0.2.9"
+  checksum: 10/0ca786347db3dd8d9034b86d1449fabb96642788e5900cc5f2aee433cd7b243efbcd7a165bead50b004ee3f20a90ddebb6a35296fc41d43cfd361b6f01b69ffb
   languageName: node
   linkType: hard