diff --git a/src/Modal/Modal.test.tsx b/src/Modal/Modal.test.tsx
index 60b311cb..d32a4840 100644
--- a/src/Modal/Modal.test.tsx
+++ b/src/Modal/Modal.test.tsx
@@ -1,8 +1,9 @@
-import React from 'react'
-import { render, screen } from '@testing-library/react'
+import { render, screen, waitFor } from '@testing-library/react'
 import userEvent from '@testing-library/user-event'
-import Modal from './'
+import React, { useCallback, useRef } from 'react'
 import Button from '../Button'
+import Modal from './'
+import './dialog.mock'
 
 const TestModal = ({ state }: { state: boolean }) => {
   const [open, setOpen] = React.useState(state)
@@ -84,4 +85,69 @@ describe('Modal', () => {
       screen.queryByRole('button', { name: 'Do not click me' })
     ).not.toBeInTheDocument()
   })
+
+  describe('dialog ref handlers', () => {
+    const TestDialogWithHandlers = () => {
+      const ref = useRef<HTMLDialogElement>(null)
+      const handleShow = useCallback(() => {
+        ref.current?.showModal()
+      }, [ref])
+      const handleClose = useCallback(() => {
+        ref.current?.close()
+      }, [ref])
+      return (
+        <div className="font-sans">
+          <Button onClick={handleShow}>Open Modal</Button>
+          <Modal ref={ref}>
+            <Modal.Header className="font-bold">Hello!</Modal.Header>
+            <Modal.Body>
+              Press ESC key or click the button below to close
+            </Modal.Body>
+            <Modal.Actions>
+              <Button onClick={handleClose}>Close</Button>
+            </Modal.Actions>
+          </Modal>
+        </div>
+      )
+    }
+
+    it('should show modal with button', async () => {
+      const user = userEvent.setup()
+      render(<TestDialogWithHandlers />)
+
+      expect(screen.queryByRole('dialog')).not.toBeInTheDocument()
+
+      const openButton = screen.getByRole('button', { name: 'Open Modal' })
+      expect(openButton).toBeInTheDocument()
+
+      await user.click(openButton)
+
+      const dialog = await screen.findByRole('dialog')
+      expect(dialog).toBeInTheDocument()
+
+      const closeButton = screen.getByRole('button', { name: 'Close' })
+      expect(closeButton).toBeInTheDocument()
+      await user.click(closeButton)
+
+      await waitFor(() => {
+        expect(screen.queryByRole('dialog')).not.toBeInTheDocument()
+      })
+    })
+
+    it('should handle cancel event when triggered manually', async () => {
+      const user = userEvent.setup()
+      render(<TestDialogWithHandlers />)
+
+      const openButton = screen.getByRole('button', { name: 'Open Modal' })
+      await user.click(openButton)
+
+      const dialog = await screen.findByRole<HTMLDialogElement>('dialog')
+      expect(dialog).toBeInTheDocument()
+
+      // Manually trigger the cancel event (simulating ESC key)
+      await dialog.triggerCancel()
+
+      expect(screen.queryByRole('dialog')).not.toBeInTheDocument()
+    })
+  })
 })
diff --git a/src/Modal/Modal.tsx b/src/Modal/Modal.tsx
index 6b703ac1..f2f92c6c 100644
--- a/src/Modal/Modal.tsx
+++ b/src/Modal/Modal.tsx
@@ -1,13 +1,13 @@
-import React, { forwardRef, useCallback, useRef } from 'react'
 import clsx from 'clsx'
+import React, { forwardRef, useImperativeHandle, useRef } from 'react'
 import { twMerge } from 'tailwind-merge'
-
-import { IComponentBaseProps, ComponentPosition } from '../types'
+import { ComponentPosition, IComponentBaseProps } from '../types'
 
 import ModalActions from './ModalActions'
 import ModalBody from './ModalBody'
 import ModalHeader from './ModalHeader'
 import ModalLegacy from './ModalLegacy'
+import { useAriaHidden } from './useAriaHidden'
 
 export type ModalProps = React.DialogHTMLAttributes<HTMLDialogElement> &
   IComponentBaseProps & {
@@ -33,6 +33,10 @@ const Modal = forwardRef<HTMLDialogElement, ModalProps>(
     },
     ref
   ): JSX.Element => {
+    const internalRef = useRef<HTMLDialogElement>(null)
+    useImperativeHandle(ref, () => internalRef.current as HTMLDialogElement)
+    const isAriaHidden = useAriaHidden(internalRef, open, ariaHidden)
+
     const containerClasses = twMerge(
       'modal',
       clsx({
@@ -40,25 +44,24 @@ const Modal = forwardRef<HTMLDialogElement, ModalProps>(
         'modal-end': position === 'end',
         'modal-start': position === 'start',
         'modal-top': position === 'top',
-        'modal-middle': position === 'middle',
         'modal-bottom': position === 'bottom',
+        'modal-middle': position === undefined,
         'modal-bottom sm:modal-middle': responsive,
       })
     )
 
-    ariaHidden = ariaHidden ?? !open
     const bodyClasses = twMerge('modal-box', className)
 
     return (
       <dialog
         {...props}
         aria-label="Modal"
-        aria-hidden={ariaHidden}
+        aria-hidden={isAriaHidden}
         open={open}
         aria-modal={open}
         data-theme={dataTheme}
         className={containerClasses}
-        ref={ref}
+        ref={internalRef}
       >
         <div data-theme={dataTheme} className={bodyClasses}>
           {children}
@@ -79,13 +82,13 @@ export type DialogProps = Omit<ModalProps, 'ref'>
 const useDialog = () => {
   const dialogRef = useRef<HTMLDialogElement>(null)
 
-  const handleShow = useCallback(() => {
+  const handleShow = () => {
     dialogRef.current?.showModal()
-  }, [dialogRef])
+  }
 
-  const handleHide = useCallback(() => {
+  const handleHide = () => {
     dialogRef.current?.close()
-  }, [dialogRef])
+  }
 
   const Dialog = ({ children, ...props }: DialogProps) => {
     return (
diff --git a/src/Modal/dialog.mock.ts b/src/Modal/dialog.mock.ts
new file mode 100644
index 00000000..fca9759d
--- /dev/null
+++ b/src/Modal/dialog.mock.ts
@@ -0,0 +1,54 @@
+/**
+ * Mock implementation for HTMLDialogElement methods in Jest tests.
+ *
+ * This mock provides:
+ * - show() and showModal() methods that set open=true
+ * - close() method that sets open=false and fires 'close' event
+ * - triggerCancel() method for testing cancel events (simulates ESC key)
+ *
+ * Usage in tests:
+ * ```tsx
+ * const dialog = screen.getByRole('dialog') as HTMLDialogElement
+ * dialog.triggerCancel() // Simulates ESC key press
+ * ```
+ */
+
+// Extend the HTMLDialogElement interface to include our custom method
+declare global {
+  interface HTMLDialogElement {
+    triggerCancel(): void
+  }
+}
+
+HTMLDialogElement.prototype.show = jest.fn(function mock(
+  this: HTMLDialogElement
+) {
+  this.open = true
+})
+
+HTMLDialogElement.prototype.showModal = jest.fn(function mock(
+  this: HTMLDialogElement
+) {
+  this.open = true
+})
+
+HTMLDialogElement.prototype.close = jest.fn(function mock(
+  this: HTMLDialogElement
+) {
+  this.open = false
+  // Fire the 'close' event
+  this.dispatchEvent(new Event('close', { bubbles: true }))
+})
+
+// Helper function to manually trigger cancel event for testing
+// This simulates what happens when ESC key is pressed
+HTMLDialogElement.prototype.triggerCancel = jest.fn(function mock(
+  this: HTMLDialogElement
+) {
+  this.open = false
+  // Fire the 'cancel' event
+  this.dispatchEvent(new Event('cancel', { bubbles: true }))
+})
+
+// Export to make this a module
+export {}
diff --git a/src/Modal/useAriaHidden.ts b/src/Modal/useAriaHidden.ts
new file mode 100644
index 00000000..91271673
--- /dev/null
+++ b/src/Modal/useAriaHidden.ts
@@ -0,0 +1,41 @@
+import { useEffect, useState } from 'react'
+
+export const useAriaHidden = (
+  ref: React.RefObject<HTMLDialogElement>,
+  open?: boolean,
+  ariaHidden?: boolean
+) => {
+  const [iAriaHidden, setIAriaHidden] = useState(ariaHidden ?? !open)
+
+  useEffect(() => {
+    setIAriaHidden(ariaHidden ?? !open)
+  }, [ariaHidden, open])
+
+  useEffect(() => {
+    if (ref.current) {
+      ref.current.addEventListener('close', () => {
+        setIAriaHidden(true)
+      })
+      ref.current.addEventListener('cancel', () => {
+        setIAriaHidden(true)
+      })
+    }
+  }, [ref.current])
+
+  useEffect(() => {
+    if (ref.current) {
+      const originalShowModal = ref.current.showModal
+      ref.current.showModal = () => {
+        originalShowModal.call(ref.current)
+        setIAriaHidden(false)
+      }
+      const originalClose = ref.current.close
+      ref.current.close = () => {
+        originalClose.call(ref.current)
+        setIAriaHidden(true)
+      }
+    }
+  }, [ref.current])
+
+  return iAriaHidden
+}