diff --git a/change/@fluentui-react-dialog-75134048-6dfa-4395-9918-f05e45ba23ef.json b/change/@fluentui-react-dialog-75134048-6dfa-4395-9918-f05e45ba23ef.json
new file mode 100644
index 00000000000000..c9a313445330de
--- /dev/null
+++ b/change/@fluentui-react-dialog-75134048-6dfa-4395-9918-f05e45ba23ef.json
@@ -0,0 +1,7 @@
+{
+  "type": "patch",
+  "comment": "only modal dialog closes on Esc key press",
+  "packageName": "@fluentui/react-dialog",
+  "email": "kakrookaran@gmail.com",
+  "dependentChangeType": "patch"
+}
diff --git a/packages/react-components/react-dialog/library/src/components/DialogSurface/useDialogSurface.ts b/packages/react-components/react-dialog/library/src/components/DialogSurface/useDialogSurface.ts
index df05129c64297f..d8349249e9dbb4 100644
--- a/packages/react-components/react-dialog/library/src/components/DialogSurface/useDialogSurface.ts
+++ b/packages/react-components/react-dialog/library/src/components/DialogSurface/useDialogSurface.ts
@@ -59,7 +59,7 @@ export const useDialogSurface_unstable = (
   const handleKeyDown = useEventCallback((event: React.KeyboardEvent<HTMLDivElement>) => {
     props.onKeyDown?.(event);
 
-    if (event.key === Escape && !event.isDefaultPrevented()) {
+    if (modalType === 'modal' && event.key === Escape && !event.isDefaultPrevented()) {
       requestOpenChange({
         event,
         open: false,