diff --git a/.changeset/fix-dialog-height-overflow.md b/.changeset/fix-dialog-height-overflow.md
new file mode 100644
index 0000000000..bf91d882dd
--- /dev/null
+++ b/.changeset/fix-dialog-height-overflow.md
@@ -0,0 +1,7 @@
+---
+'@backstage/ui': patch
+---
+
+Fixed `Dialog` content overflowing when no `height` prop is set. The dialog now grows with its content and scrolls when content exceeds the viewport height.
+
+**Affected components**: Dialog
diff --git a/packages/ui/src/components/Dialog/Dialog.module.css b/packages/ui/src/components/Dialog/Dialog.module.css
index da82509134..194128ec4d 100644
--- a/packages/ui/src/components/Dialog/Dialog.module.css
+++ b/packages/ui/src/components/Dialog/Dialog.module.css
@@ -50,9 +50,11 @@
     border: 1px solid var(--bui-border-1);
     color: var(--bui-fg-primary);
     position: relative;
+    display: flex;
+    flex-direction: column;
     width: min(var(--bui-dialog-min-width, 400px), calc(100vw - 3rem));
     max-width: calc(100vw - 3rem);
-    height: min(var(--bui-dialog-min-height, auto), calc(100vh - 3rem));
+    height: var(--bui-dialog-height, auto);
     max-height: calc(100vh - 3rem);
     outline: none;
   }
@@ -61,7 +63,9 @@
     display: flex;
     flex-direction: column;
     border-radius: var(--dialog-border-radius);
-    height: 100%;
+    flex: 1;
+    min-height: 0;
+    overflow: hidden;
   }
 
   /* Dialog entering animation */
@@ -102,6 +106,7 @@
   .bui-DialogBody {
     padding: var(--bui-space-3);
     flex: 1;
+    min-height: 0;
     overflow-y: auto;
   }
 
diff --git a/packages/ui/src/components/Dialog/Dialog.stories.tsx b/packages/ui/src/components/Dialog/Dialog.stories.tsx
index 9084bfa7e4..8892cb2314 100644
--- a/packages/ui/src/components/Dialog/Dialog.stories.tsx
+++ b/packages/ui/src/components/Dialog/Dialog.stories.tsx
@@ -247,6 +247,39 @@ export const WithForm = meta.story({
   ),
 });
 
+export const OverflowWithoutHeight = meta.story({
+  args: {
+    defaultOpen: true,
+  },
+  render: args => (
+    <DialogTrigger>
+      <Button variant="secondary">Open Dialog</Button>
+      <Dialog {...args}>
+        <DialogHeader>Overflow Without Height</DialogHeader>
+        <DialogBody>
+          <Flex direction="column" gap="3">
+            {Array.from({ length: 20 }, (_, i) => (
+              <Text key={i}>
+                Line {i + 1}: Lorem ipsum dolor sit amet, consectetur adipiscing
+                elit. Sed do eiusmod tempor incididunt ut labore et dolore magna
+                aliqua.
+              </Text>
+            ))}
+          </Flex>
+        </DialogBody>
+        <DialogFooter>
+          <Button variant="secondary" slot="close">
+            Cancel
+          </Button>
+          <Button variant="primary" slot="close">
+            Confirm
+          </Button>
+        </DialogFooter>
+      </Dialog>
+    </DialogTrigger>
+  ),
+});
+
 export const PreviewFixedWidthAndHeight = FixedWidth.extend({
   args: {
     defaultOpen: undefined,
diff --git a/packages/ui/src/components/Dialog/Dialog.tsx b/packages/ui/src/components/Dialog/Dialog.tsx
index fad5e10ea2..3a23ee27c9 100644
--- a/packages/ui/src/components/Dialog/Dialog.tsx
+++ b/packages/ui/src/components/Dialog/Dialog.tsx
@@ -67,11 +67,12 @@ export const Dialog = forwardRef<React.ElementRef<typeof Modal>, DialogProps>(
           style={{
             ['--bui-dialog-min-width' as keyof React.CSSProperties]:
               typeof width === 'number' ? `${width}px` : width || '400px',
-            ['--bui-dialog-min-height' as keyof React.CSSProperties]: height
-              ? typeof height === 'number'
-                ? `${height}px`
-                : height
-              : 'auto',
+            ...(height
+              ? {
+                  ['--bui-dialog-height' as keyof React.CSSProperties]:
+                    typeof height === 'number' ? `${height}px` : height,
+                }
+              : {}),
             ...style,
           }}
         >