diff --git a/package-lock.json b/package-lock.json
index 46d373ab41..4288251441 100644
--- a/package-lock.json
+++ b/package-lock.json
@@ -54182,7 +54182,10 @@
         "@instructure/console": "8.46.1",
         "@instructure/ui-babel-preset": "8.46.1",
         "@instructure/ui-prop-types": "8.46.1",
-        "@instructure/ui-test-utils": "8.46.1"
+        "@instructure/ui-test-utils": "8.46.1",
+        "@testing-library/jest-dom": "^5.17.0",
+        "@testing-library/react": "^14.0.0",
+        "@testing-library/user-event": "^14.4.3"
       },
       "peerDependencies": {
         "react": ">=16.8 <=18"
@@ -59851,6 +59854,9 @@
         "@instructure/ui-react-utils": "8.46.1",
         "@instructure/ui-test-utils": "8.46.1",
         "@instructure/ui-testable": "8.46.1",
+        "@testing-library/jest-dom": "^5.17.0",
+        "@testing-library/react": "^14.0.0",
+        "@testing-library/user-event": "^14.4.3",
         "prop-types": "^15.8.1"
       }
     },
diff --git a/packages/ui-dialog/package.json b/packages/ui-dialog/package.json
index 168e0e85ec..4af35dd36c 100644
--- a/packages/ui-dialog/package.json
+++ b/packages/ui-dialog/package.json
@@ -35,7 +35,10 @@
     "@instructure/console": "8.46.1",
     "@instructure/ui-babel-preset": "8.46.1",
     "@instructure/ui-prop-types": "8.46.1",
-    "@instructure/ui-test-utils": "8.46.1"
+    "@instructure/ui-test-utils": "8.46.1",
+    "@testing-library/jest-dom": "^5.17.0",
+    "@testing-library/react": "^14.0.0",
+    "@testing-library/user-event": "^14.4.3"
   },
   "peerDependencies": {
     "react": ">=16.8 <=18"
diff --git a/packages/ui-dialog/src/Dialog/__new-tests__/Dialog.test.tsx b/packages/ui-dialog/src/Dialog/__new-tests__/Dialog.test.tsx
new file mode 100644
index 0000000000..e808da3b02
--- /dev/null
+++ b/packages/ui-dialog/src/Dialog/__new-tests__/Dialog.test.tsx
@@ -0,0 +1,557 @@
+/*
+ * The MIT License (MIT)
+ *
+ * Copyright (c) 2015 - present Instructure, Inc.
+ *
+ * Permission is hereby granted, free of charge, to any person obtaining a copy
+ * of this software and associated documentation files (the "Software"), to deal
+ * in the Software without restriction, including without limitation the rights
+ * to use, copy, modify, merge, publish, distribute, sublicense, and/or sell
+ * copies of the Software, and to permit persons to whom the Software is
+ * furnished to do so, subject to the following conditions:
+ *
+ * The above copyright notice and this permission notice shall be included in all
+ * copies or substantial portions of the Software.
+ *
+ * THE SOFTWARE IS PROVIDED "AS IS", WITHOUT WARRANTY OF ANY KIND, EXPRESS OR
+ * IMPLIED, INCLUDING BUT NOT LIMITED TO THE WARRANTIES OF MERCHANTABILITY,
+ * FITNESS FOR A PARTICULAR PURPOSE AND NONINFRINGEMENT. IN NO EVENT SHALL THE
+ * AUTHORS OR COPYRIGHT HOLDERS BE LIABLE FOR ANY CLAIM, DAMAGES OR OTHER
+ * LIABILITY, WHETHER IN AN ACTION OF CONTRACT, TORT OR OTHERWISE, ARISING FROM,
+ * OUT OF OR IN CONNECTION WITH THE SOFTWARE OR THE USE OR OTHER DEALINGS IN THE
+ * SOFTWARE.
+ */
+
+import React, {
+  forwardRef,
+  useEffect,
+  useImperativeHandle,
+  useRef,
+  useState
+} from 'react'
+import { fireEvent, render, waitFor } from '@testing-library/react'
+import userEvent from '@testing-library/user-event'
+import '@testing-library/jest-dom/extend-expect'
+
+import { Dialog } from '../index'
+import type { DialogProps } from '../props'
+
+const TEST_TEXT = 'test-text'
+const TEST_LABEL = 'test-label'
+
+const renderDialog = (props?: Partial<DialogProps>) => {
+  const allProps: DialogProps = {
+    open: true,
+    label: TEST_LABEL,
+    ...props
+  }
+
+  return render(
+    <Dialog {...allProps}>
+      <button>{TEST_TEXT}</button>
+    </Dialog>
+  )
+}
+
+const DialogExample = forwardRef((props: DialogProps, ref: React.Ref<any>) => {
+  const inputRef = useRef<HTMLInputElement | null>(null)
+  const dialogRef = useRef<Dialog | null>(null)
+
+  useEffect(() => {
+    if (!props.open) {
+      inputRef.current!.focus()
+    }
+  }, [props.open])
+
+  useImperativeHandle(ref, () => ({
+    focusDialog: () => dialogRef.current!.focus(),
+    blurDialog: () => dialogRef.current!.blur()
+  }))
+
+  return (
+    <div>
+      <input data-testid="input-trigger" type="text" ref={inputRef} />
+      <Dialog
+        shouldContainFocus
+        shouldReturnFocus
+        label={TEST_LABEL}
+        {...props}
+        ref={dialogRef}
+      >
+        {props.children || (
+          <div>
+            <input type="text" data-testid="input-one" />
+            <input type="text" data-testid="input-two" />
+          </div>
+        )}
+      </Dialog>
+    </div>
+  )
+})
+DialogExample.displayName = 'DialogExample'
+
+const NestedDialogExample = (props: DialogProps) => {
+  const [nestedOpen, setNestedOpen] = useState(false)
+  const handleTriggerClick = () => setNestedOpen(true)
+
+  return (
+    <div>
+      <Dialog open shouldReturnFocus label={TEST_LABEL} {...props}>
+        <div>
+          <div>
+            <input
+              onClick={handleTriggerClick}
+              type="text"
+              data-testid="nested-input-one"
+            />
+            <input
+              onClick={handleTriggerClick}
+              type="text"
+              data-testid="nested-input-two"
+            />
+          </div>
+          <Dialog open={nestedOpen} label={TEST_LABEL}>
+            {TEST_TEXT}
+          </Dialog>
+        </div>
+      </Dialog>
+    </div>
+  )
+}
+NestedDialogExample.displayName = 'NestedDialogExample'
+
+describe('<Dialog />', () => {
+  it('should render nothing when closed', () => {
+    const { container } = renderDialog({ open: false })
+
+    expect(container.firstChild).not.toBeInTheDocument()
+  })
+
+  it('should render children when open', async () => {
+    const { container } = renderDialog({ open: true })
+
+    expect(container.firstChild).toBeInTheDocument()
+    expect(container.firstChild).toHaveTextContent(TEST_TEXT)
+  })
+
+  it('should apply the a11y attributes', () => {
+    const { getByRole, getByLabelText } = renderDialog({ label: TEST_LABEL })
+    const dialog = getByRole('dialog')
+    const label = getByLabelText(TEST_LABEL)
+
+    expect(dialog).toBeInTheDocument()
+    expect(label).toBeInTheDocument()
+  })
+
+  it('should apply the role attributes, if explicitly passed', () => {
+    const { getByRole, getByLabelText } = renderDialog({
+      label: TEST_LABEL,
+      role: 'region'
+    })
+    const regionRole = getByRole('region')
+    const label = getByLabelText(TEST_LABEL)
+
+    expect(regionRole).toBeInTheDocument()
+    expect(label).toBeInTheDocument()
+  })
+
+  it('should call onDismiss prop when Esc key pressed', async () => {
+    const onDismiss = jest.fn()
+    const { getByRole } = renderDialog({ onDismiss })
+    const dialog = getByRole('dialog')
+
+    await waitFor(() => {
+      fireEvent.keyUp(dialog, {
+        key: 'Escape',
+        code: 'Escape',
+        keyCode: 27,
+        charCode: 27
+      })
+      expect(onDismiss).toHaveBeenCalled()
+    })
+  })
+
+  it('should call onDismiss prop when the document is clicked', async () => {
+    const onDismiss = jest.fn()
+    renderDialog({ onDismiss, shouldCloseOnDocumentClick: true })
+
+    await waitFor(() => {
+      fireEvent.click(document)
+      expect(onDismiss).toHaveBeenCalled()
+    })
+  })
+
+  describe('managed focus', () => {
+    it('should provide focus method', async () => {
+      const { getByTestId } = render(
+        <div>
+          <DialogExample
+            open
+            contentElement={() => getByTestId('non-tabbable')}
+          >
+            {TEST_TEXT}
+          </DialogExample>
+          <div tabIndex={-1} data-testid="non-tabbable">
+            {TEST_TEXT}
+          </div>
+        </div>
+      )
+      const nonTabbableContent = getByTestId('non-tabbable')
+
+      await waitFor(() => {
+        userEvent.tab()
+        expect(document.activeElement).toBe(nonTabbableContent)
+      })
+    })
+
+    it('should warn when trying to focus or blur a closed dialog', () => {
+      const consoleError = jest
+        .spyOn(console, 'error')
+        .mockImplementation(() => {})
+      let ref
+      render(<DialogExample open={false} ref={(el) => (ref = el)} />)
+
+      ref!.focusDialog()
+      expect(consoleError.mock.calls[0][0]).toBe(
+        "Warning: [Dialog] Can't focus a Dialog that isn't open."
+      )
+
+      ref!.blurDialog()
+      expect(consoleError.mock.calls[1][0]).toBe(
+        "Warning: [Dialog] Can't blur a Dialog that isn't open."
+      )
+
+      consoleError.mockRestore()
+    })
+
+    it('should focus the first tabbable element by default', async () => {
+      const { getByTestId } = render(<DialogExample open />)
+      const inputOne = getByTestId('input-one')
+
+      await waitFor(() => {
+        expect(document.activeElement).toBe(inputOne)
+      })
+    })
+
+    it('should focus the first tabbable element when open prop becomes true', async () => {
+      const { rerender, getByTestId } = render(<DialogExample open={false} />)
+      const inputTrigger = getByTestId('input-trigger')
+
+      await waitFor(() => {
+        expect(document.activeElement).toBe(inputTrigger)
+      })
+
+      rerender(<DialogExample open={true} />)
+      const inputOne = getByTestId('input-one')
+
+      await waitFor(() => {
+        expect(document.activeElement).toBe(inputOne)
+      })
+    })
+
+    it('should take a prop for finding default focus', async () => {
+      const { getByTestId } = render(
+        <DialogExample
+          open
+          defaultFocusElement={() => getByTestId('input-two')}
+        />
+      )
+      const inputTwo = getByTestId('input-two')
+
+      await waitFor(() => {
+        expect(document.activeElement).toBe(inputTwo)
+      })
+    })
+
+    it('should still focus the defaultFocusElement when it is focusable but not tabbable', async () => {
+      const { getByTestId } = render(
+        <DialogExample
+          open
+          defaultFocusElement={() => getByTestId('non-tabbable')}
+        >
+          <div tabIndex={-1} data-testid="non-tabbable">
+            {TEST_TEXT}
+          </div>
+        </DialogExample>
+      )
+      const nonTabbableContent = getByTestId('non-tabbable')
+
+      await waitFor(() => {
+        expect(document.activeElement).toBe(nonTabbableContent)
+      })
+    })
+
+    it('should focus the contentElement by default if focusable and no defaultFocusElement is provided', async () => {
+      const { getByTestId } = render(
+        <div>
+          <DialogExample
+            open
+            contentElement={() => getByTestId('non-tabbable')}
+          >
+            {TEST_TEXT}
+          </DialogExample>
+          <div tabIndex={-1} data-testid="non-tabbable">
+            {TEST_TEXT}
+          </div>
+        </div>
+      )
+      const nonTabbableContent = getByTestId('non-tabbable')
+
+      await waitFor(() => {
+        expect(document.activeElement).toBe(nonTabbableContent)
+      })
+    })
+
+    it('should focus the document body if there is no defaultFocusElement, tabbable elements, or focusable contentElement', async () => {
+      const { rerender, getByTestId } = render(
+        <DialogExample open={false}>{TEST_TEXT}</DialogExample>
+      )
+      const inputTrigger = getByTestId('input-trigger')
+      inputTrigger.focus()
+
+      rerender(<DialogExample open={true}>{TEST_TEXT}</DialogExample>)
+
+      await waitFor(() => {
+        expect(document.activeElement).toBe(document.body)
+      })
+    })
+
+    it('should return focus', async () => {
+      const { rerender, getByTestId } = render(<DialogExample open={false} />)
+      expect(document.activeElement).toBe(getByTestId('input-trigger'))
+
+      rerender(<DialogExample open={true} />)
+      await waitFor(() => {
+        expect(document.activeElement).toBe(getByTestId('input-one'))
+      })
+
+      rerender(<DialogExample open={false} />)
+      await waitFor(() => {
+        expect(document.activeElement).toBe(getByTestId('input-trigger'))
+      })
+    })
+
+    describe('when focus leaves the first and last tabbable', () => {
+      it(`should NOT call onBlur when shouldContainFocus=true and tab pressing last tabbable`, async () => {
+        const onBlur = jest.fn()
+        const { getByTestId } = render(
+          <DialogExample
+            open
+            onBlur={onBlur}
+            shouldContainFocus
+            defaultFocusElement={() => getByTestId('input-two')}
+          />
+        )
+        const inputOne = getByTestId('input-one')
+        const inputTwo = getByTestId('input-two')
+
+        await waitFor(() => {
+          expect(document.activeElement).toBe(inputTwo)
+        })
+
+        await waitFor(() => {
+          userEvent.tab()
+          expect(onBlur).not.toHaveBeenCalled()
+          expect(document.activeElement).toBe(inputOne)
+        })
+      })
+
+      it('should NOT call onBlur when shouldContainFocus=true and Shift+Tab pressing first tabbable', async () => {
+        const onBlur = jest.fn()
+
+        const { getByTestId } = render(
+          <DialogExample
+            open
+            shouldContainFocus
+            defaultFocusElement={() => getByTestId('input-one')}
+            onBlur={onBlur}
+          />
+        )
+        const inputOne = getByTestId('input-one')
+        const inputTwo = getByTestId('input-two')
+
+        await waitFor(() => {
+          expect(document.activeElement).toBe(inputOne)
+
+          fireEvent.keyDown(inputOne, {
+            key: 'Tab',
+            code: 'Tab',
+            keyCode: 9,
+            charCode: 9,
+            shiftKey: true
+          })
+
+          expect(onBlur).not.toHaveBeenCalled()
+          expect(document.activeElement).toBe(inputTwo)
+        })
+      })
+
+      it('should call onBlur when shouldContainFocus=false and tab pressing last tabbable', async () => {
+        const onBlur = jest.fn()
+
+        const { getByTestId } = render(
+          <DialogExample
+            open
+            shouldContainFocus={false}
+            defaultFocusElement={() => getByTestId('input-two')}
+            onBlur={onBlur}
+          />
+        )
+        const inputTwo = getByTestId('input-two')
+        inputTwo.focus()
+
+        await waitFor(() => {
+          expect(document.activeElement).toBe(inputTwo)
+
+          fireEvent.keyDown(inputTwo, {
+            key: 'Tab',
+            code: 'Tab',
+            keyCode: 9,
+            charCode: 9
+          })
+          expect(onBlur).toHaveBeenCalled()
+        })
+      })
+
+      it('should call onBlur when shouldContainFocus=false and pressing Shift+Tab on the first tabbable', async () => {
+        const onBlur = jest.fn()
+
+        const { getByTestId } = render(
+          <DialogExample
+            open
+            shouldContainFocus={false}
+            defaultFocusElement={() => getByTestId('input-one')}
+            onBlur={onBlur}
+          />
+        )
+        const inputOne = getByTestId('input-one')
+        inputOne.focus()
+
+        await waitFor(() => {
+          expect(document.activeElement).toBe(inputOne)
+
+          fireEvent.keyDown(inputOne, {
+            key: 'Tab',
+            code: 'Tab',
+            keyCode: 9,
+            charCode: 9,
+            shiftKey: true
+          })
+          expect(onBlur).toHaveBeenCalled()
+        })
+      })
+
+      describe('when launching a dialog w/out focusable content from another dialog', () => {
+        it(`should contain focus when last tabbable element triggers dialog w/out focusable content`, async () => {
+          const onBlur = jest.fn()
+
+          const { getByTestId } = render(
+            <NestedDialogExample
+              onBlur={onBlur}
+              shouldContainFocus
+              defaultFocusElement={() => getByTestId('nested-input-two')}
+            />
+          )
+          const inputOne = getByTestId('nested-input-one')
+          const inputTwo = getByTestId('nested-input-two')
+
+          await waitFor(() => {
+            userEvent.click(inputTwo)
+            expect(document.activeElement).toBe(inputTwo)
+
+            fireEvent.keyDown(inputTwo, {
+              key: 'Tab',
+              code: 'Tab',
+              keyCode: 9,
+              charCode: 9
+            })
+            expect(onBlur).not.toHaveBeenCalled()
+            expect(document.activeElement).toBe(inputOne)
+          })
+        })
+
+        it('should contain focus when first tabbable element triggers dialog w/out focusable content', async () => {
+          const onBlur = jest.fn()
+
+          const { getByTestId } = render(
+            <NestedDialogExample
+              onBlur={onBlur}
+              shouldContainFocus
+              defaultFocusElement={() => getByTestId('nested-input-one')}
+            />
+          )
+          const inputOne = getByTestId('nested-input-one')
+          const inputTwo = getByTestId('nested-input-two')
+
+          await waitFor(() => {
+            userEvent.click(inputOne)
+            expect(document.activeElement).toBe(inputOne)
+
+            fireEvent.keyDown(inputOne, {
+              key: 'Tab',
+              code: 'Tab',
+              keyCode: 9,
+              charCode: 9,
+              shiftKey: true
+            })
+            expect(onBlur).not.toHaveBeenCalled()
+            expect(document.activeElement).toBe(inputTwo)
+          })
+        })
+
+        it(`should call onBlur when shouldContainFocus=false and last tabbable element triggers dialog w/out focusable content`, async () => {
+          const onBlur = jest.fn()
+
+          const { getByTestId } = render(
+            <NestedDialogExample
+              onBlur={onBlur}
+              shouldContainFocus={false}
+              defaultFocusElement={() => getByTestId('nested-input-two')}
+            />
+          )
+          const inputTwo = getByTestId('nested-input-two')
+
+          await waitFor(() => {
+            userEvent.click(inputTwo)
+            expect(document.activeElement).toBe(inputTwo)
+
+            fireEvent.keyDown(inputTwo, {
+              key: 'Tab',
+              code: 'Tab',
+              keyCode: 9,
+              charCode: 9
+            })
+            expect(onBlur).toHaveBeenCalled()
+          })
+        })
+
+        it(`should call onBlur when shouldContainFocus=false and first tabbable element triggers dialog w/out focusable content`, async () => {
+          const onBlur = jest.fn()
+
+          const { getByTestId } = render(
+            <NestedDialogExample
+              onBlur={onBlur}
+              shouldContainFocus={false}
+              defaultFocusElement={() => getByTestId('nested-input-one')}
+            />
+          )
+          const inputOne = getByTestId('nested-input-one')
+
+          await waitFor(() => {
+            userEvent.click(inputOne)
+            expect(document.activeElement).toBe(inputOne)
+
+            fireEvent.keyDown(inputOne, {
+              key: 'Tab',
+              code: 'Tab',
+              keyCode: 9,
+              charCode: 9,
+              shiftKey: true
+            })
+            expect(onBlur).toHaveBeenCalled()
+          })
+        })
+      })
+    })
+  })
+})