diff --git a/.changeset/segmented-control-wrap-labels.md b/.changeset/segmented-control-wrap-labels.md
new file mode 100644
index 00000000000..ff430891321
--- /dev/null
+++ b/.changeset/segmented-control-wrap-labels.md
@@ -0,0 +1,5 @@
+---
+'@primer/react': patch
+---
+
+SegmentedControl: Allow controls to grow vertically and preserve visible labels when they wrap
diff --git a/.playwright/snapshots/components/SegmentedControl.test.ts-snapshots/SegmentedControl-Multiline-Labels-dark-colorblind-linux.png b/.playwright/snapshots/components/SegmentedControl.test.ts-snapshots/SegmentedControl-Multiline-Labels-dark-colorblind-linux.png
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diff --git a/.playwright/snapshots/components/SegmentedControl.test.ts-snapshots/SegmentedControl-Multiline-Labels-light-tritanopia-linux.png b/.playwright/snapshots/components/SegmentedControl.test.ts-snapshots/SegmentedControl-Multiline-Labels-light-tritanopia-linux.png
new file mode 100644
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diff --git a/e2e/components/SegmentedControl.test.ts b/e2e/components/SegmentedControl.test.ts
index 5e854c5d2b7..ba2ed170ffc 100644
--- a/e2e/components/SegmentedControl.test.ts
+++ b/e2e/components/SegmentedControl.test.ts
@@ -60,6 +60,10 @@ const stories = [
     title: 'With Counter Labels',
     id: 'components-segmentedcontrol-features--with-counter-labels',
   },
+  {
+    title: 'Multiline Labels',
+    id: 'components-segmentedcontrol-features--multiline-labels',
+  },
   {
     title: 'SegmentedControlButton Playground',
     id: 'components-segmentedcontrol-segmentedcontrol-button--playground',
@@ -121,4 +125,237 @@ test.describe('SegmentedControl', () => {
       }
     })
   }
+
+  test('naturally wrapped labels grow to the tallest segment without splitting words', async ({page}) => {
+    await visit(page, {
+      id: 'components-segmentedcontrol-features--multiline-labels',
+    })
+
+    const layout = await page
+      .getByTestId('multiline-natural-wrap')
+      .locator('[data-component="SegmentedControl"]')
+      .evaluate(control => {
+        const buttons = [...control.querySelectorAll<HTMLButtonElement>('button')]
+        const buttonHeights = buttons.map(button => button.getBoundingClientRect().height)
+        const contents = [...control.querySelectorAll<HTMLElement>('.segmentedControl-content')]
+        const texts = [...control.querySelectorAll<HTMLElement>('.segmentedControl-text')]
+        const selectedButton = control.querySelector<HTMLButtonElement>('button[aria-pressed="true"]')
+        const selectedContent = selectedButton?.querySelector<HTMLElement>('.segmentedControl-content')
+
+        const textLayouts = texts.map(text => {
+          const textNode = text.firstChild
+          const style = getComputedStyle(text)
+          if (!(textNode instanceof Text)) {
+            return {
+              lineCount: 0,
+              splitWords: [],
+              whiteSpace: style.whiteSpace,
+              overflowWrap: style.overflowWrap,
+              wordBreak: style.wordBreak,
+            }
+          }
+
+          const textRange = document.createRange()
+          textRange.selectNodeContents(textNode)
+
+          const splitWords = [...textNode.data.matchAll(/\S+/g)]
+            .filter(match => {
+              const wordRange = document.createRange()
+              const start = match.index
+              wordRange.setStart(textNode, start)
+              wordRange.setEnd(textNode, start + match[0].length)
+              return wordRange.getClientRects().length > 1
+            })
+            .map(match => match[0])
+
+          return {
+            lineCount: textRange.getClientRects().length,
+            splitWords,
+            whiteSpace: style.whiteSpace,
+            overflowWrap: style.overflowWrap,
+            wordBreak: style.wordBreak,
+          }
+        })
+
+        return {
+          controlHeight: control.getBoundingClientRect().height,
+          buttonHeightSpread: Math.max(...buttonHeights) - Math.min(...buttonHeights),
+          contentFits: contents.every(
+            content =>
+              content.scrollWidth <= content.clientWidth + 1 && content.scrollHeight <= content.clientHeight + 1,
+          ),
+          selectedContentHeight: selectedContent?.getBoundingClientRect().height,
+          selectedButtonHeight: selectedButton?.getBoundingClientRect().height,
+          textLayouts,
+        }
+      })
+
+    expect(layout.controlHeight).toBeGreaterThan(32)
+    expect(layout.buttonHeightSpread).toBeLessThanOrEqual(0.5)
+    expect(layout.contentFits).toBe(true)
+    expect(layout.textLayouts.every(text => text.lineCount > 1)).toBe(true)
+    expect(layout.textLayouts.flatMap(text => text.splitWords)).toEqual([])
+    expect(
+      layout.textLayouts.every(
+        text => text.whiteSpace === 'normal' && text.overflowWrap === 'normal' && text.wordBreak === 'normal',
+      ),
+    ).toBe(true)
+    expect(layout.selectedContentHeight).toBeDefined()
+    expect(layout.selectedButtonHeight).toBeDefined()
+    expect(layout.selectedContentHeight ?? 0).toBeCloseTo(layout.selectedButtonHeight ?? 0, 1)
+  })
+
+  test('single-line labels preserve the existing control heights', async ({page}) => {
+    await visit(page, {
+      id: 'components-segmentedcontrol-features--multiline-labels',
+    })
+
+    const singleLineCases = [
+      {testId: 'single-line-default-medium', height: 32},
+      {testId: 'single-line-default-small', height: 28},
+      {testId: 'single-line-subtle-medium', height: 32},
+      {testId: 'single-line-subtle-small', height: 28},
+    ]
+
+    for (const {testId, height} of singleLineCases) {
+      const controlHeight = await page
+        .getByTestId(testId)
+        .locator('[data-component="SegmentedControl"]')
+        .evaluate(control => control.getBoundingClientRect().height)
+
+      expect(controlHeight).toBe(height)
+    }
+  })
+
+  test('single-line controls do not stretch to adjacent label and caption content', async ({page}) => {
+    await visit(page, {
+      id: 'components-segmentedcontrol-features--associated-with-a-label-and-caption',
+    })
+
+    const controlHeight = await page
+      .locator('[data-component="SegmentedControl"]')
+      .evaluate(control => control.getBoundingClientRect().height)
+
+    expect(controlHeight).toBe(32)
+  })
+
+  test('icon and counter labels remain unclipped without unnecessary wrapping', async ({page}) => {
+    await visit(page, {
+      id: 'components-segmentedcontrol-features--multiline-labels',
+    })
+
+    const layout = await page
+      .getByTestId('long-label-icons-counters')
+      .locator('[data-component="SegmentedControl"]')
+      .evaluate(control => {
+        const buttons = [...control.querySelectorAll<HTMLButtonElement>('button')]
+        const buttonHeights = buttons.map(button => button.getBoundingClientRect().height)
+        const contents = [...control.querySelectorAll<HTMLElement>('.segmentedControl-content')]
+        const texts = [...control.querySelectorAll<HTMLElement>('.segmentedControl-text')]
+        const textLayouts = texts.map(text => {
+          const textNode = text.firstChild
+          const style = getComputedStyle(text)
+          if (!(textNode instanceof Text)) {
+            return {
+              lineCount: 0,
+              splitWords: [],
+              whiteSpace: style.whiteSpace,
+              overflowWrap: style.overflowWrap,
+              wordBreak: style.wordBreak,
+              fits: false,
+            }
+          }
+
+          const textRange = document.createRange()
+          textRange.selectNodeContents(textNode)
+
+          const splitWords = [...textNode.data.matchAll(/\S+/g)]
+            .filter(match => {
+              const wordRange = document.createRange()
+              const start = match.index
+              wordRange.setStart(textNode, start)
+              wordRange.setEnd(textNode, start + match[0].length)
+              return wordRange.getClientRects().length > 1
+            })
+            .map(match => match[0])
+
+          return {
+            lineCount: textRange.getClientRects().length,
+            splitWords,
+            whiteSpace: style.whiteSpace,
+            overflowWrap: style.overflowWrap,
+            wordBreak: style.wordBreak,
+            fits: text.scrollWidth <= text.clientWidth + 1 && text.scrollHeight <= text.clientHeight + 1,
+          }
+        })
+
+        return {
+          buttonHeightSpread: Math.max(...buttonHeights) - Math.min(...buttonHeights),
+          contentFits: contents.every(
+            content =>
+              content.scrollWidth <= content.clientWidth + 1 && content.scrollHeight <= content.clientHeight + 1,
+          ),
+          textLayouts,
+        }
+      })
+
+    expect(layout.buttonHeightSpread).toBeLessThanOrEqual(0.5)
+    expect(layout.contentFits).toBe(true)
+    expect(layout.textLayouts.every(text => text.lineCount === 1)).toBe(true)
+    expect(layout.textLayouts.flatMap(text => text.splitWords)).toEqual([])
+    expect(layout.textLayouts.every(text => text.fits)).toBe(true)
+    expect(
+      layout.textLayouts.every(
+        text => text.whiteSpace === 'normal' && text.overflowWrap === 'normal' && text.wordBreak === 'normal',
+      ),
+    ).toBe(true)
+  })
+
+  test('multiline labels reflow at 320px and preserve enlarged and spaced text', async ({page}) => {
+    await page.setViewportSize({width: 320, height: 768})
+    await visit(page, {
+      id: 'components-segmentedcontrol-features--multiline-labels',
+    })
+
+    const control = page.getByTestId('reflow-stress').locator('[data-component="SegmentedControl"]')
+
+    await control.evaluate(element => {
+      const htmlElement = element as HTMLElement
+      htmlElement.style.setProperty('--text-body-size-medium', '28px')
+      htmlElement.style.lineHeight = '1.5'
+      htmlElement.style.letterSpacing = '0.12em'
+      htmlElement.style.wordSpacing = '0.16em'
+    })
+
+    const layout = await control.evaluate(element => {
+      const contents = [...element.querySelectorAll<HTMLElement>('.segmentedControl-content')]
+      const texts = [...element.querySelectorAll<HTMLElement>('.segmentedControl-text')]
+      const splitWords = texts.flatMap(text => {
+        const textNode = text.firstChild
+        if (!(textNode instanceof Text)) return []
+
+        return [...textNode.data.matchAll(/\S+/g)]
+          .filter(match => {
+            const wordRange = document.createRange()
+            const start = match.index
+            wordRange.setStart(textNode, start)
+            wordRange.setEnd(textNode, start + match[0].length)
+            return wordRange.getClientRects().length > 1
+          })
+          .map(match => match[0])
+      })
+
+      return {
+        hasHorizontalPageOverflow: document.documentElement.scrollWidth > document.documentElement.clientWidth,
+        contentFits: contents.every(
+          content => content.scrollWidth <= content.clientWidth + 1 && content.scrollHeight <= content.clientHeight + 1,
+        ),
+        splitWords,
+      }
+    })
+
+    expect(layout.hasHorizontalPageOverflow).toBe(false)
+    expect(layout.contentFits).toBe(true)
+    expect(layout.splitWords).toEqual([])
+  })
 })
diff --git a/packages/react/src/SegmentedControl/SegmentedControl.features.stories.module.css b/packages/react/src/SegmentedControl/SegmentedControl.features.stories.module.css
index d578fa504b6..d91ff953c60 100644
--- a/packages/react/src/SegmentedControl/SegmentedControl.features.stories.module.css
+++ b/packages/react/src/SegmentedControl/SegmentedControl.features.stories.module.css
@@ -8,6 +8,36 @@
   margin-top: var(--base-size-24);
 }
 
+.MultilineLabelsGrid {
+  display: flex;
+  flex-wrap: wrap;
+  gap: var(--base-size-24);
+  align-items: start;
+}
+
+.MultilineLabelsExample {
+  width: 240px;
+}
+
+.MultilineLabelsExampleWide {
+  flex-basis: 352px;
+}
+
+.MultilineLabelsExampleVisuals {
+  flex-basis: 480px;
+}
+
+.MultilineLabelsExampleReflow {
+  width: min(288px, 100%);
+}
+
+.MultilineLabelsTitle {
+  display: block;
+  margin-bottom: var(--base-size-8);
+  font-size: var(--text-body-size-small);
+  font-weight: var(--base-text-weight-semibold);
+}
+
 @media screen and (min-width: 768px) {
   .LabelAndCaptionContainer {
     flex-direction: row;
diff --git a/packages/react/src/SegmentedControl/SegmentedControl.features.stories.tsx b/packages/react/src/SegmentedControl/SegmentedControl.features.stories.tsx
index 1893aee05a7..b58c0d3211f 100644
--- a/packages/react/src/SegmentedControl/SegmentedControl.features.stories.tsx
+++ b/packages/react/src/SegmentedControl/SegmentedControl.features.stories.tsx
@@ -1,6 +1,7 @@
 import {useState} from 'react'
 import type {Meta} from '@storybook/react-vite'
 import {PlusIcon, EyeIcon, FileCodeIcon, PeopleIcon} from '@primer/octicons-react'
+import {clsx} from 'clsx'
 import {SegmentedControl} from '.'
 import {Button} from '../Button'
 import Text from '../Text'
@@ -35,6 +36,116 @@ export const WithCounterLabels = () => (
   </SegmentedControl>
 )
 
+type MultilineLabelsExampleProps = {
+  label: string
+  testId: string
+  size?: 'small' | 'medium'
+  variant?: 'default' | 'subtle'
+  selectedIndex?: 0 | 1
+  withVisuals?: boolean
+  wide?: boolean
+}
+
+const MultilineLabelsExample = ({
+  label,
+  testId,
+  size = 'medium',
+  variant = 'default',
+  selectedIndex = 0,
+  withVisuals = false,
+  wide = false,
+}: MultilineLabelsExampleProps) => (
+  <div
+    className={clsx(classes.MultilineLabelsExample, {
+      [classes.MultilineLabelsExampleVisuals]: withVisuals,
+      [classes.MultilineLabelsExampleWide]: wide,
+    })}
+    data-testid={testId}
+  >
+    <span className={classes.MultilineLabelsTitle}>{label}</span>
+    <SegmentedControl aria-label={label} fullWidth size={size} variant={variant}>
+      <SegmentedControl.Button
+        count={withVisuals ? 12 : undefined}
+        defaultSelected={selectedIndex === 0}
+        leadingVisual={withVisuals ? EyeIcon : undefined}
+      >
+        All industries
+      </SegmentedControl.Button>
+      <SegmentedControl.Button defaultSelected={selectedIndex === 1}>
+        Information &amp; technology
+      </SegmentedControl.Button>
+    </SegmentedControl>
+  </div>
+)
+
+const ReflowLabelsExample = () => (
+  <div className={classes.MultilineLabelsExampleReflow} data-testid="reflow-stress">
+    <span className={classes.MultilineLabelsTitle}>320px enlarged and spaced text</span>
+    <SegmentedControl aria-label="Reflow stress" fullWidth>
+      <SegmentedControl.Button defaultSelected>All sectors</SegmentedControl.Button>
+      <SegmentedControl.Button>Tech services</SegmentedControl.Button>
+    </SegmentedControl>
+  </div>
+)
+
+const SingleLineLabelsExample = ({
+  label,
+  testId,
+  size = 'medium',
+  variant = 'default',
+}: Omit<MultilineLabelsExampleProps, 'selectedIndex' | 'withVisuals'>) => (
+  <div className={classes.MultilineLabelsExample} data-testid={testId}>
+    <span className={classes.MultilineLabelsTitle}>{label}</span>
+    <SegmentedControl aria-label={label} fullWidth size={size} variant={variant}>
+      <SegmentedControl.Button defaultSelected>All</SegmentedControl.Button>
+      <SegmentedControl.Button>Active</SegmentedControl.Button>
+    </SegmentedControl>
+  </div>
+)
+
+export const MultilineLabels = () => (
+  <div className={classes.MultilineLabelsGrid}>
+    <MultilineLabelsExample label="Constrained, natural wrapping" testId="multiline-natural-wrap" />
+    <MultilineLabelsExample
+      label="Default, small, unconstrained"
+      selectedIndex={1}
+      size="small"
+      testId="long-label-default-small"
+      wide
+    />
+    <MultilineLabelsExample
+      label="Subtle, medium, unconstrained"
+      testId="long-label-subtle-medium"
+      variant="subtle"
+      wide
+    />
+    <MultilineLabelsExample
+      label="Subtle, small, unconstrained"
+      selectedIndex={1}
+      size="small"
+      testId="long-label-subtle-small"
+      variant="subtle"
+      wide
+    />
+    <MultilineLabelsExample
+      label="Icons and counters, unconstrained"
+      testId="long-label-icons-counters"
+      wide
+      withVisuals
+    />
+    <ReflowLabelsExample />
+    <SingleLineLabelsExample label="Single line, default, medium" testId="single-line-default-medium" />
+    <SingleLineLabelsExample label="Single line, default, small" size="small" testId="single-line-default-small" />
+    <SingleLineLabelsExample label="Single line, subtle, medium" testId="single-line-subtle-medium" variant="subtle" />
+    <SingleLineLabelsExample
+      label="Single line, subtle, small"
+      size="small"
+      testId="single-line-subtle-small"
+      variant="subtle"
+    />
+  </div>
+)
+
 export const VariantSubtle = () => (
   <SegmentedControl aria-label="View" variant="subtle">
     <SegmentedControl.Button defaultSelected count={5}>
diff --git a/packages/react/src/SegmentedControl/SegmentedControl.module.css b/packages/react/src/SegmentedControl/SegmentedControl.module.css
index aa7c5703d87..b017e21f267 100644
--- a/packages/react/src/SegmentedControl/SegmentedControl.module.css
+++ b/packages/react/src/SegmentedControl/SegmentedControl.module.css
@@ -103,7 +103,8 @@
   display: inline-flex;
 
   /* TODO: use primitive `control.{small|medium}.size` when it is available */
-  height: 32px;
+  height: fit-content;
+  min-height: 32px;
   padding: 0;
   margin: 0;
   font-size: var(--text-body-size-medium);
@@ -278,7 +279,7 @@
 
   &:where([data-size='small']) {
     /* TODO: use primitive `control.{small|medium}.size` when it is available */
-    height: 28px;
+    min-height: 28px;
     font-size: var(--text-body-size-small);
   }
 }