diff --git a/packages/web-components/src/components/fluid-dropdown/fluid-dropdown-skeleton.ts b/packages/web-components/src/components/fluid-dropdown/fluid-dropdown-skeleton.ts
new file mode 100644
index 000000000000..69dbc7105e3a
--- /dev/null
+++ b/packages/web-components/src/components/fluid-dropdown/fluid-dropdown-skeleton.ts
@@ -0,0 +1,34 @@
+/**
+ * Copyright IBM Corp.2025
+ *
+ * This source code is licensed under the Apache-2.0 license found in the
+ * LICENSE file in the root directory of this source tree.
+ */
+
+import { prefix } from '../../globals/settings';
+import { html } from 'lit';
+import { carbonElement as customElement } from '../../globals/decorators/carbon-element';
+import styles from './fluid-dropdown.scss?lit';
+import CDSDropdownSkeleton from '../dropdown/dropdown-skeleton';
+
+/**
+ * Fluid dropdown skeleton.
+ *
+ * @element cds-fluid-dropdown-skeleton
+ */
+@customElement(`${prefix}-fluid-dropdown-skeleton`)
+class CDSFluidDropdownSkeleton extends CDSDropdownSkeleton {
+  render() {
+    return html`
+      <div class="${prefix}--list-box__wrapper--fluid">
+        <div class="${prefix}--skeleton ${prefix}--list-box">
+          <span class="${prefix}--list-box__label"></span>
+          <div class="${prefix}--list-box__field" />
+        </div>
+      </div>
+    `;
+  }
+  static styles = styles;
+}
+
+export default CDSFluidDropdownSkeleton;
diff --git a/packages/web-components/src/components/fluid-dropdown/fluid-dropdown.mdx b/packages/web-components/src/components/fluid-dropdown/fluid-dropdown.mdx
new file mode 100644
index 000000000000..3cae5e3e8335
--- /dev/null
+++ b/packages/web-components/src/components/fluid-dropdown/fluid-dropdown.mdx
@@ -0,0 +1,49 @@
+import { ArgTypes, Canvas, Markdown, Meta } from '@storybook/addon-docs/blocks';
+import { cdnJs } from '../../globals/internal/storybook-cdn';
+import * as FluidDropdownStories from  './fluid-dropdown.stories';
+
+<Meta of={FluidDropdownStories} />
+
+# Fluid Dropdown
+
+[Source code](https://github.com/carbon-design-system/carbon/tree/main/packages/web-components/src/components/fluid-dropdown)
+
+## Table of Contents
+
+- [Overview](#overview)
+- [Skeleton](#skeleton)
+- [With Toggletip](#with-toggletip)
+- [With AI Label](#with-ai-label)
+- [Component API](#component-api)
+- [CDN](#cdn)
+- [Feedback](#feedback)
+
+## Overview
+
+<Canvas of={FluidDropdownStories.Default} />
+
+## Skeleton
+
+<Canvas of={FluidDropdownStories.Skeleton} />
+
+## With Toggletip
+
+<Canvas of={FluidDropdownStories.WithToggletip} />
+
+## With AI Label
+
+<Canvas of={FluidDropdownStories.WithAILabel} />
+
+## Component API
+
+## `cds-fluid-dropdown`
+
+<ArgTypes of="cds-dropdown" />
+
+<Markdown>{`${cdnJs({ components: ['fluid-dropdown'] })}`}</Markdown>
+
+## Feedback
+
+Help us improve this component by providing feedback, asking questions on Slack,
+or updating this file on
+[GitHub](https://github.com/carbon-design-system/carbon/edit/main/packages/web-components/src/components/fluid-dropdown/fluid-dropdown.mdx).
\ No newline at end of file
diff --git a/packages/web-components/src/components/fluid-dropdown/fluid-dropdown.scss b/packages/web-components/src/components/fluid-dropdown/fluid-dropdown.scss
new file mode 100644
index 000000000000..db0a7dcb6d3d
--- /dev/null
+++ b/packages/web-components/src/components/fluid-dropdown/fluid-dropdown.scss
@@ -0,0 +1,34 @@
+/**
+ * Copyright IBM Corp.2025
+ *
+ * This source code is licensed under the Apache-2.0 license found in the
+ * LICENSE file in the root directory of this source tree.
+ */
+
+$css--plex: true !default;
+@use '@carbon/styles/scss/config' as *;
+@use '@carbon/styles/scss/components/fluid-dropdown/index';
+@use '@carbon/styles/scss/components/list-box';
+@use '@carbon/styles/scss/layout' as *;
+@use '@carbon/styles/scss/spacing' as *;
+@use '@carbon/styles/scss/theme';
+@use '@carbon/styles/scss/type' as *;
+@use '@carbon/styles/scss/utilities/skeleton' as *;
+
+:host(#{$prefix}-fluid-dropdown) {
+  @extend .#{$prefix}--list-box__wrapper--fluid;
+
+  @include emit-layout-tokens();
+  ::slotted(#{$prefix}-ai-label),
+  ::slotted(#{$prefix}-slug) {
+    position: absolute;
+    inset-block-start: 70%;
+    inset-inline-end: $spacing-09;
+  }
+
+  // Transform for non-revert-active elements
+  ::slotted(#{$prefix}-ai-label:not([revert-active])),
+  ::slotted(#{$prefix}-slug:not([revert-active])) {
+    transform: translateY(-70%);
+  }
+}
diff --git a/packages/web-components/src/components/fluid-dropdown/fluid-dropdown.stories.ts b/packages/web-components/src/components/fluid-dropdown/fluid-dropdown.stories.ts
new file mode 100644
index 000000000000..4b9ad4af1d7c
--- /dev/null
+++ b/packages/web-components/src/components/fluid-dropdown/fluid-dropdown.stories.ts
@@ -0,0 +1,270 @@
+/**
+ * Copyright IBM Corp. 2025
+ *
+ * This source code is licensed under the Apache-2.0 license found in the
+ * LICENSE file in the root directory of this source tree.
+ */
+
+import { html } from 'lit';
+import { ifDefined } from 'lit/directives/if-defined.js';
+import './index';
+import View16 from '@carbon/icons/es/view/16.js';
+import FolderOpen16 from '@carbon/icons/es/folder--open/16.js';
+import Folders16 from '@carbon/icons/es/folders/16.js';
+import '../dropdown/dropdown-item';
+import '../ai-label';
+import '../icon-button';
+import { iconLoader } from '../../globals/internal/icon-loader';
+import '../toggle-tip/toggletip';
+
+const content = html`
+  <div slot="body-text">
+    <p class="secondary">AI Explained</p>
+    <h2 class="ai-label-heading">84%</h2>
+    <p class="secondary bold">Confidence score</p>
+    <p class="secondary">
+      Lorem ipsum dolor sit amet, di os consectetur adipiscing elit, sed do
+      eiusmod tempor incididunt ut fsil labore et dolore magna aliqua.
+    </p>
+    <hr />
+    <p class="secondary">Model type</p>
+    <p class="bold">Foundation model</p>
+  </div>
+`;
+
+const actions = html`
+  <cds-icon-button kind="ghost" slot="actions" size="lg">
+    ${iconLoader(View16, { slot: 'icon' })}
+    <span slot="tooltip-content"> View </span>
+  </cds-icon-button>
+  <cds-icon-button kind="ghost" slot="actions" size="lg">
+    ${iconLoader(FolderOpen16, { slot: 'icon' })}
+    <span slot="tooltip-content"> Open folder</span>
+  </cds-icon-button>
+  <cds-icon-button kind="ghost" slot="actions" size="lg">
+    ${iconLoader(Folders16, { slot: 'icon' })}
+    <span slot="tooltip-content"> Folders </span>
+  </cds-icon-button>
+  <cds-ai-label-action-button>View details</cds-ai-label-action-button>
+`;
+
+const items = [
+  {
+    value: 'option-0',
+    text: 'Lorem, ipsum dolor sit amet consectetur adipisicing elit.',
+  },
+  {
+    value: 'option-1',
+    text: 'Option 1',
+  },
+  {
+    value: 'option-2',
+    text: 'Option 2',
+  },
+  {
+    value: 'option-3',
+    text: 'Option 3 - a disabled item',
+    disabled: true,
+  },
+  {
+    value: 'option-4',
+    text: 'Option 4',
+  },
+];
+
+const args = {
+  defaultWidth: 400,
+  disabled: false,
+  helperText: '',
+  invalid: false,
+  invalidText:
+    'Error message that is really long can wrap to more lines but should not be excessively long',
+  label: 'This is an example label',
+  readOnly: false,
+  titleText: 'This is an example title',
+  warn: false,
+  warnText:
+    'Warning message that is really long can wrap to more lines but should not be excessively long.',
+};
+
+const argTypes = {
+  defaultWidth: {
+    control: { type: 'range', min: 300, max: 800, step: 50 },
+  },
+  disabled: {
+    control: 'boolean',
+    description: 'Specify whether the control is disabled.',
+  },
+  helperText: {
+    control: 'text',
+    description:
+      'Provide helper text that is used alongside the control label for additional help.',
+  },
+  invalid: {
+    control: 'boolean',
+    description: 'Specify if the currently value is invalid.',
+  },
+  invalidText: {
+    control: 'text',
+    description: 'Message which is displayed if the value is invalid.',
+  },
+  label: {
+    control: 'text',
+    description: 'The default content of the trigger button.',
+  },
+  readOnly: {
+    control: 'boolean',
+    description: 'Whether or not the Dropdown is readonly.',
+  },
+  titleText: {
+    control: 'text',
+    description:
+      'Provide the title text that will be read by a screen reader when visiting this control.',
+  },
+  warn: {
+    control: 'boolean',
+    description: 'Specify whether the control is currently in warning state.',
+  },
+  warnText: {
+    control: 'text',
+    description:
+      'Provide the text that is displayed when the control is in warning state.',
+  },
+};
+
+export const Default = {
+  args,
+  argTypes,
+  render: ({
+    defaultWidth,
+    disabled,
+    helperText,
+    invalid,
+    invalidText,
+    label,
+    readOnly,
+    titleText,
+    warn,
+    warnText,
+  }) => html`
+    <div style="width:${defaultWidth}px;">
+      <cds-fluid-dropdown
+        ?disabled="${disabled}"
+        helper-text="${ifDefined(helperText)}"
+        ?invalid="${invalid}"
+        invalid-text="${ifDefined(invalidText)}"
+        label="${ifDefined(label)}"
+        ?read-only="${readOnly}"
+        title-text="${ifDefined(titleText)}"
+        ?warn="${warn}"
+        warn-text="${ifDefined(warnText)}">
+        ${items.map(
+          (elem) => html`
+            <cds-dropdown-item ?disabled=${elem.disabled} value="${elem.value}"
+              >${elem.text}</cds-dropdown-item
+            >
+          `
+        )}
+      </cds-fluid-dropdown>
+    </div>
+  `,
+};
+
+export const WithToggletip = {
+  render: () => {
+    return html`
+      <div style="width:400px;">
+        <cds-fluid-dropdown>
+          <cds-toggletip autoAlign="true" slot="title-text">
+            Dropdown label
+            <p slot="body-text">Additional field information here.</p>
+          </cds-toggletip>
+          <cds-dropdown-item
+            value="An example option that is really long to show what should be done to handle long text"
+            >An example option that is really long to show what should be done
+            to handle long text</cds-dropdown-item
+          >
+          <cds-dropdown-item value="option-1">Option 1</cds-dropdown-item>
+          <cds-dropdown-item value="option-2">Option 2</cds-dropdown-item>
+          <cds-dropdown-item value="option-3">Option 3</cds-dropdown-item>
+          <cds-dropdown-item value="option-4">Option 4</cds-dropdown-item>
+        </cds-fluid-dropdown>
+      </div>
+    `;
+  },
+};
+
+export const Skeleton = {
+  parameters: {
+    percy: {
+      skip: true,
+    },
+  },
+  args: {
+    defaultWidth: 400,
+  },
+  argTypes: {
+    defaultWidth: {
+      control: { type: 'range', min: 300, max: 800, step: 50 },
+    },
+  },
+  render: ({ defaultWidth }) => html`
+    <div style="width: ${defaultWidth}px;">
+      <cds-fluid-dropdown-skeleton></cds-fluid-dropdown-skeleton>
+    </div>
+  `,
+};
+
+export const WithAILabel = {
+  args,
+  argTypes: {
+    ...argTypes,
+  },
+  render: ({
+    defaultWidth,
+    disabled,
+    helperText,
+    invalid,
+    invalidText,
+    label,
+    readOnly,
+    titleText,
+    warn,
+    warnText,
+  }) => {
+    return html` <div style="width:${defaultWidth}px;">
+      <cds-fluid-dropdown
+        ?disabled="${disabled}"
+        helper-text="${ifDefined(helperText)}"
+        ?invalid="${invalid}"
+        invalid-text="${ifDefined(invalidText)}"
+        label="${ifDefined(label)}"
+        ?read-only="${readOnly}"
+        title-text="${ifDefined(titleText)}"
+        ?warn="${warn}"
+        warn-text="${ifDefined(warnText)}">
+        <cds-ai-label alignment="bottom-left">
+          ${content}${actions}</cds-ai-label
+        >
+        ${items.map(
+          (elem) => html`
+            <cds-dropdown-item ?disabled=${elem.disabled} value="${elem.value}"
+              >${elem.text}</cds-dropdown-item
+            >
+          `
+        )}
+      </cds-fluid-dropdown>
+    </div>`;
+  },
+};
+
+const meta = {
+  decorators: [
+    (story) => {
+      return html`<div style="width: 400px">${story()}</div>`;
+    },
+  ],
+  title: 'Components/Fluid Components/FluidDropdown',
+};
+
+export default meta;
diff --git a/packages/web-components/src/components/fluid-dropdown/fluid-dropdown.ts b/packages/web-components/src/components/fluid-dropdown/fluid-dropdown.ts
new file mode 100644
index 000000000000..59e00abd14e1
--- /dev/null
+++ b/packages/web-components/src/components/fluid-dropdown/fluid-dropdown.ts
@@ -0,0 +1,53 @@
+/**
+ * Copyright IBM Corp.2025
+ *
+ * This source code is licensed under the Apache-2.0 license found in the
+ * LICENSE file in the root directory of this source tree.
+ */
+
+import { prefix } from '../../globals/settings';
+import { html } from 'lit';
+import { carbonElement as customElement } from '../../globals/decorators/carbon-element';
+import CDSDropdown from '../dropdown/dropdown';
+import styles from './fluid-dropdown.scss?lit';
+import { classMap } from 'lit/directives/class-map.js';
+
+/**
+ * Fluid dropdown.
+ *
+ * @element cds-fluid-dropdown
+ */
+@customElement(`${prefix}-fluid-dropdown`)
+class CDSFluidDropdown extends CDSDropdown {
+  connectedCallback() {
+    this.setAttribute('isFluid', 'true');
+    super.connectedCallback();
+  }
+
+  updated(changedProperties) {
+    super.updated(changedProperties);
+    if (
+      changedProperties.has('invalid') ||
+      changedProperties.has('disabled') ||
+      changedProperties.has('readOnly') ||
+      changedProperties.has('warn')
+    ) {
+      this.requestUpdate();
+    }
+  }
+
+  render() {
+    const wrapperClasses = classMap({
+      [`${prefix}--dropdown`]: true,
+      [`${prefix}--dropdown--invalid`]: this.invalid,
+      [`${prefix}--dropdown--warn`]: this.warn && !this.invalid,
+      [`${prefix}--list-box--disabled`]: this.disabled,
+      [`${prefix}--dropdown--readonly`]: this.readOnly,
+    });
+    return html`<div class="${wrapperClasses}">${super.render()}</div>`;
+  }
+
+  static styles = [CDSDropdown.styles, styles];
+}
+
+export default CDSFluidDropdown;
diff --git a/packages/web-components/src/components/fluid-dropdown/index.ts b/packages/web-components/src/components/fluid-dropdown/index.ts
new file mode 100644
index 000000000000..05c4e0db5076
--- /dev/null
+++ b/packages/web-components/src/components/fluid-dropdown/index.ts
@@ -0,0 +1,8 @@
+/**
+ * Copyright IBM Corp. 2025
+ *
+ * This source code is licensed under the Apache-2.0 license found in the
+ * LICENSE file in the root directory of this source tree.
+ */
+import './fluid-dropdown';
+import './fluid-dropdown-skeleton';