diff --git a/packages/components/CHANGELOG.md b/packages/components/CHANGELOG.md
index 59160a89f036c6..d473c14e6a6c06 100644
--- a/packages/components/CHANGELOG.md
+++ b/packages/components/CHANGELOG.md
@@ -14,6 +14,9 @@
 
 -   `onDragStart` in `<Draggable>` is now a synchronous function to allow setting additional data for `event.dataTransfer` ([#49673](https://github.com/WordPress/gutenberg/pull/49673)).
 
+### Bug Fix
+
+-   `NavigableContainer`: do not trap focus in `TabbableContainer` ([#49846](https://github.com/WordPress/gutenberg/pull/49846)).
 
 ### Internal
 
diff --git a/packages/components/src/navigable-container/container.tsx b/packages/components/src/navigable-container/container.tsx
index f52754e06d61ab..c5f92f8effcade 100644
--- a/packages/components/src/navigable-container/container.tsx
+++ b/packages/components/src/navigable-container/container.tsx
@@ -122,11 +122,7 @@ class NavigableContainer extends Component< NavigableContainerProps > {
 			const targetHasMenuItemRole =
 				!! targetRole && MENU_ITEM_ROLES.includes( targetRole );
 
-			// `preventDefault()` on tab to avoid having the browser move the focus
-			// after this component has already moved it.
-			const isTab = event.code === 'Tab';
-
-			if ( targetHasMenuItemRole || isTab ) {
+			if ( targetHasMenuItemRole ) {
 				event.preventDefault();
 			}
 		}
@@ -150,9 +146,16 @@ class NavigableContainer extends Component< NavigableContainerProps > {
 		const nextIndex = cycle
 			? cycleValue( index, focusables.length, offset )
 			: index + offset;
+
 		if ( nextIndex >= 0 && nextIndex < focusables.length ) {
 			focusables[ nextIndex ].focus();
 			onNavigate( nextIndex, focusables[ nextIndex ] );
+
+			// `preventDefault()` on tab to avoid having the browser move the focus
+			// after this component has already moved it.
+			if ( event.code === 'Tab' ) {
+				event.preventDefault();
+			}
 		}
 	}
 
diff --git a/packages/components/src/navigable-container/test/tababble-container.tsx b/packages/components/src/navigable-container/test/tababble-container.tsx
index 88fc10bd98560f..eb14842025bec2 100644
--- a/packages/components/src/navigable-container/test/tababble-container.tsx
+++ b/packages/components/src/navigable-container/test/tababble-container.tsx
@@ -11,18 +11,22 @@ import { TabbableContainer } from '../tabbable';
 import type { TabbableContainerProps } from '../types';
 
 const TabbableContainerTestCase = ( props: TabbableContainerProps ) => (
-	<TabbableContainer { ...props }>
-		<button>Item 1</button>
-		<span>
-			<span tabIndex={ -1 }>Item 2 (not tabbable)</span>
-		</span>
-		<span>
-			<span tabIndex={ 0 }>Item 3</span>
-		</span>
-		<p>I can not be tabbed</p>
-		<input type="text" disabled name="disabled-input" />
-		<a href="https://example.com">Item 4</a>
-	</TabbableContainer>
+	<>
+		<button>Before container</button>
+		<TabbableContainer { ...props }>
+			<button>Item 1</button>
+			<span>
+				<span tabIndex={ -1 }>Item 2 (not tabbable)</span>
+			</span>
+			<span>
+				<span tabIndex={ 0 }>Item 3</span>
+			</span>
+			<p>I can not be tabbed</p>
+			<input type="text" disabled name="disabled-input" />
+			<a href="https://example.com">Item 4</a>
+		</TabbableContainer>
+		<button>After container</button>
+	</>
 );
 
 const getTabbableContainerTabbables = () => [
@@ -57,7 +61,11 @@ describe( 'TabbableContainer', () => {
 
 		const tabbables = getTabbableContainerTabbables();
 
-		// Move focus to first item.
+		await user.tab();
+		expect(
+			screen.getByRole( 'button', { name: 'Before container' } )
+		).toHaveFocus();
+
 		await user.tab();
 		expect( tabbables[ 0 ] ).toHaveFocus();
 
@@ -91,7 +99,11 @@ describe( 'TabbableContainer', () => {
 		const lastTabbableIndex = tabbables.length - 1;
 		const lastTabbable = tabbables[ lastTabbableIndex ];
 
-		// Move focus to first item.
+		await user.tab();
+		expect(
+			screen.getByRole( 'button', { name: 'Before container' } )
+		).toHaveFocus();
+
 		await user.tab();
 		expect( firstTabbable ).toHaveFocus();
 
@@ -116,12 +128,17 @@ describe( 'TabbableContainer', () => {
 			/>
 		);
 
-		// With the `cycle` prop set to `false`, cycling is not allowed.
 		// By default, cycling from first to last and from last to first is allowed.
+		// With the `cycle` prop set to `false`, cycling is not allowed.
+		// Therefore, focus will escape the `TabbableContainer` and continue its
+		// natural path in the page.
 		await user.tab( { shift: true } );
-		expect( firstTabbable ).toHaveFocus();
+		expect(
+			screen.getByRole( 'button', { name: 'Before container' } )
+		).toHaveFocus();
 		expect( onNavigateSpy ).toHaveBeenCalledTimes( 2 );
 
+		await user.tab();
 		await user.tab();
 		await user.tab();
 		expect( lastTabbable ).toHaveFocus();
@@ -131,8 +148,12 @@ describe( 'TabbableContainer', () => {
 			lastTabbable
 		);
 
+		// Focus will move to the next natively focusable elements after
+		// `TabbableContainer`
 		await user.tab();
-		expect( lastTabbable ).toHaveFocus();
+		expect(
+			screen.getByRole( 'button', { name: 'After container' } )
+		).toHaveFocus();
 		expect( onNavigateSpy ).toHaveBeenCalledTimes( 4 );
 	} );
 
@@ -151,21 +172,27 @@ describe( 'TabbableContainer', () => {
 
 		const tabbables = getTabbableContainerTabbables();
 
-		// Move focus to first item
+		await user.tab();
+		expect(
+			screen.getByRole( 'button', { name: 'Before container' } )
+		).toHaveFocus();
+		expect( externalWrapperOnKeyDownSpy ).toHaveBeenCalledTimes( 0 );
+
 		await user.tab();
 		expect( tabbables[ 0 ] ).toHaveFocus();
+		expect( externalWrapperOnKeyDownSpy ).toHaveBeenCalledTimes( 1 );
 
 		await user.keyboard( '[Space]' );
-		expect( externalWrapperOnKeyDownSpy ).toHaveBeenCalledTimes( 1 );
+		expect( externalWrapperOnKeyDownSpy ).toHaveBeenCalledTimes( 2 );
 
 		await user.tab();
-		expect( externalWrapperOnKeyDownSpy ).toHaveBeenCalledTimes( 1 );
+		expect( externalWrapperOnKeyDownSpy ).toHaveBeenCalledTimes( 2 );
 		await user.tab( { shift: true } );
 		// This extra call is caused by the "shift" key being pressed
 		// on its own before "tab"
-		expect( externalWrapperOnKeyDownSpy ).toHaveBeenCalledTimes( 2 );
+		expect( externalWrapperOnKeyDownSpy ).toHaveBeenCalledTimes( 3 );
 
 		await user.keyboard( '[Escape]' );
-		expect( externalWrapperOnKeyDownSpy ).toHaveBeenCalledTimes( 3 );
+		expect( externalWrapperOnKeyDownSpy ).toHaveBeenCalledTimes( 4 );
 	} );
 } );