diff --git a/.changeset/token-cancel-keyboard-removal.md b/.changeset/token-cancel-keyboard-removal.md
new file mode 100644
index 00000000000..2687d83cae4
--- /dev/null
+++ b/.changeset/token-cancel-keyboard-removal.md
@@ -0,0 +1,5 @@
+---
+'@primer/react': patch
+---
+
+Token, IssueLabelToken: Respect canceled keyboard events when removing tokens with Backspace or Delete.
diff --git a/packages/react/src/Token/TokenBase.tsx b/packages/react/src/Token/TokenBase.tsx
index 03202c6f0cb..89ab5270f9d 100644
--- a/packages/react/src/Token/TokenBase.tsx
+++ b/packages/react/src/Token/TokenBase.tsx
@@ -60,6 +60,10 @@ const TokenBase = React.forwardRef<HTMLButtonElement | HTMLAnchorElement | HTMLS
         onKeyDown={(event: KeyboardEvent<HTMLSpanElement & HTMLAnchorElement & HTMLButtonElement>) => {
           onKeyDown && onKeyDown(event)
 
+          if (event.defaultPrevented) {
+            return
+          }
+
           if ((event.key === 'Backspace' || event.key === 'Delete') && onRemove) {
             onRemove()
           }
diff --git a/packages/react/src/Token/__tests__/Token.test.tsx b/packages/react/src/Token/__tests__/Token.test.tsx
index 73c01124c2a..edccf817c75 100644
--- a/packages/react/src/Token/__tests__/Token.test.tsx
+++ b/packages/react/src/Token/__tests__/Token.test.tsx
@@ -70,6 +70,28 @@ const testTokenComponent = (Component: React.ComponentType<React.PropsWithChildr
     expect(domNode.parentElement).toHaveClass('testing-class')
   })
 
+  it.each(['Backspace', 'Delete'])('allows onKeyDown to cancel removal with %s', key => {
+    const onRemove = vi.fn()
+    const onKeyDown = vi.fn((event: React.KeyboardEvent) => event.preventDefault())
+    const {getByText} = HTMLRender(<Component text="token" onRemove={onRemove} onKeyDown={onKeyDown} />)
+
+    fireEvent.keyDown(getByText('token'), {key})
+
+    expect(onKeyDown).toHaveBeenCalledTimes(1)
+    expect(onRemove).not.toHaveBeenCalled()
+  })
+
+  it.each(['Backspace', 'Delete'])('removes with %s when onKeyDown does not cancel the event', key => {
+    const onRemove = vi.fn()
+    const onKeyDown = vi.fn()
+    const {getByText} = HTMLRender(<Component text="token" onRemove={onRemove} onKeyDown={onKeyDown} />)
+
+    fireEvent.keyDown(getByText('token'), {key})
+
+    expect(onKeyDown).toHaveBeenCalledTimes(1)
+    expect(onRemove).toHaveBeenCalledTimes(1)
+  })
+
   it('renders with correct data-cursor-is-interactive attribute for button element', () => {
     const {getByText} = HTMLRender(<Component as="button" text="token" />)
     const domNode = getByText('token')