diff --git a/packages/calcite-components/src/components/action-menu/action-menu.e2e.ts b/packages/calcite-components/src/components/action-menu/action-menu.e2e.ts
index 95f6ab55811..772c1b60644 100755
--- a/packages/calcite-components/src/components/action-menu/action-menu.e2e.ts
+++ b/packages/calcite-components/src/components/action-menu/action-menu.e2e.ts
@@ -252,6 +252,46 @@ describe("calcite-action-menu", () => {
       expect(actions[2].getAttribute(activeAttr)).toBe(null);
     });
 
+    it("should handle ArrowDown navigation with disabled/hidden items", async () => {
+      const page = await newE2EPage({
+        html: html`<calcite-action-menu>
+          <calcite-action hidden id="first" text="Add" icon="plus" text-enabled></calcite-action>
+          <calcite-action disabled id="second" text="Add" icon="minus" text-enabled></calcite-action>
+          <calcite-action id="third" text="Add" icon="banana" text-enabled></calcite-action>
+          <calcite-action id="fourth" text="Add" icon="banana" text-enabled></calcite-action>
+        </calcite-action-menu> `,
+      });
+
+      await page.waitForChanges();
+
+      const actionMenu = await page.find("calcite-action-menu");
+      const actions = await page.findAll("calcite-action");
+      const trigger = await page.find(`calcite-action-menu >>> .${CSS.defaultTrigger}`);
+
+      expect(await actionMenu.getProperty("open")).toBe(false);
+
+      await actionMenu.callMethod("setFocus");
+      await page.waitForChanges();
+
+      await page.keyboard.press("ArrowDown");
+      await page.waitForChanges();
+
+      expect(await trigger.getProperty("active")).toBe(true);
+      expect(await actionMenu.getProperty("open")).toBe(true);
+      expect(actions[0].getAttribute(activeAttr)).toBe(null);
+      expect(actions[1].getAttribute(activeAttr)).toBe(null);
+      expect(actions[2].getAttribute(activeAttr)).toBe("");
+      expect(actions[3].getAttribute(activeAttr)).toBe(null);
+
+      await page.keyboard.press("ArrowDown");
+      await page.waitForChanges();
+
+      expect(actions[0].getAttribute(activeAttr)).toBe(null);
+      expect(actions[1].getAttribute(activeAttr)).toBe(null);
+      expect(actions[2].getAttribute(activeAttr)).toBe(null);
+      expect(actions[3].getAttribute(activeAttr)).toBe("");
+    });
+
     it("should handle ArrowUp navigation", async () => {
       const page = await newE2EPage({
         html: html`<calcite-action-menu>
diff --git a/packages/calcite-components/src/components/action-menu/action-menu.tsx b/packages/calcite-components/src/components/action-menu/action-menu.tsx
index 368663e2b47..d24fd9f4ddd 100755
--- a/packages/calcite-components/src/components/action-menu/action-menu.tsx
+++ b/packages/calcite-components/src/components/action-menu/action-menu.tsx
@@ -419,7 +419,7 @@ export class ActionMenu implements LoadableComponent {
         []
       );
 
-    this.actionElements = actions;
+    this.actionElements = actions.filter((action) => !action.disabled && !action.hidden);
   };
 
   isValidKey(key: string, supportedKeys: string[]): boolean {