diff --git a/.changeset/fresh-ideas-worry.md b/.changeset/fresh-ideas-worry.md
new file mode 100644
index 00000000000..978ad0f3640
--- /dev/null
+++ b/.changeset/fresh-ideas-worry.md
@@ -0,0 +1,5 @@
+---
+"@primer/react": patch
+---
+
+Update `AvatarStack` to not reserve space when collapsed
diff --git a/packages/react/src/AvatarStack/AvatarStack.module.css b/packages/react/src/AvatarStack/AvatarStack.module.css
index 3eedffd65da..b14542b02ab 100644
--- a/packages/react/src/AvatarStack/AvatarStack.module.css
+++ b/packages/react/src/AvatarStack/AvatarStack.module.css
@@ -241,6 +241,7 @@
   }
 
   &:nth-child(n + 6) {
+    position: absolute;
     visibility: hidden;
     opacity: 0;
   }
@@ -251,8 +252,9 @@
   width: auto;
 
   .AvatarItem {
-    --mask-size: 100%; /* reset size of the mask to prevent unintentially clipping due to the additional size created by the border width */
+    --mask-size: 100%; /* reset size of the mask to prevent unintentionally clipping due to the additional size created by the border width */
 
+    position: relative;
     margin-inline-start: var(--base-size-4);
     visibility: visible;
     opacity: 1;