diff --git a/packages/element/CHANGELOG.md b/packages/element/CHANGELOG.md
index 76dfb04c5d65c9..902f1c7fa5fe81 100644
--- a/packages/element/CHANGELOG.md
+++ b/packages/element/CHANGELOG.md
@@ -2,6 +2,10 @@
 
 ## Unreleased
 
+### Bug Fixes
+
+-   `createInterpolateElement`: Warn and stop interpolating instead of throwing when an unmatched closing tag is present ([#60843](https://github.com/WordPress/gutenberg/issues/60843)).
+
 ## 8.3.0 (2026-07-14)
 
 ## 8.2.0 (2026-07-01)
diff --git a/packages/element/src/create-interpolate-element.ts b/packages/element/src/create-interpolate-element.ts
index 13763575c32faa..f75336e749c527 100644
--- a/packages/element/src/create-interpolate-element.ts
+++ b/packages/element/src/create-interpolate-element.ts
@@ -252,6 +252,19 @@ function proceed( conversionMap: Record< string, ReactElement > ): boolean {
 			return true;
 
 		case 'closer':
+			// A closing tag with no matching opening tag on the stack is
+			// invalid. Warn and bail, keeping anything interpolated so far.
+			if ( 0 === stackDepth ) {
+				if ( globalThis.SCRIPT_DEBUG ) {
+					// eslint-disable-next-line no-console
+					console.warn(
+						`Unmatched closing tag '</${ name }>' in createInterpolateElement. The rest of the string was not interpolated.`
+					);
+				}
+				addText();
+				return false;
+			}
+
 			// If we're not nesting then this is easy - close the block.
 			if ( 1 === stackDepth ) {
 				closeOuterElement( startOffset );
diff --git a/packages/element/src/test/create-interpolate-element.tsx b/packages/element/src/test/create-interpolate-element.tsx
index 0bdb8c61f6243a..dbfa7a71160dd5 100644
--- a/packages/element/src/test/create-interpolate-element.tsx
+++ b/packages/element/src/test/create-interpolate-element.tsx
@@ -73,6 +73,38 @@ describe( 'createInterpolateElement', () => {
 			createInterpolateElement( testString, { 'spaced token': <em /> } )
 		).toEqual( expectedElement );
 	} );
+	it( 'warns and stops interpolating when there is an unmatched closing tag', () => {
+		const testString = 'This is a </item> string';
+		const expectedElement = <>{ testString }</>;
+		expect(
+			createInterpolateElement( testString, { item: <em /> } )
+		).toEqual( expectedElement );
+		expect( console ).toHaveWarnedWith(
+			`Unmatched closing tag '</item>' in createInterpolateElement. The rest of the string was not interpolated.`
+		);
+
+		// Tags matched before the unmatched closing tag stay interpolated, so
+		// only the remainder of the string is returned as text.
+		const partialString = 'This is a <em>styled</em> and </strong> string';
+		const partialExpectedElement = createElement(
+			Fragment,
+			null,
+			'This is a ',
+			createElement( 'em', null, 'styled' ),
+			' and </strong> string'
+		);
+		expect(
+			JSON.stringify(
+				createInterpolateElement( partialString, {
+					em: <em />,
+					strong: <strong />,
+				} )
+			)
+		).toEqual( JSON.stringify( partialExpectedElement ) );
+		expect( console ).toHaveWarnedWith(
+			`Unmatched closing tag '</strong>' in createInterpolateElement. The rest of the string was not interpolated.`
+		);
+	} );
 	it( 'returns expected react element for non nested components', () => {
 		const testString = 'This is a string with <a>a link</a>.';
 		const expectedElement = createElement(