diff --git a/change/@fluentui-react-avatar-e4aa8633-f04d-4761-9b6f-d7d78497c1c6.json b/change/@fluentui-react-avatar-e4aa8633-f04d-4761-9b6f-d7d78497c1c6.json
new file mode 100644
index 0000000000000..15092842b62c4
--- /dev/null
+++ b/change/@fluentui-react-avatar-e4aa8633-f04d-4761-9b6f-d7d78497c1c6.json
@@ -0,0 +1,7 @@
+{
+  "type": "minor",
+  "comment": "feat: Avatar's aria label includes 'active' or 'inactive' when using the active prop",
+  "packageName": "@fluentui/react-avatar",
+  "email": "behowell@microsoft.com",
+  "dependentChangeType": "patch"
+}
diff --git a/packages/react-components/react-avatar/etc/react-avatar.api.md b/packages/react-components/react-avatar/etc/react-avatar.api.md
index 5779770c5074c..5c2ada78a5e84 100644
--- a/packages/react-components/react-avatar/etc/react-avatar.api.md
+++ b/packages/react-components/react-avatar/etc/react-avatar.api.md
@@ -141,6 +141,7 @@ export type AvatarSlots = {
 // @public
 export type AvatarState = ComponentState<AvatarSlots> & Required<Pick<AvatarProps, 'active' | 'activeAppearance' | 'shape' | 'size'>> & {
     color: NonNullable<Exclude<AvatarProps['color'], 'colorful'>>;
+    activeAriaLabelElement?: JSX.Element;
 };
 
 // @internal
diff --git a/packages/react-components/react-avatar/src/components/Avatar/Avatar.test.tsx b/packages/react-components/react-avatar/src/components/Avatar/Avatar.test.tsx
index 0713f920e01e7..474c44c74226e 100644
--- a/packages/react-components/react-avatar/src/components/Avatar/Avatar.test.tsx
+++ b/packages/react-components/react-avatar/src/components/Avatar/Avatar.test.tsx
@@ -3,6 +3,7 @@ import { isConformant } from '../../common/isConformant';
 import { Avatar } from './Avatar';
 import { render, screen } from '@testing-library/react';
 import { avatarClassNames } from './useAvatarStyles';
+import { DEFAULT_STRINGS } from './useAvatar';
 
 describe('Avatar', () => {
   isConformant({
@@ -175,13 +176,13 @@ describe('Avatar', () => {
     expect(iconRef.current?.getAttribute('aria-hidden')).toBeTruthy();
   });
 
-  it('falls back to initials for aria-labelledby', () => {
+  it('sets aria-labelledby to initials if no name is provided', () => {
     render(<Avatar initials={{ children: 'FL', id: 'initials-id' }} />);
 
     expect(screen.getByRole('img').getAttribute('aria-labelledby')).toBe('initials-id');
   });
 
-  it('falls back to string initials for aria-labelledby', () => {
+  it('sets aria-labelledby to initials with a generated ID, if no name is provided', () => {
     render(<Avatar initials="ABC" />);
 
     const intialsId = screen.getByText('ABC').id;
@@ -189,11 +190,67 @@ describe('Avatar', () => {
     expect(screen.getByRole('img').getAttribute('aria-labelledby')).toBe(intialsId);
   });
 
-  it('includes badge in aria-labelledby', () => {
+  it('sets aria-labelledby to the name + badge', () => {
     const name = 'First Last';
     render(<Avatar id="root-id" name={name} badge={{ status: 'away', id: 'badge-id' }} />);
 
-    expect(screen.getAllByRole('img')[0].getAttribute('aria-label')).toBe(name);
-    expect(screen.getAllByRole('img')[0].getAttribute('aria-labelledby')).toBe('root-id badge-id');
+    const root = screen.getAllByRole('img')[0];
+    expect(root.getAttribute('aria-label')).toBe(name);
+    expect(root.getAttribute('aria-labelledby')).toBe('root-id badge-id');
+  });
+
+  it('sets aria-label to the name + activeState when active="active"', () => {
+    const name = 'First Last';
+    render(<Avatar id="root-id" name={name} active="active" />);
+
+    const root = screen.getAllByRole('img')[0];
+    expect(root.getAttribute('aria-label')).toBe(`${name} ${DEFAULT_STRINGS.active}`);
+  });
+
+  it('sets aria-label to the name + activeState when active="inactive"', () => {
+    const name = 'First Last';
+    render(<Avatar id="root-id" name={name} active="inactive" />);
+
+    const root = screen.getAllByRole('img')[0];
+    expect(root.getAttribute('aria-label')).toBe(`${name} ${DEFAULT_STRINGS.inactive}`);
+  });
+
+  it('sets aria-labelledby to the name + badge + activeState when there is a badge and active state', () => {
+    render(<Avatar id="root-id" name="First Last" badge={{ status: 'away', id: 'badge-id' }} active="active" />);
+
+    const activeAriaLabelElement = screen.getByText(DEFAULT_STRINGS.active);
+    expect(activeAriaLabelElement.id).toBeTruthy();
+    expect(activeAriaLabelElement.hidden).toBeTruthy();
+
+    const root = screen.getAllByRole('img')[0];
+    expect(root.getAttribute('aria-labelledby')).toBe(`root-id badge-id ${activeAriaLabelElement.id}`);
+  });
+
+  it('sets aria-labelledby to the initials + badge + activeState, if no name is provided', () => {
+    render(
+      <Avatar
+        initials={{ children: 'FL', id: 'initials-id' }}
+        badge={{ status: 'away', id: 'badge-id' }}
+        active="inactive"
+      />,
+    );
+
+    const activeAriaLabelElement = screen.getByText(DEFAULT_STRINGS.inactive);
+    expect(activeAriaLabelElement.id).toBeTruthy();
+    expect(activeAriaLabelElement.hidden).toBeTruthy();
+
+    const root = screen.getAllByRole('img')[0];
+    expect(root.getAttribute('aria-labelledby')).toBe(`initials-id badge-id ${activeAriaLabelElement.id}`);
+  });
+
+  it('does not render an activeAriaLabelElement when active state is unset', () => {
+    render(<Avatar name="First Last" />);
+
+    expect(screen.queryByText(DEFAULT_STRINGS.active)).toBeNull();
+    expect(screen.queryByText(DEFAULT_STRINGS.inactive)).toBeNull();
+
+    const root = screen.getAllByRole('img')[0];
+    expect(root.getAttribute('aria-label')).toBe('First Last');
+    expect(root.getAttribute('aria-labelledby')).toBeFalsy();
   });
 });
diff --git a/packages/react-components/react-avatar/src/components/Avatar/Avatar.types.ts b/packages/react-components/react-avatar/src/components/Avatar/Avatar.types.ts
index 5c68e0636cc6e..7e4370ed34050 100644
--- a/packages/react-components/react-avatar/src/components/Avatar/Avatar.types.ts
+++ b/packages/react-components/react-avatar/src/components/Avatar/Avatar.types.ts
@@ -154,4 +154,9 @@ export type AvatarState = ComponentState<AvatarSlots> &
      * The Avatar's color, it matches props.color but with `'colorful'` resolved to a named color
      */
     color: NonNullable<Exclude<AvatarProps['color'], 'colorful'>>;
+
+    /**
+     * Hidden span to render the active state label for the purposes of including in the aria-labelledby, if needed.
+     */
+    activeAriaLabelElement?: JSX.Element;
   };
diff --git a/packages/react-components/react-avatar/src/components/Avatar/renderAvatar.tsx b/packages/react-components/react-avatar/src/components/Avatar/renderAvatar.tsx
index 98beddfbd043f..1a68971339b9b 100644
--- a/packages/react-components/react-avatar/src/components/Avatar/renderAvatar.tsx
+++ b/packages/react-components/react-avatar/src/components/Avatar/renderAvatar.tsx
@@ -11,6 +11,7 @@ export const renderAvatar_unstable = (state: AvatarState) => {
       {slots.icon && <slots.icon {...slotProps.icon} />}
       {slots.image && <slots.image {...slotProps.image} />}
       {slots.badge && <slots.badge {...slotProps.badge} />}
+      {state.activeAriaLabelElement}
     </slots.root>
   );
 };
diff --git a/packages/react-components/react-avatar/src/components/Avatar/useAvatar.tsx b/packages/react-components/react-avatar/src/components/Avatar/useAvatar.tsx
index 5769e3fc3c724..96cb7692c5a27 100644
--- a/packages/react-components/react-avatar/src/components/Avatar/useAvatar.tsx
+++ b/packages/react-components/react-avatar/src/components/Avatar/useAvatar.tsx
@@ -6,6 +6,11 @@ import { PersonRegular } from '@fluentui/react-icons';
 import { PresenceBadge } from '@fluentui/react-badge';
 import { useFluent_unstable as useFluent } from '@fluentui/react-shared-contexts';
 
+export const DEFAULT_STRINGS = {
+  active: 'active',
+  inactive: 'inactive',
+};
+
 export const useAvatar_unstable = (props: AvatarProps, ref: React.Ref<HTMLElement>): AvatarState => {
   const { dir } = useFluent();
   const { name, size = 32, shape = 'circular', active = 'unset', activeAppearance = 'ring', idForColor } = props;
@@ -75,6 +80,8 @@ export const useAvatar_unstable = (props: AvatarProps, ref: React.Ref<HTMLElemen
     },
   });
 
+  let activeAriaLabelElement: AvatarState['activeAriaLabelElement'];
+
   // Resolve aria-label and/or aria-labelledby if not provided by the user
   if (!root['aria-label'] && !root['aria-labelledby']) {
     if (name) {
@@ -88,6 +95,24 @@ export const useAvatar_unstable = (props: AvatarProps, ref: React.Ref<HTMLElemen
       // root's aria-label should be the name, but fall back to being labelledby the initials if name is missing
       root['aria-labelledby'] = initials.id + (badge ? ' ' + badge.id : '');
     }
+
+    // Add the active state to the aria label
+    if (active === 'active' || active === 'inactive') {
+      const activeText = DEFAULT_STRINGS[active];
+      if (root['aria-labelledby']) {
+        // If using aria-labelledby, render a hidden span and append it to the labelledby
+        const activeId = baseId + '__active';
+        root['aria-labelledby'] += ' ' + activeId;
+        activeAriaLabelElement = (
+          <span hidden id={activeId}>
+            {activeText}
+          </span>
+        );
+      } else if (root['aria-label']) {
+        // Otherwise, just append it to the aria-label
+        root['aria-label'] += ' ' + activeText;
+      }
+    }
   }
 
   return {
@@ -95,6 +120,7 @@ export const useAvatar_unstable = (props: AvatarProps, ref: React.Ref<HTMLElemen
     shape,
     active,
     activeAppearance,
+    activeAriaLabelElement,
     color,
 
     components: {
diff --git a/packages/react-components/react-avatar/src/stories/Avatar/AvatarActive.stories.tsx b/packages/react-components/react-avatar/src/stories/Avatar/AvatarActive.stories.tsx
index d7d50fd21006a..db579aab5680d 100644
--- a/packages/react-components/react-avatar/src/stories/Avatar/AvatarActive.stories.tsx
+++ b/packages/react-components/react-avatar/src/stories/Avatar/AvatarActive.stories.tsx
@@ -3,8 +3,8 @@ import { Avatar } from '@fluentui/react-avatar';
 
 export const Active = () => (
   <div style={{ display: 'flex', gap: '20px' }}>
-    <Avatar active="active" name="Active" />
-    <Avatar active="inactive" name="Inactive" />
+    <Avatar active="active" name="Ashley McCarthy" />
+    <Avatar active="inactive" name="Isaac Fielder" badge={{ status: 'away' }} />
   </div>
 );