diff --git a/change/@fluentui-react-utilities-66d57a65-a181-4667-ba3e-a17909109d03.json b/change/@fluentui-react-utilities-66d57a65-a181-4667-ba3e-a17909109d03.json
new file mode 100644
index 0000000000000..625de0c207761
--- /dev/null
+++ b/change/@fluentui-react-utilities-66d57a65-a181-4667-ba3e-a17909109d03.json
@@ -0,0 +1,7 @@
+{
+  "type": "patch",
+  "comment": "fix(react-utilities): fix dispatcher behavior",
+  "packageName": "@fluentui/react-utilities",
+  "email": "olfedias@microsoft.com",
+  "dependentChangeType": "patch"
+}
diff --git a/packages/react-components/react-utilities/src/hooks/useControllableState.test.ts b/packages/react-components/react-utilities/src/hooks/useControllableState.test.ts
index 284bdfe9877bd..8f845f826f261 100644
--- a/packages/react-components/react-utilities/src/hooks/useControllableState.test.ts
+++ b/packages/react-components/react-utilities/src/hooks/useControllableState.test.ts
@@ -35,6 +35,27 @@ describe('useControllableState', () => {
     expect(result.current[0]).toBe(initialState);
   });
 
+  it('should call setState() with a value when is controlled', () => {
+    const spy = jest.fn();
+    const { result } = renderHook(() =>
+      useControllableState({ state: 'foo', defaultState: undefined, initialState: '' }),
+    );
+
+    const [, setState] = result.current;
+
+    act(() => {
+      setState(prevState => {
+        spy(prevState);
+        return prevState;
+      });
+    });
+
+    expect(result.current[0]).toEqual('foo');
+
+    expect(spy).toHaveBeenCalledTimes(1);
+    expect(spy).toHaveBeenCalledWith('foo');
+  });
+
   it.each([
     ['', true],
     ['factory', () => true],
diff --git a/packages/react-components/react-utilities/src/hooks/useControllableState.ts b/packages/react-components/react-utilities/src/hooks/useControllableState.ts
index af679fd104899..ba3b5db5f85f7 100644
--- a/packages/react-components/react-utilities/src/hooks/useControllableState.ts
+++ b/packages/react-components/react-utilities/src/hooks/useControllableState.ts
@@ -19,6 +19,10 @@ export type UseControllableStateOptions<State> = {
   initialState: State;
 };
 
+function isFactoryDispatch<State>(newState: React.SetStateAction<State>): newState is (prevState: State) => State {
+  return typeof newState === 'function';
+}
+
 /**
  * @internal
  *
@@ -45,17 +49,29 @@ export const useControllableState = <State>(
     }
     return isInitializer(options.defaultState) ? options.defaultState() : options.defaultState;
   });
-  return useIsControlled(options.state) ? [options.state, noop] : [internalState, setInternalState];
+
+  // Heads up!
+  // This part is specific for controlled mode and mocks behavior of React dispatcher function.
+
+  const stateValueRef = React.useRef<State | undefined>(options.state);
+
+  React.useEffect(() => {
+    stateValueRef.current = options.state;
+  }, [options.state]);
+
+  const setControlledState = React.useCallback((newState: React.SetStateAction<State>) => {
+    if (isFactoryDispatch(newState)) {
+      newState(stateValueRef.current as State);
+    }
+  }, []);
+
+  return useIsControlled(options.state) ? [options.state, setControlledState] : [internalState, setInternalState];
 };
 
 function isInitializer<State>(value: State | (() => State)): value is () => State {
   return typeof value === 'function';
 }
 
-function noop() {
-  /* noop */
-}
-
 /**
  * Helper hook to handle previous comparison of controlled/uncontrolled
  * Prints an error when isControlled value switches between subsequent renders