diff --git a/.changeset/wicked-knives-sparkle.md b/.changeset/wicked-knives-sparkle.md
new file mode 100644
index 00000000000..760da1a2b88
--- /dev/null
+++ b/.changeset/wicked-knives-sparkle.md
@@ -0,0 +1,5 @@
+---
+"@primer/react": patch
+---
+
+Bug fix: `ButtonGroup` borders show incorrectly on hover
diff --git a/.playwright/snapshots/components/ButtonGroup.test.ts-snapshots/ButtonGroup-Icon-Buttons-dark-colorblind-linux.png b/.playwright/snapshots/components/ButtonGroup.test.ts-snapshots/ButtonGroup-Icon-Buttons-dark-colorblind-linux.png
index 64932a7e6f7..1b03a407f82 100644
Binary files a/.playwright/snapshots/components/ButtonGroup.test.ts-snapshots/ButtonGroup-Icon-Buttons-dark-colorblind-linux.png and b/.playwright/snapshots/components/ButtonGroup.test.ts-snapshots/ButtonGroup-Icon-Buttons-dark-colorblind-linux.png differ
diff --git a/.playwright/snapshots/components/ButtonGroup.test.ts-snapshots/ButtonGroup-Icon-Buttons-dark-dimmed-linux.png b/.playwright/snapshots/components/ButtonGroup.test.ts-snapshots/ButtonGroup-Icon-Buttons-dark-dimmed-linux.png
index 1b05ebd875e..2b2eeb2a072 100644
Binary files a/.playwright/snapshots/components/ButtonGroup.test.ts-snapshots/ButtonGroup-Icon-Buttons-dark-dimmed-linux.png and b/.playwright/snapshots/components/ButtonGroup.test.ts-snapshots/ButtonGroup-Icon-Buttons-dark-dimmed-linux.png differ
diff --git a/.playwright/snapshots/components/ButtonGroup.test.ts-snapshots/ButtonGroup-Icon-Buttons-dark-high-contrast-linux.png b/.playwright/snapshots/components/ButtonGroup.test.ts-snapshots/ButtonGroup-Icon-Buttons-dark-high-contrast-linux.png
index 95fa59bdd8b..3963ab15c0f 100644
Binary files a/.playwright/snapshots/components/ButtonGroup.test.ts-snapshots/ButtonGroup-Icon-Buttons-dark-high-contrast-linux.png and b/.playwright/snapshots/components/ButtonGroup.test.ts-snapshots/ButtonGroup-Icon-Buttons-dark-high-contrast-linux.png differ
diff --git a/.playwright/snapshots/components/ButtonGroup.test.ts-snapshots/ButtonGroup-Icon-Buttons-dark-linux.png b/.playwright/snapshots/components/ButtonGroup.test.ts-snapshots/ButtonGroup-Icon-Buttons-dark-linux.png
index 64932a7e6f7..1b03a407f82 100644
Binary files a/.playwright/snapshots/components/ButtonGroup.test.ts-snapshots/ButtonGroup-Icon-Buttons-dark-linux.png and b/.playwright/snapshots/components/ButtonGroup.test.ts-snapshots/ButtonGroup-Icon-Buttons-dark-linux.png differ
diff --git a/.playwright/snapshots/components/ButtonGroup.test.ts-snapshots/ButtonGroup-Icon-Buttons-dark-tritanopia-linux.png b/.playwright/snapshots/components/ButtonGroup.test.ts-snapshots/ButtonGroup-Icon-Buttons-dark-tritanopia-linux.png
index 64932a7e6f7..1b03a407f82 100644
Binary files a/.playwright/snapshots/components/ButtonGroup.test.ts-snapshots/ButtonGroup-Icon-Buttons-dark-tritanopia-linux.png and b/.playwright/snapshots/components/ButtonGroup.test.ts-snapshots/ButtonGroup-Icon-Buttons-dark-tritanopia-linux.png differ
diff --git a/.playwright/snapshots/components/ButtonGroup.test.ts-snapshots/ButtonGroup-Icon-Buttons-light-colorblind-linux.png b/.playwright/snapshots/components/ButtonGroup.test.ts-snapshots/ButtonGroup-Icon-Buttons-light-colorblind-linux.png
index 9ee65793293..a2fd494b318 100644
Binary files a/.playwright/snapshots/components/ButtonGroup.test.ts-snapshots/ButtonGroup-Icon-Buttons-light-colorblind-linux.png and b/.playwright/snapshots/components/ButtonGroup.test.ts-snapshots/ButtonGroup-Icon-Buttons-light-colorblind-linux.png differ
diff --git a/.playwright/snapshots/components/ButtonGroup.test.ts-snapshots/ButtonGroup-Icon-Buttons-light-high-contrast-linux.png b/.playwright/snapshots/components/ButtonGroup.test.ts-snapshots/ButtonGroup-Icon-Buttons-light-high-contrast-linux.png
index 9a6174ae0df..95c5fd8b16c 100644
Binary files a/.playwright/snapshots/components/ButtonGroup.test.ts-snapshots/ButtonGroup-Icon-Buttons-light-high-contrast-linux.png and b/.playwright/snapshots/components/ButtonGroup.test.ts-snapshots/ButtonGroup-Icon-Buttons-light-high-contrast-linux.png differ
diff --git a/.playwright/snapshots/components/ButtonGroup.test.ts-snapshots/ButtonGroup-Icon-Buttons-light-linux.png b/.playwright/snapshots/components/ButtonGroup.test.ts-snapshots/ButtonGroup-Icon-Buttons-light-linux.png
index b3e3f5d2d29..593e7070bde 100644
Binary files a/.playwright/snapshots/components/ButtonGroup.test.ts-snapshots/ButtonGroup-Icon-Buttons-light-linux.png and b/.playwright/snapshots/components/ButtonGroup.test.ts-snapshots/ButtonGroup-Icon-Buttons-light-linux.png differ
diff --git a/.playwright/snapshots/components/ButtonGroup.test.ts-snapshots/ButtonGroup-Icon-Buttons-light-tritanopia-linux.png b/.playwright/snapshots/components/ButtonGroup.test.ts-snapshots/ButtonGroup-Icon-Buttons-light-tritanopia-linux.png
index 9ee65793293..a2fd494b318 100644
Binary files a/.playwright/snapshots/components/ButtonGroup.test.ts-snapshots/ButtonGroup-Icon-Buttons-light-tritanopia-linux.png and b/.playwright/snapshots/components/ButtonGroup.test.ts-snapshots/ButtonGroup-Icon-Buttons-light-tritanopia-linux.png differ
diff --git a/src/ButtonGroup/ButtonGroup.tsx b/src/ButtonGroup/ButtonGroup.tsx
index 93762b8574a..9e49b669aca 100644
--- a/src/ButtonGroup/ButtonGroup.tsx
+++ b/src/ButtonGroup/ButtonGroup.tsx
@@ -9,29 +9,23 @@ const ButtonGroup = styled.div`
   isolation: isolate;
 
   && > * {
+    margin-inline-end: -1px;
     position: relative;
-    border-right-width: 0;
     border-radius: 0;
 
     :first-child {
       border-top-left-radius: ${get('radii.2')};
       border-bottom-left-radius: ${get('radii.2')};
-      margin-right: 0;
-    }
-
-    :not(:first-child) {
-      margin-left: 0;
-      margin-right: 0;
     }
 
     :last-child {
-      border-right-width: 1px;
       border-top-right-radius: ${get('radii.2')};
       border-bottom-right-radius: ${get('radii.2')};
     }
 
     :focus,
-    :active {
+    :active,
+    :hover {
       z-index: 1;
     }
   }
diff --git a/src/__tests__/deprecated/__snapshots__/Button.test.tsx.snap b/src/__tests__/deprecated/__snapshots__/Button.test.tsx.snap
index f7e8cc7944f..9c106f86e5a 100644
--- a/src/__tests__/deprecated/__snapshots__/Button.test.tsx.snap
+++ b/src/__tests__/deprecated/__snapshots__/Button.test.tsx.snap
@@ -293,30 +293,24 @@ exports[`ButtonGroup renders consistently 1`] = `
 }
 
 .c0.c0 > * {
+  margin-inline-end: -1px;
   position: relative;
-  border-right-width: 0;
   border-radius: 0;
 }
 
 .c0.c0 > *:first-child {
   border-top-left-radius: 6px;
   border-bottom-left-radius: 6px;
-  margin-right: 0;
-}
-
-.c0.c0 > *:not(:first-child) {
-  margin-left: 0;
-  margin-right: 0;
 }
 
 .c0.c0 > *:last-child {
-  border-right-width: 1px;
   border-top-right-radius: 6px;
   border-bottom-right-radius: 6px;
 }
 
 .c0.c0 > *:focus,
-.c0.c0 > *:active {
+.c0.c0 > *:active,
+.c0.c0 > *:hover {
   z-index: 1;
 }