diff --git a/CHANGELOG.md b/CHANGELOG.md
index e111bfcb37..163da63a0e 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -25,6 +25,7 @@ This project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0.htm
 - Add multiple selection flavor for `Dropdown` component @Bugaa92 ([#845](https://github.com/stardust-ui/react/pull/845))
 - Add `black` and `white` options for the `color` prop of the `Label` component @mnajdova ([#855](https://github.com/stardust-ui/react/pull/855))
 - Add `Flex` component @kuzhelov ([#802](https://github.com/stardust-ui/react/pull/802))
+- Add `inline` prop for `Dropdown` component @Bugaa92 ([#863](https://github.com/stardust-ui/react/pull/863))
 
 ### Fixes
 - Focus the last focused element which triggered `Popup` on ESC @sophieH29 ([#861](https://github.com/stardust-ui/react/pull/861))
diff --git a/docs/src/examples/components/Dropdown/Types/DropdownExampleInline.shorthand.tsx b/docs/src/examples/components/Dropdown/Types/DropdownExampleInline.shorthand.tsx
new file mode 100644
index 0000000000..523dfd0511
--- /dev/null
+++ b/docs/src/examples/components/Dropdown/Types/DropdownExampleInline.shorthand.tsx
@@ -0,0 +1,38 @@
+import * as React from 'react'
+import { Dropdown, Header } from '@stardust-ui/react'
+
+const inputItems = [
+  'Bruce Wayne',
+  'Natasha Romanoff',
+  'Steven Strange',
+  'Alfred Pennyworth',
+  `Scarlett O'Hara`,
+  'Imperator Furiosa',
+  'Bruce Banner',
+  'Peter Parker',
+  'Selina Kyle',
+]
+
+const DropdownExampleInline = () => (
+  <>
+    <Header as="h3">Inline:</Header>
+    <div>
+      Some text inline with the{' '}
+      <Dropdown inline items={inputItems} placeholder="Select your hero" /> and more text.
+    </div>
+    <Header as="h3">Inline Search:</Header>
+    <span>
+      Some other text inline with the{' '}
+      <Dropdown
+        inline
+        search
+        items={inputItems}
+        noResultsMessage="We couldn't find any matches."
+        placeholder="Start typing a name"
+      />{' '}
+      and more text.
+    </span>
+  </>
+)
+
+export default DropdownExampleInline
diff --git a/docs/src/examples/components/Dropdown/Types/index.tsx b/docs/src/examples/components/Dropdown/Types/index.tsx
index a730a3bd47..aa2d168534 100644
--- a/docs/src/examples/components/Dropdown/Types/index.tsx
+++ b/docs/src/examples/components/Dropdown/Types/index.tsx
@@ -19,6 +19,11 @@ const Types = () => (
       description="A dropdown can be searchable."
       examplePath="components/Dropdown/Types/DropdownExampleSearch"
     />
+    <ComponentExample
+      title="Inline"
+      description="A dropdown can be used inline with text."
+      examplePath="components/Dropdown/Types/DropdownExampleInline"
+    />
   </ExampleSection>
 )
 
diff --git a/packages/react/src/components/Dropdown/Dropdown.tsx b/packages/react/src/components/Dropdown/Dropdown.tsx
index 3482d89b44..d7e82d5c05 100644
--- a/packages/react/src/components/Dropdown/Dropdown.tsx
+++ b/packages/react/src/components/Dropdown/Dropdown.tsx
@@ -76,6 +76,9 @@ export interface DropdownProps extends UIComponentProps<DropdownProps, DropdownS
    */
   getA11yStatusMessage?: (options: DownshiftA11yStatusMessageOptions<ShorthandValue>) => string
 
+  /** A dropdown can be formatted to appear inline in the content of other components. */
+  inline?: boolean
+
   /** Array of props for generating list options (Dropdown.Item[]) and selected item labels(Dropdown.SelectedItem[]), if it's a multiple selection. */
   items?: ShorthandValue[]
 
@@ -190,6 +193,7 @@ class Dropdown extends AutoControlledComponent<Extendable<DropdownProps>, Dropdo
     fluid: PropTypes.bool,
     getA11ySelectionMessage: PropTypes.object,
     getA11yStatusMessage: PropTypes.func,
+    inline: PropTypes.bool,
     items: customPropTypes.collectionShorthand,
     itemToString: PropTypes.func,
     loading: PropTypes.bool,
@@ -333,11 +337,12 @@ class Dropdown extends AutoControlledComponent<Extendable<DropdownProps>, Dropdo
     styles: ComponentSlotStylesInput,
     getToggleButtonProps: (options?: GetToggleButtonPropsOptions) => any,
   ): JSX.Element {
+    const { triggerButton } = this.props
     const content = this.getSelectedItemAsString(this.state.value)
 
     return (
       <Ref innerRef={this.buttonRef}>
-        {Button.create(this.props.triggerButton, {
+        {Button.create(triggerButton, {
           defaultProps: {
             className: Dropdown.slotClassNames.triggerButton,
             content,
@@ -369,7 +374,7 @@ class Dropdown extends AutoControlledComponent<Extendable<DropdownProps>, Dropdo
     ) => void,
     variables,
   ): JSX.Element {
-    const { searchInput, multiple, placeholder } = this.props
+    const { inline, searchInput, multiple, placeholder } = this.props
     const { searchQuery, value } = this.state
 
     const noPlaceholder =
@@ -378,6 +383,7 @@ class Dropdown extends AutoControlledComponent<Extendable<DropdownProps>, Dropdo
     return DropdownSearchInput.create(searchInput || {}, {
       defaultProps: {
         placeholder: noPlaceholder ? '' : placeholder,
+        inline,
         variables,
         inputRef: this.inputRef,
       },
diff --git a/packages/react/src/components/Dropdown/DropdownSearchInput.tsx b/packages/react/src/components/Dropdown/DropdownSearchInput.tsx
index 7c8cbcc1e7..1e2b6658fc 100644
--- a/packages/react/src/components/Dropdown/DropdownSearchInput.tsx
+++ b/packages/react/src/components/Dropdown/DropdownSearchInput.tsx
@@ -14,6 +14,9 @@ import { UIComponentProps } from '../../lib/commonPropInterfaces'
 import Input from '../Input/Input'
 
 export interface DropdownSearchInputProps extends UIComponentProps<DropdownSearchInputProps> {
+  /** A dropdown search input can be formatted to appear inline in the context of a Dropdown. */
+  inline?: boolean
+
   /** Ref for input DOM node. */
   inputRef?: React.Ref<HTMLElement>
 
@@ -70,7 +73,7 @@ class DropdownSearchInput extends UIComponent<ReactProps<DropdownSearchInputProp
     }),
     accessibilityInputProps: PropTypes.object,
     accessibilityComboboxProps: PropTypes.object,
-    hasToggleButton: PropTypes.bool,
+    inline: PropTypes.bool,
     inputRef: customPropTypes.ref,
     onFocus: PropTypes.func,
     onInputBlur: PropTypes.func,
diff --git a/packages/react/src/themes/teams/components/Dropdown/dropdownItemStyles.ts b/packages/react/src/themes/teams/components/Dropdown/dropdownItemStyles.ts
index 4e28dbe216..092e448243 100644
--- a/packages/react/src/themes/teams/components/Dropdown/dropdownItemStyles.ts
+++ b/packages/react/src/themes/teams/components/Dropdown/dropdownItemStyles.ts
@@ -1,17 +1,14 @@
 import { ComponentSlotStylesInput, ICSSInJSStyle } from '../../../types'
 import { DropdownVariables } from './dropdownVariables'
 import { DropdownItemProps } from '../../../../components/Dropdown/DropdownItem'
-import ListItem from '../../../../components/List/ListItem'
 
 const dropdownItemStyles: ComponentSlotStylesInput<DropdownItemProps, DropdownVariables> = {
-  root: ({ variables: v, props: { active } }): ICSSInJSStyle => ({
-    [`&.${ListItem.className}`]: { backgroundColor: v.listItemBackgroundColor },
-
-    ...(active && {
-      [`&.${ListItem.className}`]: {
-        backgroundColor: v.listItemBackgroundColorActive,
-        color: v.listItemColorActive,
-      },
+  root: ({ props: p, variables: v }): ICSSInJSStyle => ({
+    whiteSpace: 'nowrap',
+    backgroundColor: v.listItemBackgroundColor,
+    ...(p.active && {
+      color: v.listItemColorActive,
+      backgroundColor: v.listItemBackgroundColorActive,
     }),
   }),
 }
diff --git a/packages/react/src/themes/teams/components/Dropdown/dropdownSearchInputStyles.ts b/packages/react/src/themes/teams/components/Dropdown/dropdownSearchInputStyles.ts
index cb0f8652e5..7452a15b6b 100644
--- a/packages/react/src/themes/teams/components/Dropdown/dropdownSearchInputStyles.ts
+++ b/packages/react/src/themes/teams/components/Dropdown/dropdownSearchInputStyles.ts
@@ -11,10 +11,14 @@ const dropdownSearchInputStyles: ComponentSlotStylesInput<
     flexGrow: 1,
   }),
 
-  input: ({ variables: v }): ICSSInJSStyle => ({
+  input: ({ props: p }): ICSSInJSStyle => ({
     width: '100%',
-    backgroundColor: v.backgroundColor,
+    backgroundColor: 'transparent',
     borderWidth: 0,
+    ...(p.inline && {
+      paddingLeft: 0,
+      paddingRight: 0,
+    }),
   }),
 }
 
diff --git a/packages/react/src/themes/teams/components/Dropdown/dropdownStyles.ts b/packages/react/src/themes/teams/components/Dropdown/dropdownStyles.ts
index 9e2cceb70f..38c06c13ac 100644
--- a/packages/react/src/themes/teams/components/Dropdown/dropdownStyles.ts
+++ b/packages/react/src/themes/teams/components/Dropdown/dropdownStyles.ts
@@ -3,23 +3,58 @@ import { DropdownProps, DropdownState } from '../../../../components/Dropdown/Dr
 import { DropdownVariables } from './dropdownVariables'
 import { pxToRem } from '../../../../lib'
 
-const dropdownStyles: ComponentSlotStylesInput<DropdownProps & DropdownState, DropdownVariables> = {
-  root: (): ICSSInJSStyle => ({}),
+type DropdownPropsAndState = DropdownProps & DropdownState
+
+const transparentColorStyle: ICSSInJSStyle = {
+  backgroundColor: 'transparent',
+  borderColor: 'transparent',
+  borderBottomColor: 'transparent',
+}
+
+const transparentColorStyleObj: ICSSInJSStyle = {
+  ...transparentColorStyle,
+  ':hover': transparentColorStyle,
+  ':active': transparentColorStyle,
+  ':focus': {
+    ...transparentColorStyle,
+    ':active': transparentColorStyle,
+  },
+}
+
+const getWidth = (p: DropdownPropsAndState, v: DropdownVariables): string => {
+  if (p.fluid) {
+    return '100%'
+  }
+
+  if (p.inline) {
+    return 'initial'
+  }
+
+  return v.width
+}
+
+const dropdownStyles: ComponentSlotStylesInput<DropdownPropsAndState, DropdownVariables> = {
+  root: ({ props: p }): ICSSInJSStyle => ({
+    ...(p.inline && {
+      display: 'inline-flex',
+    }),
+  }),
 
   container: ({ props: p, variables: v }): ICSSInJSStyle => ({
     display: 'flex',
     flexWrap: 'wrap',
-    outline: 0,
-    backgroundColor: v.backgroundColor,
+    position: 'relative',
     boxSizing: 'border-box',
     borderStyle: 'solid',
     borderColor: 'transparent',
+    outline: 0,
+    width: getWidth(p, v),
     borderWidth: v.borderWidth,
     borderRadius: v.borderRadius,
     color: v.color,
-    width: p.fluid ? '100%' : v.width,
-    position: 'relative',
+    backgroundColor: v.backgroundColor,
     ...(p.focused && { borderBottomColor: v.borderColorFocus }),
+    ...(p.inline && transparentColorStyleObj),
   }),
 
   selectedItems: ({ props: p, variables: v }): ICSSInJSStyle => ({
@@ -32,19 +67,14 @@ const dropdownStyles: ComponentSlotStylesInput<DropdownProps & DropdownState, Dr
   }),
 
   triggerButton: ({ props: p, variables: v }): ICSSInJSStyle => {
-    const transparentColorStyle = {
-      backgroundColor: 'transparent',
-      borderColor: 'transparent',
-    }
     return {
       boxShadow: 'none',
       margin: '0',
       justifyContent: 'left',
       padding: v.comboboxPaddingButton,
       height: pxToRem(30),
-      ...transparentColorStyle,
       ...(p.multiple && { minWidth: 0, flex: 1 }),
-      ':hover': transparentColorStyle,
+      ...transparentColorStyleObj,
       ':focus': {
         ...transparentColorStyle,
         ':after': {
@@ -54,7 +84,11 @@ const dropdownStyles: ComponentSlotStylesInput<DropdownProps & DropdownState, Dr
         },
         ':active': transparentColorStyle,
       },
-      ':active': transparentColorStyle,
+      ...(p.inline && {
+        paddingLeft: 0,
+        paddingRight: 0,
+        width: 'initial',
+      }),
     }
   },
 
@@ -65,7 +99,7 @@ const dropdownStyles: ComponentSlotStylesInput<DropdownProps & DropdownState, Dr
     zIndex: 1000,
     maxHeight: v.listMaxHeight,
     overflowY: 'auto',
-    width: p.fluid ? '100%' : v.width,
+    width: getWidth(p, v),
     top: 'calc(100% + 2px)', // leave room for container + its border
     background: v.listBackgroundColor,
     ...(p.isOpen && {