diff --git a/packages/react/src/component-tests/IcStepper/IcStepper.cy.tsx b/packages/react/src/component-tests/IcStepper/IcStepper.cy.tsx
index c184358ffbb..1144035ee2d 100644
--- a/packages/react/src/component-tests/IcStepper/IcStepper.cy.tsx
+++ b/packages/react/src/component-tests/IcStepper/IcStepper.cy.tsx
@@ -3,6 +3,7 @@
 
 import React from "react";
 import { mount } from "cypress/react";
+import { IcStep, IcStepper } from "../../components";
 import {
   FullWidth,
   Compact,
@@ -319,3 +320,48 @@ describe("IcStepper visual regression tests in high contrast mode", () => {
     });
   });
 });
+
+describe("IcStepper text resize accessibility regression", () => {
+  afterEach(() => {
+    cy.document().then((doc) => {
+      doc.documentElement.style.fontSize = "";
+    });
+    cy.task("generateReport");
+  });
+
+  it("switches to compact mode at 200% text size without horizontal overflow", () => {
+    cy.viewport(800, 600);
+    cy.injectAxe();
+    mount(
+      <div
+        id="text-resize-stepper-container"
+        style={{ width: "700px", maxWidth: "100%" }}
+      >
+        <IcStepper>
+          <IcStep heading="First step" />
+          <IcStep heading="Second step with a longer heading" type="current" />
+          <IcStep heading="Third step" />
+          <IcStep heading="Fourth step" />
+        </IcStepper>
+      </div>
+    );
+    cy.checkHydrated(STEPPER_SELECTOR);
+
+    cy.document().then((doc) => {
+      doc.documentElement.style.fontSize = "32px";
+    });
+
+    cy.get(STEPPER_SELECTOR).should("have.class", "ic-stepper-compact");
+
+    cy.get("#text-resize-stepper-container").then(($container) => {
+      const container = $container[0];
+      expect(container.scrollWidth).to.be.at.most(container.clientWidth);
+    });
+
+    cy.checkA11yWithWait();
+    cy.compareSnapshot({
+      name: "/text-resize-200-percent",
+      testThreshold: setThresholdBasedOnEnv(DEFAULT_TEST_THRESHOLD + 0.015),
+    });
+  });
+});
diff --git a/packages/web-components/src/components/ic-stepper/ic-stepper.tsx b/packages/web-components/src/components/ic-stepper/ic-stepper.tsx
index 3d4cbb29762..86d1f6ee388 100644
--- a/packages/web-components/src/components/ic-stepper/ic-stepper.tsx
+++ b/packages/web-components/src/components/ic-stepper/ic-stepper.tsx
@@ -320,17 +320,22 @@ export class Stepper {
     });
   };
 
+  private getMinimumDefaultStepperWidth = (): number => {
+    const rootFontSize =
+      parseFloat(getComputedStyle(document.documentElement).fontSize) || 16;
+    const baseStepWidth =
+      this.aligned === "left" &&
+      this.connectorWidth &&
+      this.connectorWidth > 100
+        ? this.connectorWidth + 48
+        : 148;
+
+    return (baseStepWidth / 16) * rootFontSize * this.steps.length;
+  };
+
   private overrideVariant = () => {
     if (this.variantOverride) {
-      let minDefaultStepperWidth = 148 * this.steps.length;
-
-      if (
-        this.aligned === "left" &&
-        this.connectorWidth &&
-        this.connectorWidth > 100
-      ) {
-        minDefaultStepperWidth = (this.connectorWidth + 48) * this.steps.length;
-      }
+      const minDefaultStepperWidth = this.getMinimumDefaultStepperWidth();
       if (this.el.clientWidth < minDefaultStepperWidth) {
         this.variant = "compact";
       } else {
@@ -339,8 +344,13 @@ export class Stepper {
     }
   };
 
+  private observeSteps = () => {
+    this.steps.forEach((step) => this.resizeObserver?.observe(step));
+  };
+
   private resizeObserverCallback = () => {
     this.getChildren();
+    this.observeSteps();
     this.checkStepTitles();
     this.overrideVariant();
     this.setStepperWidth();
@@ -353,6 +363,7 @@ export class Stepper {
       this.resizeObserverCallback();
     });
     this.resizeObserver.observe(this.el);
+    this.observeSteps();
   };
 
   render() {
diff --git a/packages/web-components/src/components/ic-stepper/test/basic/ic-stepper.spec.ts b/packages/web-components/src/components/ic-stepper/test/basic/ic-stepper.spec.ts
index 7b95a478808..1d1355ad321 100644
--- a/packages/web-components/src/components/ic-stepper/test/basic/ic-stepper.spec.ts
+++ b/packages/web-components/src/components/ic-stepper/test/basic/ic-stepper.spec.ts
@@ -1034,3 +1034,61 @@ describe("switch between the compact and default stepper depending on whether th
     });
   });
 });
+
+const textResizeStepperMarkup = `
+  <ic-stepper>
+    <ic-step heading="First"></ic-step>
+    <ic-step heading="Second" type="current"></ic-step>
+    <ic-step heading="Third"></ic-step>
+    <ic-step heading="Fourth"></ic-step>
+  </ic-stepper>`;
+
+describe("ic-stepper text resize", () => {
+  const mockRootFontSize = (fontSize: string) => {
+    jest
+      .spyOn(globalThis, "getComputedStyle")
+      .mockReturnValue({ fontSize } as CSSStyleDeclaration);
+  };
+
+  afterEach(() => {
+    jest.restoreAllMocks();
+  });
+
+  it("scales the automatic compact breakpoint with the root font size", async () => {
+    const page = await newSpecPage({
+      components: [Stepper, Step],
+      html: textResizeStepperMarkup,
+    });
+
+    mockRootFontSize("32px");
+
+    Object.defineProperty(page.root, "clientWidth", {
+      configurable: true,
+      value: 700,
+    });
+
+    page.rootInstance.getChildren();
+    page.rootInstance.overrideVariant();
+
+    expect(page.rootInstance.variant).toBe("compact");
+  });
+
+  it("keeps the default variant at the same width with the normal root font size", async () => {
+    const page = await newSpecPage({
+      components: [Stepper, Step],
+      html: textResizeStepperMarkup,
+    });
+
+    mockRootFontSize("16px");
+
+    Object.defineProperty(page.root, "clientWidth", {
+      configurable: true,
+      value: 700,
+    });
+
+    page.rootInstance.getChildren();
+    page.rootInstance.overrideVariant();
+
+    expect(page.rootInstance.variant).toBe("default");
+  });
+});