diff --git a/src/core/chart-api/chart-extra-navigation.ts b/src/core/chart-api/chart-extra-navigation.ts
index 647db75c..5ef8201d 100644
--- a/src/core/chart-api/chart-extra-navigation.ts
+++ b/src/core/chart-api/chart-extra-navigation.ts
@@ -162,7 +162,9 @@ export class ChartExtraNavigation {
 
   private onKeyDown = (event: KeyboardEvent) => {
     // The `handleKey` helper we use does not prevent the default keys behavior, so we do it here for
-    // all used keyboard commands.
+    // all used keyboard commands. We also stop propagation to prevent the global escape handler in
+    // chart-core.tsx from interfering with navigation - when keyboard navigation is active, this
+    // handler is the authoritative one for all navigation keys.
     if (
       [
         KeyCode.up,
@@ -178,6 +180,7 @@ export class ChartExtraNavigation {
       ].includes(event.keyCode)
     ) {
       event.preventDefault();
+      event.stopPropagation();
     }
     // We execute different actions depending on the current focus target (chart, group, or point).
     // It is expected, that the focused element is still available in the chart.
diff --git a/src/core/chart-core.tsx b/src/core/chart-core.tsx
index eb0092c9..0e4f0547 100644
--- a/src/core/chart-core.tsx
+++ b/src/core/chart-core.tsx
@@ -110,23 +110,28 @@ export function InternalCoreChart({
 
   // AWSUI-61678
   // Add global Escape key listener to dismiss hover tooltips for WCAG Content on Hover/Focus compliance
-  // Only enabled when keyboard navigation is disabled; when enabled, navigation handles Escape
+  // This listener handles Escape when using mouse hover. When keyboard navigation is active (application
+  // element is focused), the navigation handler deals with Escape, so we skip to avoid conflicts.
   useEffect(() => {
-    if (!context.keyboardNavigationEnabled) {
-      const handleKeyDown = (event: KeyboardEvent) => {
-        if (event.keyCode === KeyCode.escape && context.tooltipEnabled) {
-          const tooltipState = api.tooltipStore.get();
-          if (tooltipState.visible && !tooltipState.pinned) {
-            api.hideTooltip();
-          }
+    const handleKeyDown = (event: KeyboardEvent) => {
+      // Skip if keyboard navigation is handling this (event originated from application element)
+      const target = event.target as Element;
+      if (context.keyboardNavigationEnabled && target?.closest('[role="application"]')) {
+        return;
+      }
+
+      if (event.keyCode === KeyCode.escape && context.tooltipEnabled) {
+        const tooltipState = api.tooltipStore.get();
+        if (tooltipState.visible && !tooltipState.pinned) {
+          api.hideTooltip();
         }
-      };
+      }
+    };
 
-      document.addEventListener("keydown", handleKeyDown);
-      return () => {
-        document.removeEventListener("keydown", handleKeyDown);
-      };
-    }
+    document.addEventListener("keydown", handleKeyDown);
+    return () => {
+      document.removeEventListener("keydown", handleKeyDown);
+    };
   }, [api, context.tooltipEnabled, context.keyboardNavigationEnabled]);
 
   // Render fallback using the same root and container props as for the chart to ensure consistent