diff --git a/apps/fluent-tester/src/TestComponents/Callout/CalloutTest.tsx b/apps/fluent-tester/src/TestComponents/Callout/CalloutTest.tsx
index 2bbdc65960..fb7ec08c30 100644
--- a/apps/fluent-tester/src/TestComponents/Callout/CalloutTest.tsx
+++ b/apps/fluent-tester/src/TestComponents/Callout/CalloutTest.tsx
@@ -1,6 +1,6 @@
 import * as React from 'react';
 import type { KeyboardMetrics } from 'react-native';
-import { Text, View, Switch, ScrollView, Platform } from 'react-native';
+import { AccessibilityInfo, Platform, ScrollView, Switch, Text, View } from 'react-native';
 
 import { ButtonV1 as Button, Separator, Pressable } from '@fluentui/react-native';
 import type { IFocusable, RestoreFocusEvent, DismissBehaviors } from '@fluentui/react-native';
@@ -423,19 +423,45 @@ const StandardCallout: React.FunctionComponent = () => {
 const CustomCallout: React.FunctionComponent = () => {
   const [showCustomizedCallout, setShowCustomizedCallout] = React.useState(false);
   const [isCustomizedCalloutVisible, setIsCustomizedCalloutVisible] = React.useState(false);
+  const [shouldFocusCloseButton, setShouldFocusCloseButton] = React.useState(false);
 
-  const toggleShowCustomizedCallout = React.useCallback(() => {
-    setShowCustomizedCallout(!showCustomizedCallout);
+  const a11yOnShowAnnouncement = 'Be informed that a customized callout has been opened.';
+  const calloutMessage = 'This is an example message.';
+  const closeButtonRef = React.useRef(null);
+
+  const openCallout = React.useCallback((focusCloseButton: boolean) => {
+    setShowCustomizedCallout(true);
 
     // Unmounting a callout does not invoke onDismiss; onDismiss is only invoked
     // for dismissals generated by the native app.  When toggling to 'show',
     // the isVisible state will be corrected to 'true' by the onShow callback.
     setIsCustomizedCalloutVisible(false);
-  }, [showCustomizedCallout, setIsCustomizedCalloutVisible, setShowCustomizedCallout]);
+    setShouldFocusCloseButton(focusCloseButton);
+  }, []);
+
+  const onClick = React.useCallback(() => {
+    openCallout(false /*focusCloseButton*/);
+  }, [openCallout]);
+
+  const onKeyDown = React.useCallback(
+    (e) => {
+      if (e.nativeEvent.key === 'Enter' || e.nativeEvent.key === ' ') {
+        openCallout(true /*focusCloseButton*/);
+      }
+    },
+    [openCallout],
+  );
+
+  React.useEffect(() => {
+    if (isCustomizedCalloutVisible && shouldFocusCloseButton) {
+      closeButtonRef.current?.focus?.();
+    }
+  }, [isCustomizedCalloutVisible, shouldFocusCloseButton]);
 
   const onShowCustomizedCallout = React.useCallback(() => {
     setIsCustomizedCalloutVisible(true);
-  }, [setIsCustomizedCalloutVisible]);
+    AccessibilityInfo.announceForAccessibility(a11yOnShowAnnouncement + ' ' + calloutMessage);
+  }, []);
 
   const onDismissCustomizedCallout = React.useCallback(() => {
     setIsCustomizedCalloutVisible(false);
@@ -443,14 +469,17 @@ const CustomCallout: React.FunctionComponent = () => {
     // setting the internal state to false will instigate unmounting the
     // zombie Callout control.
     setShowCustomizedCallout(false);
-  }, [setIsCustomizedCalloutVisible, setShowCustomizedCallout]);
+    setShouldFocusCloseButton(false);
+  }, []);
 
   const myRect: KeyboardMetrics = { screenX: 10, screenY: 10, width: 100, height: 100 };
 
   return (
     <View>
       <View style={{ flexDirection: 'column', paddingVertical: 5 }}>
-        <Button onClick={toggleShowCustomizedCallout}>{'Press for Callout'}</Button>
+        <Button onClick={onClick} onKeyDown={onKeyDown} onAccessibilityTap={() => openCallout(true)}>
+          {'Press for Callout'}
+        </Button>
         <Text selectable={true}>
           <Text>Visibility: </Text>
           {isCustomizedCalloutVisible ? <Text style={{ color: 'green' }}>Visible</Text> : <Text style={{ color: 'red' }}>Not Visible</Text>}
@@ -464,10 +493,12 @@ const CustomCallout: React.FunctionComponent = () => {
           onShow={onShowCustomizedCallout}
           accessibilityLabel="Customized Callout"
           accessibilityRole="alert"
-          accessibilityOnShowAnnouncement="Be informed that a customized callout has been opened."
         >
           <View style={{ padding: 20, borderWidth: 2, borderColor: 'black' }}>
-            <Text>just some text so it does not take focus and is not empty.</Text>
+            <Text>{calloutMessage}</Text>
+            <Button componentRef={closeButtonRef} onClick={onDismissCustomizedCallout}>
+              {'Close'}
+            </Button>
           </View>
         </Callout>
       )}
diff --git a/change/@fluentui-react-native-tester-78450674-4274-4fca-a61c-3ae7e8f4d826.json b/change/@fluentui-react-native-tester-78450674-4274-4fca-a61c-3ae7e8f4d826.json
new file mode 100644
index 0000000000..f67bf53dc7
--- /dev/null
+++ b/change/@fluentui-react-native-tester-78450674-4274-4fca-a61c-3ae7e8f4d826.json
@@ -0,0 +1,7 @@
+{
+  "type": "patch",
+  "comment": "Fix custom callout example",
+  "packageName": "@fluentui-react-native/tester",
+  "email": "krsiler@microsoft.com",
+  "dependentChangeType": "patch"
+}