diff --git a/COMPONENT_INDEX.md b/COMPONENT_INDEX.md
index c0fd7ebd..b307e9a8 100644
--- a/COMPONENT_INDEX.md
+++ b/COMPONENT_INDEX.md
@@ -2639,14 +2639,15 @@ None.
 
 ### Props
 
-| Prop name    | Kind             | Reactive | Type                                                                                                                                                                                                                            | Default value      | Description                                       |
-| :----------- | :--------------- | :------- | :------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ------------------ | ------------------------------------------------- |
-| open         | <code>let</code> | No       | <code>boolean</code>                                                                                                                                                                                                            | <code>false</code> | Set to `true` to display the popover              |
-| caret        | <code>let</code> | No       | <code>boolean</code>                                                                                                                                                                                                            | <code>false</code> | Set to `true` render a caret                      |
-| align        | <code>let</code> | No       | <code>"top" &#124; "top-left" &#124; "top-right" &#124; "bottom" &#124; "bottom-left" &#124; "bottom-right" &#124; "left" &#124; "left-bottom" &#124; "left-top" &#124; "right" &#124; "right-bottom" &#124; "right-top"</code> | <code>"top"</code> | Specify the alignment of the caret                |
-| light        | <code>let</code> | No       | <code>boolean</code>                                                                                                                                                                                                            | <code>false</code> | Set to `true` to enable the light variant         |
-| highContrast | <code>let</code> | No       | <code>boolean</code>                                                                                                                                                                                                            | <code>false</code> | Set to `true` to enable the high contrast variant |
-| relative     | <code>let</code> | No       | <code>boolean</code>                                                                                                                                                                                                            | <code>false</code> | Set to `true` to use a relative position          |
+| Prop name           | Kind             | Reactive | Type                                                                                                                                                                                                                            | Default value      | Description                                            |
+| :------------------ | :--------------- | :------- | :------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ------------------ | ------------------------------------------------------ |
+| open                | <code>let</code> | Yes      | <code>boolean</code>                                                                                                                                                                                                            | <code>false</code> | Set to `true` to display the popover                   |
+| closeOnOutsideClick | <code>let</code> | No       | <code>boolean</code>                                                                                                                                                                                                            | <code>false</code> | Set to `true` to close the popover on an outside click |
+| caret               | <code>let</code> | No       | <code>boolean</code>                                                                                                                                                                                                            | <code>false</code> | Set to `true` render a caret                           |
+| align               | <code>let</code> | No       | <code>"top" &#124; "top-left" &#124; "top-right" &#124; "bottom" &#124; "bottom-left" &#124; "bottom-right" &#124; "left" &#124; "left-bottom" &#124; "left-top" &#124; "right" &#124; "right-bottom" &#124; "right-top"</code> | <code>"top"</code> | Specify the alignment of the caret                     |
+| light               | <code>let</code> | No       | <code>boolean</code>                                                                                                                                                                                                            | <code>false</code> | Set to `true` to enable the light variant              |
+| highContrast        | <code>let</code> | No       | <code>boolean</code>                                                                                                                                                                                                            | <code>false</code> | Set to `true` to enable the high contrast variant      |
+| relative            | <code>let</code> | No       | <code>boolean</code>                                                                                                                                                                                                            | <code>false</code> | Set to `true` to use a relative position               |
 
 ### Slots
 
@@ -2656,7 +2657,9 @@ None.
 
 ### Events
 
-None.
+| Event name    | Type       | Detail |
+| :------------ | :--------- | :----- |
+| click:outside | dispatched | --     |
 
 ## `ProgressIndicator`
 
diff --git a/docs/src/COMPONENT_API.json b/docs/src/COMPONENT_API.json
index 6a82283f..9da9b198 100644
--- a/docs/src/COMPONENT_API.json
+++ b/docs/src/COMPONENT_API.json
@@ -6800,6 +6800,16 @@
           "value": "false",
           "isFunction": false,
           "constant": false,
+          "reactive": true
+        },
+        {
+          "name": "closeOnOutsideClick",
+          "kind": "let",
+          "description": "Set to `true` to close the popover on an outside click",
+          "type": "boolean",
+          "value": "false",
+          "isFunction": false,
+          "constant": false,
           "reactive": false
         },
         {
@@ -6854,7 +6864,7 @@
         }
       ],
       "slots": [{ "name": "__default__", "default": true, "slot_props": "{}" }],
-      "events": [],
+      "events": [{ "type": "dispatched", "name": "click:outside" }],
       "typedefs": [],
       "rest_props": { "type": "Element", "name": "div" }
     },
diff --git a/docs/src/pages/components/Popover.svx b/docs/src/pages/components/Popover.svx
index 1a722a93..1619efb2 100644
--- a/docs/src/pages/components/Popover.svx
+++ b/docs/src/pages/components/Popover.svx
@@ -14,7 +14,7 @@ By default, the position of the popover component is absolute.
     </Popover>
 </div>
 
-### Relative
+### Relative position
 
 Set `relative` to `true` to use a relative position.
 
@@ -25,6 +25,16 @@ Set `relative` to `true` to use a relative position.
     </Popover>
 </div>
 
+### Close on outside click
+
+Set `closeOnOutsideClick` to set `open` to `false` when clicking outside of the popover.
+
+<div data-outline="relative">
+    Parent
+    <Popover open closeOnOutsideClick on:click:outside={() => {console.log('on:click:outside')}}>
+        <div style="padding: var(--cds-spacing-05)">Content</div>
+    </Popover>
+</div>
 
 ### With caret
 
diff --git a/src/Popover/Popover.svelte b/src/Popover/Popover.svelte
index e3af397c..154a8bb4 100644
--- a/src/Popover/Popover.svelte
+++ b/src/Popover/Popover.svelte
@@ -2,6 +2,9 @@
   /** Set to `true` to display the popover */
   export let open = false;
 
+  /** Set to `true` to close the popover on an outside click */
+  export let closeOnOutsideClick = false;
+
   /** Set to `true` render a caret */
   export let caret = false;
 
@@ -19,9 +22,26 @@
 
   /** Set to `true` to use a relative position */
   export let relative = false;
+
+  import { createEventDispatcher } from "svelte";
+
+  const dispatch = createEventDispatcher();
+
+  let ref = null;
 </script>
 
+<svelte:window
+  on:click="{(e) => {
+    if (!open) return;
+    if (e.target.contains(ref)) {
+      dispatch('click:outside');
+      if (closeOnOutsideClick) open = false;
+    }
+  }}"
+/>
+
 <div
+  bind:this="{ref}"
   class:bx--popover="{true}"
   class:bx--popover--caret="{caret}"
   class:bx--popover--light="{light}"
diff --git a/tests/Popover.test.svelte b/tests/Popover.test.svelte
new file mode 100644
index 00000000..ea2c42d2
--- /dev/null
+++ b/tests/Popover.test.svelte
@@ -0,0 +1,20 @@
+<script lang="ts">
+  import { Popover } from "../types";
+
+  let open = false;
+</script>
+
+<Popover
+  bind:open
+  closeOnOutsideClick
+  align="right"
+  caret
+  relative
+  light
+  highContrast
+  on:click:outside="{() => {
+    console.log('on:click:outside');
+  }}"
+>
+  <div style="padding: var(--cds-spacing-05)">Content</div>
+</Popover>
diff --git a/types/Popover/Popover.d.ts b/types/Popover/Popover.d.ts
index fb041746..f8feec0d 100644
--- a/types/Popover/Popover.d.ts
+++ b/types/Popover/Popover.d.ts
@@ -9,6 +9,12 @@ export interface PopoverProps
    */
   open?: boolean;
 
+  /**
+   * Set to `true` to close the popover on an outside click
+   * @default false
+   */
+  closeOnOutsideClick?: boolean;
+
   /**
    * Set to `true` render a caret
    * @default false
@@ -54,6 +60,6 @@ export interface PopoverProps
 
 export default class Popover extends SvelteComponentTyped<
   PopoverProps,
-  {},
+  { ["click:outside"]: CustomEvent<any> },
   { default: {} }
 > {}