diff --git a/demo/views/demo-all.dust b/demo/views/demo-all.dust
index 91f3d6cd5687..754e083fa047 100644
--- a/demo/views/demo-all.dust
+++ b/demo/views/demo-all.dust
@@ -79,7 +79,7 @@
     </nav>
   {/links}
 
-  <div class="demo--container">
+  <div class="demo--container" data-floating-menu-container>
     {?links}
       {#links}
         {?items}
diff --git a/src/components/dropdown/dropdown.js b/src/components/dropdown/dropdown.js
index 841aee6ed9e6..ce4f91d7d112 100644
--- a/src/components/dropdown/dropdown.js
+++ b/src/components/dropdown/dropdown.js
@@ -1,10 +1,11 @@
 import mixin from '../../globals/js/misc/mixin';
 import createComponent from '../../globals/js/mixins/create-component';
 import initComponentBySearch from '../../globals/js/mixins/init-component-by-search';
+import trackBlur from '../../globals/js/mixins/track-blur';
 import eventMatches from '../../globals/js/misc/event-matches';
 import on from '../../globals/js/misc/on';
 
-class Dropdown extends mixin(createComponent, initComponentBySearch) {
+class Dropdown extends mixin(createComponent, initComponentBySearch, trackBlur) {
   /**
    * A selector with drop downs.
    * @extends CreateComponent
@@ -28,8 +29,6 @@ class Dropdown extends mixin(createComponent, initComponentBySearch) {
      */
     this.hDocumentClick = on(this.element.ownerDocument, 'click', (event) => { this._toggle(event); });
 
-    this._setCloseOnBlur();
-
     this.element.addEventListener('keydown', (event) => { this._handleKeyDown(event); });
     this.element.addEventListener('click', (event) => {
       const item = eventMatches(event, this.options.selectorItem);
@@ -162,16 +161,10 @@ class Dropdown extends mixin(createComponent, initComponentBySearch) {
   }
 
   /**
-   * Sets an event handler to document for "close on blur" behavior.
+   * Closes the dropdown menu if this component loses focus.
    */
-  _setCloseOnBlur() {
-    const hasFocusin = 'onfocusin' in window;
-    const focusinEventName = hasFocusin ? 'focusin' : 'focus';
-    this.hFocusIn = on(this.element.ownerDocument, focusinEventName, (event) => {
-      if (!this.element.contains(event.target)) {
-        this.element.classList.remove('bx--dropdown--open');
-      }
-    }, !hasFocusin);
+  handleBlur() {
+    this.element.classList.remove('bx--dropdown--open');
   }
 
   /**
diff --git a/src/components/floating-menu/floating-menu.js b/src/components/floating-menu/floating-menu.js
index b575a11d8b3c..7ace648cc684 100644
--- a/src/components/floating-menu/floating-menu.js
+++ b/src/components/floating-menu/floating-menu.js
@@ -1,9 +1,11 @@
 import mixin from '../../globals/js/misc/mixin';
 import createComponent from '../../globals/js/mixins/create-component';
 import eventedShowHideState from '../../globals/js/mixins/evented-show-hide-state';
+import trackBlur from '../../globals/js/mixins/track-blur';
+import getLaunchingDetails from '../../globals/js/misc/get-launching-details';
 import optimizedResize from '../../globals/js/misc/resize';
 
-class FloatingMenu extends mixin(createComponent, eventedShowHideState) {
+class FloatingMenu extends mixin(createComponent, eventedShowHideState, trackBlur) {
   /**
    * Floating menu.
    * @extends CreateComponent
@@ -41,6 +43,18 @@ class FloatingMenu extends mixin(createComponent, eventedShowHideState) {
     }
   }
 
+  /**
+   * Focuses back on the trigger button if this component loses focus.
+   */
+  handleBlur(event) {
+    if (this.element.classList.contains(this.options.classShown)) {
+      this.changeState('hidden', getLaunchingDetails(event));
+      if (this.element.contains(event.relatedTarget) && event.target !== this.options.refNode) {
+        this.options.refNode.focus();
+      }
+    }
+  }
+
   /**
    * @private
    * @returns {Element} The element that this menu should be placed to.
@@ -162,6 +176,7 @@ class FloatingMenu extends mixin(createComponent, eventedShowHideState) {
       }
       this._getContainer().appendChild(this.element);
       this._place();
+      (this.element.querySelector(this.options.selectorPrimaryFocus) || this.element).focus();
     }
     if (state === 'hidden' && this.hResize) {
       this.hResize.release();
@@ -180,6 +195,7 @@ class FloatingMenu extends mixin(createComponent, eventedShowHideState) {
 
   static options = {
     selectorContainer: '[data-floating-menu-container]',
+    selectorPrimaryFocus: '[data-floating-menu-primary-focus]',
     attribDirection: 'data-floating-menu-direction',
     classShown: '', // Should be provided from options arg in constructor
     classRefShown: '', // Should be provided from options arg in constructor
diff --git a/src/components/overflow-menu/overflow-menu.html b/src/components/overflow-menu/overflow-menu.html
index 7cff1911feab..8ba9d414e2bb 100644
--- a/src/components/overflow-menu/overflow-menu.html
+++ b/src/components/overflow-menu/overflow-menu.html
@@ -4,9 +4,9 @@
     <circle cx="2" cy="10" r="2"></circle>
     <circle cx="2" cy="18" r="2"></circle>
   </svg>
-  <ul class="bx--overflow-menu-options">
+  <ul class="bx--overflow-menu-options" tabindex="-1">
     <li class="bx--overflow-menu-options__option">
-      <button class="bx--overflow-menu-options__btn">Stop app</button>
+      <button class="bx--overflow-menu-options__btn" data-floating-menu-primary-focus>Stop app</button>
     </li>
     <li class="bx--overflow-menu-options__option">
       <button class="bx--overflow-menu-options__btn">Restart app</button>
@@ -29,9 +29,9 @@
     <circle cx="2" cy="10" r="2"></circle>
     <circle cx="2" cy="18" r="2"></circle>
   </svg>
-  <ul class="bx--overflow-menu-options bx--overflow-menu--flip">
+  <ul class="bx--overflow-menu-options bx--overflow-menu--flip" tabindex="-1">
     <li class="bx--overflow-menu-options__option">
-      <button class="bx--overflow-menu-options__btn">Stop app</button>
+      <button class="bx--overflow-menu-options__btn" data-floating-menu-primary-focus>Stop app</button>
     </li>
     <li class="bx--overflow-menu-options__option">
       <button class="bx--overflow-menu-options__btn">Restart app</button>
diff --git a/src/globals/js/mixins/track-blur.js b/src/globals/js/mixins/track-blur.js
new file mode 100644
index 000000000000..71e0278c10e0
--- /dev/null
+++ b/src/globals/js/mixins/track-blur.js
@@ -0,0 +1,38 @@
+import on from '../misc/on';
+
+export default function (ToMix) {
+  class TrackBlur extends ToMix {
+    /**
+     * Mix-in class to add an handler for losing focus.
+     * @param {HTMLElement} element The element working as this component.
+     * @param {Object} [options] The component options.
+     */
+    constructor(element, options) {
+      super(element, options);
+      const hasFocusin = 'onfocusin' in window;
+      const focusinEventName = hasFocusin ? 'focusin' : 'focus';
+      this.hFocusIn = on(this.element.ownerDocument, focusinEventName, (event) => {
+        if (!this.element.contains(event.target)) {
+          this.handleBlur(event);
+        }
+      }, !hasFocusin);
+    }
+
+    /**
+     * The method called when this component loses focus.
+     * @abstract
+     */
+    handleBlur() {
+      throw new Error('Components inheriting TrackBlur mix-in must implement handleBlur() method.');
+    }
+
+    release() {
+      if (this.hFocusIn) {
+        this.hFocusIn = this.hFocusIn.release();
+      }
+      super.release();
+    }
+  }
+
+  return TrackBlur;
+}
diff --git a/tests/spec/floating-menu_spec.js b/tests/spec/floating-menu_spec.js
index 2ab8e64d0e59..c8da61593764 100644
--- a/tests/spec/floating-menu_spec.js
+++ b/tests/spec/floating-menu_spec.js
@@ -19,20 +19,28 @@ describe('Test floating menu', function () {
   });
 
   describe('Setting menu direction', function () {
+    let menu;
+
     it('Should use bottom by default', function () {
-      expect(new FloatingMenu(document.createElement('div')).options.direction).to.equal('bottom');
+      expect((menu = new FloatingMenu(document.createElement('div'))).options.direction).to.equal('bottom');
     });
 
     it('Should read the direction from data-floating-menu-direction', function () {
       const element = document.createElement('div');
       element.dataset.floatingMenuDirection = 'left';
-      expect(new FloatingMenu(element).options.direction).to.equal('left');
+      expect((menu = new FloatingMenu(element)).options.direction).to.equal('left');
     });
 
     it('Should use options.direction over data-floating-menu-direction', function () {
       const element = document.createElement('div');
       element.dataset.floatingMenuDirection = 'left';
-      expect(new FloatingMenu(element, { direction: 'right' }).options.direction).to.equal('right');
+      expect((menu = new FloatingMenu(element, { direction: 'right' })).options.direction).to.equal('right');
+    });
+
+    afterEach(function () {
+      if (menu) {
+        menu = menu.release();
+      }
     });
   });
 
@@ -388,4 +396,85 @@ describe('Test floating menu', function () {
       }
     });
   });
+
+  describe('Managing focus', function () {
+    let menu;
+    let element;
+    let primaryFocusNode;
+    let refNode;
+    let input;
+    let spyFocusRefNode;
+    const tempDiv = document.createElement('div');
+    tempDiv.innerHTML = HTML;
+
+    before(function () {
+      element = tempDiv.querySelector('ul.bx--overflow-menu-options');
+      document.body.appendChild(element);
+      primaryFocusNode = element.querySelector('[data-floating-menu-primary-focus]');
+      refNode = document.createElement('div');
+      document.body.appendChild(refNode);
+      input = document.createElement('input');
+      document.body.appendChild(input);
+      menu = new FloatingMenu(element, {
+        refNode,
+        classShown: 'my-floating-menu-open',
+        classRefShown: 'my-floating-menu-trigger-open',
+      });
+      spyFocusRefNode = sinon.spy(refNode, 'focus');
+    });
+
+    it('Should close menu when both the trigger button and the menu lose focus', function () {
+      primaryFocusNode.focus();
+      menu.changeState('shown', {});
+      input.focus();
+      expect(element.classList.contains('bx--overflow-menu-options--open')).to.be.false;
+    });
+
+    it('Should focus back on the trigger button when floating menu loses focus', function () {
+      const hasFocusin = 'onfocusin' in window;
+      const focusinEventName = hasFocusin ? 'focusin' : 'focus';
+      primaryFocusNode.focus();
+      menu.changeState('shown', {});
+      // Firefox does not fire `onfocus` event with `input.focus()` call, presumably when the window does not have focus
+      input.dispatchEvent(Object.assign(new CustomEvent(focusinEventName, { bubbles: true }), {
+        relatedTarget: primaryFocusNode,
+      }));
+      expect(spyFocusRefNode).to.have.been.calledOnce;
+    });
+
+    afterEach(function () {
+      element.classList.remove('bx--overflow-menu-options--open');
+      if (spyFocusRefNode) {
+        spyFocusRefNode.reset();
+      }
+    });
+
+    after(function () {
+      if (spyFocusRefNode) {
+        spyFocusRefNode.restore();
+        spyFocusRefNode = null;
+      }
+      if (menu) {
+        menu = menu.release();
+      }
+      if (input) {
+        if (input.parentNode) {
+          input.parentNode.removeChild(input);
+        }
+        input = null;
+      }
+      if (refNode) {
+        if (refNode.parentNode) {
+          refNode.parentNode.removeChild(refNode);
+        }
+        refNode = null;
+      }
+      if (element) {
+        if (element.parentNode) {
+          element.parentNode.removeChild(element);
+        }
+        element = null;
+      }
+    });
+  });
 });
diff --git a/tests/spec/overflow-menu_spec.js b/tests/spec/overflow-menu_spec.js
index ab232a661318..02d22d1980c5 100644
--- a/tests/spec/overflow-menu_spec.js
+++ b/tests/spec/overflow-menu_spec.js
@@ -134,17 +134,17 @@ describe('Test Overflow menu', function () {
 
     it('Should open one menu on a single click event', function () {
       element1.dispatchEvent(new CustomEvent('click', { bubbles: true }));
-      expect(element1.classList.contains('bx--overflow-menu--open')).to.be.true;
-      expect(element2.classList.contains('bx--overflow-menu--open')).to.be.false;
-      expect(element3.classList.contains('bx--overflow-menu--open')).to.be.false;
+      expect(element1.classList.contains('bx--overflow-menu--open'), '1st overflow menu').to.be.true;
+      expect(element2.classList.contains('bx--overflow-menu--open'), '2nd overflow menu').to.be.false;
+      expect(element3.classList.contains('bx--overflow-menu--open'), '3rd overflow menu').to.be.false;
     });
 
     it('Should open one menu on multiple click events', function () {
       element1.dispatchEvent(new CustomEvent('click', { bubbles: true }));
       element2.dispatchEvent(new CustomEvent('click', { bubbles: true }));
-      expect(element1.classList.contains('bx--overflow-menu--open')).to.be.false;
-      expect(element2.classList.contains('bx--overflow-menu--open')).to.be.true;
-      expect(element3.classList.contains('bx--overflow-menu--open')).to.be.false;
+      expect(element1.classList.contains('bx--overflow-menu--open'), '1st overflow menu').to.be.false;
+      expect(element2.classList.contains('bx--overflow-menu--open'), '2nd overflow menu').to.be.true;
+      expect(element3.classList.contains('bx--overflow-menu--open'), '3rd overflow menu').to.be.false;
     });
 
     afterEach(function () {
@@ -158,6 +158,43 @@ describe('Test Overflow menu', function () {
     });
   });
 
+  describe('Managing focus', function () {
+    let menu;
+    let element;
+    let firstItemNode;
+    let spyFocusFirstItemNode;
+    const container = document.createElement('div');
+    container.innerHTML = HTML;
+
+    before(function () {
+      document.body.appendChild(container);
+      element = document.querySelector('.bx--overflow-menu');
+      firstItemNode = element.querySelector('[data-floating-menu-primary-focus]');
+      spyFocusFirstItemNode = sinon.spy(firstItemNode, 'focus');
+      menu = new OverflowMenu(element);
+    });
+
+    it('Should focus on the floating menu when the menu is open', function () {
+      element.dispatchEvent(new CustomEvent('click', { bubbles: true }));
+      expect(spyFocusFirstItemNode).to.have.been.calledOnce;
+    });
+
+    afterEach(function () {
+      if (spyFocusFirstItemNode) {
+        spyFocusFirstItemNode.reset();
+      }
+    });
+
+    after(function () {
+      if (spyFocusFirstItemNode) {
+        spyFocusFirstItemNode.restore();
+        spyFocusFirstItemNode = null;
+      }
+      menu.release();
+      document.body.removeChild(container);
+    });
+  });
+
   describe('Managing instances', function () {
     let menu;
     let element;