diff --git a/.changeset/weak-peaches-teach.md b/.changeset/weak-peaches-teach.md
new file mode 100644
index 00000000000..6720e40392c
--- /dev/null
+++ b/.changeset/weak-peaches-teach.md
@@ -0,0 +1,5 @@
+---
+"@primer/react": minor
+---
+
+Add `pasteUrlsAsPlainText` prop to control URL pasting behavior in `MarkdownEditor`
diff --git a/package-lock.json b/package-lock.json
index e6b38bee612..04ca1283902 100644
--- a/package-lock.json
+++ b/package-lock.json
@@ -1,17 +1,17 @@
 {
   "name": "@primer/react",
-  "version": "35.9.0",
+  "version": "35.10.0",
   "lockfileVersion": 2,
   "requires": true,
   "packages": {
     "": {
       "name": "@primer/react",
-      "version": "35.9.0",
+      "version": "35.10.0",
       "license": "MIT",
       "dependencies": {
         "@github/combobox-nav": "^2.1.5",
         "@github/markdown-toolbar-element": "^2.1.0",
-        "@github/paste-markdown": "^1.3.1",
+        "@github/paste-markdown": "^1.4.0",
         "@primer/behaviors": "^1.1.1",
         "@primer/octicons-react": "^17.3.0",
         "@primer/primitives": "7.9.0",
@@ -3148,9 +3148,9 @@
       "integrity": "sha512-nYjuErjGl5enF6BiZsP9qL7fbH5YRIOebv0vFru7MJu6Yu/ayQjb0iRrm8zLKq/IELMUYQHw9+Uifl3qUyTKrA=="
     },
     "node_modules/@github/paste-markdown": {
-      "version": "1.3.1",
-      "resolved": "https://registry.npmjs.org/@github/paste-markdown/-/paste-markdown-1.3.1.tgz",
-      "integrity": "sha512-xew5uSUOPm+pD4dSvR0/qtq2USUNYQ6ehpOqxK550+UAO4FWSEnNHjR0PA2Tul9PGyGBKfB+LQ5yF9DZwbpwUw=="
+      "version": "1.4.0",
+      "resolved": "https://registry.npmjs.org/@github/paste-markdown/-/paste-markdown-1.4.0.tgz",
+      "integrity": "sha512-BU//VcOhAFIz/t36NW/nlmGIFqTrPVMECZEZx+jlrEh87qCoO79fLIcsLr2xAT7E/F/lLAuYFVSwpnsPCAPdrQ=="
     },
     "node_modules/@github/prettier-config": {
       "version": "0.0.4",
@@ -43269,9 +43269,9 @@
       "integrity": "sha512-nYjuErjGl5enF6BiZsP9qL7fbH5YRIOebv0vFru7MJu6Yu/ayQjb0iRrm8zLKq/IELMUYQHw9+Uifl3qUyTKrA=="
     },
     "@github/paste-markdown": {
-      "version": "1.3.1",
-      "resolved": "https://registry.npmjs.org/@github/paste-markdown/-/paste-markdown-1.3.1.tgz",
-      "integrity": "sha512-xew5uSUOPm+pD4dSvR0/qtq2USUNYQ6ehpOqxK550+UAO4FWSEnNHjR0PA2Tul9PGyGBKfB+LQ5yF9DZwbpwUw=="
+      "version": "1.4.0",
+      "resolved": "https://registry.npmjs.org/@github/paste-markdown/-/paste-markdown-1.4.0.tgz",
+      "integrity": "sha512-BU//VcOhAFIz/t36NW/nlmGIFqTrPVMECZEZx+jlrEh87qCoO79fLIcsLr2xAT7E/F/lLAuYFVSwpnsPCAPdrQ=="
     },
     "@github/prettier-config": {
       "version": "0.0.4",
diff --git a/package.json b/package.json
index 49f4fa3de59..b506b9f01f9 100644
--- a/package.json
+++ b/package.json
@@ -83,7 +83,7 @@
   "dependencies": {
     "@github/combobox-nav": "^2.1.5",
     "@github/markdown-toolbar-element": "^2.1.0",
-    "@github/paste-markdown": "^1.3.1",
+    "@github/paste-markdown": "^1.4.0",
     "@primer/behaviors": "^1.1.1",
     "@primer/octicons-react": "^17.3.0",
     "@primer/primitives": "7.9.0",
diff --git a/src/drafts/MarkdownEditor/MarkdownEditor.stories.tsx b/src/drafts/MarkdownEditor/MarkdownEditor.stories.tsx
index b551d938131..79d6dfa00bd 100644
--- a/src/drafts/MarkdownEditor/MarkdownEditor.stories.tsx
+++ b/src/drafts/MarkdownEditor/MarkdownEditor.stories.tsx
@@ -30,7 +30,8 @@ const meta: Meta = {
         'Hide Label',
         'Required',
         'Enable File Uploads',
-        'Enable Saved Replies'
+        'Enable Saved Replies',
+        'Enable Plain-Text URL Pasting'
       ]
     }
   },
@@ -57,6 +58,13 @@ const meta: Meta = {
         type: 'boolean'
       }
     },
+    pasteUrlsAsPlainText: {
+      name: 'Enable Plain-Text URL Pasting',
+      defaultValue: false,
+      control: {
+        type: 'boolean'
+      }
+    },
     minHeightLines: {
       name: 'Minimum Height (Lines)',
       defaultValue: 5,
@@ -122,6 +130,7 @@ type ArgProps = {
   required: boolean
   fileUploadsEnabled: boolean
   savedRepliesEnabled: boolean
+  pasteUrlsAsPlainText: boolean
   onSubmit: () => void
   onDiffClick: () => void
 }
@@ -200,7 +209,8 @@ export const Default = ({
   required,
   fileUploadsEnabled,
   onSubmit,
-  savedRepliesEnabled
+  savedRepliesEnabled,
+  pasteUrlsAsPlainText
 }: ArgProps) => {
   const [value, setValue] = useState('')
 
@@ -223,6 +233,7 @@ export const Default = ({
         referenceSuggestions={references}
         savedReplies={savedRepliesEnabled ? savedReplies : undefined}
         required={required}
+        pasteUrlsAsPlainText={pasteUrlsAsPlainText}
       >
         <MarkdownEditor.Label visuallyHidden={hideLabel}>Markdown Editor Example</MarkdownEditor.Label>
       </MarkdownEditor>
@@ -242,7 +253,8 @@ export const CustomButtons = ({
   fileUploadsEnabled,
   onSubmit,
   onDiffClick,
-  savedRepliesEnabled
+  savedRepliesEnabled,
+  pasteUrlsAsPlainText
 }: ArgProps) => {
   const [value, setValue] = useState('')
 
@@ -265,6 +277,7 @@ export const CustomButtons = ({
         referenceSuggestions={references}
         required={required}
         savedReplies={savedRepliesEnabled ? savedReplies : undefined}
+        pasteUrlsAsPlainText={pasteUrlsAsPlainText}
       >
         <MarkdownEditor.Label visuallyHidden={hideLabel}>Markdown Editor Example</MarkdownEditor.Label>
 
diff --git a/src/drafts/MarkdownEditor/MarkdownEditor.test.tsx b/src/drafts/MarkdownEditor/MarkdownEditor.test.tsx
index a3f3d7ad16a..f730c667fee 100644
--- a/src/drafts/MarkdownEditor/MarkdownEditor.test.tsx
+++ b/src/drafts/MarkdownEditor/MarkdownEditor.test.tsx
@@ -1,6 +1,7 @@
 import {DiffAddedIcon} from '@primer/octicons-react'
 import {fireEvent, render as _render, waitFor, within} from '@testing-library/react'
 import userEvent from '@testing-library/user-event'
+import {UserEvent} from '@testing-library/user-event/dist/types/setup'
 import React, {forwardRef, useLayoutEffect, useRef, useState} from 'react'
 import MarkdownEditor, {Emoji, MarkdownEditorHandle, MarkdownEditorProps, Mentionable, Reference, SavedReply} from '.'
 import ThemeProvider from '../../ThemeProvider'
@@ -1140,4 +1141,34 @@ describe('MarkdownEditor', () => {
       )
     }
   })
+
+  describe('pasting URLs', () => {
+    const typeAndPaste = async (user: UserEvent, input: HTMLTextAreaElement) => {
+      await user.type(input, 'lorem ipsum dolor sit amet')
+      input.setSelectionRange(6, 11)
+
+      // userEvent.paste() doesn't seem to fire the `paste` event that paste-markdown listens for.
+      // So we simulate it. This approach is somewhat fragile because it relies on the internals
+      // of paste-markdown not using any other properties on the event or DataTransfer instance.
+      // We can't just construct a `new DataTransfer` because that's not implemented in JSDOM.
+      fireEvent.paste(input, {clipboardData: {types: ['text/plain'], getData: () => 'https://github.com'}})
+    }
+
+    const linkifiedResult = 'lorem [ipsum](https://github.com) dolor sit amet'
+    const plainResult = 'lorem ipsum dolor sit amet' // the real-world plain text result should have "https://github.com" instead of "ipsum", but fireEvent.paste doesn't actually update the input value
+
+    it('pastes URLs onto selected text as links by default', async () => {
+      const {getInput, user} = await render(<UncontrolledEditor />)
+      const input = getInput()
+      await typeAndPaste(user, input)
+      expect(input).toHaveValue(linkifiedResult)
+    })
+
+    it('pastes URLs onto selected text as plain text when `pasteUrlsAsPlainText` enabled', async () => {
+      const {getInput, user} = await render(<UncontrolledEditor pasteUrlsAsPlainText />)
+      const input = getInput()
+      await typeAndPaste(user, input)
+      expect(input).toHaveValue(plainResult)
+    })
+  })
 })
diff --git a/src/drafts/MarkdownEditor/MarkdownEditor.tsx b/src/drafts/MarkdownEditor/MarkdownEditor.tsx
index 061d083d231..5627bb34c4d 100644
--- a/src/drafts/MarkdownEditor/MarkdownEditor.tsx
+++ b/src/drafts/MarkdownEditor/MarkdownEditor.tsx
@@ -95,6 +95,14 @@ export type MarkdownEditorProps = SxProp & {
   name?: string
   /** To enable the saved replies feature, provide an array of replies. */
   savedReplies?: SavedReply[]
+  /**
+   * Control whether URLs are pasted as plain text instead of as formatted links (if the
+   * user has selected some text before pasting). Defaults to `false` (URLs will paste as
+   * links). This should typically be controlled by user settings.
+   *
+   * Users can always toggle this behavior by holding `shift` when pasting.
+   */
+  pasteUrlsAsPlainText?: boolean
 }
 
 const handleBrand = Symbol()
@@ -157,7 +165,8 @@ const MarkdownEditor = forwardRef<MarkdownEditorHandle, MarkdownEditorProps>(
       required = false,
       name,
       children,
-      savedReplies
+      savedReplies,
+      pasteUrlsAsPlainText = false
     },
     ref
   ) => {
@@ -389,6 +398,7 @@ const MarkdownEditor = forwardRef<MarkdownEditorHandle, MarkdownEditorProps>(
                   monospace={monospace}
                   required={required}
                   name={name}
+                  pasteUrlsAsPlainText={pasteUrlsAsPlainText}
                   {...inputCompositionProps}
                   {...fileHandler?.pasteTargetProps}
                   {...fileHandler?.dropTargetProps}
diff --git a/src/drafts/MarkdownEditor/_MarkdownInput.tsx b/src/drafts/MarkdownEditor/_MarkdownInput.tsx
index 98770fbf3d0..eef06b1d0eb 100644
--- a/src/drafts/MarkdownEditor/_MarkdownInput.tsx
+++ b/src/drafts/MarkdownEditor/_MarkdownInput.tsx
@@ -24,6 +24,7 @@ interface MarkdownInputProps extends Omit<TextareaProps, 'onChange'> {
   minHeightLines: number
   maxHeightLines: number
   monospace: boolean
+  pasteUrlsAsPlainText: boolean
   /** Use this prop to control visibility instead of unmounting, so the undo stack and custom height are preserved. */
   visible: boolean
 }
@@ -47,6 +48,7 @@ export const MarkdownInput = forwardRef<HTMLTextAreaElement, MarkdownInputProps>
       maxHeightLines,
       visible,
       monospace,
+      pasteUrlsAsPlainText,
       ...props
     },
     forwardedRef
@@ -81,7 +83,12 @@ export const MarkdownInput = forwardRef<HTMLTextAreaElement, MarkdownInputProps>
     const ref = useRef<HTMLTextAreaElement>(null)
     useRefObjectAsForwardedRef(forwardedRef, ref)
 
-    useEffect(() => (ref.current ? subscribeToMarkdownPasting(ref.current).unsubscribe : undefined), [])
+    useEffect(() => {
+      const subscription =
+        ref.current &&
+        subscribeToMarkdownPasting(ref.current, {defaultPlainTextPaste: {urlLinks: pasteUrlsAsPlainText}})
+      return subscription?.unsubscribe
+    }, [pasteUrlsAsPlainText])
 
     const dynamicHeightStyles = useDynamicTextareaHeight({maxHeightLines, minHeightLines, element: ref.current, value})
     const heightStyles = fullHeight ? {} : dynamicHeightStyles