diff --git a/.changeset/chatty-cups-create.md b/.changeset/chatty-cups-create.md
new file mode 100644
index 0000000000..0fa05b14f3
--- /dev/null
+++ b/.changeset/chatty-cups-create.md
@@ -0,0 +1,24 @@
+---
+'@backstage/ui': minor
+---
+
+**BREAKING**: The `Header` component's `tabs` prop now uses `HeaderNavTabItem[]` instead of `HeaderTab[]`. Tabs render as a `<nav>` element with links and optional dropdown menus instead of `role="tablist"`. A new `activeTabId` prop controls which tab is highlighted.
+
+**Migration:**
+
+```diff
+- import { Header, type HeaderTab } from '@backstage/ui';
++ import { Header, type HeaderNavTabItem } from '@backstage/ui';
+
+  // Tabs no longer support matchStrategy — active state is controlled via activeTabId
+- const tabs: HeaderTab[] = [
+-   { id: 'overview', label: 'Overview', href: '/overview', matchStrategy: 'prefix' },
++ const tabs: HeaderNavTabItem[] = [
++   { id: 'overview', label: 'Overview', href: '/overview' },
+  ];
+
+- <Header title="My Page" tabs={tabs} />
++ <Header title="My Page" tabs={tabs} activeTabId="overview" />
+```
+
+**Affected components:** Header
diff --git a/docs-ui/src/app/components/header/props-definition.tsx b/docs-ui/src/app/components/header/props-definition.tsx
index 1b7a309b17..4caacf1c13 100644
--- a/docs-ui/src/app/components/header/props-definition.tsx
+++ b/docs-ui/src/app/components/header/props-definition.tsx
@@ -1,5 +1,4 @@
 import { classNamePropDefs, type PropDef } from '@/utils/propDefs';
-import { Chip } from '@/components/Chip';
 
 export const headerPagePropDefs: Record<string, PropDef> = {
   title: {
@@ -13,9 +12,9 @@ export const headerPagePropDefs: Record<string, PropDef> = {
   },
   tabs: {
     type: 'complex',
-    description: 'Navigation tabs displayed below the title.',
+    description: 'Navigation items displayed below the title.',
     complexType: {
-      name: 'HeaderTab[]',
+      name: 'HeaderNavTabItem[]',
       properties: {
         id: {
           type: 'string',
@@ -29,23 +28,24 @@ export const headerPagePropDefs: Record<string, PropDef> = {
         },
         href: {
           type: 'string',
-          required: true,
-          description: 'URL to navigate to when tab is clicked.',
-        },
-        matchStrategy: {
-          type: "'exact' | 'prefix'",
           required: false,
-          default: "'exact'",
-          description: (
-            <>
-              Route matching strategy. Use <Chip>exact</Chip> for exact path
-              match, <Chip>prefix</Chip> if pathname starts with href.
-            </>
-          ),
+          description:
+            'URL to navigate to when tab is clicked. Present on flat tabs, absent on groups.',
+        },
+        items: {
+          type: 'HeaderNavTab[]',
+          required: false,
+          description:
+            'Child tabs rendered as a dropdown menu. Present on groups, absent on flat tabs.',
         },
       },
     },
   },
+  activeTabId: {
+    type: 'string',
+    description:
+      'ID of the currently active tab. Can be a flat tab ID or a child tab ID within a group.',
+  },
   breadcrumbs: {
     type: 'complex',
     description: 'Breadcrumb trail displayed above the title.',
diff --git a/packages/ui/report.api.md b/packages/ui/report.api.md
index fcfacb7412..c329059ad9 100644
--- a/packages/ui/report.api.md
+++ b/packages/ui/report.api.md
@@ -1420,13 +1420,86 @@ export const HeaderDefinition: {
     readonly title: {};
     readonly customActions: {};
     readonly tabs: {};
+    readonly activeTabId: {};
     readonly breadcrumbs: {};
     readonly className: {};
   };
 };
 
+// @public (undocumented)
+export const HeaderNavDefinition: {
+  readonly styles: {
+    readonly [key: string]: string;
+  };
+  readonly classNames: {
+    readonly root: 'bui-HeaderNav';
+    readonly list: 'bui-HeaderNavList';
+    readonly active: 'bui-HeaderNavActive';
+    readonly hovered: 'bui-HeaderNavHovered';
+  };
+  readonly analytics: true;
+  readonly propDefs: {
+    readonly noTrack: {};
+    readonly tabs: {};
+    readonly activeTabId: {};
+    readonly children: {};
+    readonly className: {};
+  };
+};
+
+// @public (undocumented)
+export const HeaderNavGroupDefinition: {
+  readonly styles: {
+    readonly [key: string]: string;
+  };
+  readonly classNames: {
+    readonly root: 'bui-HeaderNavGroup';
+  };
+  readonly propDefs: {
+    readonly className: {};
+  };
+};
+
+// @public (undocumented)
+export const HeaderNavItemDefinition: {
+  readonly styles: {
+    readonly [key: string]: string;
+  };
+  readonly classNames: {
+    readonly root: 'bui-HeaderNavItem';
+  };
+  readonly propDefs: {
+    readonly className: {};
+  };
+};
+
+// @public
+export interface HeaderNavTab {
+  // (undocumented)
+  href: string;
+  // (undocumented)
+  id: string;
+  // (undocumented)
+  label: string;
+}
+
+// @public
+export interface HeaderNavTabGroup {
+  // (undocumented)
+  id: string;
+  // (undocumented)
+  items: HeaderNavTab[];
+  // (undocumented)
+  label: string;
+}
+
+// @public
+export type HeaderNavTabItem = HeaderNavTab | HeaderNavTabGroup;
+
 // @public
 export interface HeaderOwnProps {
+  // (undocumented)
+  activeTabId?: string;
   // (undocumented)
   breadcrumbs?: HeaderBreadcrumb[];
   // (undocumented)
@@ -1434,7 +1507,7 @@ export interface HeaderOwnProps {
   // (undocumented)
   customActions?: React.ReactNode;
   // (undocumented)
-  tabs?: HeaderTab[];
+  tabs?: HeaderNavTabItem[];
   // (undocumented)
   title?: string;
 }
@@ -1461,6 +1534,7 @@ export const HeaderPageDefinition: {
     readonly title: {};
     readonly customActions: {};
     readonly tabs: {};
+    readonly activeTabId: {};
     readonly breadcrumbs: {};
     readonly className: {};
   };
diff --git a/packages/ui/src/components/Header/Header.stories.tsx b/packages/ui/src/components/Header/Header.stories.tsx
index 82f0df7311..78169dee92 100644
--- a/packages/ui/src/components/Header/Header.stories.tsx
+++ b/packages/ui/src/components/Header/Header.stories.tsx
@@ -14,21 +14,14 @@
  * limitations under the License.
  */
 
+import { useMemo } from 'react';
 import preview from '../../../../../.storybook/preview';
 import type { StoryFn } from '@storybook/react-vite';
 import { Header } from './Header';
-import type { HeaderTab } from '../PluginHeader/types';
-import { MemoryRouter } from 'react-router-dom';
+import type { HeaderNavTabItem } from './types';
+import { MemoryRouter, useLocation } from 'react-router-dom';
 import { BUIProvider } from '../../provider';
-import {
-  Button,
-  Container,
-  Text,
-  ButtonIcon,
-  MenuTrigger,
-  Menu,
-  MenuItem,
-} from '../../';
+import { Button, ButtonIcon, MenuTrigger, Menu, MenuItem } from '../../';
 import { RiMore2Line } from '@remixicon/react';
 
 const meta = preview.meta({
@@ -39,7 +32,7 @@ const meta = preview.meta({
   },
 });
 
-const tabs: HeaderTab[] = [
+const tabs: HeaderNavTabItem[] = [
   {
     id: 'overview',
     label: 'Overview',
@@ -88,13 +81,33 @@ const menuItems = [
 ];
 
 const withRouter = (Story: StoryFn) => (
-  <MemoryRouter>
+  <MemoryRouter initialEntries={['/overview']}>
     <BUIProvider>
       <Story />
     </BUIProvider>
   </MemoryRouter>
 );
 
+/**
+ * Derives activeTabId from the current router location by matching
+ * the pathname against all tab hrefs (including group children).
+ */
+function useActiveTabId(items: HeaderNavTabItem[]): string | undefined {
+  const location = useLocation();
+  return useMemo(() => {
+    for (const item of items) {
+      if ('items' in item) {
+        for (const child of item.items) {
+          if (child.href === location.pathname) return child.id;
+        }
+      } else if (item.href === location.pathname) {
+        return item.id;
+      }
+    }
+    return undefined;
+  }, [items, location.pathname]);
+}
+
 export const Default = meta.story({
   args: {
     title: 'Page Title',
@@ -102,11 +115,11 @@ export const Default = meta.story({
 });
 
 export const WithTabs = meta.story({
-  args: {
-    ...Default.input.args,
-    tabs,
-  },
   decorators: [withRouter],
+  render: () => {
+    const activeTabId = useActiveTabId(tabs);
+    return <Header title="Page Title" tabs={tabs} activeTabId={activeTabId} />;
+  },
 });
 
 export const WithCustomActions = meta.story({
@@ -162,175 +175,47 @@ export const WithLongBreadcrumbs = meta.story({
 
 export const WithEverything = meta.story({
   decorators: [withRouter],
-  render: () => (
-    <Header
-      {...Default.input.args}
-      tabs={tabs}
-      customActions={<Button>Custom action</Button>}
-      breadcrumbs={[{ label: 'Home', href: '/' }]}
-    />
-  ),
+  render: () => {
+    const activeTabId = useActiveTabId(tabs);
+    return (
+      <Header
+        title="Page Title"
+        tabs={tabs}
+        activeTabId={activeTabId}
+        customActions={<Button>Custom action</Button>}
+        breadcrumbs={[{ label: 'Home', href: '/' }]}
+      />
+    );
+  },
 });
 
-export const WithTabsMatchingStrategies = meta.story({
-  args: {
-    title: 'Route Matching Demo',
-    tabs: [
-      {
-        id: 'home',
-        label: 'Home',
-        href: '/home',
-      },
-      {
-        id: 'mentorship',
-        label: 'Mentorship',
-        href: '/mentorship',
-        matchStrategy: 'prefix',
-      },
-      {
-        id: 'catalog',
-        label: 'Catalog',
-        href: '/catalog',
-        matchStrategy: 'prefix',
-      },
-      {
-        id: 'settings',
-        label: 'Settings',
-        href: '/settings',
-      },
+const groupedTabs: HeaderNavTabItem[] = [
+  { id: 'overview', label: 'Overview', href: '/overview' },
+  {
+    id: 'docs-group',
+    label: 'Documentation',
+    items: [
+      { id: 'docs', label: 'TechDocs', href: '/docs' },
+      { id: 'api-docs', label: 'API Reference', href: '/api-docs' },
     ],
   },
-  render: args => (
-    <MemoryRouter initialEntries={['/mentorship/events']}>
-      <BUIProvider>
-        <Header {...args} />
-        <Container>
-          <Text>
-            <strong>Current URL:</strong> /mentorship/events
-          </Text>
-          <br />
-          <Text>
-            Notice how the "Mentorship" tab is active even though we're on a
-            nested route. This is because it uses{' '}
-            <code>matchStrategy="prefix"</code>.
-          </Text>
-          <br />
-          <Text>
-            • <strong>Home</strong>: exact matching (default) - not active
-          </Text>
-          <Text>
-            • <strong>Mentorship</strong>: prefix matching - IS active (URL
-            starts with /mentorship)
-          </Text>
-          <Text>
-            • <strong>Catalog</strong>: prefix matching - not active
-          </Text>
-          <Text>
-            • <strong>Settings</strong>: exact matching (default) - not active
-          </Text>
-        </Container>
-      </BUIProvider>
-    </MemoryRouter>
-  ),
-});
+  { id: 'ci', label: 'CI/CD', href: '/ci' },
+];
 
-export const WithTabsExactMatching = meta.story({
-  args: {
-    title: 'Exact Matching Demo',
-    tabs: [
-      {
-        id: 'mentorship',
-        label: 'Mentorship',
-        href: '/mentorship',
-      },
-      {
-        id: 'events',
-        label: 'Events',
-        href: '/mentorship/events',
-      },
-      {
-        id: 'mentors',
-        label: 'Mentors',
-        href: '/mentorship/mentors',
-      },
-    ],
+export const WithGroupedTabs = meta.story({
+  decorators: [
+    (Story: StoryFn) => (
+      <MemoryRouter initialEntries={['/docs']}>
+        <BUIProvider>
+          <Story />
+        </BUIProvider>
+      </MemoryRouter>
+    ),
+  ],
+  render: () => {
+    const activeTabId = useActiveTabId(groupedTabs);
+    return (
+      <Header title="Page Title" tabs={groupedTabs} activeTabId={activeTabId} />
+    );
   },
-  render: args => (
-    <MemoryRouter initialEntries={['/mentorship/events']}>
-      <BUIProvider>
-        <Header {...args} />
-        <Container>
-          <Text>
-            <strong>Current URL:</strong> /mentorship/events
-          </Text>
-          <br />
-          <Text>
-            With default exact matching, only the "Events" tab is active because
-            it exactly matches the current URL. The "Mentorship" tab is not
-            active even though the URL is under /mentorship.
-          </Text>
-        </Container>
-      </BUIProvider>
-    </MemoryRouter>
-  ),
-});
-
-export const WithTabsPrefixMatchingDeep = meta.story({
-  args: {
-    title: 'Deep Nesting Demo',
-    tabs: [
-      {
-        id: 'catalog',
-        label: 'Catalog',
-        href: '/catalog',
-        matchStrategy: 'prefix',
-      },
-      {
-        id: 'users',
-        label: 'Users',
-        href: '/catalog/users',
-        matchStrategy: 'prefix',
-      },
-      {
-        id: 'components',
-        label: 'Components',
-        href: '/catalog/components',
-        matchStrategy: 'prefix',
-      },
-    ],
-  },
-  render: args => (
-    <MemoryRouter initialEntries={['/catalog/users/john/details']}>
-      <BUIProvider>
-        <Header {...args} />
-        <Container>
-          <Text as="p">
-            <strong>Current URL:</strong> /catalog/users/john/details
-          </Text>
-          <br />
-          <Text as="p">
-            Active tab is <strong>Users</strong> because:
-          </Text>
-          <ul>
-            <li>
-              <strong>Catalog</strong>: Matches since URL starts with /catalog
-            </li>
-            <li>
-              <strong>Users</strong>: Is active since URL starts with
-              /catalog/users, and is more specific (has more url segments) than
-              "Catalog"
-            </li>
-            <li>
-              <strong>Components</strong>: not active (URL doesn't start with
-              /catalog/components)
-            </li>
-          </ul>
-          <Text as="p">
-            This demonstrates how prefix matching works with deeply nested
-            routes.
-          </Text>
-        </Container>
-      </BUIProvider>
-    </MemoryRouter>
-  ),
 });
diff --git a/packages/ui/src/components/Header/Header.tsx b/packages/ui/src/components/Header/Header.tsx
index d9d96eb7af..bc8289cdf1 100644
--- a/packages/ui/src/components/Header/Header.tsx
+++ b/packages/ui/src/components/Header/Header.tsx
@@ -17,7 +17,7 @@
 import type { HeaderProps } from './types';
 import { Text } from '../Text';
 import { RiArrowRightSLine } from '@remixicon/react';
-import { Tabs, TabList, Tab } from '../Tabs';
+import { HeaderNav } from './HeaderNav';
 import { useDefinition } from '../../hooks/useDefinition';
 import { HeaderDefinition } from './definition';
 import { Container } from '../Container';
@@ -31,7 +31,8 @@ import { Fragment } from 'react/jsx-runtime';
  */
 export const Header = (props: HeaderProps) => {
   const { ownProps } = useDefinition(HeaderDefinition, props);
-  const { classes, title, tabs, customActions, breadcrumbs } = ownProps;
+  const { classes, title, tabs, activeTabId, customActions, breadcrumbs } =
+    ownProps;
 
   return (
     <Container className={classes.root}>
@@ -62,20 +63,7 @@ export const Header = (props: HeaderProps) => {
       </div>
       {tabs && (
         <div className={classes.tabsWrapper}>
-          <Tabs>
-            <TabList>
-              {tabs.map(tab => (
-                <Tab
-                  key={tab.id}
-                  id={tab.id}
-                  href={tab.href}
-                  matchStrategy={tab.matchStrategy}
-                >
-                  {tab.label}
-                </Tab>
-              ))}
-            </TabList>
-          </Tabs>
+          <HeaderNav tabs={tabs} activeTabId={activeTabId} />
         </div>
       )}
     </Container>
diff --git a/packages/ui/src/components/Header/HeaderNav.module.css b/packages/ui/src/components/Header/HeaderNav.module.css
new file mode 100644
index 0000000000..992e989a46
--- /dev/null
+++ b/packages/ui/src/components/Header/HeaderNav.module.css
@@ -0,0 +1,115 @@
+/*
+ * Copyright 2026 The Backstage Authors
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ *     http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+
+@layer tokens, base, components, utilities;
+
+@layer components {
+  .bui-HeaderNav {
+    position: relative;
+
+    /* CSS custom properties for indicator positioning — set by HeaderNavIndicators */
+    --active-tab-left: 0px;
+    --active-tab-right: 0px;
+    --active-tab-top: 0px;
+    --active-tab-bottom: 0px;
+    --active-tab-width: 0px;
+    --active-tab-height: 0px;
+    --active-tab-opacity: 0;
+    --active-transition-duration: 0s;
+
+    --hovered-tab-left: 0px;
+    --hovered-tab-right: 0px;
+    --hovered-tab-top: 0px;
+    --hovered-tab-bottom: 0px;
+    --hovered-tab-width: 0px;
+    --hovered-tab-height: 0px;
+    --hovered-tab-opacity: 0;
+    --hovered-transition-duration: 0s;
+  }
+
+  .bui-HeaderNavList {
+    display: flex;
+    flex-direction: row;
+    list-style: none;
+    margin: 0;
+    padding: 0;
+  }
+
+  .bui-HeaderNavItem,
+  .bui-HeaderNavGroup {
+    font-family: var(--bui-font-family);
+    font-size: var(--bui-font-size-3);
+    font-weight: var(--bui-font-weight-regular);
+    color: var(--bui-fg-secondary);
+    height: 36px;
+    display: flex;
+    gap: var(--bui-space-1);
+    align-items: center;
+    padding-inline: var(--bui-space-2);
+    text-decoration: none;
+    cursor: pointer;
+    border: none;
+    background: none;
+    outline: none;
+  }
+
+  .bui-HeaderNavItem[aria-current='page'],
+  .bui-HeaderNavGroup[aria-current='page'] {
+    color: var(--bui-fg-primary);
+  }
+
+  .bui-HeaderNavActive {
+    pointer-events: none;
+    position: absolute;
+    bottom: -1px;
+    left: calc(var(--active-tab-left) + var(--bui-space-2));
+    width: calc(var(--active-tab-width) - var(--bui-space-4));
+    height: 1px;
+    background-color: var(--bui-fg-primary);
+    border-radius: 4px;
+    opacity: var(--active-tab-opacity);
+    transition: left var(--active-transition-duration) ease-out,
+      width var(--active-transition-duration) ease-out, opacity 0.15s;
+  }
+
+  .bui-HeaderNavHovered {
+    pointer-events: none;
+    position: absolute;
+    left: var(--hovered-tab-left);
+    top: calc(var(--hovered-tab-top) + 4px);
+    width: var(--hovered-tab-width);
+    height: calc(var(--hovered-tab-height) - 8px);
+    background-color: var(--bui-bg-neutral-2);
+    border-radius: 4px;
+    opacity: var(--hovered-tab-opacity);
+    transition: left var(--hovered-transition-duration) ease-out,
+      top var(--hovered-transition-duration) ease-out,
+      width var(--hovered-transition-duration) ease-out,
+      height var(--hovered-transition-duration) ease-out, opacity 0.15s;
+
+    [data-focus-visible] & {
+      outline: 2px solid var(--bui-ring);
+      outline-offset: -2px;
+    }
+  }
+
+  @media (prefers-reduced-motion: reduce) {
+    .bui-HeaderNavActive,
+    .bui-HeaderNavHovered {
+      transition: none;
+    }
+  }
+}
diff --git a/packages/ui/src/components/Header/HeaderNav.tsx b/packages/ui/src/components/Header/HeaderNav.tsx
new file mode 100644
index 0000000000..22d2eb5b58
--- /dev/null
+++ b/packages/ui/src/components/Header/HeaderNav.tsx
@@ -0,0 +1,220 @@
+/*
+ * Copyright 2026 The Backstage Authors
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ *     http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+
+import { useCallback, useMemo, useRef, useState } from 'react';
+import { useFocusVisible, useHover, useLink } from 'react-aria';
+import { Button as RAButton } from 'react-aria-components';
+import { RiArrowDownSLine } from '@remixicon/react';
+import { useDefinition } from '../../hooks/useDefinition';
+import {
+  HeaderNavDefinition,
+  HeaderNavItemDefinition,
+  HeaderNavGroupDefinition,
+} from './HeaderNavDefinition';
+import { HeaderNavIndicators } from './HeaderNavIndicators';
+import { MenuTrigger, Menu, MenuItem } from '../Menu';
+import type { AnalyticsTracker } from '../../analytics/types';
+import type {
+  HeaderNavTab,
+  HeaderNavTabGroup,
+  HeaderNavTabItem,
+} from './types';
+
+function isTabGroup(tab: HeaderNavTabItem): tab is HeaderNavTabGroup {
+  return 'items' in tab;
+}
+
+interface HeaderNavLinkProps {
+  tab: HeaderNavTab;
+  active: boolean;
+  analytics: AnalyticsTracker;
+  registerRef: (key: string, el: HTMLElement | null) => void;
+  onHighlight: (key: string | null) => void;
+}
+
+function HeaderNavLink(props: HeaderNavLinkProps) {
+  const { tab, active, analytics, registerRef, onHighlight } = props;
+  const { ownProps } = useDefinition(HeaderNavItemDefinition, {});
+
+  const linkRef = useRef<HTMLAnchorElement>(null);
+  const { linkProps } = useLink({ href: tab.href }, linkRef);
+  const { hoverProps } = useHover({
+    onHoverStart: () => onHighlight(tab.id),
+    onHoverEnd: () => onHighlight(null),
+  });
+
+  const handleClick = (e: React.MouseEvent<HTMLAnchorElement>) => {
+    linkProps.onClick?.(e);
+    analytics.captureEvent('click', tab.label, {
+      attributes: { to: tab.href },
+    });
+  };
+
+  return (
+    <li>
+      <a
+        {...linkProps}
+        {...hoverProps}
+        ref={el => {
+          (
+            linkRef as React.MutableRefObject<HTMLAnchorElement | null>
+          ).current = el;
+          registerRef(tab.id, el);
+        }}
+        href={tab.href}
+        className={ownProps.classes.root}
+        aria-current={active ? 'page' : undefined}
+        onClick={handleClick}
+        onFocus={() => onHighlight(tab.id)}
+        onBlur={() => onHighlight(null)}
+      >
+        {tab.label}
+      </a>
+    </li>
+  );
+}
+
+interface HeaderNavGroupItemProps {
+  group: HeaderNavTabGroup;
+  active: boolean;
+  activeChildId?: string;
+  registerRef: (key: string, el: HTMLElement | null) => void;
+  onHighlight: (key: string | null) => void;
+}
+
+function HeaderNavGroupItem(props: HeaderNavGroupItemProps) {
+  const { group, active, activeChildId, registerRef, onHighlight } = props;
+  const { ownProps } = useDefinition(HeaderNavGroupDefinition, {});
+  const { hoverProps } = useHover({
+    onHoverStart: () => onHighlight(group.id),
+    onHoverEnd: () => onHighlight(null),
+  });
+
+  return (
+    <li>
+      <MenuTrigger>
+        <RAButton
+          ref={el => {
+            registerRef(group.id, el);
+          }}
+          className={ownProps.classes.root}
+          aria-current={active ? 'page' : undefined}
+          {...hoverProps}
+          onFocus={() => onHighlight(group.id)}
+          onBlur={() => onHighlight(null)}
+        >
+          {group.label}
+          <RiArrowDownSLine size={16} />
+        </RAButton>
+        <Menu
+          selectionMode="single"
+          selectedKeys={new Set(activeChildId ? [activeChildId] : [])}
+        >
+          {group.items.map(item => (
+            <MenuItem key={item.id} id={item.id} href={item.href}>
+              {item.label}
+            </MenuItem>
+          ))}
+        </Menu>
+      </MenuTrigger>
+    </li>
+  );
+}
+
+interface HeaderNavProps {
+  tabs: HeaderNavTabItem[];
+  activeTabId?: string;
+}
+
+/** @internal */
+export function HeaderNav(props: HeaderNavProps) {
+  const { tabs, activeTabId } = props;
+  const { ownProps, analytics } = useDefinition(HeaderNavDefinition, {
+    tabs,
+    activeTabId,
+  });
+  const { classes } = ownProps;
+
+  const { isFocusVisible } = useFocusVisible();
+  const navRef = useRef<HTMLElement>(null);
+  const itemRefs = useRef<Map<string, HTMLElement>>(new Map());
+
+  const [highlightedKey, setHighlightedKey] = useState<string | null>(null);
+
+  // Resolve activeTabId to a top-level key (groups own their children's active state)
+  const { activeKey, activeChildId } = useMemo(() => {
+    if (!activeTabId) return { activeKey: undefined, activeChildId: undefined };
+    for (const item of tabs) {
+      if (isTabGroup(item)) {
+        const child = item.items.find(c => c.id === activeTabId);
+        if (child) {
+          return { activeKey: item.id, activeChildId: child.id };
+        }
+      } else if (item.id === activeTabId) {
+        return { activeKey: item.id, activeChildId: undefined };
+      }
+    }
+    return { activeKey: undefined, activeChildId: undefined };
+  }, [activeTabId, tabs]);
+
+  const registerRef = useCallback((key: string, el: HTMLElement | null) => {
+    if (el) {
+      itemRefs.current.set(key, el);
+    } else {
+      itemRefs.current.delete(key);
+    }
+  }, []);
+
+  return (
+    <nav
+      ref={navRef}
+      aria-label="Content navigation"
+      className={classes.root}
+      data-focus-visible={isFocusVisible || undefined}
+    >
+      <ul role="list" className={classes.list}>
+        {tabs.map(item =>
+          isTabGroup(item) ? (
+            <HeaderNavGroupItem
+              key={item.id}
+              group={item}
+              active={activeKey === item.id}
+              activeChildId={activeChildId}
+              registerRef={registerRef}
+              onHighlight={setHighlightedKey}
+            />
+          ) : (
+            <HeaderNavLink
+              key={item.id}
+              tab={item}
+              active={activeKey === item.id}
+              analytics={analytics}
+              registerRef={registerRef}
+              onHighlight={setHighlightedKey}
+            />
+          ),
+        )}
+      </ul>
+      <HeaderNavIndicators
+        navRef={navRef}
+        itemRefs={itemRefs}
+        activeKey={activeKey}
+        highlightedKey={highlightedKey}
+        classes={{ active: classes.active, hovered: classes.hovered }}
+      />
+    </nav>
+  );
+}
diff --git a/packages/ui/src/components/Header/HeaderNavDefinition.ts b/packages/ui/src/components/Header/HeaderNavDefinition.ts
new file mode 100644
index 0000000000..3b1007972a
--- /dev/null
+++ b/packages/ui/src/components/Header/HeaderNavDefinition.ts
@@ -0,0 +1,70 @@
+/*
+ * Copyright 2026 The Backstage Authors
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ *     http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+
+import { defineComponent } from '../../hooks/useDefinition';
+import type { HeaderNavTabItem } from './types';
+import styles from './HeaderNav.module.css';
+
+/** @public */
+export const HeaderNavDefinition = defineComponent<{
+  noTrack?: boolean;
+  tabs: HeaderNavTabItem[];
+  activeTabId?: string;
+  children?: React.ReactNode;
+  className?: string;
+}>()({
+  styles,
+  classNames: {
+    root: 'bui-HeaderNav',
+    list: 'bui-HeaderNavList',
+    active: 'bui-HeaderNavActive',
+    hovered: 'bui-HeaderNavHovered',
+  },
+  analytics: true,
+  propDefs: {
+    noTrack: {},
+    tabs: {},
+    activeTabId: {},
+    children: {},
+    className: {},
+  },
+});
+
+/** @public */
+export const HeaderNavItemDefinition = defineComponent<{
+  className?: string;
+}>()({
+  styles,
+  classNames: {
+    root: 'bui-HeaderNavItem',
+  },
+  propDefs: {
+    className: {},
+  },
+});
+
+/** @public */
+export const HeaderNavGroupDefinition = defineComponent<{
+  className?: string;
+}>()({
+  styles,
+  classNames: {
+    root: 'bui-HeaderNavGroup',
+  },
+  propDefs: {
+    className: {},
+  },
+});
diff --git a/packages/ui/src/components/Header/HeaderNavIndicators.tsx b/packages/ui/src/components/Header/HeaderNavIndicators.tsx
new file mode 100644
index 0000000000..d8ee33d020
--- /dev/null
+++ b/packages/ui/src/components/Header/HeaderNavIndicators.tsx
@@ -0,0 +1,130 @@
+/*
+ * Copyright 2026 The Backstage Authors
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ *     http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+
+import { useCallback, useEffect, useRef } from 'react';
+
+interface HeaderNavIndicatorsProps {
+  navRef: React.RefObject<HTMLElement | null>;
+  itemRefs: React.MutableRefObject<Map<string, HTMLElement>>;
+  activeKey: string | undefined;
+  highlightedKey: string | null;
+  classes: {
+    active: string;
+    hovered: string;
+  };
+}
+
+export function HeaderNavIndicators(props: HeaderNavIndicatorsProps) {
+  const { navRef, itemRefs, activeKey, highlightedKey, classes } = props;
+  const prevActiveKey = useRef<string | null>(null);
+  const prevHoveredKey = useRef<string | null>(null);
+  const resetTimer = useRef<number | null>(null);
+
+  const updateCSSVariables = useCallback(() => {
+    const container = navRef.current;
+    if (!container) return;
+
+    const containerRect = container.getBoundingClientRect();
+
+    // Active indicator
+    if (activeKey) {
+      const el = itemRefs.current.get(activeKey);
+      if (el) {
+        const rect = el.getBoundingClientRect();
+        const relativeLeft = rect.left - containerRect.left;
+        const relativeTop = rect.top - containerRect.top;
+
+        if (prevActiveKey.current === null) {
+          container.style.setProperty('--active-transition-duration', '0s');
+          requestAnimationFrame(() => {
+            container.style.setProperty(
+              '--active-transition-duration',
+              '0.25s',
+            );
+          });
+        } else {
+          container.style.setProperty('--active-transition-duration', '0.25s');
+        }
+
+        container.style.setProperty('--active-tab-left', `${relativeLeft}px`);
+        container.style.setProperty('--active-tab-width', `${rect.width}px`);
+        container.style.setProperty('--active-tab-height', `${rect.height}px`);
+        container.style.setProperty('--active-tab-top', `${relativeTop}px`);
+        container.style.setProperty('--active-tab-opacity', '1');
+        prevActiveKey.current = activeKey;
+      }
+    } else {
+      container.style.setProperty('--active-tab-opacity', '0');
+      prevActiveKey.current = null;
+    }
+
+    // Highlight indicator (follows whichever interaction happened last — hover or focus)
+    if (highlightedKey) {
+      if (resetTimer.current !== null) {
+        cancelAnimationFrame(resetTimer.current);
+        resetTimer.current = null;
+      }
+      const el = itemRefs.current.get(highlightedKey);
+      if (el) {
+        const rect = el.getBoundingClientRect();
+        const relativeLeft = rect.left - containerRect.left;
+        const relativeTop = rect.top - containerRect.top;
+
+        if (prevHoveredKey.current === null) {
+          container.style.setProperty('--hovered-transition-duration', '0s');
+          requestAnimationFrame(() => {
+            container.style.setProperty(
+              '--hovered-transition-duration',
+              '0.2s',
+            );
+          });
+        } else {
+          container.style.setProperty('--hovered-transition-duration', '0.2s');
+        }
+
+        container.style.setProperty('--hovered-tab-left', `${relativeLeft}px`);
+        container.style.setProperty('--hovered-tab-top', `${relativeTop}px`);
+        container.style.setProperty('--hovered-tab-width', `${rect.width}px`);
+        container.style.setProperty('--hovered-tab-height', `${rect.height}px`);
+        container.style.setProperty('--hovered-tab-opacity', '1');
+        prevHoveredKey.current = highlightedKey;
+      }
+    } else {
+      container.style.setProperty('--hovered-tab-opacity', '0');
+      resetTimer.current = requestAnimationFrame(() => {
+        prevHoveredKey.current = null;
+        resetTimer.current = null;
+      });
+    }
+  }, [activeKey, highlightedKey, navRef, itemRefs]);
+
+  useEffect(() => {
+    updateCSSVariables();
+  }, [updateCSSVariables]);
+
+  useEffect(() => {
+    const handleResize = () => updateCSSVariables();
+    window.addEventListener('resize', handleResize);
+    return () => window.removeEventListener('resize', handleResize);
+  }, [updateCSSVariables]);
+
+  return (
+    <>
+      <div className={classes.active} />
+      <div className={classes.hovered} />
+    </>
+  );
+}
diff --git a/packages/ui/src/components/Header/definition.ts b/packages/ui/src/components/Header/definition.ts
index 66fccf2f49..2876770339 100644
--- a/packages/ui/src/components/Header/definition.ts
+++ b/packages/ui/src/components/Header/definition.ts
@@ -35,6 +35,7 @@ export const HeaderDefinition = defineComponent<HeaderOwnProps>()({
     title: {},
     customActions: {},
     tabs: {},
+    activeTabId: {},
     breadcrumbs: {},
     className: {},
   },
diff --git a/packages/ui/src/components/Header/index.tsx b/packages/ui/src/components/Header/index.tsx
index 8738114e7d..586ee32bfb 100644
--- a/packages/ui/src/components/Header/index.tsx
+++ b/packages/ui/src/components/Header/index.tsx
@@ -1,5 +1,5 @@
 /*
- * Copyright 2025 The Backstage Authors
+ * Copyright 2026 The Backstage Authors
  *
  * Licensed under the Apache License, Version 2.0 (the "License");
  * you may not use this file except in compliance with the License.
@@ -13,10 +13,17 @@
  * See the License for the specific language governing permissions and
  * limitations under the License.
  */
-
 export { Header, HeaderPage } from './Header';
 export { HeaderDefinition, HeaderPageDefinition } from './definition';
+export {
+  HeaderNavDefinition,
+  HeaderNavItemDefinition,
+  HeaderNavGroupDefinition,
+} from './HeaderNavDefinition';
 export type {
+  HeaderNavTab,
+  HeaderNavTabGroup,
+  HeaderNavTabItem,
   HeaderOwnProps,
   HeaderProps,
   HeaderBreadcrumb,
diff --git a/packages/ui/src/components/Header/types.ts b/packages/ui/src/components/Header/types.ts
index 1b62ee2538..e215688b2c 100644
--- a/packages/ui/src/components/Header/types.ts
+++ b/packages/ui/src/components/Header/types.ts
@@ -14,7 +14,34 @@
  * limitations under the License.
  */
 
-import type { HeaderTab } from '../PluginHeader/types';
+/**
+ * Represents a single navigation tab in the header.
+ *
+ * @public
+ */
+export interface HeaderNavTab {
+  id: string;
+  label: string;
+  href: string;
+}
+
+/**
+ * Represents a group of navigation tabs rendered as a dropdown menu.
+ *
+ * @public
+ */
+export interface HeaderNavTabGroup {
+  id: string;
+  label: string;
+  items: HeaderNavTab[];
+}
+
+/**
+ * A navigation tab item — either a flat link or a dropdown group.
+ *
+ * @public
+ */
+export type HeaderNavTabItem = HeaderNavTab | HeaderNavTabGroup;
 
 /**
  * Own props for the Header component.
@@ -24,7 +51,8 @@ import type { HeaderTab } from '../PluginHeader/types';
 export interface HeaderOwnProps {
   title?: string;
   customActions?: React.ReactNode;
-  tabs?: HeaderTab[];
+  tabs?: HeaderNavTabItem[];
+  activeTabId?: string;
   breadcrumbs?: HeaderBreadcrumb[];
   className?: string;
 }
diff --git a/packages/ui/src/recipes/PluginHeaderAndHeader.stories.tsx b/packages/ui/src/recipes/PluginHeaderAndHeader.stories.tsx
index 729fed0985..b45c25268e 100644
--- a/packages/ui/src/recipes/PluginHeaderAndHeader.stories.tsx
+++ b/packages/ui/src/recipes/PluginHeaderAndHeader.stories.tsx
@@ -14,10 +14,12 @@
  * limitations under the License.
  */
 
+import { useMemo } from 'react';
 import preview from '../../../../.storybook/preview';
 import type { StoryFn } from '@storybook/react-vite';
-import { MemoryRouter } from 'react-router-dom';
+import { MemoryRouter, useLocation } from 'react-router-dom';
 import { BUIProvider } from '../provider';
+import type { HeaderNavTabItem } from '../components/Header/types';
 import {
   PluginHeader,
   Header,
@@ -31,7 +33,6 @@ import {
   MenuItem,
 } from '..';
 import {
-  RiBookOpenLine,
   RiBox3Line,
   RiCodeSSlashLine,
   RiDownloadLine,
@@ -41,9 +42,7 @@ import {
   RiPlayLine,
   RiRefreshLine,
   RiSettings4Line,
-  RiShieldCheckLine,
   RiShareBoxLine,
-  RiTerminalLine,
 } from '@remixicon/react';
 
 // ---------------------------------------------------------------------------
@@ -205,54 +204,70 @@ export const WithBreadcrumb = meta.story({
   ),
 });
 
+const subTabs: HeaderNavTabItem[] = [
+  { id: 'summary', label: 'Summary', href: '/summary' },
+  { id: 'steps', label: 'Steps', href: '/steps' },
+  { id: 'artifacts', label: 'Artifacts', href: '/artifacts' },
+  { id: 'logs', label: 'Logs', href: '/logs' },
+];
+
+function useActiveTabId(items: HeaderNavTabItem[]): string | undefined {
+  const location = useLocation();
+  return useMemo(() => {
+    for (const item of items) {
+      if ('href' in item && item.href === location.pathname) return item.id;
+    }
+    return undefined;
+  }, [items, location.pathname]);
+}
+
 export const WithSubTabs = meta.story({
   decorators: [withLayout],
-  render: () => (
-    <>
-      <PluginHeader
-        icon={<RiGitBranchLine />}
-        title="CI/CD"
-        titleLink="/"
-        tabs={[
-          { id: 'builds', label: 'Builds', href: '/builds' },
-          { id: 'pipelines', label: 'Pipelines', href: '/pipelines' },
-          { id: 'deployments', label: 'Deployments', href: '/deployments' },
-          { id: 'settings', label: 'Settings', href: '/settings' },
-        ]}
-        customActions={
-          <>
-            <ButtonIcon
-              variant="secondary"
-              icon={<RiRefreshLine />}
-              aria-label="Refresh"
-            />
-          </>
-        }
-      />
-      <Header
-        title="main · #842"
-        tabs={[
-          { id: 'summary', label: 'Summary', href: '/summary' },
-          { id: 'steps', label: 'Steps', href: '/steps' },
-          { id: 'artifacts', label: 'Artifacts', href: '/artifacts' },
-          { id: 'logs', label: 'Logs', href: '/logs' },
-        ]}
-        breadcrumbs={[
-          { label: 'Catalog', href: '/catalog' },
-          { label: 'Services', href: '/catalog?kind=Component' },
-        ]}
-        customActions={
-          <>
-            <Button variant="secondary" iconStart={<RiDownloadLine />}>
-              Download logs
-            </Button>
-            <Button variant="primary" iconStart={<RiPlayLine />}>
-              Re-run pipeline
-            </Button>
-          </>
-        }
-      />
-      <PageContent />
-    </>
-  ),
+  render: () => {
+    const activeTabId = useActiveTabId(subTabs);
+    return (
+      <>
+        <PluginHeader
+          icon={<RiGitBranchLine />}
+          title="CI/CD"
+          titleLink="/"
+          tabs={[
+            { id: 'builds', label: 'Builds', href: '/builds' },
+            { id: 'pipelines', label: 'Pipelines', href: '/pipelines' },
+            { id: 'deployments', label: 'Deployments', href: '/deployments' },
+            { id: 'settings', label: 'Settings', href: '/settings' },
+          ]}
+          customActions={
+            <>
+              <ButtonIcon
+                variant="secondary"
+                icon={<RiRefreshLine />}
+                aria-label="Refresh"
+              />
+            </>
+          }
+        />
+        <Header
+          title="main · #842"
+          activeTabId={activeTabId}
+          tabs={subTabs}
+          breadcrumbs={[
+            { label: 'Catalog', href: '/catalog' },
+            { label: 'Services', href: '/catalog?kind=Component' },
+          ]}
+          customActions={
+            <>
+              <Button variant="secondary" iconStart={<RiDownloadLine />}>
+                Download logs
+              </Button>
+              <Button variant="primary" iconStart={<RiPlayLine />}>
+                Re-run pipeline
+              </Button>
+            </>
+          }
+        />
+        <PageContent />
+      </>
+    );
+  },
 });