diff --git a/arrow-select/src/concat.rs b/arrow-select/src/concat.rs
index bb85d7035a4c..aeb6f56f7a5e 100644
--- a/arrow-select/src/concat.rs
+++ b/arrow-select/src/concat.rs
@@ -107,7 +107,7 @@ fn concat_dictionaries<K: ArrowDictionaryKeyType>(
         .inspect(|d| output_len += d.len())
         .collect();
 
-    if !should_merge_dictionary_values::<K>(&dictionaries, output_len).0 {
+    if !should_merge_dictionary_values::<K>(&dictionaries).0 {
         return concat_fallback(arrays, Capacities::Array(output_len));
     }
 
@@ -1304,11 +1304,8 @@ mod tests {
         let actual = collect_string_dictionary(dictionary);
         assert_eq!(actual, expected);
 
-        // Should have concatenated inputs together
-        assert_eq!(
-            dictionary.values().len(),
-            input_1.values().len() + input_2.values().len(),
-        )
+        // Should have merged inputs together (deduplicated)
+        assert_eq!(dictionary.values().len(), 6)
     }
 
     #[test]
@@ -1483,6 +1480,42 @@ mod tests {
         assert!(!new.values().to_data().ptr_eq(&com.values().to_data()));
     }
 
+    #[test]
+    fn concat_dictionary_batches_deduplicates_values() {
+        // Reproducer for https://github.com/apache/arrow-rs/issues/10160
+        // Concatenating batches with overlapping dictionary values must
+        // deduplicate the dictionary entries, not naively concatenate them.
+        let schema = Arc::new(Schema::new(vec![Field::new(
+            "symbol",
+            DataType::Dictionary(Box::new(DataType::Int32), Box::new(DataType::Utf8)),
+            false,
+        )]));
+
+        let batch_0 = {
+            let dict = DictionaryArray::<Int32Type>::try_new(
+                Int32Array::from(vec![0, 1, 2, 0]),
+                Arc::new(StringArray::from(vec!["alpha", "beta", "gamma"])),
+            )
+            .unwrap();
+            RecordBatch::try_new(schema.clone(), vec![Arc::new(dict)]).unwrap()
+        };
+
+        let batch_1 = {
+            let dict = DictionaryArray::<Int32Type>::try_new(
+                Int32Array::from(vec![2, 1, 0, 2]),
+                Arc::new(StringArray::from(vec!["gamma", "alpha", "beta"])),
+            )
+            .unwrap();
+            RecordBatch::try_new(schema.clone(), vec![Arc::new(dict)]).unwrap()
+        };
+
+        let merged = concat_batches(&schema, &[batch_0, batch_1]).unwrap();
+        let column = merged.column(0).as_dictionary::<Int32Type>();
+
+        // All 3 unique dictionary values should be preserved (no duplicates)
+        assert_eq!(column.values().len(), 3);
+    }
+
     #[test]
     fn concat_record_batches() {
         let schema = Arc::new(Schema::new(vec![
diff --git a/arrow-select/src/dictionary.rs b/arrow-select/src/dictionary.rs
index 5b32f4e761f8..371f21318b8e 100644
--- a/arrow-select/src/dictionary.rs
+++ b/arrow-select/src/dictionary.rs
@@ -169,18 +169,12 @@ fn bytes_ptr_eq<T: ByteArrayType>(a: &dyn Array, b: &dyn Array) -> bool {
 /// A type-erased function that compares two array for pointer equality
 type PtrEq = fn(&dyn Array, &dyn Array) -> bool;
 
-/// A weak heuristic of whether to merge dictionary values that aims to only
-/// perform the expensive merge computation when it is likely to yield at least
-/// some return over the naive approach used by MutableArrayData
-///
-/// `len` is the total length of the merged output
-///
 /// Returns `(should_merge, has_overflow)` where:
-/// - `should_merge`: whether dictionary values should be merged
+/// - `should_merge`: whether dictionary values should be merged (`true` when dictionaries
+///   have different backing arrays, to avoid duplicate values)
 /// - `has_overflow`: whether the combined dictionary values would overflow the key type
 pub(crate) fn should_merge_dictionary_values<K: ArrowDictionaryKeyType>(
     dictionaries: &[&DictionaryArray<K>],
-    len: usize,
 ) -> (bool, bool) {
     use DataType::*;
     let first_values = dictionaries[0].values().as_ref();
@@ -202,22 +196,18 @@ pub(crate) fn should_merge_dictionary_values<K: ArrowDictionaryKeyType>(
     };
 
     let mut single_dictionary = true;
-    let mut total_values = first_values.len();
     for dict in dictionaries.iter().skip(1) {
-        let values = dict.values().as_ref();
-        total_values += values.len();
         if single_dictionary {
+            let values = dict.values().as_ref();
             single_dictionary = ptr_eq(first_values, values)
         }
     }
 
-    let overflow = K::Native::from_usize(total_values).is_none();
-    let values_exceed_length = total_values >= len;
+    let overflow =
+        K::Native::from_usize(dictionaries.iter().map(|d| d.values().len()).sum::<usize>())
+            .is_none();
 
-    (
-        !single_dictionary && (overflow || values_exceed_length),
-        overflow,
-    )
+    (!single_dictionary, overflow)
 }
 
 /// Given an array of dictionaries and an optional key mask compute a values array
diff --git a/arrow-select/src/interleave.rs b/arrow-select/src/interleave.rs
index c3d47980e3c3..a578c2f535b4 100644
--- a/arrow-select/src/interleave.rs
+++ b/arrow-select/src/interleave.rs
@@ -252,8 +252,7 @@ fn interleave_dictionaries<K: ArrowDictionaryKeyType>(
     indices: &[(usize, usize)],
 ) -> Result<ArrayRef, ArrowError> {
     let dictionaries: Vec<_> = arrays.iter().map(|x| x.as_dictionary::<K>()).collect();
-    let (should_merge, has_overflow) =
-        should_merge_dictionary_values::<K>(&dictionaries, indices.len());
+    let (should_merge, has_overflow) = should_merge_dictionary_values::<K>(&dictionaries);
     if !should_merge {
         return if has_overflow {
             interleave_fallback(arrays, indices)
@@ -913,11 +912,11 @@ mod tests {
         let a = DictionaryArray::<Int32Type>::from_iter(["a", "b", "c", "a", "b"]);
         let b = DictionaryArray::<Int32Type>::from_iter(["a", "c", "a", "c", "a"]);
 
-        // Should not recompute dictionary
+        // Should merge dictionaries (deduplicate values)
         let values =
             interleave(&[&a, &b], &[(0, 2), (0, 2), (0, 2), (1, 0), (1, 1), (0, 1)]).unwrap();
         let v = values.as_dictionary::<Int32Type>();
-        assert_eq!(v.values().len(), 5);
+        assert_eq!(v.values().len(), 3);
 
         let vc = v.downcast_dict::<StringArray>().unwrap();
         let collected: Vec<_> = vc.into_iter().map(Option::unwrap).collect();