diff --git a/apps/src/tests/single-feature-tests/form-sheet/index.ts b/apps/src/tests/single-feature-tests/form-sheet/index.ts
index 35eff57f39..08779561ac 100644
--- a/apps/src/tests/single-feature-tests/form-sheet/index.ts
+++ b/apps/src/tests/single-feature-tests/form-sheet/index.ts
@@ -1,6 +1,8 @@
 import type { ScenarioGroup } from '@apps/tests/shared/helpers';
 import TestFormSheetBase from './test-form-sheet-base-ios';
+import TestFormSheetBackgroundComponent from './test-form-sheet-background-component-ios';
 import TestFormSheetExpandScrollView from './test-form-sheet-expand-scroll-view-ios';
+import TestFormSheetFitToContents from './test-form-sheet-fit-to-contents-ios';
 import TestFormSheetGrabberVisible from './test-form-sheet-grabber-visible-ios';
 import TestFormSheetInitialDetentIndex from './test-form-sheet-initial-detent-index-ios';
 import TestFormSheetLargestUndimmedDetentIndex from './test-form-sheet-largest-undimmed-detent-index-ios';
@@ -10,7 +12,9 @@ import TestFormSheetPresentationState from './test-form-sheet-presentation-state
 
 const scenarios = {
   TestFormSheetBase,
+  TestFormSheetBackgroundComponent,
   TestFormSheetExpandScrollView,
+  TestFormSheetFitToContents,
   TestFormSheetGrabberVisible,
   TestFormSheetInitialDetentIndex,
   TestFormSheetLargestUndimmedDetentIndex,
diff --git a/apps/src/tests/single-feature-tests/form-sheet/test-form-sheet-background-component-ios/index.tsx b/apps/src/tests/single-feature-tests/form-sheet/test-form-sheet-background-component-ios/index.tsx
new file mode 100644
index 0000000000..49564a2590
--- /dev/null
+++ b/apps/src/tests/single-feature-tests/form-sheet/test-form-sheet-background-component-ios/index.tsx
@@ -0,0 +1,232 @@
+import React, { useState } from 'react';
+import {
+  Button,
+  StyleSheet,
+  Text,
+  View,
+  Image,
+  Dimensions,
+  TouchableOpacity,
+} from 'react-native';
+import { FormSheet } from 'react-native-screens/experimental';
+import { scenarioDescription } from './scenario-description';
+import { createScenario } from '@apps/tests/shared/helpers';
+import { Colors } from '@apps/shared/styling';
+
+const SCREEN_WIDTH = Dimensions.get('window').width;
+
+type BackgroundType = 'none' | 'solid' | 'composed' | 'image';
+
+export function App() {
+  const [isOpen, setIsOpen] = useState(false);
+  const [bgType, setBgType] = useState<BackgroundType>('image');
+
+  const handleDismiss = () => {
+    setIsOpen(false);
+  };
+
+  const SolidBackground = (
+    <View
+      style={[
+        StyleSheet.absoluteFill,
+        { backgroundColor: Colors.PurpleLight100 },
+      ]}
+    />
+  );
+
+  const ComposedBackground = (
+    <View
+      style={[
+        StyleSheet.absoluteFill,
+        { backgroundColor: Colors.NavyLight80 },
+      ]}>
+      <View style={styles.composedTopBar} />
+      <View style={styles.composedBottomBar} />
+    </View>
+  );
+
+  const ImageBackground = (
+    <Image
+      source={{
+        uri: 'https://fastly.picsum.photos/id/541/900/600.jpg?hmac=W6n9QTOEWat4-wHywp8az4ZqvcDzUMWWR1XDq3kS9sI',
+        height: 600,
+        width: SCREEN_WIDTH,
+      }}
+      style={StyleSheet.absoluteFill}
+    />
+  );
+
+  const renderBackground = () => {
+    switch (bgType) {
+      case 'solid':
+        return SolidBackground;
+      case 'composed':
+        return ComposedBackground;
+      case 'image':
+        return ImageBackground;
+      case 'none':
+      default:
+        return undefined;
+    }
+  };
+
+  const isDarkBg = bgType !== 'none';
+
+  return (
+    <View style={styles.container}>
+      <Text style={styles.title}>FormSheet Background</Text>
+
+      <View style={styles.controlsContainer}>
+        <Text style={styles.controlsLabel}>Select Background Type:</Text>
+        <View style={styles.buttonRow}>
+          {(['none', 'solid', 'composed', 'image'] as BackgroundType[]).map(
+            type => (
+              <TouchableOpacity
+                key={type}
+                style={[
+                  styles.optionButton,
+                  bgType === type && styles.optionButtonActive,
+                ]}
+                onPress={() => setBgType(type)}>
+                <Text
+                  style={[
+                    styles.optionText,
+                    bgType === type && styles.optionTextActive,
+                  ]}>
+                  {type.toUpperCase()}
+                </Text>
+              </TouchableOpacity>
+            ),
+          )}
+        </View>
+      </View>
+
+      <View style={styles.spacing} />
+
+      <Button
+        title="Open FormSheet"
+        color={Colors.primary}
+        onPress={() => setIsOpen(true)}
+      />
+
+      <FormSheet
+        isOpen={isOpen}
+        onNativeDismiss={handleDismiss}
+        detents='fitToContents'
+        backgroundComponent={renderBackground()}>
+        <View style={styles.sheetContent}>
+          <Text style={[styles.sheetTitle, isDarkBg && styles.textWhite]}>
+            Custom Background
+          </Text>
+
+          <Text style={[styles.description, isDarkBg && styles.textWhite]}>
+            Currently displaying: {bgType.toUpperCase()}. The background should
+            stretch to fill the entire native sheet, including the bottom safe
+            area.
+          </Text>
+
+          <View style={styles.spacing} />
+
+          <Button
+            title="Dismiss from JS"
+            color={isDarkBg ? Colors.White : Colors.primary}
+            onPress={handleDismiss}
+          />
+        </View>
+      </FormSheet>
+    </View>
+  );
+}
+
+const styles = StyleSheet.create({
+  container: {
+    flex: 1,
+    justifyContent: 'center',
+    alignItems: 'center',
+    backgroundColor: Colors.offBackground,
+  },
+  title: {
+    fontSize: 20,
+    fontWeight: 'bold',
+    marginBottom: 20,
+    color: Colors.text,
+  },
+  controlsContainer: {
+    paddingHorizontal: 16,
+    width: '100%',
+    alignItems: 'center',
+  },
+  controlsLabel: {
+    fontSize: 14,
+    color: Colors.text,
+    marginBottom: 8,
+  },
+  buttonRow: {
+    flexDirection: 'row',
+    flexWrap: 'wrap',
+    justifyContent: 'center',
+    gap: 8,
+  },
+  optionButton: {
+    paddingVertical: 6,
+    paddingHorizontal: 12,
+    borderRadius: 16,
+    borderWidth: 1,
+    borderColor: Colors.primary,
+  },
+  optionButtonActive: {
+    backgroundColor: Colors.primary,
+  },
+  optionText: {
+    fontSize: 12,
+    color: Colors.primary,
+    fontWeight: '600',
+  },
+  optionTextActive: {
+    color: Colors.White,
+  },
+  sheetContent: {
+    padding: 24,
+    justifyContent: 'center',
+    alignItems: 'center',
+  },
+  sheetTitle: {
+    fontSize: 22,
+    fontWeight: '600',
+    marginBottom: 12,
+    color: Colors.text,
+  },
+  description: {
+    fontSize: 16,
+    textAlign: 'center',
+    color: Colors.text,
+    paddingHorizontal: 16,
+  },
+  textWhite: {
+    color: Colors.White,
+    textShadowColor: Colors.NavyLightTransparent,
+    textShadowOffset: { width: 0, height: 1 },
+    textShadowRadius: 2,
+  },
+  spacing: {
+    height: 24,
+  },
+  composedTopBar: {
+    position: 'absolute',
+    top: 0,
+    left: 0,
+    right: 0,
+    height: 12,
+    backgroundColor: Colors.GreenLight100,
+  },
+  composedBottomBar: {
+    position: 'absolute',
+    bottom: 0,
+    left: 0,
+    right: 0,
+    height: 40,
+    backgroundColor: Colors.RedLight100,
+  },
+});
+
+export default createScenario(App, scenarioDescription);
diff --git a/apps/src/tests/single-feature-tests/form-sheet/test-form-sheet-background-component-ios/scenario-description.ts b/apps/src/tests/single-feature-tests/form-sheet/test-form-sheet-background-component-ios/scenario-description.ts
new file mode 100644
index 0000000000..892ebf2c1c
--- /dev/null
+++ b/apps/src/tests/single-feature-tests/form-sheet/test-form-sheet-background-component-ios/scenario-description.ts
@@ -0,0 +1,11 @@
+import type { ScenarioDescription } from '@apps/tests/shared/helpers';
+
+export const scenarioDescription: ScenarioDescription = {
+  name: 'Background component',
+  key: 'test-form-sheet-background-component-ios',
+  details:
+    'Allows to test the custom background component rendering of the FormSheet.',
+  platforms: ['ios'],
+  e2eCoverage: 'tbd',
+  smokeTest: false,
+};
diff --git a/apps/src/tests/single-feature-tests/form-sheet/test-form-sheet-background-component-ios/scenario.md b/apps/src/tests/single-feature-tests/form-sheet/test-form-sheet-background-component-ios/scenario.md
new file mode 100644
index 0000000000..0836f78648
--- /dev/null
+++ b/apps/src/tests/single-feature-tests/form-sheet/test-form-sheet-background-component-ios/scenario.md
@@ -0,0 +1,79 @@
+# Test Scenario: Background component
+
+## Details
+
+**Description:** Verify the `backgroundComponent` functionality of the `FormSheet` component. This test ensures that the custom background component correctly renders beneath the content layer and fully extends to cover the entire native bounds of the sheet, including the un-collapsible bottom safe area injected by UIKit.
+
+**OS test creation version:** iOS: 18.6 and 26.4
+
+## E2E test
+
+Other: Planned, but will be implemented separately.
+
+## Prerequisites
+
+- iOS device or simulator
+
+## Steps
+
+### Baseline
+
+1. Launch the app and navigate to the **Background component** screen.
+
+- [ ] Expected: Content with the button "Open FormSheet" and background selection controls is shown.
+
+---
+
+### Verification: "NONE" Background
+
+2. Select the "NONE" background type and tap the "Open FormSheet" button.
+
+- [ ] Expected: The FormSheet opens smoothly.
+- [ ] Expected: The background is the default system color (e.g., white or dark depending on the theme).
+
+3. Tap the "Dismiss from JS" button.
+
+- [ ] Expected: The FormSheet dismisses smoothly.
+
+---
+
+### Verification: "SOLID" Background
+
+4. Select the "SOLID" background type and tap the "Open FormSheet" button.
+
+- [ ] Expected: The FormSheet opens smoothly.
+- [ ] Expected: A solid purple background is visible behind the text content.
+- [ ] Expected: The purple background extends all the way to the absolute bottom edge of the screen.
+
+5. Tap the "Dismiss from JS" button.
+
+- [ ] Expected: The FormSheet dismisses smoothly.
+
+---
+
+### Verification: "COMPOSED" Background
+
+6. Select the "COMPOSED" background type and tap the "Open FormSheet" button.
+
+- [ ] Expected: The FormSheet opens smoothly.
+- [ ] Expected: A navy background is visible behind the text content. 
+- [ ] Expected: A thin green bar is visible at the top edge.
+- [ ] Expected: A red bar is visible at the very bottom edge of the screen, successfully rendering underneath the navigation bar.
+
+7. Tap the "Dismiss from JS" button.
+
+- [ ] Expected: The FormSheet dismisses smoothly.
+
+---
+
+### Verification: "IMAGE" Background
+
+8. Select the "IMAGE" background type and tap the "Open FormSheet" button.
+
+- [ ] Expected: The FormSheet opens smoothly.
+- [ ] Expected: An image background is visible behind the text content.
+- [ ] Expected: The image fully covers the native sheet bounds, extending completely under the navigation bar.
+
+9. Tap the "Dismiss from JS" button.
+
+- [ ] Expected: The FormSheet dismisses smoothly and returns the user to the underlying main screen.
diff --git a/apps/src/tests/single-feature-tests/form-sheet/test-form-sheet-fit-to-contents-ios/index.tsx b/apps/src/tests/single-feature-tests/form-sheet/test-form-sheet-fit-to-contents-ios/index.tsx
new file mode 100644
index 0000000000..252e46096b
--- /dev/null
+++ b/apps/src/tests/single-feature-tests/form-sheet/test-form-sheet-fit-to-contents-ios/index.tsx
@@ -0,0 +1,114 @@
+import React, { useState } from 'react';
+import { Button, StyleSheet, Text, View } from 'react-native';
+import { FormSheet } from 'react-native-screens/experimental';
+import { scenarioDescription } from './scenario-description';
+import { createScenario } from '@apps/tests/shared/helpers';
+import { Colors } from '@apps/shared/styling';
+
+export function App() {
+  const [isOpen, setIsOpen] = useState(false);
+  const [isExpanded, setIsExpanded] = useState(false);
+
+  const handleDismiss = () => {
+    setIsOpen(false);
+  };
+
+  return (
+    <View style={styles.container}>
+      <Text style={styles.title}>FormSheet Test</Text>
+      <Button
+        title="Open FormSheet"
+        color={Colors.primary}
+        onPress={() => setIsOpen(true)}
+      />
+      <FormSheet
+        isOpen={isOpen}
+        onNativeDismiss={handleDismiss}
+        detents="fitToContents">
+        <View style={styles.sheetContent}>
+          <Text style={styles.sheetTitle}>FormSheet content</Text>
+
+          <Text style={styles.description}>
+            This sheet dynamically wraps its content. Press the button below to
+            change the height.
+          </Text>
+
+          <View style={styles.spacing} />
+
+          <Button
+            title={isExpanded ? 'Collapse Content' : 'Expand Content'}
+            color={Colors.primary}
+            onPress={() => setIsExpanded(!isExpanded)}
+          />
+
+          {isExpanded && (
+            <View style={styles.extraContentBox}>
+              <Text style={styles.extraText}>
+                Here is some extra content! The FormSheet should seamlessly
+                animate to accommodate this new height without any glitches.
+              </Text>
+            </View>
+          )}
+
+          <View style={styles.spacing} />
+
+          <Button
+            title="Dismiss from JS"
+            color={Colors.primary}
+            onPress={handleDismiss}
+          />
+        </View>
+      </FormSheet>
+    </View>
+  );
+}
+
+const styles = StyleSheet.create({
+  container: {
+    flex: 1,
+    justifyContent: 'center',
+    alignItems: 'center',
+    backgroundColor: Colors.offBackground,
+  },
+  title: {
+    fontSize: 20,
+    fontWeight: 'bold',
+    marginBottom: 20,
+    color: Colors.text,
+  },
+  sheetContent: {
+    backgroundColor: Colors.background,
+    padding: 24,
+    justifyContent: 'center',
+    alignItems: 'center',
+  },
+  sheetTitle: {
+    fontSize: 22,
+    fontWeight: '600',
+    marginBottom: 12,
+    color: Colors.text,
+  },
+  description: {
+    fontSize: 16,
+    textAlign: 'center',
+    color: Colors.text,
+    paddingHorizontal: 16,
+  },
+  extraContentBox: {
+    marginTop: 20,
+    padding: 16,
+    backgroundColor: Colors.offBackground,
+    borderRadius: 8,
+    width: '100%',
+  },
+  extraText: {
+    fontSize: 15,
+    color: Colors.text,
+    textAlign: 'center',
+  },
+  spacing: {
+    height: 24,
+  },
+});
+
+export default createScenario(App, scenarioDescription);
diff --git a/apps/src/tests/single-feature-tests/form-sheet/test-form-sheet-fit-to-contents-ios/scenario-description.ts b/apps/src/tests/single-feature-tests/form-sheet/test-form-sheet-fit-to-contents-ios/scenario-description.ts
new file mode 100644
index 0000000000..c21a9fc2a7
--- /dev/null
+++ b/apps/src/tests/single-feature-tests/form-sheet/test-form-sheet-fit-to-contents-ios/scenario-description.ts
@@ -0,0 +1,10 @@
+import type { ScenarioDescription } from '@apps/tests/shared/helpers';
+
+export const scenarioDescription: ScenarioDescription = {
+  name: 'Fit to contents',
+  key: 'test-form-sheet-fit-to-contents-ios',
+  details: 'Allows to test the fitToContents detent and dynamic height changes of the FormSheet component.',
+  platforms: ['ios'],
+  e2eCoverage: 'tbd',
+  smokeTest: false,
+};
diff --git a/apps/src/tests/single-feature-tests/form-sheet/test-form-sheet-fit-to-contents-ios/scenario.md b/apps/src/tests/single-feature-tests/form-sheet/test-form-sheet-fit-to-contents-ios/scenario.md
new file mode 100644
index 0000000000..4d5e4de7fe
--- /dev/null
+++ b/apps/src/tests/single-feature-tests/form-sheet/test-form-sheet-fit-to-contents-ios/scenario.md
@@ -0,0 +1,60 @@
+# Test Scenario: Fit to contents
+
+## Details
+
+**Description:** Verify the `fitToContents` for the `FormSheet` component. This test ensures that the FormSheet calculates its initial height to wrap its content upon opening, and dynamically animates to a new height when the internal content size changes.
+
+**OS test creation version:** iOS: 18.6 and 26.4, iPadOS 26.4
+
+## E2E test
+
+Other: Planned, but will be implemented separately.
+
+## Prerequisites
+
+- iOS device or simulator: iPhone and iPad
+- On iPad: Ensure the device is in full-screen mode, regular width, regular height size class
+
+## Note
+
+- On iPad: The FormSheet is presented as a **centered floating panel**. The `fitToContents` behavior still applies to the height of this panel seamlessly, while its width remains fixed. Therefore, explicit separate steps for iPad are omitted.
+
+## Steps
+
+### Baseline
+
+1. Launch the app and navigate to the **Fit to contents** screen.
+
+- [ ] Expected: Content with the button "Open FormSheet" is shown.
+
+---
+
+### Initialization & `fitToContents` Verification
+
+2. Tap the "Open FormSheet" button.
+
+- [ ] Expected: The FormSheet opens smoothly. Its height is matched to its internal content (it will have an extra empty space on the bottom which is originating from native inset application). There are no visual jumps during the initial presentation animation.
+
+---
+
+### Dynamic Height Adaptation
+
+3. Tap the "Expand Content" button inside the FormSheet.
+
+- [ ] Expected: The extra text box appears. The native FormSheet smoothly animates and grows in height to fully accommodate the newly added content without any visual glitches.
+
+---
+
+### Dynamic Height Adaptation
+
+4. Tap the "Collapse Content" button.
+
+- [ ] Expected: The extra text box disappears. The native FormSheet smoothly animates and shrinks back to its original, smaller height.
+
+---
+
+### Dismissal Verification
+
+5. Tap the "Dismiss from JS" button (or swipe down completely).
+
+- [ ] Expected: The FormSheet dismisses smoothly and returns the user to the underlying main screen.
diff --git a/ios/gamma/modals/form-sheet/RNSFormSheetConfigurationApplicator.mm b/ios/gamma/modals/form-sheet/RNSFormSheetConfigurationApplicator.mm
index 68059d4cb9..f659017553 100644
--- a/ios/gamma/modals/form-sheet/RNSFormSheetConfigurationApplicator.mm
+++ b/ios/gamma/modals/form-sheet/RNSFormSheetConfigurationApplicator.mm
@@ -54,7 +54,7 @@ - (void)applyConfigurationWithAppearanceProvider:(id<RNSFormSheetAppearanceProvi
   // Behavior data
 
   NSArray<UISheetPresentationControllerDetent *> *nativeDetents =
-      [RNSFormSheetDetentResolver buildSheetDetentsForFractions:behaviorProvider.detents];
+      [RNSFormSheetDetentResolver buildSheetDetentsWithBehaviorProvider:behaviorProvider];
 
   UISheetPresentationControllerDetentIdentifier initialDetentIdentifier = nil;
   if (!_initialDetentApplied) {
diff --git a/ios/gamma/modals/form-sheet/RNSFormSheetContentView.h b/ios/gamma/modals/form-sheet/RNSFormSheetContentView.h
index 15fa1336d9..1a14a3a3da 100644
--- a/ios/gamma/modals/form-sheet/RNSFormSheetContentView.h
+++ b/ios/gamma/modals/form-sheet/RNSFormSheetContentView.h
@@ -1,11 +1,14 @@
 #pragma once
 
 #import <UIKit/UIKit.h>
+#import "RNSFormSheetContentWrapperDelegate.h"
 
 NS_ASSUME_NONNULL_BEGIN
 
 @interface RNSFormSheetContentView : UIView
 
+@property (nonatomic, weak, nullable) id<RNSFormSheetContentWrapperDelegate> contentWrapperDelegate;
+
 - (void)insertReactSubview:(UIView *)subview atIndex:(NSInteger)index;
 - (void)removeReactSubview:(UIView *)subview;
 
diff --git a/ios/gamma/modals/form-sheet/RNSFormSheetContentWrapperComponentView.h b/ios/gamma/modals/form-sheet/RNSFormSheetContentWrapperComponentView.h
new file mode 100644
index 0000000000..71983b6a43
--- /dev/null
+++ b/ios/gamma/modals/form-sheet/RNSFormSheetContentWrapperComponentView.h
@@ -0,0 +1,12 @@
+#pragma once
+
+#import "RNSFormSheetContentWrapperDelegate.h"
+#import "RNSReactBaseView.h"
+
+NS_ASSUME_NONNULL_BEGIN
+
+@interface RNSFormSheetContentWrapperComponentView : RNSReactBaseView
+
+@end
+
+NS_ASSUME_NONNULL_END
diff --git a/ios/gamma/modals/form-sheet/RNSFormSheetContentWrapperComponentView.mm b/ios/gamma/modals/form-sheet/RNSFormSheetContentWrapperComponentView.mm
new file mode 100644
index 0000000000..6cc8d1d0ea
--- /dev/null
+++ b/ios/gamma/modals/form-sheet/RNSFormSheetContentWrapperComponentView.mm
@@ -0,0 +1,91 @@
+#import "RNSFormSheetContentWrapperComponentView.h"
+
+#import <React/RCTMountingTransactionObserving.h>
+#import <react/renderer/components/rnscreens/ComponentDescriptors.h>
+#import <react/renderer/components/rnscreens/Props.h>
+#import <react/renderer/components/rnscreens/RCTComponentViewHelpers.h>
+
+#import "RNSFormSheetContentView.h"
+
+namespace react = facebook::react;
+
+@interface RNSFormSheetContentWrapperComponentView () <RCTRNSFormSheetContentWrapperViewProtocol,
+                                                       RCTMountingTransactionObserving>
+@end
+
+@implementation RNSFormSheetContentWrapperComponentView {
+  BOOL _initialHeightReported;
+}
+
+- (instancetype)initWithFrame:(CGRect)frame
+{
+  if (self = [super initWithFrame:frame]) {
+    [self initState];
+  }
+  return self;
+}
+
+- (void)initState
+{
+  _initialHeightReported = NO;
+}
+
+- (id<RNSFormSheetContentWrapperDelegate>)resolveFormSheetContentWrapperDelegate
+{
+  UIView *view = self.superview;
+  while (view != nil) {
+    if ([view isKindOfClass:[RNSFormSheetContentView class]]) {
+      return ((RNSFormSheetContentView *)view).contentWrapperDelegate;
+    }
+    view = view.superview;
+  }
+  return nil;
+}
+
+#pragma mark - RCTMountingTransactionObserving
+
+- (void)mountingTransactionDidMount:(const facebook::react::MountingTransaction &)transaction
+               withSurfaceTelemetry:(const facebook::react::SurfaceTelemetry &)surfaceTelemetry
+{
+  // We only need to catch the initial mount because subsequent dynamic height changes
+  // are handled directly by `updateLayoutMetrics`.
+  if (_initialHeightReported) {
+    return;
+  }
+
+  id<RNSFormSheetContentWrapperDelegate> delegate = [self resolveFormSheetContentWrapperDelegate];
+  if (delegate && self.frame.size.height > 0) {
+    _initialHeightReported = YES;
+    [delegate contentWrapper:self didChangeContentHeight:self.frame.size.height];
+  }
+}
+
+#pragma mark - RCTComponentViewProtocol
+
++ (react::ComponentDescriptorProvider)componentDescriptorProvider
+{
+  return react::concreteComponentDescriptorProvider<react::RNSFormSheetContentWrapperComponentDescriptor>();
+}
+
+- (void)updateLayoutMetrics:(const react::LayoutMetrics &)layoutMetrics
+           oldLayoutMetrics:(const react::LayoutMetrics &)oldLayoutMetrics
+{
+  [super updateLayoutMetrics:layoutMetrics oldLayoutMetrics:oldLayoutMetrics];
+
+  CGFloat newHeight = layoutMetrics.frame.size.height;
+  CGFloat oldHeight = oldLayoutMetrics.frame.size.height;
+
+  if (newHeight != oldHeight) {
+    id<RNSFormSheetContentWrapperDelegate> delegate = [self resolveFormSheetContentWrapperDelegate];
+    if (delegate) {
+      [delegate contentWrapper:self didChangeContentHeight:newHeight];
+    }
+  }
+}
+
+@end
+
+Class<RCTComponentViewProtocol> RNSFormSheetContentWrapperCls(void)
+{
+  return RNSFormSheetContentWrapperComponentView.class;
+}
diff --git a/ios/gamma/modals/form-sheet/RNSFormSheetContentWrapperDelegate.h b/ios/gamma/modals/form-sheet/RNSFormSheetContentWrapperDelegate.h
new file mode 100644
index 0000000000..b893e602b7
--- /dev/null
+++ b/ios/gamma/modals/form-sheet/RNSFormSheetContentWrapperDelegate.h
@@ -0,0 +1,15 @@
+#pragma once
+
+#import <UIKit/UIKit.h>
+
+@class RNSFormSheetContentWrapperComponentView;
+
+NS_ASSUME_NONNULL_BEGIN
+
+@protocol RNSFormSheetContentWrapperDelegate <NSObject>
+
+- (void)contentWrapper:(RNSFormSheetContentWrapperComponentView *)wrapper didChangeContentHeight:(CGFloat)contentHeight;
+
+@end
+
+NS_ASSUME_NONNULL_END
diff --git a/ios/gamma/modals/form-sheet/RNSFormSheetDetentResolver.h b/ios/gamma/modals/form-sheet/RNSFormSheetDetentResolver.h
index 09358252ad..7624b3d887 100644
--- a/ios/gamma/modals/form-sheet/RNSFormSheetDetentResolver.h
+++ b/ios/gamma/modals/form-sheet/RNSFormSheetDetentResolver.h
@@ -6,8 +6,12 @@
 #import <vector>
 #endif
 
+@protocol RNSFormSheetBehaviorProvider;
+
 NS_ASSUME_NONNULL_BEGIN
 
+// Predefined value for `fitToContents` detent.
+static const double kRNSFormSheetFitToContents = -1.0;
 // Predefined values for `initialDetentIndex`.
 static NSInteger const kRNSFormSheetLastDetent = -1;
 // Predefined values for `largestUndimmedDetentIndex`.
@@ -18,7 +22,8 @@ static NSInteger const kRNSFormSheetNeverDimmed = -2;
 
 #if !TARGET_OS_TV && defined(__cplusplus)
 
-+ (NSArray<UISheetPresentationControllerDetent *> *)buildSheetDetentsForFractions:(const std::vector<double> &)detents;
++ (NSArray<UISheetPresentationControllerDetent *> *)buildSheetDetentsWithBehaviorProvider:
+    (id<RNSFormSheetBehaviorProvider>)provider;
 
 #endif // !TARGET_OS_TV && __cplusplus
 
diff --git a/ios/gamma/modals/form-sheet/RNSFormSheetDetentResolver.mm b/ios/gamma/modals/form-sheet/RNSFormSheetDetentResolver.mm
index 52da6cf8a0..b8bd9c155a 100644
--- a/ios/gamma/modals/form-sheet/RNSFormSheetDetentResolver.mm
+++ b/ios/gamma/modals/form-sheet/RNSFormSheetDetentResolver.mm
@@ -1,5 +1,6 @@
 #import "RNSFormSheetDetentResolver.h"
 #import "RNSDefines.h"
+#import "RNSFormSheetProviders.h"
 
 #import <React/RCTLog.h>
 
@@ -8,6 +9,9 @@
 static BOOL RNSAreDetentsValid(const std::vector<double> &detents)
 {
   for (double currentDetent : detents) {
+    if (currentDetent == kRNSFormSheetFitToContents) {
+      continue;
+    }
     if (isnan(currentDetent)) {
       return NO;
     }
@@ -30,8 +34,10 @@ static BOOL RNSAreDetentsStrictlyAscending(const std::vector<double> &detents)
 
 @implementation RNSFormSheetDetentResolver
 
-+ (NSArray<UISheetPresentationControllerDetent *> *)buildSheetDetentsForFractions:(const std::vector<double> &)detents
++ (NSArray<UISheetPresentationControllerDetent *> *)buildSheetDetentsWithBehaviorProvider:
+    (id<RNSFormSheetBehaviorProvider>)provider
 {
+  const std::vector<double> &detents = provider.detents;
   size_t detentsCount = detents.size();
 
   // Defaults to large detent across all iOS versions
@@ -56,17 +62,35 @@ @implementation RNSFormSheetDetentResolver
 
 #if RNS_IPHONE_OS_VERSION_AVAILABLE(16_0)
   if (@available(iOS 16.0, *)) {
+    __weak id<RNSFormSheetBehaviorProvider> weakProvider = provider;
+
     for (size_t i = 0; i < detentsCount; i++) {
       double fraction = detents[i];
       NSString *ident = [NSString stringWithFormat:@"%zu", i];
-
-      [nativeDetents
-          addObject:[UISheetPresentationControllerDetent
-                        customDetentWithIdentifier:ident
-                                          resolver:^CGFloat(
-                                              id<UISheetPresentationControllerDetentResolutionContext> context) {
-                                            return context.maximumDetentValue * fraction;
-                                          }]];
+      if (fraction == kRNSFormSheetFitToContents) {
+        [nativeDetents
+            addObject:[UISheetPresentationControllerDetent
+                          customDetentWithIdentifier:ident
+                                            resolver:^CGFloat(
+                                                id<UISheetPresentationControllerDetentResolutionContext> context) {
+                                              CGFloat currentHeight = weakProvider ? [weakProvider contentHeight] : 0.0;
+
+                                              // Safe fallback for uncalculated layout or deallocated provider
+                                              if (currentHeight <= 0.0) {
+                                                currentHeight = context.maximumDetentValue;
+                                              }
+
+                                              return MIN(context.maximumDetentValue, currentHeight);
+                                            }]];
+      } else {
+        [nativeDetents
+            addObject:[UISheetPresentationControllerDetent
+                          customDetentWithIdentifier:ident
+                                            resolver:^CGFloat(
+                                                id<UISheetPresentationControllerDetentResolutionContext> context) {
+                                              return context.maximumDetentValue * fraction;
+                                            }]];
+      }
     }
   } else
 #endif // RNS_IPHONE_OS_VERSION_AVAILABLE(16_0)
@@ -74,7 +98,11 @@ @implementation RNSFormSheetDetentResolver
     // iOS 15 Legacy Fallback
     if (detentsCount == 1) {
       double firstDetentFraction = detents[0];
-      if (firstDetentFraction < 1.0) {
+      if (firstDetentFraction == kRNSFormSheetFitToContents) {
+        RCTLogError(
+            @"[RNScreens] 'fitToContents' is unsupported on iOS versions below 16. Falling back to medium detent.");
+        [nativeDetents addObject:UISheetPresentationControllerDetent.mediumDetent];
+      } else if (firstDetentFraction < 1.0) {
         [nativeDetents addObject:UISheetPresentationControllerDetent.mediumDetent];
       } else {
         [nativeDetents addObject:UISheetPresentationControllerDetent.largeDetent];
diff --git a/ios/gamma/modals/form-sheet/RNSFormSheetHostComponentView.mm b/ios/gamma/modals/form-sheet/RNSFormSheetHostComponentView.mm
index affa11e822..1a189a73d9 100644
--- a/ios/gamma/modals/form-sheet/RNSFormSheetHostComponentView.mm
+++ b/ios/gamma/modals/form-sheet/RNSFormSheetHostComponentView.mm
@@ -1,6 +1,8 @@
 #import "RNSFormSheetHostComponentView.h"
 #import "RNSFormSheetContentController.h"
 #import "RNSFormSheetContentView.h"
+#import "RNSFormSheetContentWrapperComponentView.h"
+#import "RNSFormSheetContentWrapperDelegate.h"
 #import "RNSFormSheetDetentResolver.h"
 #import "RNSFormSheetHostEventEmitter.h"
 #import "RNSFormSheetHostShadowStateProxy.h"
@@ -16,6 +18,7 @@
 
 @interface RNSFormSheetHostComponentView () <RCTMountingTransactionObserving,
                                              RNSFormSheetContentControllerDelegate,
+                                             RNSFormSheetContentWrapperDelegate,
                                              RNSFormSheetPresentationProvider,
                                              RNSFormSheetAppearanceProvider,
                                              RNSFormSheetBehaviorProvider>
@@ -36,6 +39,8 @@ @implementation RNSFormSheetHostComponentView {
   NSInteger _largestUndimmedDetentIndex;
   NSInteger _initialDetentIndex;
   BOOL _prefersScrollingExpandsWhenScrolledToEdge;
+
+  CGFloat _contentHeight;
 }
 
 - (instancetype)initWithFrame:(CGRect)frame
@@ -67,6 +72,8 @@ - (void)resetProps
   _largestUndimmedDetentIndex = kRNSFormSheetAlwaysDimmed;
   _initialDetentIndex = 0;
   _prefersScrollingExpandsWhenScrolledToEdge = YES;
+
+  _contentHeight = 0.0;
 }
 
 - (void)setupController
@@ -77,6 +84,8 @@ - (void)setupController
   _controller.presentationProvider = self;
   _controller.appearanceProvider = self;
   _controller.behaviorProvider = self;
+
+  _controller.contentView.contentWrapperDelegate = self;
 }
 
 - (void)didMoveToWindow
@@ -103,6 +112,21 @@ - (nullable UIWindow *)hostWindow
   return _detents;
 }
 
+- (CGFloat)contentHeight
+{
+  return _contentHeight;
+}
+
+#pragma mark - RNSFormSheetContentWrapperDelegate
+
+- (void)contentWrapper:(RNSFormSheetContentWrapperComponentView *)wrapper didChangeContentHeight:(CGFloat)contentHeight
+{
+  if (_contentHeight != contentHeight) {
+    _contentHeight = contentHeight;
+    [_controller setNeedsBehaviorUpdate];
+  }
+}
+
 #pragma mark - RNSFormSheetContentControllerDelegate
 
 - (void)sheetControllerDidNativeDismiss:(RNSFormSheetContentController *)controller
diff --git a/ios/gamma/modals/form-sheet/RNSFormSheetProviders.h b/ios/gamma/modals/form-sheet/RNSFormSheetProviders.h
index f005af4b90..3eb3c321e4 100644
--- a/ios/gamma/modals/form-sheet/RNSFormSheetProviders.h
+++ b/ios/gamma/modals/form-sheet/RNSFormSheetProviders.h
@@ -30,6 +30,7 @@ NS_ASSUME_NONNULL_BEGIN
 #endif
 - (NSInteger)initialDetentIndex;
 - (BOOL)prefersScrollingExpandsWhenScrolledToEdge;
+- (CGFloat)contentHeight;
 
 @end
 
diff --git a/ios/stubs/RNSGammaStubs.h b/ios/stubs/RNSGammaStubs.h
index dbd82637db..7b496f2f13 100644
--- a/ios/stubs/RNSGammaStubs.h
+++ b/ios/stubs/RNSGammaStubs.h
@@ -27,4 +27,7 @@ NS_ASSUME_NONNULL_BEGIN
 @interface RNSFormSheetHostComponentView : NSObject
 @end
 
+@interface RNSFormSheetContentWrapperComponentView : NSObject
+@end
+
 NS_ASSUME_NONNULL_END
diff --git a/ios/stubs/RNSGammaStubs.mm b/ios/stubs/RNSGammaStubs.mm
index e0f6433df7..904a813f6a 100644
--- a/ios/stubs/RNSGammaStubs.mm
+++ b/ios/stubs/RNSGammaStubs.mm
@@ -17,3 +17,6 @@ @implementation RNSScrollViewMarkerComponentView
 
 @implementation RNSFormSheetHostComponentView
 @end
+
+@implementation RNSFormSheetContentWrapperComponentView
+@end
diff --git a/package.json b/package.json
index f23c5a4220..d4e366e226 100644
--- a/package.json
+++ b/package.json
@@ -223,6 +223,9 @@
         },
         "RNSFormSheetHost": {
           "className": "RNSFormSheetHostComponentView"
+        },
+        "RNSFormSheetContentWrapper": {
+          "className": "RNSFormSheetContentWrapperComponentView"
         }
       }
     }
diff --git a/src/components/gamma/modals/form-sheet/FormSheet.tsx b/src/components/gamma/modals/form-sheet/FormSheet.tsx
index 140f872507..b33a63e48f 100644
--- a/src/components/gamma/modals/form-sheet/FormSheet.tsx
+++ b/src/components/gamma/modals/form-sheet/FormSheet.tsx
@@ -1,15 +1,19 @@
 import React from 'react';
-import { StyleSheet } from 'react-native';
+import { StyleSheet, View } from 'react-native';
 import FormSheetHostNativeComponent from '../../../../fabric/gamma/modals/form-sheet/FormSheetHostNativeComponent';
+import FormSheetContentWrapperNativeComponent from '../../../../fabric/gamma/modals/form-sheet/FormSheetContentWrapperNativeComponent';
 import type { FormSheetProps } from './FormSheet.types';
 import {
   resolveInitialDetentIndex,
   resolveLargestUndimmedDetentIndex,
   resolveNativeCornerRadius,
+  resolveNativeDetents,
 } from './FormSheetUtils';
 
 export function FormSheet(props: FormSheetProps) {
   const {
+    backgroundComponent,
+    children,
     detents,
     initialDetentIndex,
     largestUndimmedDetentIndex,
@@ -18,8 +22,9 @@ export function FormSheet(props: FormSheetProps) {
   } = props;
 
   const nativeCornerRadius = resolveNativeCornerRadius(preferredCornerRadius);
+  const nativeDetents = resolveNativeDetents(detents);
 
-  const detentsCount = detents?.length ?? 0;
+  const detentsCount = nativeDetents?.length ?? 0;
 
   const resolvedInitialDetentIndex = resolveInitialDetentIndex(
     initialDetentIndex,
@@ -31,15 +36,30 @@ export function FormSheet(props: FormSheetProps) {
     detentsCount,
   );
 
+  const isFitToContents = detents === 'fitToContents';
+
   return (
     <FormSheetHostNativeComponent
       style={styles.host}
-      detents={detents}
+      detents={nativeDetents}
       initialDetentIndex={resolvedInitialDetentIndex}
       largestUndimmedDetentIndex={resolvedUndimmedDetentIndex}
       preferredCornerRadius={nativeCornerRadius}
-      {...rest}
-    />
+      {...rest}>
+      {backgroundComponent !== undefined && (
+        <View style={StyleSheet.absoluteFill} pointerEvents="none">
+          {backgroundComponent}
+        </View>
+      )}
+      {isFitToContents ? (
+        <FormSheetContentWrapperNativeComponent
+          style={styles.absoluteWithNoBottom}>
+          {children}
+        </FormSheetContentWrapperNativeComponent>
+      ) : (
+        children
+      )}
+    </FormSheetHostNativeComponent>
   );
 }
 
@@ -55,4 +75,10 @@ const styles = StyleSheet.create({
     top: 0,
     left: 0,
   },
+  absoluteWithNoBottom: {
+    position: 'absolute',
+    top: 0,
+    left: 0,
+    right: 0,
+  },
 });
diff --git a/src/components/gamma/modals/form-sheet/FormSheet.types.ts b/src/components/gamma/modals/form-sheet/FormSheet.types.ts
index 52db293cc8..7ef96846e8 100644
--- a/src/components/gamma/modals/form-sheet/FormSheet.types.ts
+++ b/src/components/gamma/modals/form-sheet/FormSheet.types.ts
@@ -19,15 +19,22 @@ export interface FormSheetProps {
   isOpen: boolean;
 
   /**
-   * @summary An array of fractional screen heights (ranging from `0.0` to `1.0`) that define
-   * the resting positions of the sheet.
+   * @summary Defines the resting positions of the sheet.
+   *
+   * This can be either an array of fractional screen heights (ranging from `0.0` to `1.0`)
+   * or the `'fitToContents'` string literal.
+   *
+   * - **Fractional heights:** The sheet will snap to these specific height proportions.
+   * - **`'fitToContents'`:** The sheet automatically calculates its height to wrap its content.
+   *   It will dynamically animate to adapt to any internal layout changes.
+   *  *(Note: `fitToContents` is supported on iOS 16+. On iOS 15, it falls back to a medium detent).*
    *
    * On iOS, these map directly to `UISheetPresentationController` detents.
    * If an empty array is provided, it defaults to a single large detent.
    *
    * @platform ios
    */
-  detents?: number[] | undefined;
+  detents?: number[] | 'fitToContents' | undefined;
 
   /**
    * @summary Determines whether the sheet requests a grabber at the top.
@@ -96,6 +103,18 @@ export interface FormSheetProps {
    */
   prefersScrollingExpandsWhenScrolledToEdge?: boolean | undefined;
 
+  /**
+   * @summary A custom React component to render as the background of the sheet.
+   *
+   * This component must be positioned absolutely to fill the entire bounds of the native
+   * sheet, including the bottom safe area provided by UIKit. It renders behind the `children`.
+   * Useful for adding custom background components that should extend to the very bottom
+   * edge of the sheet, bypassing the `fitToContents` height restrictions.
+   *
+   * @platform ios
+   */
+  backgroundComponent?: React.ReactNode | undefined;
+
   // Events
   /**
    * @summary Called when the sheet is dismissed natively.
diff --git a/src/components/gamma/modals/form-sheet/FormSheetUtils.ts b/src/components/gamma/modals/form-sheet/FormSheetUtils.ts
index d2b9fc55ed..33973712ec 100644
--- a/src/components/gamma/modals/form-sheet/FormSheetUtils.ts
+++ b/src/components/gamma/modals/form-sheet/FormSheetUtils.ts
@@ -1,11 +1,27 @@
 import type { FormSheetProps } from './FormSheet.types';
 
+// Predefined value for `fitToContents`. Keep in sync with native counterpart.
+export const NATIVE_FIT_TO_CONTENTS = -1.0;
 // Predefined values for `initialDetentIndex`. Keep in sync with native counterpart.
 const FORM_SHEET_LAST_DETENT = -1;
 // Predefined values for `largestUndimmedDetentIndex`. Keep in sync with native counterpart.
 const FORM_SHEET_ALWAYS_DIMMED = -1;
 const FORM_SHEET_NEVER_DIMMED = -2;
 
+export function resolveNativeDetents(
+  detents?: number[] | 'fitToContents',
+): number[] | undefined {
+  if (!detents) {
+    return undefined;
+  }
+
+  if (detents === 'fitToContents') {
+    return [NATIVE_FIT_TO_CONTENTS];
+  }
+
+  return detents;
+}
+
 export function resolveInitialDetentIndex(
   initialDetentIndex: FormSheetProps['initialDetentIndex'],
   detentsCount: number = 0,
diff --git a/src/fabric/gamma/modals/form-sheet/FormSheetContentWrapperNativeComponent.ts b/src/fabric/gamma/modals/form-sheet/FormSheetContentWrapperNativeComponent.ts
new file mode 100644
index 0000000000..889a95c132
--- /dev/null
+++ b/src/fabric/gamma/modals/form-sheet/FormSheetContentWrapperNativeComponent.ts
@@ -0,0 +1,13 @@
+'use client';
+
+import type { ViewProps } from 'react-native';
+import { codegenNativeComponent } from 'react-native';
+
+interface NativeProps extends ViewProps {}
+
+export default codegenNativeComponent<NativeProps>(
+  'RNSFormSheetContentWrapper',
+  {
+    excludedPlatforms: ['android'],
+  },
+);