diff --git a/apps/vr-tests-web-components/package.json b/apps/vr-tests-web-components/package.json
index 99a3830b50f54f..026b60422ff0b8 100644
--- a/apps/vr-tests-web-components/package.json
+++ b/apps/vr-tests-web-components/package.json
@@ -18,7 +18,7 @@
     "html-react-parser": "4.0.0",
     "@fluentui/tokens": ">=1.0.0-alpha",
     "@fluentui/web-components": ">=3.0.0-alpha",
-    "@microsoft/fast-element": "2.0.0",
+    "@microsoft/fast-element": "^2.0.0",
     "tslib": "^2.1.0"
   }
 }
diff --git a/change/@fluentui-chart-web-components-efc149c5-3d43-4300-a413-b3d9048e2248.json b/change/@fluentui-chart-web-components-efc149c5-3d43-4300-a413-b3d9048e2248.json
new file mode 100644
index 00000000000000..e7def50970997e
--- /dev/null
+++ b/change/@fluentui-chart-web-components-efc149c5-3d43-4300-a413-b3d9048e2248.json
@@ -0,0 +1,7 @@
+{
+  "type": "patch",
+  "comment": "fix: update fast-element dependency version",
+  "packageName": "@fluentui/chart-web-components",
+  "email": "863023+radium-v@users.noreply.github.com",
+  "dependentChangeType": "patch"
+}
diff --git a/change/@fluentui-web-components-38caae0f-3c50-46f0-b0c2-bb87de96d641.json b/change/@fluentui-web-components-38caae0f-3c50-46f0-b0c2-bb87de96d641.json
new file mode 100644
index 00000000000000..9e94b949c3f1ed
--- /dev/null
+++ b/change/@fluentui-web-components-38caae0f-3c50-46f0-b0c2-bb87de96d641.json
@@ -0,0 +1,7 @@
+{
+  "type": "prerelease",
+  "comment": "fix: remove hoisted peer dependency entries",
+  "packageName": "@fluentui/web-components",
+  "email": "863023+radium-v@users.noreply.github.com",
+  "dependentChangeType": "patch"
+}
diff --git a/package.json b/package.json
index 756753194acc26..2096a7d2c09783 100644
--- a/package.json
+++ b/package.json
@@ -71,6 +71,7 @@
     "@microsoft/api-extractor": "7.51.0",
     "@microsoft/api-extractor-model": "7.31.2",
     "@microsoft/eslint-plugin-sdl": "1.0.1",
+    "@microsoft/fast-element": "2.10.4",
     "@microsoft/focusgroup-polyfill": "^1.4.1",
     "@microsoft/load-themed-styles": "1.10.26",
     "@microsoft/loader-load-themed-styles": "2.0.17",
diff --git a/packages/charts/chart-web-components/package.json b/packages/charts/chart-web-components/package.json
index ffaac36ba9d6dc..b190c9a5f06147 100644
--- a/packages/charts/chart-web-components/package.json
+++ b/packages/charts/chart-web-components/package.json
@@ -61,7 +61,6 @@
     "test:dev": "node ./scripts/e2e.js"
   },
   "devDependencies": {
-    "@microsoft/fast-element": "2.0.0",
     "@tensile-perf/web-components": "~0.2.2",
     "@storybook/html": "9.1.17",
     "@storybook/html-vite": "9.1.17",
@@ -79,7 +78,7 @@
     "tslib": "^2.1.0"
   },
   "peerDependencies": {
-    "@microsoft/fast-element": "^2.0.0-beta.26 || ^2.0.0"
+    "@microsoft/fast-element": "^2.0.0"
   },
   "beachball": {
     "disallowedChangeTypes": [
diff --git a/packages/web-components/package.json b/packages/web-components/package.json
index 0f4cd54a7c993c..3064cc7dc3eaf4 100644
--- a/packages/web-components/package.json
+++ b/packages/web-components/package.json
@@ -90,8 +90,6 @@
   },
   "devDependencies": {
     "@custom-elements-manifest/analyzer": "0.10.10",
-    "@microsoft/fast-element": "2.0.0",
-    "@microsoft/focusgroup-polyfill": "^1.4.1",
     "@tensile-perf/web-components": "~0.2.2",
     "@storybook/html": "9.1.17",
     "@storybook/html-vite": "9.1.17",
diff --git a/yarn.lock b/yarn.lock
index 629621be4153c6..747a1e412521fe 100644
--- a/yarn.lock
+++ b/yarn.lock
@@ -2687,10 +2687,10 @@
     eslint-plugin-react "7.35.2"
     eslint-plugin-security "1.4.0"
 
-"@microsoft/fast-element@2.0.0":
-  version "2.0.0"
-  resolved "https://registry.yarnpkg.com/@microsoft/fast-element/-/fast-element-2.0.0.tgz#4b3551159290f14ec59f9b48c6c4c26b4e086a0f"
-  integrity sha512-Tzv4dCGTg10NNyqWWGRy3bYG4vacQUapjy5gpdpmFbSgvNF8aOzJJMkG5CfVUDoC9gWxY1ZyGgjXX0p86ZXX5w==
+"@microsoft/fast-element@2.10.4", "@microsoft/fast-element@^2.0.0":
+  version "2.10.4"
+  resolved "https://registry.yarnpkg.com/@microsoft/fast-element/-/fast-element-2.10.4.tgz#12b8c6c90902f2a54d5b27f618d7d095e133546d"
+  integrity sha512-OkHIlMztq7+PgkRF1LscgBd/MVzMhGrWPkJRDvOEqdqEdZOKocKvaKcUKZubIBz4RpLIrhLD3lOJzCsspk6jXg==
 
 "@microsoft/fast-web-utilities@^6.0.0":
   version "6.0.0"