diff --git a/packages/react-dom-bindings/src/client/ReactDOMComponent.js b/packages/react-dom-bindings/src/client/ReactDOMComponent.js
index 1b25e3727023..8a5058128199 100644
--- a/packages/react-dom-bindings/src/client/ReactDOMComponent.js
+++ b/packages/react-dom-bindings/src/client/ReactDOMComponent.js
@@ -2618,6 +2618,10 @@ function diffHydratedGenericElement(
         // Noop
         continue;
       case 'dangerouslySetInnerHTML':
+        // Skip innerHTML comparison only when suppressHydrationWarning is also set
+        if (props.suppressHydrationWarning === true) {
+          continue;
+        }
         const serverHTML = domElement.innerHTML;
         const nextHtml = value ? value.__html : undefined;
         if (nextHtml != null) {
@@ -3220,10 +3224,12 @@ export function hydrateProperties(
   // even listeners these nodes might be wired up to.
   // TODO: Warn if there is more than a single textNode as a child.
   // TODO: Should we use domElement.firstChild.nodeValue to compare?
+  // Skip text content check if both dangerouslySetInnerHTML and suppressHydrationWarning are present
   if (
-    typeof children === 'string' ||
-    typeof children === 'number' ||
-    typeof children === 'bigint'
+    !(props.dangerouslySetInnerHTML != null && props.suppressHydrationWarning === true) &&
+    (typeof children === 'string' ||
+      typeof children === 'number' ||
+      typeof children === 'bigint')
   ) {
     if (
       // $FlowFixMe[unsafe-addition] Flow doesn't want us to use `+` operator with string and bigint
diff --git a/packages/react-dom/src/__tests__/ReactServerRenderingHydration-test.js b/packages/react-dom/src/__tests__/ReactServerRenderingHydration-test.js
index 5675c7eb0e73..9b3120160730 100644
--- a/packages/react-dom/src/__tests__/ReactServerRenderingHydration-test.js
+++ b/packages/react-dom/src/__tests__/ReactServerRenderingHydration-test.js
@@ -802,4 +802,46 @@ describe('ReactDOMServerHydration', () => {
 
     expect(ref.current).toBe(button);
   });
+
+  it('should skip hydration of elements with dangerouslySetInnerHTML and suppressHydrationWarning', async () => {
+    const htmlContent = {
+      __html: '<p>This is <strong>HTML</strong> content</p>',
+    };
+
+    function TestComponent() {
+      return (
+        <div>
+          <h1>Header</h1>
+          <div
+            className="testElement"
+            dangerouslySetInnerHTML={htmlContent}
+            suppressHydrationWarning={true}
+          />
+          <p>Footer</p>
+        </div>
+      );
+    }
+
+    const container = document.createElement('div');
+    container.innerHTML = ReactDOMServer.renderToString(<TestComponent />);
+
+    const testElement = container.querySelector('.testElement');
+    expect(testElement).not.toBe(null);
+    expect(testElement.innerHTML).toBe(
+      '<p>This is <strong>HTML</strong> content</p>',
+    );
+
+    // change content before hydration to simulate a mismatch
+    testElement.innerHTML = '<h1>Content changed</h1>';
+
+    // Hydrate - should not produce warnings when both props are set
+    await act(() => {
+      ReactDOMClient.hydrateRoot(container, <TestComponent />);
+    });
+
+    // Verify the innerHTML is preserved (not cleared or modified)
+    expect(testElement.innerHTML).toBe(
+      '<h1>Content changed</h1>',
+    );
+  });
 });
diff --git a/packages/react-reconciler/src/ReactFiberHydrationContext.js b/packages/react-reconciler/src/ReactFiberHydrationContext.js
index 0c758202b52f..76b3a7b94b89 100644
--- a/packages/react-reconciler/src/ReactFiberHydrationContext.js
+++ b/packages/react-reconciler/src/ReactFiberHydrationContext.js
@@ -276,7 +276,18 @@ function tryHydrateInstance(
     }
 
     hydrationParentFiber = fiber;
-    nextHydratableInstance = getFirstHydratableChild(instance);
+    // Skip hydrating children if this element has both suppressHydrationWarning
+    // and dangerouslySetInnerHTML - this allows developers to opt-out of
+    // hydration validation for elements where server/client HTML intentionally differs
+    const props = fiber.pendingProps;
+    if (
+      props.dangerouslySetInnerHTML != null &&
+      props.suppressHydrationWarning === true
+    ) {
+      nextHydratableInstance = null;
+    } else {
+      nextHydratableInstance = getFirstHydratableChild(instance);
+    }
     rootOrSingletonContext = false;
     return true;
   }