diff --git a/.changeset/brave-rabbits-glow.md b/.changeset/brave-rabbits-glow.md
new file mode 100644
index 000000000..80c503bde
--- /dev/null
+++ b/.changeset/brave-rabbits-glow.md
@@ -0,0 +1,5 @@
+---
+'@radix-ui/react-one-time-password-field': patch
+---
+
+Fixed OTP field dispatch using stale value/collection state in React 19.2.
diff --git a/packages/react/one-time-password-field/src/one-time-password-field.test.tsx b/packages/react/one-time-password-field/src/one-time-password-field.test.tsx
index 5e28c58a2..9523fe5a3 100644
--- a/packages/react/one-time-password-field/src/one-time-password-field.test.tsx
+++ b/packages/react/one-time-password-field/src/one-time-password-field.test.tsx
@@ -68,6 +68,30 @@ describe('given a default OneTimePasswordField', () => {
     });
   });
 
+  it('should type digits and advance focus', async () => {
+    const inputs = screen.getAllByRole<HTMLInputElement>('textbox', { hidden: false });
+    await user.click(inputs[0]!);
+    await user.keyboard('1');
+    expect(inputs[0]!.value).toBe('1');
+    // focus should have moved to second input
+    expect(document.activeElement).toBe(inputs[1]);
+    await user.keyboard('2');
+    expect(inputs[1]!.value).toBe('2');
+    expect(document.activeElement).toBe(inputs[2]);
+  });
+
+  it('should navigate with arrow keys', async () => {
+    const inputs = screen.getAllByRole<HTMLInputElement>('textbox', { hidden: false });
+    await user.click(inputs[0]!);
+    await user.keyboard('1');
+    // now on input 1
+    expect(document.activeElement).toBe(inputs[1]);
+    await user.keyboard('{ArrowLeft}');
+    expect(document.activeElement).toBe(inputs[0]);
+    await user.keyboard('{ArrowRight}');
+    expect(document.activeElement).toBe(inputs[1]);
+  });
+
   // TODO: userEvent paste not behaving as expected. Debug and unskip.
   // Replicated in storybook for now.
   it.todo('pastes the code into the input', async () => {
diff --git a/packages/react/one-time-password-field/src/one-time-password-field.tsx b/packages/react/one-time-password-field/src/one-time-password-field.tsx
index 0f1065bf6..8e6145df2 100644
--- a/packages/react/one-time-password-field/src/one-time-password-field.tsx
+++ b/packages/react/one-time-password-field/src/one-time-password-field.tsx
@@ -12,7 +12,6 @@ import type { Scope } from '@radix-ui/react-context';
 import { createContextScope } from '@radix-ui/react-context';
 import { useDirection } from '@radix-ui/react-direction';
 import { clamp } from '@radix-ui/number';
-import { useEffectEvent } from '@radix-ui/react-use-effect-event';
 
 type InputValidationType = 'alpha' | 'numeric' | 'alphanumeric' | 'none';
 
@@ -265,8 +264,15 @@ const OneTimePasswordField = React.forwardRef<HTMLDivElement, OneTimePasswordFie
       ),
     });
 
+    // Use a ref so dispatch always reads the latest value without needing
+    // value in its dependency array (which would change its identity every
+    // keystroke and cause cascading effect re-runs).
+    const latestValueRef = React.useRef(value);
+    latestValueRef.current = value;
+
     // Update function *specifically* for event handlers.
-    const dispatch = useEffectEvent<Dispatcher>((action) => {
+    const dispatch = React.useCallback<Dispatcher>((action) => {
+      const value = latestValueRef.current;
       switch (action.type) {
         case 'SET_CHAR': {
           const { index, char } = action;
@@ -361,7 +367,7 @@ const OneTimePasswordField = React.forwardRef<HTMLDivElement, OneTimePasswordFie
           return;
         }
       }
-    });
+    }, [collection, sanitizeValue, setValue, validation]);
 
     // re-validate when the validation type changes
     const validationTypeRef = React.useRef(validation);