diff --git a/.changeset/slow-otters-deny.md b/.changeset/slow-otters-deny.md
new file mode 100644
index 00000000000..2d8cf3b7449
--- /dev/null
+++ b/.changeset/slow-otters-deny.md
@@ -0,0 +1,5 @@
+---
+'@itwin/itwinui-react': patch
+---
+
+Fixed an issue where the internal unit test detection logic was incorrectly treating Cypress like a unit test environment.
diff --git a/packages/itwinui-react/src/utils/functions/dev.ts b/packages/itwinui-react/src/utils/functions/dev.ts
index 32a5fc3a066..5fb8e911d2b 100644
--- a/packages/itwinui-react/src/utils/functions/dev.ts
+++ b/packages/itwinui-react/src/utils/functions/dev.ts
@@ -6,10 +6,12 @@
 // @ts-expect-error -- jest is not used in iTwinUI but may be used in consuming apps
 const isJest = typeof jest !== 'undefined';
 
+const isCypress = typeof (globalThis as any).Cypress !== 'undefined';
 const isMocha =
   typeof (globalThis as any).beforeEach !== 'undefined' &&
   `${(globalThis as any).beforeEach}`.replace(/\s/g, '') ===
-    'function(name,fn){suites[0].beforeEach(name,fn);}';
+    'function(name,fn){suites[0].beforeEach(name,fn);}' &&
+  !isCypress;
 const isVitest = typeof (globalThis as any).__vitest_index__ !== 'undefined';
 
 const isUnitTest = isJest || isVitest || isMocha;