diff --git a/packages/components/CHANGELOG.md b/packages/components/CHANGELOG.md
index f65160f6e3f427..eb5d15a335887d 100644
--- a/packages/components/CHANGELOG.md
+++ b/packages/components/CHANGELOG.md
@@ -2,9 +2,11 @@
 
 ## Unreleased
 
-### Enhancements
+### Bug Fixes
 
--   `Guide`: Update finish button to use the new default size ([#65680](https://github.com/WordPress/gutenberg/pull/65680)).
+-   `PaletteEdit`: dedupe palette element slugs ([#65772](https://github.com/WordPress/gutenberg/pull/65772)).
+
+## 28.9.0 (2024-10-03)
 
 ### Bug Fixes
 
@@ -15,6 +17,10 @@
 -   `Composite`: make items tabbable if active element gets removed ([#65720](https://github.com/WordPress/gutenberg/pull/65720)).
 -   `DatePicker`: Use compact button size. ([#65653](https://github.com/WordPress/gutenberg/pull/65653)).
 
+### Enhancements
+
+-   `Guide`: Update finish button to use the new default size ([#65680](https://github.com/WordPress/gutenberg/pull/65680)).
+
 ## 28.8.0 (2024-09-19)
 
 ### Bug Fixes
diff --git a/packages/components/src/palette-edit/index.tsx b/packages/components/src/palette-edit/index.tsx
index 601ea758b75bba..8bfcb7240b9ea4 100644
--- a/packages/components/src/palette-edit/index.tsx
+++ b/packages/components/src/palette-edit/index.tsx
@@ -49,7 +49,6 @@ import { kebabCase } from '../utils/strings';
 import type {
 	Color,
 	ColorPickerPopoverProps,
-	Gradient,
 	NameInputProps,
 	OptionProps,
 	PaletteEditListViewProps,
@@ -70,6 +69,28 @@ function NameInput( { value, onChange, label }: NameInputProps ) {
 	);
 }
 
+/*
+ * Deduplicates the slugs of the provided elements.
+ */
+export function deduplicateElementSlugs< T extends PaletteElement >(
+	elements: T[]
+) {
+	const slugCounts: { [ slug: string ]: number } = {};
+
+	return elements.map( ( element ) => {
+		let newSlug: string | undefined;
+
+		const { slug } = element;
+		slugCounts[ slug ] = ( slugCounts[ slug ] || 0 ) + 1;
+
+		if ( slugCounts[ slug ] > 1 ) {
+			newSlug = `${ slug }-${ slugCounts[ slug ] - 1 }`;
+		}
+
+		return { ...element, slug: newSlug ?? slug };
+	} );
+}
+
 /**
  * Returns a name and slug for a palette item. The name takes the format "Color + id".
  * To ensure there are no duplicate ids, this function checks all slugs.
@@ -109,7 +130,7 @@ export function getNameAndSlugForPosition(
 	};
 }
 
-function ColorPickerPopover< T extends Color | Gradient >( {
+function ColorPickerPopover< T extends PaletteElement >( {
 	isGradient,
 	element,
 	onChange,
@@ -167,7 +188,7 @@ function ColorPickerPopover< T extends Color | Gradient >( {
 	);
 }
 
-function Option< T extends Color | Gradient >( {
+function Option< T extends PaletteElement >( {
 	canOnlyChangeValues,
 	element,
 	onChange,
@@ -265,7 +286,7 @@ function Option< T extends Color | Gradient >( {
 	);
 }
 
-function PaletteEditListView< T extends Color | Gradient >( {
+function PaletteEditListView< T extends PaletteElement >( {
 	elements,
 	onChange,
 	canOnlyChangeValues,
@@ -280,7 +301,11 @@ function PaletteEditListView< T extends Color | Gradient >( {
 		elementsReferenceRef.current = elements;
 	}, [ elements ] );
 
-	const debounceOnChange = useDebounce( onChange, 100 );
+	const debounceOnChange = useDebounce(
+		( updatedElements: T[] ) =>
+			onChange( deduplicateElementSlugs( updatedElements ) ),
+		100
+	);
 
 	return (
 		<VStack spacing={ 3 }>
diff --git a/packages/components/src/palette-edit/test/index.tsx b/packages/components/src/palette-edit/test/index.tsx
index 980630633b97f9..7dc00dbba22042 100644
--- a/packages/components/src/palette-edit/test/index.tsx
+++ b/packages/components/src/palette-edit/test/index.tsx
@@ -7,7 +7,10 @@ import { click, type, press } from '@ariakit/test';
 /**
  * Internal dependencies
  */
-import PaletteEdit, { getNameAndSlugForPosition } from '..';
+import PaletteEdit, {
+	getNameAndSlugForPosition,
+	deduplicateElementSlugs,
+} from '..';
 import type { PaletteElement } from '../types';
 
 const noop = () => {};
@@ -97,6 +100,52 @@ describe( 'getNameAndSlugForPosition', () => {
 	} );
 } );
 
+describe( 'deduplicateElementSlugs', () => {
+	it( 'should not change the slugs if they are unique', () => {
+		const elements: PaletteElement[] = [
+			{
+				slug: 'test-color-1',
+				color: '#ffffff',
+				name: 'Test Color 1',
+			},
+			{
+				slug: 'test-color-2',
+				color: '#1a4548',
+				name: 'Test Color 2',
+			},
+		];
+
+		expect( deduplicateElementSlugs( elements ) ).toEqual( elements );
+	} );
+	it( 'should change the slugs if they are not unique', () => {
+		const elements: PaletteElement[] = [
+			{
+				slug: 'test-color-1',
+				color: '#ffffff',
+				name: 'Test Color 1',
+			},
+			{
+				slug: 'test-color-1',
+				color: '#1a4548',
+				name: 'Test Color 2',
+			},
+		];
+
+		expect( deduplicateElementSlugs( elements ) ).toEqual( [
+			{
+				slug: 'test-color-1',
+				color: '#ffffff',
+				name: 'Test Color 1',
+			},
+			{
+				slug: 'test-color-1-1',
+				color: '#1a4548',
+				name: 'Test Color 2',
+			},
+		] );
+	} );
+} );
+
 describe( 'PaletteEdit', () => {
 	const defaultProps = {
 		paletteLabel: 'Test label',