diff --git a/.changeset/react-compiler-token-remove-button.md b/.changeset/react-compiler-token-remove-button.md
new file mode 100644
index 00000000000..9e40058af25
--- /dev/null
+++ b/.changeset/react-compiler-token-remove-button.md
@@ -0,0 +1,5 @@
+---
+'@primer/react': minor
+---
+
+Token, IssueLabelToken: Improve rendering performance with React Compiler support.
diff --git a/packages/react/script/react-compiler.mjs b/packages/react/script/react-compiler.mjs
index 1999567b8a1..ba04a363905 100644
--- a/packages/react/script/react-compiler.mjs
+++ b/packages/react/script/react-compiler.mjs
@@ -25,7 +25,6 @@ const unsupportedPatterns = [
   'src/SelectPanel/SelectPanel.test.tsx',
   'src/SelectPanel/SelectPanel.tsx',
   'src/Skeleton/SkeletonBox.figma.tsx',
-  'src/Token/_RemoveTokenButton.tsx',
   'src/TreeView/TreeView.features.stories.tsx',
   'src/TreeView/TreeView.tsx',
   'src/deprecated/utils/create-slots.tsx',
diff --git a/packages/react/src/Token/_RemoveTokenButton.tsx b/packages/react/src/Token/_RemoveTokenButton.tsx
index 4ac007ca5cc..c02402d79b8 100644
--- a/packages/react/src/Token/_RemoveTokenButton.tsx
+++ b/packages/react/src/Token/_RemoveTokenButton.tsx
@@ -22,12 +22,14 @@ const RemoveTokenButton = ({
   borderOffset = 0,
   as: _as,
   children: _children,
+  ref,
   ...rest
 }: React.PropsWithChildren<RemoveTokenButtonProps & {as?: React.ElementType}>) => {
   if (isParentInteractive) {
     return (
       <span
         {...rest}
+        ref={ref as React.Ref<HTMLSpanElement>}
         tabIndex={-1}
         aria-label={ariaLabel}
         data-size={size}
@@ -43,7 +45,6 @@ const RemoveTokenButton = ({
 
   return (
     <button
-      // eslint-disable-next-line react-hooks/refs
       {...rest}
       aria-label={'Remove token'}
       data-size={size}
@@ -51,8 +52,7 @@ const RemoveTokenButton = ({
       style={{
         transform: `translate(${borderOffset}px, -${borderOffset}px)`,
       }}
-      // eslint-disable-next-line react-hooks/refs
-      ref={rest.ref as React.Ref<HTMLButtonElement>}
+      ref={ref as React.Ref<HTMLButtonElement>}
       type="button"
     >
       <XIcon size={size === 'small' || size === 'medium' ? 12 : 16} />