diff --git a/storybook/preview.jsx b/storybook/preview.jsx
index 56197d31bc377c..f60e9ea4da13f2 100644
--- a/storybook/preview.jsx
+++ b/storybook/preview.jsx
@@ -95,15 +95,13 @@ export const parameters = {
 		),
 	},
 	options: {
-		storySort: {
-			order: [
+		storySort: ( a, b ) => {
+			const SECTION_ORDER = [
 				'Docs',
 				'Playground',
 				'BlockEditor',
 				'Components',
 				[
-					'Introduction',
-					'Contributing Guidelines',
 					'Actions',
 					'Containers',
 					'Feedback',
@@ -111,29 +109,142 @@ export const parameters = {
 					'Navigation',
 					'Overlays',
 					'Selection & Input',
-					[
-						'Color',
-						'Common',
-						'File Upload',
-						'Time & Date',
-						'Validated Form Controls',
-						[ 'Overview' ],
-					],
 					'Typography',
 					'Utilities',
 				],
-				[
-					'Actions',
-					'Layout',
-					'Navigation',
-					'Overlays',
-					'Selection & Input',
-					'Typography',
-				],
 				'Icons',
 				'Design System',
-				[ 'Introduction', 'Theme', 'Components', [ 'Introduction' ] ],
-			],
+			];
+			const PRIORITIZED_MDX_DOCS = [ 'Introduction', 'Overview' ];
+
+			// Get order index for a name in an order array (skipping nested arrays)
+			const getOrderIndex = ( orderArray, name ) => {
+				let index = 0;
+				for ( const item of orderArray ) {
+					if ( item === name ) {
+						return index;
+					}
+					if ( ! Array.isArray( item ) ) {
+						index++;
+					}
+				}
+				return index; // Not found, put at end
+			};
+
+			// Get the nested order array that follows a name
+			const getNestedOrder = ( orderArray, name ) => {
+				for ( let i = 0; i < orderArray.length; i++ ) {
+					if (
+						orderArray[ i ] === name &&
+						Array.isArray( orderArray[ i + 1 ] )
+					) {
+						return orderArray[ i + 1 ];
+					}
+				}
+				return [];
+			};
+
+			// Check if an entry is an MDX doc page ending at a specific path depth
+			const isMdxAtDepth = ( entry, path, depth ) =>
+				entry.type === 'docs' &&
+				path.length === depth + 1 &&
+				entry.importPath?.endsWith( '.mdx' );
+
+			const aPath = a.title.split( '/' );
+			const bPath = b.title.split( '/' );
+			const maxDepth = Math.max( aPath.length, bPath.length );
+
+			let currentOrder = SECTION_ORDER;
+
+			for ( let depth = 0; depth < maxDepth; depth++ ) {
+				const aSegment = aPath[ depth ];
+				const bSegment = bPath[ depth ];
+
+				// If one path is shorter, check if the longer one is an MDX doc
+				// that should appear before stories at the parent level
+				if ( aSegment === undefined && bSegment !== undefined ) {
+					// MDX subfolder comes before parent's stories
+					if (
+						a.type === 'story' &&
+						isMdxAtDepth( b, bPath, depth )
+					) {
+						return 1;
+					}
+					return -1;
+				}
+				if ( aSegment !== undefined && bSegment === undefined ) {
+					// MDX subfolder comes before parent's stories
+					if (
+						b.type === 'story' &&
+						isMdxAtDepth( a, aPath, depth )
+					) {
+						return -1;
+					}
+					return 1;
+				}
+
+				if ( aSegment !== bSegment ) {
+					// MDX pages (importPath ends in .mdx) come before components
+					// (whose autodocs are generated from .story.tsx files)
+					const aIsMdx = isMdxAtDepth( a, aPath, depth );
+					const bIsMdx = isMdxAtDepth( b, bPath, depth );
+
+					if ( aIsMdx !== bIsMdx ) {
+						return aIsMdx ? -1 : 1;
+					}
+
+					// Among MDX pages, prioritize those in PRIORITIZED_MDX_DOCS
+					if ( aIsMdx && bIsMdx ) {
+						const aIsPrioritized =
+							PRIORITIZED_MDX_DOCS.includes( aSegment );
+						const bIsPrioritized =
+							PRIORITIZED_MDX_DOCS.includes( bSegment );
+						if ( aIsPrioritized !== bIsPrioritized ) {
+							return aIsPrioritized ? -1 : 1;
+						}
+					}
+
+					const aIndex = getOrderIndex( currentOrder, aSegment );
+					const bIndex = getOrderIndex( currentOrder, bSegment );
+					if ( aIndex !== bIndex ) {
+						return aIndex - bIndex;
+					}
+					// Same index (both not in order list), sort alphabetically
+					return aSegment.localeCompare( bSegment );
+				}
+
+				// Same segment, descend into nested order
+				currentOrder = getNestedOrder( currentOrder, aSegment );
+			}
+
+			// Same title - sort by type:
+			// 0: autodocs "Docs"
+			// 1: prioritized MDX pages (Introduction, Overview, etc.)
+			// 2: other MDX docs
+			// 3: stories (which appear before subfolders due to shorter paths)
+			const getPriority = ( entry ) => {
+				if ( entry.type === 'docs' && entry.name === 'Docs' ) {
+					return 0;
+				}
+				if (
+					entry.type === 'docs' &&
+					PRIORITIZED_MDX_DOCS.includes( entry.name )
+				) {
+					return 1;
+				}
+				if ( entry.type === 'docs' ) {
+					return 2;
+				}
+				return 3;
+			};
+			const aPriority = getPriority( a );
+			const bPriority = getPriority( b );
+			if ( aPriority !== bPriority ) {
+				return aPriority - bPriority;
+			}
+
+			// Same priority, sort alphabetically by name
+			return a.name.localeCompare( b.name );
 		},
 	},
 };