diff --git a/plugins/woocommerce/changelog/fix-35639_attribute_term_sort_order b/plugins/woocommerce/changelog/fix-35639_attribute_term_sort_order
new file mode 100644
index 00000000000..1ba8b7e0ff0
--- /dev/null
+++ b/plugins/woocommerce/changelog/fix-35639_attribute_term_sort_order
@@ -0,0 +1,4 @@
+Significance: patch
+Type: fix
+
+Fix issue where attribute term dropdown was not adhering to sort order setting.
diff --git a/plugins/woocommerce/client/legacy/js/admin/wc-enhanced-select.js b/plugins/woocommerce/client/legacy/js/admin/wc-enhanced-select.js
index b77da8e08b1..4d35445642e 100644
--- a/plugins/woocommerce/client/legacy/js/admin/wc-enhanced-select.js
+++ b/plugins/woocommerce/client/legacy/js/admin/wc-enhanced-select.js
@@ -324,6 +324,7 @@ jQuery( function( $ ) {
 								return {
 									taxonomy: $( this ).data( 'taxonomy' ),
 									limit:    $( this ).data( 'limit' ),
+									orderby:  $( this ).data( 'orderby'),
 									term:     params.term,
 									action:   'woocommerce_json_search_taxonomy_terms',
 									security: wc_enhanced_select_params.search_taxonomy_terms_nonce
diff --git a/plugins/woocommerce/includes/admin/meta-boxes/views/html-product-attribute.php b/plugins/woocommerce/includes/admin/meta-boxes/views/html-product-attribute.php
index bd836803ae4..f63e6444159 100644
--- a/plugins/woocommerce/includes/admin/meta-boxes/views/html-product-attribute.php
+++ b/plugins/woocommerce/includes/admin/meta-boxes/views/html-product-attribute.php
@@ -37,13 +37,17 @@ if ( ! defined( 'ABSPATH' ) ) {
 							}
 
 							if ( 'select' === $attribute_taxonomy->attribute_type ) {
+								$attribute_orderby = ! empty( $attribute_taxonomy->attribute_orderby ) ? $attribute_taxonomy->attribute_orderby : 'name';
 								?>
-								<select multiple="multiple" data-minimum_input_length="0" data-limit="50" data-return_id="id" data-placeholder="<?php esc_attr_e( 'Select terms', 'woocommerce' ); ?>" class="multiselect attribute_values wc-taxonomy-term-search" name="attribute_values[<?php echo esc_attr( $i ); ?>][]" data-taxonomy="<?php echo esc_attr( $attribute->get_taxonomy() ); ?>">
+								<select multiple="multiple"
+										data-minimum_input_length="0"
+										data-limit="50" data-return_id="id"
+										data-placeholder="<?php esc_attr_e( 'Select terms', 'woocommerce' ); ?>"
+										data-orderby="<?php echo esc_attr( $attribute_orderby ); ?>"
+										class="multiselect attribute_values wc-taxonomy-term-search"
+										name="attribute_values[<?php echo esc_attr( $i ); ?>][]"
+										data-taxonomy="<?php echo esc_attr( $attribute->get_taxonomy() ); ?>">
 									<?php
-									$args           = array(
-										'orderby'    => ! empty( $attribute_taxonomy->attribute_orderby ) ? $attribute_taxonomy->attribute_orderby : 'name',
-										'hide_empty' => 0,
-									);
 									$selected_terms = $attribute->get_terms();
 									if ( $selected_terms ) {
 										foreach ( $selected_terms as $selected_term ) {
diff --git a/plugins/woocommerce/includes/class-wc-ajax.php b/plugins/woocommerce/includes/class-wc-ajax.php
index 9e7b0b5d1d8..375b1d5a674 100644
--- a/plugins/woocommerce/includes/class-wc-ajax.php
+++ b/plugins/woocommerce/includes/class-wc-ajax.php
@@ -1745,10 +1745,11 @@ class WC_AJAX {
 		$search_text = isset( $_GET['term'] ) ? wc_clean( wp_unslash( $_GET['term'] ) ) : '';
 		$limit       = isset( $_GET['limit'] ) ? absint( wp_unslash( $_GET['limit'] ) ) : null;
 		$taxonomy    = isset( $_GET['taxonomy'] ) ? wc_clean( wp_unslash( $_GET['taxonomy'] ) ) : '';
+		$orderby     = isset( $_GET['orderby'] ) ? wc_clean( wp_unslash( $_GET['orderby'] ) ) : 'name';
 
 		$args = array(
 			'taxonomy'        => $taxonomy,
-			'orderby'         => 'id',
+			'orderby'         => $orderby,
 			'order'           => 'ASC',
 			'hide_empty'      => false,
 			'fields'          => 'all',