diff --git a/plugins/woocommerce-blocks/assets/js/blocks/collection-filters/inner-blocks/stock-filter/block.json b/plugins/woocommerce-blocks/assets/js/blocks/collection-filters/inner-blocks/stock-filter/block.json
new file mode 100644
index 00000000000..bd489fa977e
--- /dev/null
+++ b/plugins/woocommerce-blocks/assets/js/blocks/collection-filters/inner-blocks/stock-filter/block.json
@@ -0,0 +1,46 @@
+{
+	"name": "woocommerce/collection-stock-filter",
+	"version": "1.0.0",
+	"title": "Stock Filter",
+	"description": "Enable customers to filter the product collection by stock status.",
+	"category": "woocommerce",
+	"keywords": [ "WooCommerce", "filter", "stock" ],
+	"supports": {
+		"interactivity": true,
+		"html": false,
+		"multiple": false
+	},
+	"attributes": {
+		"className": {
+			"type": "string",
+			"default": ""
+		},
+		"showCounts": {
+			"type": "boolean",
+			"default": false
+		},
+		"displayStyle": {
+			"type": "string",
+			"default": "list"
+		},
+		"selectType": {
+			"type": "string",
+			"default": "multiple"
+		},
+		"isPreview": {
+			"type": "boolean",
+			"default": false
+		},
+		"queryParam": {
+			"type": "object",
+			"default": {
+				"calculate_stock_status_counts": "true"
+			}
+		}
+	},
+	"usesContext": [ "collectionData" ],
+	"ancestor": [ "woocommerce/collection-filters" ],
+	"textdomain": "woo-gutenberg-products-block",
+	"apiVersion": 2,
+	"$schema": "https://schemas.wp.org/trunk/block.json"
+}
diff --git a/plugins/woocommerce-blocks/assets/js/blocks/collection-filters/inner-blocks/stock-filter/components/inspector.tsx b/plugins/woocommerce-blocks/assets/js/blocks/collection-filters/inner-blocks/stock-filter/components/inspector.tsx
new file mode 100644
index 00000000000..973a125e052
--- /dev/null
+++ b/plugins/woocommerce-blocks/assets/js/blocks/collection-filters/inner-blocks/stock-filter/components/inspector.tsx
@@ -0,0 +1,96 @@
+/**
+ * External dependencies
+ */
+import { InspectorControls } from '@wordpress/block-editor';
+import { __ } from '@wordpress/i18n';
+import {
+	PanelBody,
+	ToggleControl,
+	// eslint-disable-next-line @wordpress/no-unsafe-wp-apis
+	__experimentalToggleGroupControl as ToggleGroupControl,
+	// eslint-disable-next-line @wordpress/no-unsafe-wp-apis
+	__experimentalToggleGroupControlOption as ToggleGroupControlOption,
+} from '@wordpress/components';
+
+/**
+ * Internal dependencies
+ */
+import { EditProps } from '../types';
+
+export const Inspector = ( { attributes, setAttributes }: EditProps ) => {
+	const { showCounts, selectType, displayStyle } = attributes;
+
+	return (
+		<InspectorControls key="inspector">
+			<PanelBody
+				title={ __(
+					'Display Settings',
+					'woo-gutenberg-products-block'
+				) }
+			>
+				<ToggleControl
+					label={ __(
+						'Display product count',
+						'woo-gutenberg-products-block'
+					) }
+					checked={ showCounts }
+					onChange={ () =>
+						setAttributes( {
+							showCounts: ! showCounts,
+						} )
+					}
+				/>
+				<ToggleGroupControl
+					label={ __(
+						'Allow selecting multiple options?',
+						'woo-gutenberg-products-block'
+					) }
+					value={ selectType || 'multiple' }
+					onChange={ ( value: string ) =>
+						setAttributes( {
+							selectType: value,
+						} )
+					}
+					className="wc-block-attribute-filter__multiple-toggle"
+				>
+					<ToggleGroupControlOption
+						value="multiple"
+						label={ __(
+							'Multiple',
+							'woo-gutenberg-products-block'
+						) }
+					/>
+					<ToggleGroupControlOption
+						value="single"
+						label={ __( 'Single', 'woo-gutenberg-products-block' ) }
+					/>
+				</ToggleGroupControl>
+				<ToggleGroupControl
+					label={ __(
+						'Display Style',
+						'woo-gutenberg-products-block'
+					) }
+					value={ displayStyle }
+					onChange={ ( value ) =>
+						setAttributes( {
+							displayStyle: value,
+						} )
+					}
+					className="wc-block-attribute-filter__display-toggle"
+				>
+					<ToggleGroupControlOption
+						value="list"
+						label={ __( 'List', 'woo-gutenberg-products-block' ) }
+					/>
+					<ToggleGroupControlOption
+						value="dropdown"
+						label={ __(
+							'Dropdown',
+							'woo-gutenberg-products-block'
+						) }
+					/>
+				</ToggleGroupControl>
+			</PanelBody>
+		</InspectorControls>
+	);
+};
diff --git a/plugins/woocommerce-blocks/assets/js/blocks/collection-filters/inner-blocks/stock-filter/edit.tsx b/plugins/woocommerce-blocks/assets/js/blocks/collection-filters/inner-blocks/stock-filter/edit.tsx
new file mode 100644
index 00000000000..de7bfc23242
--- /dev/null
+++ b/plugins/woocommerce-blocks/assets/js/blocks/collection-filters/inner-blocks/stock-filter/edit.tsx
@@ -0,0 +1,131 @@
+/**
+ * External dependencies
+ */
+import { useMemo } from '@wordpress/element';
+import classnames from 'classnames';
+import { useBlockProps } from '@wordpress/block-editor';
+import { Disabled } from '@wordpress/components';
+import { __ } from '@wordpress/i18n';
+import { Icon, chevronDown } from '@wordpress/icons';
+import { ProductQueryContext as Context } from '@woocommerce/blocks/product-query/types';
+import { CheckboxList } from '@woocommerce/blocks-components';
+import Label from '@woocommerce/base-components/filter-element-label';
+import FormTokenField from '@woocommerce/base-components/form-token-field';
+import type { BlockEditProps } from '@wordpress/blocks';
+import { getSetting } from '@woocommerce/settings';
+import {
+	useCollectionData,
+	useQueryStateByContext,
+} from '@woocommerce/base-context/hooks';
+
+/**
+ * Internal dependencies
+ */
+import { BlockProps } from './types';
+import { Inspector } from './components/inspector';
+
+type CollectionData = {
+	// attribute_counts: null | unknown;
+	// price_range: null | unknown;
+	// rating_counts: null | unknown;
+	stock_status_counts: StockStatusCount[];
+};
+
+type StockStatusCount = {
+	status: string;
+	count: number;
+};
+
+const Edit = ( props: BlockEditProps< BlockProps > & { context: Context } ) => {
+	const blockProps = useBlockProps( {
+		className: classnames(
+			'wc-block-stock-filter',
+			props.attributes.className
+		),
+	} );
+
+	const { showCounts, displayStyle } = props.attributes;
+	const stockStatusOptions: Record< string, string > = getSetting(
+		'stockStatusOptions',
+		{}
+	);
+
+	const [ queryState ] = useQueryStateByContext();
+
+	const { results: filteredCounts } = useCollectionData( {
+		queryStock: true,
+		queryState,
+		isEditor: true,
+	} );
+
+	const listOptions = useMemo( () => {
+		return Object.entries( stockStatusOptions ).map( ( [ key, value ] ) => {
+			const count =
+				// @ts-expect-error - there is a fault with useCollectionData types, it can be non-array.
+				( filteredCounts as CollectionData )?.stock_status_counts?.find(
+					( item: StockStatusCount ) => item.status === key
+				)?.count;
+
+			return {
+				value: key,
+				label: (
+					<Label
+						name={ value }
+						count={ showCounts && count ? Number( count ) : null }
+					/>
+				),
+			};
+		} );
+	}, [ stockStatusOptions, filteredCounts, showCounts ] );
+
+	return (
+		<>
+			{
+				<div { ...blockProps }>
+					<Inspector { ...props } />
+					<Disabled>
+						<div
+							className={ classnames(
+								'wc-block-stock-filter',
+								`style-${ displayStyle }`,
+								{
+									'is-loading': false,
+								}
+							) }
+						>
+							{ displayStyle === 'dropdown' ? (
+								<>
+									<FormTokenField
+										className={ classnames( {
+											'single-selection': true,
+											'is-loading': false,
+										} ) }
+										suggestions={ [] }
+										placeholder={ __(
+											'Select stock status',
+											'woo-gutenberg-products-block'
+										) }
+										onChange={ () => null }
+										value={ [] }
+									/>
+									<Icon icon={ chevronDown } size={ 30 } />
+								</>
+							) : (
+								<CheckboxList
+									className={ 'wc-block-stock-filter-list' }
+									options={ listOptions }
+									checked={ [] }
+									onChange={ () => null }
+									isLoading={ false }
+									isDisabled={ true }
+								/>
+							) }
+						</div>
+					</Disabled>
+				</div>
+			}
+		</>
+	);
+};
+
+export default Edit;
diff --git a/plugins/woocommerce-blocks/assets/js/blocks/collection-filters/inner-blocks/stock-filter/frontend.ts b/plugins/woocommerce-blocks/assets/js/blocks/collection-filters/inner-blocks/stock-filter/frontend.ts
new file mode 100644
index 00000000000..ec6e2e54c47
--- /dev/null
+++ b/plugins/woocommerce-blocks/assets/js/blocks/collection-filters/inner-blocks/stock-filter/frontend.ts
@@ -0,0 +1,79 @@
+/**
+ * External dependencies
+ */
+import {
+	store as interactivityStore,
+	navigate,
+} from '@woocommerce/interactivity';
+import { DropdownContext } from '@woocommerce/interactivity-components/dropdown';
+import { HTMLElementEvent } from '@woocommerce/types';
+
+const getUrl = ( activeFilters: string ) => {
+	const url = new URL( window.location.href );
+	const { searchParams } = url;
+
+	if ( activeFilters !== '' ) {
+		searchParams.set( 'filter_stock_status', activeFilters );
+	} else {
+		searchParams.delete( 'filter_stock_status' );
+	}
+
+	return url.href;
+};
+
+type StockFilterState = {
+	filters: {
+		stockStatus: string;
+		activeFilters: string;
+		showDropdown: boolean;
+	};
+};
+
+type ActionProps = {
+	state: StockFilterState;
+	event: HTMLElementEvent< HTMLInputElement >;
+};
+
+interactivityStore( {
+	state: {
+		filters: {
+			stockStatus: '',
+		},
+	},
+	actions: {
+		filters: {
+			navigate: ( { context }: { context: DropdownContext } ) => {
+				if ( context.woocommerceDropdown.selectedItem.value ) {
+					navigate(
+						getUrl( context.woocommerceDropdown.selectedItem.value )
+					);
+				}
+			},
+			updateProducts: ( { event }: ActionProps ) => {
+				// get the active filters from the url:
+				const url = new URL( window.location.href );
+				const currentFilters =
+					url.searchParams.get( 'filter_stock_status' ) || '';
+
+				// split out the active filters into an array.
+				const filtersArr =
+					currentFilters === '' ? [] : currentFilters.split( ',' );
+
+				// if checked and not already in activeFilters, add to activeFilters
+				// if not checked and in activeFilters, remove from activeFilters.
+				if ( event.target.checked ) {
+					if ( ! currentFilters.includes( event.target.value ) ) {
+						filtersArr.push( event.target.value );
+					}
+				} else {
+					const index = filtersArr.indexOf( event.target.value );
+					if ( index > -1 ) {
+						filtersArr.splice( index, 1 );
+					}
+				}
+
+				navigate( getUrl( filtersArr.join( ',' ) ) );
+			},
+		},
+	},
+} );
diff --git a/plugins/woocommerce-blocks/assets/js/blocks/collection-filters/inner-blocks/stock-filter/index.tsx b/plugins/woocommerce-blocks/assets/js/blocks/collection-filters/inner-blocks/stock-filter/index.tsx
new file mode 100644
index 00000000000..d87742faff0
--- /dev/null
+++ b/plugins/woocommerce-blocks/assets/js/blocks/collection-filters/inner-blocks/stock-filter/index.tsx
@@ -0,0 +1,27 @@
+/**
+ * External dependencies
+ */
+import { registerBlockType } from '@wordpress/blocks';
+import { Icon, box } from '@wordpress/icons';
+import { isExperimentalBuild } from '@woocommerce/block-settings';
+
+/**
+ * Internal dependencies
+ */
+import './style.scss';
+import edit from './edit';
+import metadata from './block.json';
+
+if ( isExperimentalBuild() ) {
+	registerBlockType( metadata, {
+		icon: {
+			src: (
+				<Icon
+					icon={ box }
+					className="wc-block-editor-components-block-icon"
+				/>
+			),
+		},
+		edit,
+	} );
+}
diff --git a/plugins/woocommerce-blocks/assets/js/blocks/collection-filters/inner-blocks/stock-filter/preview.tsx b/plugins/woocommerce-blocks/assets/js/blocks/collection-filters/inner-blocks/stock-filter/preview.tsx
new file mode 100644
index 00000000000..ea7735516ea
--- /dev/null
+++ b/plugins/woocommerce-blocks/assets/js/blocks/collection-filters/inner-blocks/stock-filter/preview.tsx
@@ -0,0 +1,25 @@
+/**
+ * External dependencies
+ */
+import Label from '@woocommerce/base-components/filter-element-label';
+
+export const previewOptions = [
+	{
+		value: 'preview-1',
+		name: 'In Stock',
+		label: <Label name="In Stock" count={ 3 } />,
+		textLabel: 'In Stock (3)',
+	},
+	{
+		value: 'preview-2',
+		name: 'Out of stock',
+		label: <Label name="Out of stock" count={ 3 } />,
+		textLabel: 'Out of stock (3)',
+	},
+	{
+		value: 'preview-3',
+		name: 'On backorder',
+		label: <Label name="On backorder" count={ 2 } />,
+		textLabel: 'On backorder (2)',
+	},
+];
diff --git a/plugins/woocommerce-blocks/assets/js/blocks/collection-filters/inner-blocks/stock-filter/style.scss b/plugins/woocommerce-blocks/assets/js/blocks/collection-filters/inner-blocks/stock-filter/style.scss
new file mode 100644
index 00000000000..75bbc6a6265
--- /dev/null
+++ b/plugins/woocommerce-blocks/assets/js/blocks/collection-filters/inner-blocks/stock-filter/style.scss
@@ -0,0 +1,181 @@
+@import "../../../shared/styles/style";
+
+//  Import styles we need to render the checkbox list and checkbox control.
+@import "../../../../../../packages/components/checkbox-list/style";
+@import "../../../../../../packages/checkout/components/checkbox-control/style";
+
+
+.wp-block-woocommerce-stock-filter {
+	h1,
+	h2,
+	h3,
+	h4,
+	h5,
+	h6 {
+		text-transform: inherit;
+	}
+}
+
+.wc-block-stock-filter {
+	&.is-loading {
+		@include placeholder();
+		margin-top: $gap;
+		box-shadow: none;
+		border-radius: 0;
+	}
+
+	margin-bottom: $gap-large;
+
+	.wc-block-stock-filter-list {
+		margin: 0;
+
+		li {
+			label {
+				cursor: pointer;
+			}
+
+			input {
+				cursor: pointer;
+				display: inline-block;
+			}
+		}
+	}
+
+	&.style-dropdown {
+		@include includeFormTokenFieldFix();
+		position: relative;
+		display: flex;
+		gap: $gap;
+		align-items: flex-start;
+
+		.wc-block-components-filter-submit-button {
+			height: 36px;
+			line-height: 1;
+		}
+
+		> svg {
+			position: absolute;
+			right: 8px;
+			top: 50%;
+			transform: translateY(-50%);
+			pointer-events: none;
+		}
+	}
+
+	.wc-blocks-components-form-token-field-wrapper {
+		flex-grow: 1;
+		max-width: unset;
+		width: 0;
+		height: max-content;
+
+		&:not(.is-loading) {
+			border: 1px solid $gray-700 !important;
+			border-radius: 4px;
+		}
+
+		&.is-loading {
+			border-radius: em(4px);
+		}
+
+		.components-form-token-field {
+			border-radius: inherit;
+		}
+	}
+
+	.wc-blocks-components-form-token-field-wrapper .components-form-token-field__input-container {
+		@include reset-color();
+		@include reset-typography();
+		border: 0;
+		padding: $gap-smaller;
+		border-radius: inherit;
+
+		.components-form-token-field__input {
+			@include font-size(small);
+
+			&::placeholder {
+				color: $black;
+			}
+		}
+
+		.components-form-token-field__suggestions-list {
+			border: 1px solid $gray-700;
+			border-radius: 4px;
+			margin-top: $gap-smaller;
+			max-height: 21em;
+
+			.components-form-token-field__suggestion {
+				color: $black;
+				border: 1px solid $gray-400;
+				border-radius: 4px;
+				margin: $gap-small;
+				padding: $gap-small;
+			}
+		}
+
+		.components-form-token-field__token,
+		.components-form-token-field__suggestion {
+			@include font-size(small);
+		}
+	}
+
+	.wc-block-components-product-rating {
+		margin-bottom: 0;
+	}
+}
+
+.wc-blocks-components-form-token-field-wrapper:not(.single-selection) .components-form-token-field__input-container {
+	padding: $gap-smallest 30px $gap-smallest  $gap-smaller;
+
+	.components-form-token-field__token-text {
+		background-color: $white;
+		border: 1px solid;
+		border-right: 0;
+		border-radius: 25px 0 0 25px;
+		padding: em($gap-smallest) em($gap-smaller) em($gap-smallest) em($gap-small);
+		line-height: 22px;
+	}
+
+	> .components-form-token-field__input {
+		margin: em($gap-smallest) 0;
+	}
+
+	.components-button.components-form-token-field__remove-token {
+		background-color: $white;
+		border: 1px solid;
+		border-left: 0;
+		border-radius: 0 25px 25px 0;
+		padding: 1px em($gap-smallest) 0 0;
+
+		&.has-icon svg {
+			background-color: $gray-200;
+			border-radius: 25px;
+		}
+	}
+}
+
+.wc-block-stock-filter__actions {
+	align-items: center;
+	display: flex;
+	gap: $gap;
+	justify-content: flex-end;
+	margin-top: $gap;
+
+	// The specificity here is needed to overwrite the margin-top that is inherited on WC block template pages such as Shop.
+	button[type="submit"]:not(.wp-block-search__button).wc-block-components-filter-submit-button {
+		margin-left: 0;
+		margin-top: 0;
+		@include font-size(small);
+	}
+
+	.wc-block-stock-filter__button {
+		margin-top: em($gap-smaller);
+		padding: em($gap-smaller) em($gap);
+		@include font-size(small);
+	}
+}
+
+.editor-styles-wrapper .wc-block-stock-filter .wc-block-stock-filter__button {
+	margin-top: em($gap-smaller);
+	padding: em($gap-smaller) em($gap);
+	@include font-size(small);
+}
diff --git a/plugins/woocommerce-blocks/assets/js/blocks/collection-filters/inner-blocks/stock-filter/types.ts b/plugins/woocommerce-blocks/assets/js/blocks/collection-filters/inner-blocks/stock-filter/types.ts
new file mode 100644
index 00000000000..73ec85a5967
--- /dev/null
+++ b/plugins/woocommerce-blocks/assets/js/blocks/collection-filters/inner-blocks/stock-filter/types.ts
@@ -0,0 +1,27 @@
+/**
+ * External dependencies
+ */
+import { BlockEditProps } from '@wordpress/blocks';
+
+export interface BlockProps {
+	className?: string;
+	showCounts: boolean;
+	isPreview?: boolean;
+	displayStyle: string;
+	selectType: string;
+	isEditor: boolean;
+}
+
+export interface DisplayOption {
+	value: string;
+	name: string;
+	label: JSX.Element;
+	textLabel: string;
+}
+
+export type Current = {
+	slug: string;
+	name: string;
+};
+
+export type EditProps = BlockEditProps< BlockProps >;
diff --git a/plugins/woocommerce-blocks/assets/js/interactivity/directives.js b/plugins/woocommerce-blocks/assets/js/interactivity/directives.js
index b747fa0cfdf..fc870f8e5b7 100644
--- a/plugins/woocommerce-blocks/assets/js/interactivity/directives.js
+++ b/plugins/woocommerce-blocks/assets/js/interactivity/directives.js
@@ -1,4 +1,10 @@
-import { useContext, useMemo, useEffect, useLayoutEffect } from 'preact/hooks';
+import {
+	useContext,
+	useMemo,
+	useEffect,
+	useLayoutEffect,
+	useRef,
+} from 'preact/hooks';
 import { deepSignal, peek } from 'deepsignal';
 import { useSignalEffect } from './utils';
 import { directive } from './hooks';
@@ -7,18 +13,16 @@ import { prefetch, navigate } from './router';
 const isObject = ( item ) =>
 	item && typeof item === 'object' && ! Array.isArray( item );
 
-const mergeDeepSignals = ( target, source ) => {
+const mergeDeepSignals = ( target, source, overwrite ) => {
 	for ( const k in source ) {
-		if ( typeof peek( target, k ) === 'undefined' ) {
-			target[ `$${ k }` ] = source[ `$${ k }` ];
-		} else if (
-			isObject( peek( target, k ) ) &&
-			isObject( peek( source, k ) )
-		) {
+		if ( isObject( peek( target, k ) ) && isObject( peek( source, k ) ) ) {
 			mergeDeepSignals(
 				target[ `$${ k }` ].peek(),
-				source[ `$${ k }` ].peek()
+				source[ `$${ k }` ].peek(),
+				overwrite
 			);
+		} else if ( overwrite || typeof peek( target, k ) === 'undefined' ) {
+			target[ `$${ k }` ] = source[ `$${ k }` ];
 		}
 	}
 };
@@ -29,20 +33,24 @@ export default () => {
 		'context',
 		( {
 			directives: {
-				context: { default: context },
+				context: { default: newContext },
 			},
 			props: { children },
-			context: inherited,
+			context: inheritedContext,
 		} ) => {
-			const { Provider } = inherited;
-			const inheritedValue = useContext( inherited );
-			const value = useMemo( () => {
-				const localValue = deepSignal( context );
-				mergeDeepSignals( localValue, inheritedValue );
-				return localValue;
-			}, [ context, inheritedValue ] );
+			const { Provider } = inheritedContext;
+			const inheritedValue = useContext( inheritedContext );
+			const currentValue = useRef( deepSignal( {} ) );
+			currentValue.current = useMemo( () => {
+				const newValue = deepSignal( newContext );
+				mergeDeepSignals( newValue, inheritedValue );
+				mergeDeepSignals( currentValue.current, newValue, true );
+				return currentValue.current;
+			}, [ newContext, inheritedValue ] );
 
-			return <Provider value={ value }>{ children }</Provider>;
+			return (
+				<Provider value={ currentValue.current }>{ children }</Provider>
+			);
 		},
 		{ priority: 5 }
 	);
@@ -87,9 +95,17 @@ export default () => {
 	// data-wc-on--[event]
 	directive( 'on', ( { directives: { on }, element, evaluate, context } ) => {
 		const contextValue = useContext( context );
+		const events = new Map();
 		Object.entries( on ).forEach( ( [ name, path ] ) => {
-			element.props[ `on${ name }` ] = ( event ) => {
-				evaluate( path, { event, context: contextValue } );
+			const event = name.split( '--' )[ 0 ];
+			if ( ! events.has( event ) ) events.set( event, new Set() );
+			events.get( event ).add( path );
+		} );
+		events.forEach( ( paths, event ) => {
+			element.props[ `on${ event }` ] = ( event ) => {
+				paths.forEach( ( path ) => {
+					evaluate( path, { event, context: contextValue } );
+				} );
 			};
 		} );
 	} );
diff --git a/plugins/woocommerce-blocks/bin/webpack-entries.js b/plugins/woocommerce-blocks/bin/webpack-entries.js
index 3c34ac3fde0..f037be12806 100644
--- a/plugins/woocommerce-blocks/bin/webpack-entries.js
+++ b/plugins/woocommerce-blocks/bin/webpack-entries.js
@@ -96,6 +96,10 @@ const blocks = {
 	'collection-filters': {
 		isExperimental: true,
 	},
+	'collection-stock-filter': {
+		isExperimental: true,
+		customDir: 'collection-filters/inner-blocks/stock-filter',
+	},
 	'collection-price-filter': {
 		customDir: 'collection-filters/inner-blocks/price-filter',
 		isExperimental: true,
@@ -196,6 +200,10 @@ const entries = {
 		priceFormat: './packages/prices/index.js',
 		blocksCheckout: './packages/checkout/index.js',
 		blocksComponents: './packages/components/index.ts',
+
+		// interactivity components, exported as separate entries for now
+		'wc-interactivity-dropdown':
+			'./packages/interactivity-components/dropdown/index.ts',
 	},
 	main: {
 		// Shared blocks code
diff --git a/plugins/woocommerce-blocks/packages/interactivity-components/dropdown/index.ts b/plugins/woocommerce-blocks/packages/interactivity-components/dropdown/index.ts
new file mode 100644
index 00000000000..69b7180ea4b
--- /dev/null
+++ b/plugins/woocommerce-blocks/packages/interactivity-components/dropdown/index.ts
@@ -0,0 +1,95 @@
+/**
+ * External dependencies
+ */
+import { store as interactivityStore } from '@woocommerce/interactivity';
+
+export type DropdownContext = {
+	woocommerceDropdown: {
+		currentItem: {
+			label: string;
+			value: string;
+		};
+		selectedItem: {
+			label: string | null;
+			value: string | null;
+		};
+		hoveredItem: {
+			label: string | null;
+			value: string | null;
+		};
+		isOpen: boolean;
+	};
+};
+
+type Store = {
+	context: DropdownContext;
+	selectors: unknown;
+	ref: HTMLElement;
+};
+
+interactivityStore( {
+	state: {},
+	selectors: {
+		woocommerceDropdown: {
+			placeholderText: ( { context }: { context: DropdownContext } ) => {
+				const {
+					woocommerceDropdown: { selectedItem },
+				} = context;
+
+				return selectedItem.label || 'Select an option';
+			},
+			isSelected: ( { context }: { context: DropdownContext } ) => {
+				const {
+					woocommerceDropdown: {
+						currentItem: { value },
+					},
+				} = context;
+
+				return (
+					context.woocommerceDropdown.selectedItem.value === value ||
+					context.woocommerceDropdown.hoveredItem.value === value
+				);
+			},
+		},
+	},
+	actions: {
+		woocommerceDropdown: {
+			toggleIsOpen: ( store: Store ) => {
+				const {
+					context: { woocommerceDropdown },
+				} = store;
+
+				woocommerceDropdown.isOpen = ! woocommerceDropdown.isOpen;
+			},
+			selectDropdownItem: ( {
+				context,
+			}: {
+				context: DropdownContext;
+			} ) => {
+				const {
+					woocommerceDropdown: {
+						currentItem: { label, value },
+					},
+				} = context;
+
+				context.woocommerceDropdown.selectedItem = { label, value };
+				context.woocommerceDropdown.isOpen = false;
+			},
+			addHoverClass: ( { context }: { context: DropdownContext } ) => {
+				const {
+					woocommerceDropdown: {
+						currentItem: { label, value },
+					},
+				} = context;
+
+				context.woocommerceDropdown.hoveredItem = { label, value };
+			},
+			removeHoverClass: ( { context }: { context: DropdownContext } ) => {
+				context.woocommerceDropdown.hoveredItem = {
+					label: null,
+					value: null,
+				};
+			},
+		},
+	},
+} );
diff --git a/plugins/woocommerce-blocks/src/AssetsController.php b/plugins/woocommerce-blocks/src/AssetsController.php
index 3fbd7b961ac..7e81b6e948a 100644
--- a/plugins/woocommerce-blocks/src/AssetsController.php
+++ b/plugins/woocommerce-blocks/src/AssetsController.php
@@ -64,6 +64,9 @@ final class AssetsController {
 		$this->api->register_script( 'wc-blocks-checkout', 'build/blocks-checkout.js', [] );
 		$this->api->register_script( 'wc-blocks-components', 'build/blocks-components.js', [] );
 
+		// Register the interactivity components here for now.
+		$this->api->register_script( 'wc-interactivity-dropdown', 'build/wc-interactivity-dropdown.js', [] );
+
 		wp_add_inline_script(
 			'wc-blocks-middleware',
 			"
diff --git a/plugins/woocommerce-blocks/src/BlockTypes/CollectionFilters.php b/plugins/woocommerce-blocks/src/BlockTypes/CollectionFilters.php
index a3c5d24208a..d3e26974204 100644
--- a/plugins/woocommerce-blocks/src/BlockTypes/CollectionFilters.php
+++ b/plugins/woocommerce-blocks/src/BlockTypes/CollectionFilters.php
@@ -125,13 +125,7 @@ final class CollectionFilters extends AbstractBlock {
 		);
 
 		if ( ! empty( $response['body'] ) ) {
-			$normalized_response = array();
-
-			foreach ( $response['body'] as $key => $data ) {
-				$normalized_response[ $key ] = (array) $data;
-			}
-
-			return $normalized_response;
+			return json_decode( wp_json_encode( $response['body'] ), true );
 		}
 
 		return array();
diff --git a/plugins/woocommerce-blocks/src/BlockTypes/CollectionStockFilter.php b/plugins/woocommerce-blocks/src/BlockTypes/CollectionStockFilter.php
new file mode 100644
index 00000000000..2fc9c47beb4
--- /dev/null
+++ b/plugins/woocommerce-blocks/src/BlockTypes/CollectionStockFilter.php
@@ -0,0 +1,172 @@
+<?php
+namespace Automattic\WooCommerce\Blocks\BlockTypes;
+
+use Automattic\WooCommerce\Blocks\InteractivityComponents\Dropdown;
+
+/**
+ * CollectionStockFilter class.
+ */
+final class CollectionStockFilter extends AbstractBlock {
+
+	/**
+	 * Block name.
+	 *
+	 * @var string
+	 */
+	protected $block_name = 'collection-stock-filter';
+
+	const STOCK_STATUS_QUERY_VAR = 'filter_stock_status';
+
+	/**
+	 * Extra data passed through from server to client for block.
+	 *
+	 * @param array $stock_statuses  Any stock statuses that currently are available from the block.
+	 *                               Note, this will be empty in the editor context when the block is
+	 *                               not in the post content on editor load.
+	 */
+	protected function enqueue_data( array $stock_statuses = [] ) {
+		parent::enqueue_data( $stock_statuses );
+		$this->asset_data_registry->add( 'stockStatusOptions', wc_get_product_stock_status_options(), true );
+		$this->asset_data_registry->add( 'hideOutOfStockItems', 'yes' === get_option( 'woocommerce_hide_out_of_stock_items' ), true );
+	}
+
+	/**
+	 * Include and render the block.
+	 *
+	 * @param array    $attributes Block attributes. Default empty array.
+	 * @param string   $content    Block content. Default empty string.
+	 * @param WP_Block $block      Block instance.
+	 * @return string Rendered block type output.
+	 */
+	protected function render( $attributes, $content, $block ) {
+		// don't render if its admin, or ajax in progress.
+		if ( is_admin() || wp_doing_ajax() ) {
+			return '';
+		}
+
+		$stock_status_counts = $block->context['collectionData']['stock_status_counts'] ?? [];
+		$wrapper_attributes  = get_block_wrapper_attributes();
+
+		wc_store(
+			array(
+				'state' => array(
+					'filters' => array(
+						'stockStatus'   => $stock_status_counts,
+						'activeFilters' => '',
+					),
+				),
+			)
+		);
+
+		return sprintf(
+			'<div %1$s>
+				<div class="wc-block-stock-filter__controls">%2$s</div>
+				<div class="wc-block-stock-filter__actions"></div>
+			</div>',
+			$wrapper_attributes,
+			$this->get_stock_filter_html( $stock_status_counts, $attributes ),
+		);
+	}
+
+	/**
+	 * Stock filter HTML
+	 *
+	 * @param array $stock_counts       An array of stock counts.
+	 * @param array $attributes Block attributes. Default empty array.
+	 * @return string Rendered block type output.
+	 */
+	private function get_stock_filter_html( $stock_counts, $attributes ) {
+		$display_style  = $attributes['displayStyle'] ?? 'list';
+		$stock_statuses = wc_get_product_stock_status_options();
+
+		// check the url params to select initial item on page load.
+		// phpcs:ignore WordPress.Security.NonceVerification.Recommended -- Nonce verification is not required here.
+		$selected_stock_status = isset( $_GET[ self::STOCK_STATUS_QUERY_VAR ] ) ? sanitize_text_field( wp_unslash( $_GET[ self::STOCK_STATUS_QUERY_VAR ] ) ) : '';
+
+		$list_items = array_map(
+			function( $item ) use ( $stock_statuses ) {
+				return array(
+					'label' => $stock_statuses[ $item['status'] ],
+					'value' => $item['status'],
+				);
+			},
+			$stock_counts
+		);
+
+		$selected_items = array_values(
+			array_filter(
+				$list_items,
+				function( $item ) use ( $selected_stock_status ) {
+						return $item['value'] === $selected_stock_status;
+				}
+			)
+		);
+
+		// Just for the dropdown, we can only select 1 item.
+		$selected_item = $selected_items[0] ?? array(
+			'label' => null,
+			'value' => null,
+		);
+
+		ob_start();
+		?>
+
+		<?php if ( 'list' === $display_style ) : ?>
+			<div class="wc-block-stock-filter style-list">
+				<ul class="wc-block-checkbox-list wc-block-components-checkbox-list wc-block-stock-filter-list">
+					<?php foreach ( $stock_counts as $stock_count ) { ?>
+						<li>
+							<div class="wc-block-components-checkbox wc-block-checkbox-list__checkbox">
+								<label for="<?php echo esc_attr( $stock_count['status'] ); ?>">
+									<input 
+										id="<?php echo esc_attr( $stock_count['status'] ); ?>" 
+										class="wc-block-components-checkbox__input" 
+										type="checkbox" 
+										aria-invalid="false" 
+										data-wc-on--change="actions.filters.updateProducts" 
+										value="<?php echo esc_attr( $stock_count['status'] ); ?>"
+										<?php checked( strpos( $selected_stock_status, $stock_count['status'] ) !== false, 1 ); ?>
+									>
+										<svg class="wc-block-components-checkbox__mark" aria-hidden="true" xmlns="http://www.w3.org/2000/svg" viewBox="0 0 24 20">
+											<path d="M9 16.2L4.8 12l-1.4 1.4L9 19 21 7l-1.4-1.4L9 16.2z"></path>
+										</svg>
+										<span class="wc-block-components-checkbox__label">
+											<?php echo esc_html( $stock_statuses[ $stock_count['status'] ] ); ?>
+											<?php
+												// translators: %s: number of products.
+												$screen_reader_text = sprintf( _n( '%s product', '%s products', $stock_count['count'], 'woo-gutenberg-products-block' ), number_format_i18n( $stock_count['count'] ) );
+											?>
+											<span class="wc-filter-element-label-list-count">
+												<span aria-hidden="true">
+													<?php echo esc_html( $stock_count['count'] ); ?>
+												</span>
+												<span class="screen-reader-text">
+													<?php esc_html( $screen_reader_text ); ?>
+												</span>
+											</span>
+										</span>
+								</label>
+							</div>
+						</li>
+					<?php } ?>
+				</ul>
+			</div>
+		<?php endif; ?>
+
+		<?php if ( 'dropdown' === $display_style ) : ?>
+			<?php
+			// phpcs:ignore WordPress.Security.EscapeOutput.OutputNotEscaped -- Dropdown::render() escapes output.
+			echo Dropdown::render(
+				array(
+					'items'         => $list_items,
+					'action'        => 'actions.filters.navigate',
+					'selected_item' => $selected_item,
+				)
+			);
+			?>
+		<?php endif; ?>
+
+		<?php
+		return ob_get_clean();
+	}
+}
diff --git a/plugins/woocommerce-blocks/src/BlockTypesController.php b/plugins/woocommerce-blocks/src/BlockTypesController.php
index d97c1773093..26fe7d3dd1b 100644
--- a/plugins/woocommerce-blocks/src/BlockTypesController.php
+++ b/plugins/woocommerce-blocks/src/BlockTypesController.php
@@ -296,6 +296,7 @@ final class BlockTypesController {
 			$block_types[] = 'ProductGalleryPager';
 			$block_types[] = 'ProductGalleryThumbnails';
 			$block_types[] = 'CollectionFilters';
+			$block_types[] = 'CollectionStockFilter';
 			$block_types[] = 'CollectionPriceFilter';
 		}
 
diff --git a/plugins/woocommerce-blocks/src/InteractivityComponents/Dropdown.php b/plugins/woocommerce-blocks/src/InteractivityComponents/Dropdown.php
new file mode 100644
index 00000000000..73c41ba9dc6
--- /dev/null
+++ b/plugins/woocommerce-blocks/src/InteractivityComponents/Dropdown.php
@@ -0,0 +1,85 @@
+<?php
+
+namespace Automattic\WooCommerce\Blocks\InteractivityComponents;
+
+/**
+ * Dropdown class. This is a component for reuse with interactivity API.
+ *
+ * @package Automattic\WooCommerce\Blocks\InteractivityComponents
+ */
+class Dropdown {
+	/**
+	 * Render the dropdown.
+	 *
+	 * @param mixed $props The properties to render the dropdown with.
+	 * @return string|false
+	 */
+	public static function render( $props ) {
+		wp_enqueue_script( 'wc-interactivity-dropdown' );
+
+		$selected_item = $props['selected_item'] ?? array(
+			'label' => null,
+			'value' => null,
+		);
+
+		$dropdown_context = array(
+			'woocommerceDropdown' => array(
+				'selectedItem' => $selected_item,
+				'hoveredItem'  => array(
+					'label' => null,
+					'value' => null,
+				),
+				'isOpen'       => false,
+			),
+		);
+
+		$action = $props['action'] ?? '';
+
+		// Items should be an array of objects with a label and value property.
+		$items = $props['items'] ?? [];
+
+		ob_start();
+		?>
+	<div class="wc-block-stock-filter style-dropdown" data-wc-context='<?php echo wp_json_encode( $dropdown_context ); ?>' >
+		<div class="wc-blocks-components-form-token-field-wrapper single-selection" >
+			<div class="components-form-token-field" tabindex="-1">
+				<div class="components-form-token-field__input-container" 
+							data-wc-class--is-active="context.woocommerceDropdown.isOpen" 
+							tabindex="-1" 
+							data-wc-on--click="actions.woocommerceDropdown.toggleIsOpen" 
+					>
+					<input id="components-form-token-input-1" type="text" autocomplete="off" data-wc-bind--placeholder="selectors.woocommerceDropdown.placeholderText" class="components-form-token-field__input" role="combobox" aria-expanded="false" aria-autocomplete="list" aria-describedby="components-form-token-suggestions-howto-1" value="">
+					<ul hidden data-wc-bind--hidden="!context.woocommerceDropdown.isOpen" class="components-form-token-field__suggestions-list" id="components-form-token-suggestions-1" role="listbox">
+						<?php
+						foreach ( $items as $item ) :
+							$context = array(
+								'woocommerceDropdown' => array( 'currentItem' => $item ),
+								JSON_NUMERIC_CHECK,
+							);
+							?>
+							<li
+								role="option" 
+								data-wc-on--click--select-item="actions.woocommerceDropdown.selectDropdownItem" 
+								data-wc-on--click--parent-action="<?php echo esc_attr( $action ); ?>" 
+								data-wc-class--is-selected="selectors.woocommerceDropdown.isSelected" 
+								data-wc-on--mouseover="actions.woocommerceDropdown.addHoverClass" 
+								data-wc-on--mouseout="actions.woocommerceDropdown.removeHoverClass" 
+								data-wc-context='<?php echo wp_json_encode( $context ); ?>' 
+								class="components-form-token-field__suggestion" 
+								data-wc-bind--aria-selected="selectors.woocommerceDropdown.isSelected"
+							>
+							<?php echo esc_html( $item['label'] ); ?>
+							</li>
+						<?php endforeach; ?>
+					</ul>
+				</div>
+			</div>
+								</div>
+		<svg viewBox="0 0 24 24" xmlns="http://www.w3.org/2000/svg" width="30" height="30" >
+			<path d="M17.5 11.6L12 16l-5.5-4.4.9-1.2L12 14l4.5-3.6 1 1.2z" ></path>
+		</svg>      
+	</div>
+		<?php
+		return ob_get_clean();
+	}
+}
diff --git a/plugins/woocommerce-blocks/tsconfig.base.json b/plugins/woocommerce-blocks/tsconfig.base.json
index e0e7e8fa392..68f757b563b 100644
--- a/plugins/woocommerce-blocks/tsconfig.base.json
+++ b/plugins/woocommerce-blocks/tsconfig.base.json
@@ -52,6 +52,9 @@
 			"@woocommerce/blocks-registry": [ "assets/js/blocks-registry" ],
 			"@woocommerce/blocks-checkout": [ "packages/checkout" ],
 			"@woocommerce/blocks-components": [ "packages/components" ],
+			"@woocommerce/interactivity-components/*": [
+				"packages/interactivity-components/*"
+			],
 			"@woocommerce/price-format": [ "packages/prices" ],
 			"@woocommerce/block-settings": [ "assets/js/settings/blocks" ],
 			"@woocommerce/icons": [ "assets/js/icons" ],
diff --git a/plugins/woocommerce-blocks/tsconfig.json b/plugins/woocommerce-blocks/tsconfig.json
index d72843dce87..9d58bf3d770 100644
--- a/plugins/woocommerce-blocks/tsconfig.json
+++ b/plugins/woocommerce-blocks/tsconfig.json
@@ -4,6 +4,7 @@
 		"./assets/js/**/*",
 		"./packages/checkout/**/*",
 		"./packages/components/**/*",
+		"./packages/interactivity-components/**/*",
 		"./assets/js/blocks/**/block.json",
 		"./assets/js/atomic/blocks/**/block.json",
 		"./assets/js/blocks/mini-cart/mini-cart-contents/inner-blocks/**/block.json",