diff --git a/.changeset/fruity-singers-rule.md b/.changeset/fruity-singers-rule.md
new file mode 100644
index 000000000..db4a9dc80
--- /dev/null
+++ b/.changeset/fruity-singers-rule.md
@@ -0,0 +1,5 @@
+---
+"bits-ui": patch
+---
+
+fix(Pin Input): keyboard navigation
diff --git a/packages/bits-ui/src/lib/bits/pin-input/pin-input.svelte.ts b/packages/bits-ui/src/lib/bits/pin-input/pin-input.svelte.ts
index ef6561c30..dcb461e03 100644
--- a/packages/bits-ui/src/lib/bits/pin-input/pin-input.svelte.ts
+++ b/packages/bits-ui/src/lib/bits/pin-input/pin-input.svelte.ts
@@ -350,14 +350,14 @@ export class PinInputRootState {
 				} else if (maxLength > 1 && val.length > 1) {
 					let offset = 0;
 					if (prev[0] !== null && prev[1] !== null) {
-						direction = c < prev[0] ? "backward" : "forward";
+						direction = c < prev[1] ? "backward" : "forward";
 						const wasPreviouslyInserting = prev[0] === prev[1] && prev[0] < maxLength;
 						if (direction === "backward" && !wasPreviouslyInserting) {
 							offset = -1;
 						}
 					}
 
-					start = offset - c;
+					start = offset + c;
 					end = offset + c + 1;
 				}
 			}
diff --git a/tests/src/tests/pin-input/pin-input.browser.test.ts b/tests/src/tests/pin-input/pin-input.browser.test.ts
index 4c9e4e43a..07a9b6197 100644
--- a/tests/src/tests/pin-input/pin-input.browser.test.ts
+++ b/tests/src/tests/pin-input/pin-input.browser.test.ts
@@ -3,7 +3,7 @@ import { render } from "vitest-browser-svelte";
 import { REGEXP_ONLY_DIGITS } from "bits-ui";
 import { getTestKbd } from "../utils.js";
 import PinInputTest from "./pin-input-test.svelte";
-import { type ComponentProps } from "svelte";
+import type { ComponentProps } from "svelte";
 import { page, userEvent } from "@vitest/browser/context";
 
 const kbd = getTestKbd();
@@ -220,3 +220,116 @@ it("should allow pasting more than the max-length if transformation is provided"
 	expect(mockComplete).toHaveBeenCalledTimes(1);
 	expect(mockComplete).toHaveBeenCalledWith("123456");
 });
+
+it("should handle ArrowLeft navigation correctly", async () => {
+	const t = setup();
+
+	await t.hiddenInput.click();
+	await userEvent.keyboard("1");
+	await userEvent.keyboard("2");
+	await userEvent.keyboard("3");
+	await userEvent.keyboard("4");
+	await expect.element(t.hiddenInput).toHaveValue("1234");
+	await expect.element(t.cells[4]).toHaveAttribute("data-active");
+
+	await userEvent.keyboard(kbd.ARROW_LEFT);
+	await expect.element(t.cells[3]).toHaveAttribute("data-active");
+	await expect.element(t.cells[4]).not.toHaveAttribute("data-active");
+	await expect.element(t.cells[2]).not.toHaveAttribute("data-active");
+
+	await userEvent.keyboard(kbd.ARROW_LEFT);
+	await expect.element(t.cells[2]).toHaveAttribute("data-active");
+	await expect.element(t.cells[3]).not.toHaveAttribute("data-active");
+
+	await userEvent.keyboard(kbd.ARROW_LEFT);
+	await expect.element(t.cells[1]).toHaveAttribute("data-active");
+	await expect.element(t.cells[2]).not.toHaveAttribute("data-active");
+
+	await userEvent.keyboard(kbd.ARROW_LEFT);
+	await expect.element(t.cells[0]).toHaveAttribute("data-active");
+	await expect.element(t.cells[1]).not.toHaveAttribute("data-active");
+});
+
+it("should correctly replace characters when navigating back and typing", async () => {
+	const t = setup();
+
+	await t.hiddenInput.click();
+	await t.hiddenInput.fill("1234");
+	await expect.element(t.hiddenInput).toHaveValue("1234");
+
+	// navigate to beginning using Home
+	await userEvent.keyboard(kbd.HOME);
+	await expect.element(t.cells[0]).toHaveAttribute("data-active");
+
+	// type 5 and 6 - should replace first two characters
+	await userEvent.keyboard("5");
+	await expect.element(t.hiddenInput).toHaveValue("5234");
+	await expect.element(t.cells[0]).toHaveTextContent("5");
+	await expect.element(t.cells[1]).toHaveAttribute("data-active");
+
+	await userEvent.keyboard("6");
+	await expect.element(t.hiddenInput).toHaveValue("5634");
+	await expect.element(t.cells[0]).toHaveTextContent("5");
+	await expect.element(t.cells[1]).toHaveTextContent("6");
+	await expect.element(t.cells[2]).toHaveTextContent("3");
+	await expect.element(t.cells[3]).toHaveTextContent("4");
+});
+
+it("should correctly replace characters when navigating back with ArrowLeft and typing", async () => {
+	const t = setup();
+
+	await t.hiddenInput.click();
+	await t.hiddenInput.fill("1234");
+	await expect.element(t.hiddenInput).toHaveValue("1234");
+
+	// navigate back using ArrowLeft
+	await userEvent.keyboard(kbd.ARROW_LEFT);
+	await expect.element(t.cells[3]).toHaveAttribute("data-active");
+
+	await userEvent.keyboard(kbd.ARROW_LEFT);
+	await expect.element(t.cells[2]).toHaveAttribute("data-active");
+
+	await userEvent.keyboard(kbd.ARROW_LEFT);
+	await expect.element(t.cells[1]).toHaveAttribute("data-active");
+
+	await userEvent.keyboard(kbd.ARROW_LEFT);
+	await expect.element(t.cells[0]).toHaveAttribute("data-active");
+
+	// type 5 and 6 - should replace first two characters
+	await userEvent.keyboard("5");
+	await expect.element(t.hiddenInput).toHaveValue("5234");
+	await expect.element(t.cells[0]).toHaveTextContent("5");
+	await expect.element(t.cells[1]).toHaveAttribute("data-active");
+
+	await userEvent.keyboard("6");
+	await expect.element(t.hiddenInput).toHaveValue("5634");
+	await expect.element(t.cells[0]).toHaveTextContent("5");
+	await expect.element(t.cells[1]).toHaveTextContent("6");
+	await expect.element(t.cells[2]).toHaveTextContent("3");
+	await expect.element(t.cells[3]).toHaveTextContent("4");
+});
+
+it("should correctly replace characters when navigating with ArrowUp and typing", async () => {
+	const t = setup();
+
+	await t.hiddenInput.click();
+	await t.hiddenInput.fill("1234");
+	await expect.element(t.hiddenInput).toHaveValue("1234");
+
+	// navigate to beginning using ArrowUp (equivalent to Home)
+	await userEvent.keyboard(kbd.ARROW_UP);
+	await expect.element(t.cells[0]).toHaveAttribute("data-active");
+
+	// type 5 and 6 - should replace first two characters
+	await userEvent.keyboard("5");
+	await expect.element(t.hiddenInput).toHaveValue("5234");
+	await expect.element(t.cells[0]).toHaveTextContent("5");
+	await expect.element(t.cells[1]).toHaveAttribute("data-active");
+
+	await userEvent.keyboard("6");
+	await expect.element(t.hiddenInput).toHaveValue("5634");
+	await expect.element(t.cells[0]).toHaveTextContent("5");
+	await expect.element(t.cells[1]).toHaveTextContent("6");
+	await expect.element(t.cells[2]).toHaveTextContent("3");
+	await expect.element(t.cells[3]).toHaveTextContent("4");
+});