diff --git a/docs/components/dialog.md b/docs/components/dialog.md
index f33db284d..e57588ed4 100644
--- a/docs/components/dialog.md
+++ b/docs/components/dialog.md
@@ -108,4 +108,34 @@ By default, dialogs are closed when the user clicks or taps on the overlay. To p
 </script>
 ```
 
+### Customizing Initial Focus
+
+By default, the dialog's panel will gain focus when opened. To set focus on a different element, listen for the `sl-initial-focus` event.
+
+```html preview
+<sl-dialog label="Dialog" class="dialog-focus">
+  <sl-input placeholder="I will have focus when the dialog is opened"></sl-input>
+  <sl-button slot="footer" type="primary">Close</sl-button>
+</sl-dialog>
+
+<sl-button>Open Dialog</sl-button>
+
+<script>
+  (() => {
+    const dialog = document.querySelector('.dialog-focus');
+    const input = dialog.querySelector('sl-input');
+    const openButton = dialog.nextElementSibling;
+    const closeButton = dialog.querySelector('sl-button[slot="footer"]');
+
+    openButton.addEventListener('click', () => dialog.show());
+    closeButton.addEventListener('click', () => dialog.hide());
+
+    dialog.addEventListener('sl-initial-focus', event => {
+      event.preventDefault();
+      input.setFocus()
+    });
+  })();
+</script>
+```
+
 [component-metadata:sl-dialog]
diff --git a/docs/components/drawer.md b/docs/components/drawer.md
index 59069bd93..83a3f49f8 100644
--- a/docs/components/drawer.md
+++ b/docs/components/drawer.md
@@ -204,4 +204,36 @@ By default, drawers are closed when the user clicks or taps on the overlay. To p
 </script>
 ```
 
+### Customizing Initial Focus
+
+By default, the drawer's panel will gain focus when opened. To set focus on a different element, listen for the `sl-initial-focus` event.
+
+```html preview
+<sl-drawer label="Drawer" class="drawer-focus">
+  <sl-input placeholder="I will have focus when the drawer is opened"></sl-input>
+  <sl-button slot="footer" type="primary">Close</sl-button>
+</sl-drawer>
+
+<sl-button>Open Drawer</sl-button>
+
+<script>
+  (() => {
+    const drawer = document.querySelector('.drawer-focus');
+    const input = drawer.querySelector('sl-input');
+    const openButton = drawer.nextElementSibling;
+    const closeButton = drawer.querySelector('sl-button[type="primary"]');
+
+    openButton.addEventListener('click', () => drawer.show());
+    closeButton.addEventListener('click', () => drawer.hide());
+
+    drawer.addEventListener('sl-initial-focus', event => {
+      // preventScroll is necessary for the transition to work properly,
+      // otherwise the drawer will appear immediately
+      event.preventDefault();
+      input.setFocus({ preventScroll: true })
+    });    
+  })();
+</script>
+```
+
 [component-metadata:sl-drawer]
diff --git a/docs/getting-started/changelog.md b/docs/getting-started/changelog.md
index a44c4a75f..64ff48d81 100644
--- a/docs/getting-started/changelog.md
+++ b/docs/getting-started/changelog.md
@@ -13,6 +13,8 @@ _During the beta period, these restrictions may be relaxed in the event of a mis
   - Reworked animations into a separate module ([`@shoelace-style/animations`](https://github.com/shoelace-style/animations)) so it's more maintainable and animations are sync with the latest version of animate.css
   - Animation and easing names are now camelcase (e.g. `easeInOut` instead of `ease-in-out`)
 - Added initial E2E tests [#169](https://github.com/shoelace-style/shoelace/pull/169)
+- Added the `FocusOptions` argument to all components that have a `setFocus()` method
+- Added `sl-initial-focus` event to `sl-dialog` and `sl-drawer` so focus can be customized to a specific element
 - Fixed a bug where `sl-hide` would be emitted twice when closing an alert with `hide()`
 - Fixed a bug in `sl-color-picker` where the toggle button was smaller than the preview button in Safari
 - Fixed a bug in `sl-tab-group` where activating a nested tab group didn't work properly [#299](https://github.com/shoelace-style/shoelace/issues/299)
diff --git a/package.json b/package.json
index a0f795e44..e46c8bb88 100644
--- a/package.json
+++ b/package.json
@@ -41,7 +41,7 @@
     "serve": "node dev-server.js",
     "start": "concurrently --kill-others \"npm run dev\" \"npm run serve\"",
     "test.watch": "stencil test --spec --e2e --watchAll",
-    "test": "stencil test --spec --e2e",
+    "test": "stencil test --spec --e2e --coverage",
     "version": "npm run build"
   },
   "devDependencies": {
diff --git a/src/components.d.ts b/src/components.d.ts
index c1875022e..28ce51a94 100644
--- a/src/components.d.ts
+++ b/src/components.d.ts
@@ -183,7 +183,7 @@ export namespace Components {
         /**
           * Sets focus on the button.
          */
-        "setFocus": () => Promise<void>;
+        "setFocus": (options?: FocusOptions) => Promise<void>;
         /**
           * The button's size.
          */
@@ -253,7 +253,7 @@ export namespace Components {
         /**
           * Sets focus on the checkbox.
          */
-        "setFocus": () => Promise<void>;
+        "setFocus": (options?: FocusOptions) => Promise<void>;
         /**
           * The checkbox's value attribute.
          */
@@ -751,7 +751,7 @@ export namespace Components {
         /**
           * Sets focus on the input.
          */
-        "setFocus": () => Promise<void>;
+        "setFocus": (options?: FocusOptions) => Promise<void>;
         /**
           * Replaces a range of text with a new string.
          */
@@ -809,7 +809,7 @@ export namespace Components {
         /**
           * Sets focus on the button.
          */
-        "setFocus": () => Promise<void>;
+        "setFocus": (options?: FocusOptions) => Promise<void>;
         /**
           * A unique value to store in the menu item. This can be used as a way to identify menu items when selected.
          */
@@ -873,7 +873,7 @@ export namespace Components {
         /**
           * Sets focus on the radio.
          */
-        "setFocus": () => Promise<void>;
+        "setFocus": (options?: FocusOptions) => Promise<void>;
         /**
           * The radio's value attribute.
          */
@@ -911,7 +911,7 @@ export namespace Components {
         /**
           * Sets focus on the input.
          */
-        "setFocus": () => Promise<void>;
+        "setFocus": (options?: FocusOptions) => Promise<void>;
         /**
           * The input's step attribute.
          */
@@ -957,7 +957,7 @@ export namespace Components {
         /**
           * Sets focus on the rating.
          */
-        "setFocus": () => Promise<void>;
+        "setFocus": (options?: FocusOptions) => Promise<void>;
         /**
           * The current rating.
          */
@@ -1103,7 +1103,7 @@ export namespace Components {
         /**
           * Sets focus on the switch.
          */
-        "setFocus": () => Promise<void>;
+        "setFocus": (options?: FocusOptions) => Promise<void>;
         /**
           * The switch's value attribute.
          */
@@ -1133,7 +1133,7 @@ export namespace Components {
         /**
           * Sets focus to the tab.
          */
-        "setFocus": () => Promise<void>;
+        "setFocus": (options?: FocusOptions) => Promise<void>;
     }
     interface SlTabGroup {
         /**
@@ -1265,7 +1265,7 @@ export namespace Components {
         /**
           * Sets focus on the textarea.
          */
-        "setFocus": () => Promise<void>;
+        "setFocus": (options?: FocusOptions) => Promise<void>;
         /**
           * Replaces a range of text with a new string.
          */
@@ -2031,6 +2031,10 @@ declare namespace LocalJSX {
           * Emitted when the dialog closes. Calling `event.preventDefault()` will prevent it from being closed.
          */
         "onSl-hide"?: (event: CustomEvent<any>) => void;
+        /**
+          * Emitted when the dialog opens and the panel gains focus. Calling `event.preventDefault()` will prevent focus and allow you to set it on a different element in the dialog, such as an input or button.
+         */
+        "onSl-initial-focus"?: (event: CustomEvent<any>) => void;
         /**
           * Emitted when the overlay is clicked. Calling `event.preventDefault()` will prevent the dialog from closing.
          */
@@ -2069,6 +2073,10 @@ declare namespace LocalJSX {
           * Emitted when the drawer closes. Calling `event.preventDefault()` will prevent it from being closed.
          */
         "onSl-hide"?: (event: CustomEvent<any>) => void;
+        /**
+          * Emitted when the drawer opens and the panel gains focus. Calling `event.preventDefault()` will prevent focus and allow you to set it on a different element in the drawer, such as an input or button.
+         */
+        "onSl-initial-focus"?: (event: CustomEvent<any>) => void;
         /**
           * Emitted when the overlay is clicked. Calling `event.preventDefault()` will prevent the drawer from closing.
          */
diff --git a/src/components/dialog/dialog.tsx b/src/components/dialog/dialog.tsx
index dea0aff5a..d0a735cc0 100644
--- a/src/components/dialog/dialog.tsx
+++ b/src/components/dialog/dialog.tsx
@@ -73,6 +73,12 @@ export class Dialog {
   /** Emitted after the dialog closes and all transitions are complete. */
   @Event({ eventName: 'sl-after-hide' }) slAfterHide: EventEmitter;
 
+  /**
+   * Emitted when the dialog opens and the panel gains focus. Calling `event.preventDefault()` will prevent focus and
+   * allow you to set it on a different element in the dialog, such as an input or button.
+   */
+  @Event({ eventName: 'sl-initial-focus' }) slInitialFocus: EventEmitter;
+
   /** Emitted when the overlay is clicked. Calling `event.preventDefault()` will prevent the dialog from closing. */
   @Event({ eventName: 'sl-overlay-dismiss' }) slOverlayDismiss: EventEmitter;
 
@@ -120,6 +126,16 @@ export class Dialog {
     this.modal.activate();
 
     lockBodyScrolling(this.host);
+
+    if (this.open) {
+      // Wait for the next frame before setting initial focus so the dialog is technically visible
+      requestAnimationFrame(() => {
+        const slInitialFocus = this.slInitialFocus.emit();
+        if (!slInitialFocus.defaultPrevented) {
+          this.panel.focus({ preventScroll: true });
+        }
+      });
+    }
   }
 
   /** Hides the dialog */
@@ -173,10 +189,6 @@ export class Dialog {
       this.willShow = false;
       this.willHide = false;
       this.open ? this.slAfterShow.emit() : this.slAfterHide.emit();
-
-      if (this.open) {
-        this.panel.focus();
-      }
     }
   }
 
diff --git a/src/components/drawer/drawer.tsx b/src/components/drawer/drawer.tsx
index 5067901ea..acb912a14 100644
--- a/src/components/drawer/drawer.tsx
+++ b/src/components/drawer/drawer.tsx
@@ -10,7 +10,7 @@ let id = 0;
  * @status stable
  *
  * @slot - The drawer's content.
- * @slot label - The dialog's label. Alternatively, you can use the label prop.
+ * @slot label - The drawer's label. Alternatively, you can use the label prop.
  * @slot footer - The drawer's footer, usually one or more buttons representing various options.
  *
  * @part base - The component's base wrapper.
@@ -81,6 +81,12 @@ export class Drawer {
   /** Emitted after the drawer closes and all transitions are complete. */
   @Event({ eventName: 'sl-after-hide' }) slAfterHide: EventEmitter;
 
+  /**
+   * Emitted when the drawer opens and the panel gains focus. Calling `event.preventDefault()` will prevent focus and
+   * allow you to set it on a different element in the drawer, such as an input or button.
+   */
+  @Event({ eventName: 'sl-initial-focus' }) slInitialFocus: EventEmitter;
+
   /** Emitted when the overlay is clicked. Calling `event.preventDefault()` will prevent the drawer from closing. */
   @Event({ eventName: 'sl-overlay-dismiss' }) slOverlayDismiss: EventEmitter;
 
@@ -131,6 +137,16 @@ export class Drawer {
       this.modal.activate();
       lockBodyScrolling(this.host);
     }
+
+    if (this.open) {
+      // Wait for the next frame before setting initial focus so the drawer is technically visible
+      requestAnimationFrame(() => {
+        const slInitialFocus = this.slInitialFocus.emit();
+        if (!slInitialFocus.defaultPrevented) {
+          this.panel.focus({ preventScroll: true });
+        }
+      });
+    }
   }
 
   /** Hides the drawer */
@@ -184,10 +200,6 @@ export class Drawer {
       this.willShow = false;
       this.willHide = false;
       this.open ? this.slAfterShow.emit() : this.slAfterHide.emit();
-
-      if (this.open) {
-        this.panel.focus();
-      }
     }
   }