diff --git a/CHANGELOG.md b/CHANGELOG.md
index 947173fd4d3..0b2bb5d7fb5 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -5,6 +5,7 @@
 * Return the context object in `setContext` [#7427](https://github.com/sveltejs/svelte/issues/7427)
 * Fix `{@const}` tag not working inside Component when there's no `let:` [#7189](https://github.com/sveltejs/svelte/issues/7189)
 * Ignore comments in `{#each}` blocks when containing elements with `animate:` ([#3999](https://github.com/sveltejs/svelte/issues/3999))
+* Add a third parameter to the returned function of `createEventDispatcher` that allows passing an object of `{ cancelable: true }` to create a cancelable custom event. The returned function when called will also return a boolean depending on whether the event is cancelled ([#7064](https://github.com/sveltejs/svelte/pull/7064))
 
 ## 3.47.0
 
diff --git a/site/content/docs/03-run-time.md b/site/content/docs/03-run-time.md
index a0d3f4148cf..c6423f408c7 100644
--- a/site/content/docs/03-run-time.md
+++ b/site/content/docs/03-run-time.md
@@ -221,14 +221,14 @@ Retrieves the whole context map that belongs to the closest parent component. Mu
 #### `createEventDispatcher`
 
 ```js
-dispatch: ((name: string, detail?: any) => void) = createEventDispatcher();
+dispatch: ((name: string, detail?: any, options?: DispatchOptions) => boolean) = createEventDispatcher();
 ```
 
 ---
 
 Creates an event dispatcher that can be used to dispatch [component events](/docs#template-syntax-component-directives-on-eventname). Event dispatchers are functions that can take two arguments: `name` and `detail`.
 
-Component events created with `createEventDispatcher` create a [CustomEvent](https://developer.mozilla.org/en-US/docs/Web/API/CustomEvent). These events do not [bubble](https://developer.mozilla.org/en-US/docs/Learn/JavaScript/Building_blocks/Events#Event_bubbling_and_capture) and are not cancellable with `event.preventDefault()`. The `detail` argument corresponds to the [CustomEvent.detail](https://developer.mozilla.org/en-US/docs/Web/API/CustomEvent/detail) property and can contain any type of data.
+Component events created with `createEventDispatcher` create a [CustomEvent](https://developer.mozilla.org/en-US/docs/Web/API/CustomEvent). These events do not [bubble](https://developer.mozilla.org/en-US/docs/Learn/JavaScript/Building_blocks/Events#Event_bubbling_and_capture). The `detail` argument corresponds to the [CustomEvent.detail](https://developer.mozilla.org/en-US/docs/Web/API/CustomEvent/detail) property and can contain any type of data.
 
 ```sv
 <script>
@@ -254,6 +254,27 @@ Events dispatched from child components can be listened to in their parent. Any
 <Child on:notify="{callbackFunction}"/>
 ```
 
+---
+
+Events can be cancelable by passing a third parameter to the dispatch function. The function returns `false` if the event is cancelled with `event.preventDefault()`, otherwise it returns `true`.
+
+```sv
+<script>
+	import { createEventDispatcher } from 'svelte';
+
+	const dispatch = createEventDispatcher();
+
+	function notify() {
+		const shouldContinue = dispatch('notify', 'detail value', { cancelable: true });
+		if (shouldContinue) {
+			// no one called preventDefault
+		} else {
+			// a listener called preventDefault
+		}
+	}
+</script>
+```
+
 ### `svelte/store`
 
 The `svelte/store` module exports functions for creating [readable](/docs#run-time-svelte-store-readable), [writable](/docs#run-time-svelte-store-writable) and [derived](/docs#run-time-svelte-store-derived) stores.
diff --git a/src/runtime/internal/dev.ts b/src/runtime/internal/dev.ts
index 4501771c0ac..0ba47f7e867 100644
--- a/src/runtime/internal/dev.ts
+++ b/src/runtime/internal/dev.ts
@@ -2,7 +2,7 @@ import { custom_event, append, append_hydration, insert, insert_hydration, detac
 import { SvelteComponent } from './Component';
 
 export function dispatch_dev<T=any>(type: string, detail?: T) {
-	document.dispatchEvent(custom_event(type, { version: '__VERSION__', ...detail }, true));
+	document.dispatchEvent(custom_event(type, { version: '__VERSION__', ...detail }, { bubbles: true }));
 }
 
 export function append_dev(target: Node, node: Node) {
diff --git a/src/runtime/internal/dom.ts b/src/runtime/internal/dom.ts
index 287c16b5fc5..e2a74202360 100644
--- a/src/runtime/internal/dom.ts
+++ b/src/runtime/internal/dom.ts
@@ -634,9 +634,9 @@ export function toggle_class(element, name, toggle) {
 	element.classList[toggle ? 'add' : 'remove'](name);
 }
 
-export function custom_event<T=any>(type: string, detail?: T, bubbles: boolean = false) {
+export function custom_event<T=any>(type: string, detail?: T, { bubbles = false, cancelable = false } = {}): CustomEvent<T> {
 	const e: CustomEvent<T> = document.createEvent('CustomEvent');
-	e.initCustomEvent(type, bubbles, false, detail);
+	e.initCustomEvent(type, bubbles, cancelable, detail);
 	return e;
 }
 
diff --git a/src/runtime/internal/lifecycle.ts b/src/runtime/internal/lifecycle.ts
index 3b3c2f5f71e..fbbeca9a67c 100644
--- a/src/runtime/internal/lifecycle.ts
+++ b/src/runtime/internal/lifecycle.ts
@@ -27,22 +27,33 @@ export function onDestroy(fn: () => any) {
 	get_current_component().$$.on_destroy.push(fn);
 }
 
-export function createEventDispatcher<
-	EventMap extends {} = any
->(): <EventKey extends Extract<keyof EventMap, string>>(type: EventKey, detail?: EventMap[EventKey]) => void {
+export interface DispatchOptions {
+	cancelable?: boolean;
+}
+
+export function createEventDispatcher<EventMap extends {} = any>(): <
+	EventKey extends Extract<keyof EventMap, string>
+>(
+	type: EventKey,
+	detail?: EventMap[EventKey],
+	options?: DispatchOptions
+) => boolean {
 	const component = get_current_component();
 
-	return (type: string, detail?: any) => {
+	return (type: string, detail?: any, { cancelable = false } = {}): boolean => {
 		const callbacks = component.$$.callbacks[type];
 
 		if (callbacks) {
 			// TODO are there situations where events could be dispatched
 			// in a server (non-DOM) environment?
-			const event = custom_event(type, detail);
+			const event = custom_event(type, detail, { cancelable });
 			callbacks.slice().forEach(fn => {
 				fn.call(component, event);
 			});
+			return !event.defaultPrevented;
 		}
+
+		return true;
 	};
 }