diff --git a/app/src/main/java/org/mozilla/fenix/extension/WebExtensionPromptFeature.kt b/app/src/main/java/org/mozilla/fenix/extension/WebExtensionPromptFeature.kt
index d9a38488f..a336041ed 100644
--- a/app/src/main/java/org/mozilla/fenix/extension/WebExtensionPromptFeature.kt
+++ b/app/src/main/java/org/mozilla/fenix/extension/WebExtensionPromptFeature.kt
@@ -81,6 +81,10 @@ class WebExtensionPromptFeature(
                 addon,
                 promptRequest,
             )
+            is WebExtensionPromptRequest.AfterInstallation.OptionalPermissions -> handleOptionalPermissionsRequest(
+                addon,
+                promptRequest,
+            )
             is WebExtensionPromptRequest.AfterInstallation.PostInstallation -> handlePostInstallationRequest(
                 addon.copy(installedState = promptRequest.extension.toInstalledState()),
             )
@@ -108,10 +112,32 @@ class WebExtensionPromptFeature(
         addon: Addon,
         promptRequest: WebExtensionPromptRequest.AfterInstallation.Permissions,
     ) {
-        if (hasExistingPermissionDialogFragment()) return
         showPermissionDialog(
-            addon,
-            promptRequest,
+            addon = addon,
+            onConfirm = promptRequest.onConfirm,
+        )
+    }
+
+    @VisibleForTesting
+    internal fun handleOptionalPermissionsRequest(
+        addon: Addon,
+        promptRequest: WebExtensionPromptRequest.AfterInstallation.OptionalPermissions,
+    ) {
+        val shouldGrantWithoutPrompt = Addon.localizePermissions(promptRequest.permissions, context).isEmpty()
+
+        // If we don't have any promptable permissions, just proceed.
+        if (shouldGrantWithoutPrompt) {
+            promptRequest.onConfirm(true)
+            consumePromptRequest()
+            return
+        }
+
+        showPermissionDialog(
+            // This is a bit of a hack so that the permission prompt only lists
+            // the optional permissions that are requested.
+            addon = addon.copy(permissions = promptRequest.permissions),
+            onConfirm = promptRequest.onConfirm,
+            forOptionalPermissions = true,
         )
     }
 
@@ -185,37 +211,43 @@ class WebExtensionPromptFeature(
     @VisibleForTesting
     internal fun showPermissionDialog(
         addon: Addon,
-        promptRequest: WebExtensionPromptRequest.AfterInstallation.Permissions,
+        onConfirm: (Boolean) -> Unit,
+        forOptionalPermissions: Boolean = false,
     ) {
-        if (!isInstallationInProgress && !hasExistingPermissionDialogFragment()) {
-            val dialog = PermissionsDialogFragment.newInstance(
-                addon = addon,
-                promptsStyling = PermissionsDialogFragment.PromptsStyling(
-                    gravity = Gravity.BOTTOM,
-                    shouldWidthMatchParent = true,
-                    positiveButtonBackgroundColor = ThemeManager.resolveAttribute(
-                        R.attr.accent,
-                        context,
-                    ),
-                    positiveButtonTextColor = ThemeManager.resolveAttribute(
-                        R.attr.textOnColorPrimary,
-                        context,
-                    ),
-                    positiveButtonRadius =
-                    (context.resources.getDimensionPixelSize(R.dimen.tab_corner_radius)).toFloat(),
-                ),
-                onPositiveButtonClicked = {
-                    handleApprovedPermissions(promptRequest)
-                },
-                onNegativeButtonClicked = {
-                    handleDeniedPermissions(promptRequest)
-                },
-            )
-            dialog.show(
-                fragmentManager,
-                PERMISSIONS_DIALOG_FRAGMENT_TAG,
-            )
+        if (isInstallationInProgress || hasExistingPermissionDialogFragment()) {
+            return
         }
+
+        val dialog = PermissionsDialogFragment.newInstance(
+            addon = addon,
+            forOptionalPermissions = forOptionalPermissions,
+            promptsStyling = PermissionsDialogFragment.PromptsStyling(
+                gravity = Gravity.BOTTOM,
+                shouldWidthMatchParent = true,
+                positiveButtonBackgroundColor = ThemeManager.resolveAttribute(
+                    R.attr.accent,
+                    context,
+                ),
+                positiveButtonTextColor = ThemeManager.resolveAttribute(
+                    R.attr.textOnColorPrimary,
+                    context,
+                ),
+                positiveButtonRadius =
+                (context.resources.getDimensionPixelSize(R.dimen.tab_corner_radius)).toFloat(),
+            ),
+            onPositiveButtonClicked = {
+                onConfirm(true)
+                consumePromptRequest()
+            },
+            onNegativeButtonClicked = {
+                onConfirm(false)
+                consumePromptRequest()
+            },
+        )
+        dialog.show(
+            fragmentManager,
+            PERMISSIONS_DIALOG_FRAGMENT_TAG,
+        )
     }
 
     private fun tryToReAttachButtonHandlersToPreviousDialog() {
diff --git a/app/src/test/java/org/mozilla/fenix/extension/WebExtensionPromptFeatureTest.kt b/app/src/test/java/org/mozilla/fenix/extension/WebExtensionPromptFeatureTest.kt
index 8370922f9..c2d0dfb68 100644
--- a/app/src/test/java/org/mozilla/fenix/extension/WebExtensionPromptFeatureTest.kt
+++ b/app/src/test/java/org/mozilla/fenix/extension/WebExtensionPromptFeatureTest.kt
@@ -14,7 +14,9 @@ import mozilla.components.browser.state.action.WebExtensionAction.UpdatePromptRe
 import mozilla.components.browser.state.state.extension.WebExtensionPromptRequest
 import mozilla.components.browser.state.store.BrowserStore
 import mozilla.components.concept.engine.webextension.WebExtensionInstallException
+import mozilla.components.feature.addons.Addon
 import mozilla.components.support.ktx.android.content.appVersionName
+import mozilla.components.support.test.any
 import mozilla.components.support.test.ext.joinBlocking
 import mozilla.components.support.test.robolectric.testContext
 import mozilla.components.support.test.rule.MainCoroutineRule
@@ -216,4 +218,77 @@ class WebExtensionPromptFeatureTest {
 
         verify { webExtensionPromptFeature.showDialog(expectedTitle, expectedMessage) }
     }
+
+    @Test
+    fun `WHEN OptionalPermissions is dispatched THEN handleOptionalPermissionsRequest is called`() {
+        webExtensionPromptFeature.start()
+
+        every { webExtensionPromptFeature.handleOptionalPermissionsRequest(any(), any()) } just runs
+
+        store.dispatch(
+            UpdatePromptRequestWebExtensionAction(
+                WebExtensionPromptRequest.AfterInstallation.OptionalPermissions(
+                    mockk(relaxed = true),
+                    mockk(),
+                    mockk(),
+                ),
+            ),
+        ).joinBlocking()
+
+        verify { webExtensionPromptFeature.handleOptionalPermissionsRequest(any(), any()) }
+    }
+
+    @Test
+    fun `WHEN calling handleOptionalPermissionsRequest with permissions THEN call showPermissionDialog`() {
+        val addon: Addon = mockk(relaxed = true)
+        val onConfirm: ((Boolean) -> Unit) = mockk()
+        val promptRequest = WebExtensionPromptRequest.AfterInstallation.OptionalPermissions(
+            extension = mockk(),
+            permissions = listOf("tabs"),
+            onConfirm = onConfirm,
+        )
+
+        webExtensionPromptFeature.handleOptionalPermissionsRequest(
+            addon = addon,
+            promptRequest = promptRequest,
+        )
+
+        verify { webExtensionPromptFeature.showPermissionDialog(any(), eq(onConfirm), eq(true)) }
+        // We should verify that only the requested optional permissions are assigned to the add-on because
+        // those are the permissions that are going to be listed in the dialog.
+        verify { addon.copy(permissions = promptRequest.permissions) }
+    }
+
+    @Test
+    fun `WHEN calling handleOptionalPermissionsRequest with a permission that doesn't have a description THEN do not call showPermissionDialog`() {
+        val onConfirm: ((Boolean) -> Unit) = mockk()
+        every { onConfirm(any()) } just runs
+        val promptRequest = WebExtensionPromptRequest.AfterInstallation.OptionalPermissions(
+            extension = mockk(),
+            // The "scripting" API permission doesn't have a description so we should not show a dialog for it.
+            permissions = listOf("scripting"),
+            onConfirm = onConfirm,
+        )
+
+        webExtensionPromptFeature.handleOptionalPermissionsRequest(addon = mockk(relaxed = true), promptRequest = promptRequest)
+
+        verify(exactly = 0) { webExtensionPromptFeature.showPermissionDialog(any(), any(), any()) }
+        verify(exactly = 1) { onConfirm(true) }
+    }
+
+    @Test
+    fun `WHEN calling handleOptionalPermissionsRequest with no permissions THEN do not call showPermissionDialog`() {
+        val onConfirm: ((Boolean) -> Unit) = mockk()
+        every { onConfirm(any()) } just runs
+        val promptRequest = WebExtensionPromptRequest.AfterInstallation.OptionalPermissions(
+            extension = mockk(),
+            permissions = emptyList(),
+            onConfirm = onConfirm,
+        )
+
+        webExtensionPromptFeature.handleOptionalPermissionsRequest(addon = mockk(relaxed = true), promptRequest = promptRequest)
+
+        verify(exactly = 0) { webExtensionPromptFeature.showPermissionDialog(any(), any(), any()) }
+        verify(exactly = 1) { onConfirm(true) }
+    }
 }