diff --git a/src/components/PhoneInput/PhoneInput.spec.tsx b/src/components/PhoneInput/PhoneInput.spec.tsx
index 5410c9795..279d02daa 100644
--- a/src/components/PhoneInput/PhoneInput.spec.tsx
+++ b/src/components/PhoneInput/PhoneInput.spec.tsx
@@ -42,6 +42,39 @@ describe('PhoneInput', () => {
         expect(document.activeElement).toEqual(screen.getByLabelText('Phone Number'));
     });
 
+    it('should only render countries from allowedCountries when provided', async () => {
+        render(<PhoneInput country={defaultCountry} allowedCountries={['DE', 'AD']} label="Phone Number" />);
+
+        fireEvent.keyDown(screen.getByText(defaultCountry.dialCode), { keyCode: 40 });
+
+        expect(await screen.findByText('Andorra +376')).toBeInTheDocument();
+        expect(screen.queryByText(/Afghanistan/)).not.toBeInTheDocument();
+    });
+
+    it('should not render the selected country value when it is not part of allowedCountries', () => {
+        render(<PhoneInput country={defaultCountry} allowedCountries={['AD']} label="Phone Number" />);
+
+        expect(screen.queryByText(defaultCountry.dialCode)).not.toBeInTheDocument();
+    });
+
+    it('should not render the selected country value when it is not a valid country', () => {
+        const invalidCountry = { value: 'POTATO', label: 'Potato', dialCode: '+0' };
+        render(<PhoneInput country={invalidCountry} label="Phone Number" />);
+
+        expect(screen.queryByText('Potato')).not.toBeInTheDocument();
+        expect(screen.queryByText('+0')).not.toBeInTheDocument();
+    });
+
+    it('should warn when the selected country is not among the available options', () => {
+        const consoleErrorSpy = jest.spyOn(console, 'error').mockImplementation(() => {});
+
+        render(<PhoneInput country={defaultCountry} allowedCountries={['AD']} label="Phone Number" />);
+
+        expect(consoleErrorSpy).toHaveBeenCalledWith(expect.stringContaining('is not among the available options'));
+
+        consoleErrorSpy.mockRestore();
+    });
+
     it('should call the change handler when typing in the national number input', () => {
         const mockCountryChangeHandler = jest.fn();
         const mockTextChangeHandler = jest.fn();
diff --git a/src/components/PhoneInput/PhoneInput.tsx b/src/components/PhoneInput/PhoneInput.tsx
index 59a01fabe..f8a47d913 100644
--- a/src/components/PhoneInput/PhoneInput.tsx
+++ b/src/components/PhoneInput/PhoneInput.tsx
@@ -1,5 +1,6 @@
 import React, { useRef } from 'react';
 import styled from 'styled-components';
+import warning from 'warning';
 import {
     compose,
     layout,
@@ -64,6 +65,10 @@ interface PhoneInputProps
      * Pass props directly to the internal SelectList component used to show prefixes. Any value from the `SelectList` component props are allowed, but props from the `PhoneInput` take precedence
      */
     selectListProps?: SelectListProps;
+    /**
+     * Restricts the country list to only these ISO codes (e.g. ['DE', 'FR']). When omitted, all countries are shown.
+     */
+    allowedCountries?: ReadonlyArray<string>;
 }
 
 const Box = styled.div<LayoutProps & WidthProps>`
@@ -83,6 +88,20 @@ const PhoneInput: React.FC<PhoneInputProps> = ({
     const containerRef = useRef<HTMLDivElement>();
     const spaceBetweenInputs = variant === 'boxed' ? '0.25rem' : '0.75rem';
 
+    const countries = props.allowedCountries
+        ? COUNTRIES.filter(it => props.allowedCountries.includes(it.value))
+        : COUNTRIES;
+
+    // Avoid rendering a invalid option/country that isn't amongst allowedCountries
+    const selectedCountry = countries.find(it => it.value === props.country?.value) && props.country;
+
+    // eslint-disable-next-line @typescript-eslint/no-unsafe-call
+    warning(
+        !props.country || Boolean(selectedCountry),
+        `[@freenow/wave] PhoneInput received a \`country\` ("${props.country?.value}") that is not among the ` +
+            'available options and will not be displayed. Ensure it is included in `allowedCountries`.'
+    );
+
     const handleCountrySelection = value => {
         if (props.onCountryChange) {
             props.onCountryChange(value);
@@ -97,9 +116,9 @@ const PhoneInput: React.FC<PhoneInputProps> = ({
                 {...selectListProps}
                 id={`${props.id}-area-code`}
                 name={`${props.name}-area-code`}
-                value={props.country}
+                value={selectedCountry}
                 onChange={handleCountrySelection}
-                options={COUNTRIES.map(it => ({ ...it, label: `${it.label} ${it.dialCode}` }))}
+                options={countries.map(it => ({ ...it, label: `${it.label} ${it.dialCode}` }))}
                 placeholder=""
                 width="8rem"
                 components={{
diff --git a/src/components/PhoneInput/docs/PhoneInput.stories.tsx b/src/components/PhoneInput/docs/PhoneInput.stories.tsx
index 7947553ee..84a2fcb85 100644
--- a/src/components/PhoneInput/docs/PhoneInput.stories.tsx
+++ b/src/components/PhoneInput/docs/PhoneInput.stories.tsx
@@ -69,6 +69,13 @@ export const Preselected: Story = {
     }
 };
 
+export const AllowedCountries: Story = {
+    ...Default,
+    args: {
+        allowedCountries: ['DE', 'ES', 'FR', 'GB', 'AD']
+    }
+};
+
 export const BottomLined: Story = {
     ...Default,
     args: {
diff --git a/src/components/PhoneInput/docs/PhoneInput.storybook.mdx b/src/components/PhoneInput/docs/PhoneInput.storybook.mdx
index 26963a2b5..84dc0bcf4 100644
--- a/src/components/PhoneInput/docs/PhoneInput.storybook.mdx
+++ b/src/components/PhoneInput/docs/PhoneInput.storybook.mdx
@@ -8,7 +8,7 @@ import * as PhoneInputStories from './PhoneInput.stories';
 
 The `PhoneInput` is a form component for inputting a phone number in international format with usage of country selector.
 
-The component consists of two controls: a select to pick a prefix and an input to type in the phone number. The select shows all the country codes available world-wide.
+The component consists of two controls: a select to pick a prefix and an input to type in the phone number. The select shows all the country codes available world-wide by default, or a restricted subset when the `allowedCountries` prop is provided.
 
 <Primary />