diff --git a/babel/numbers.py b/babel/numbers.py
index 2ef9031aa..aa989229f 100644
--- a/babel/numbers.py
+++ b/babel/numbers.py
@@ -668,7 +668,8 @@ def _get_compact_format(
     if number.is_nan() or number.is_infinite():
         return number, None
     format = None
-    for magnitude in sorted([int(m) for m in compact_format["other"]], reverse=True):
+    magnitudes = sorted([int(m) for m in compact_format["other"]], reverse=True)
+    for index, magnitude in enumerate(magnitudes):
         if abs(number) >= magnitude:
             # check the pattern using "other" as the amount
             format = compact_format["other"][str(magnitude)]
@@ -678,17 +679,22 @@ def _get_compact_format(
                 break
             # otherwise, we need to divide the number by the magnitude but remove zeros
             # equal to the number of 0's in the pattern minus 1
-            number = cast(
-                decimal.Decimal,
-                number / (magnitude // (10 ** (pattern.count("0") - 1))),
-            )
+            divisor = magnitude // (10 ** (pattern.count("0") - 1))
+            scaled = cast(decimal.Decimal, number / divisor)
             # round to the number of fraction digits requested
-            rounded = round(number, fraction_digits)
+            rounded = round(scaled, fraction_digits)
+            # Rounding can carry the value up into the next magnitude, e.g.
+            # 999_999 would otherwise render as "1000K". The CLDR algorithm
+            # selects the pattern from the rounded value, so redo the lookup
+            # one magnitude up to get "1M" instead.
+            if index > 0 and abs(rounded) * divisor >= magnitudes[index - 1]:
+                bumped = decimal.Decimal(magnitudes[index - 1]).copy_sign(number)
+                return _get_compact_format(bumped, compact_format, locale, fraction_digits)
             # if the remaining number is singular, use the singular format
-            plural_form = locale.plural_form(abs(number))
+            plural_form = locale.plural_form(abs(scaled))
             if plural_form not in compact_format:
                 plural_form = "other"
-            if number == 1 and "1" in compact_format:
+            if scaled == 1 and "1" in compact_format:
                 plural_form = "1"
             if str(magnitude) not in compact_format[plural_form]:
                 plural_form = "other"  # fall back to other as the implicit default
diff --git a/tests/test_numbers_format_decimal.py b/tests/test_numbers_format_decimal.py
index 356181b69..bb857a80a 100644
--- a/tests/test_numbers_format_decimal.py
+++ b/tests/test_numbers_format_decimal.py
@@ -175,3 +175,17 @@ def test_compact():
     assert numbers.format_compact_decimal(
         12345, format_type="short", locale='ar_EG', fraction_digits=2, numbering_system='latn',
     ) == '12.34\xa0ألف'
+
+
+def test_compact_rounding_carries_to_next_magnitude():
+    # Rounding can carry the value up into the next magnitude. The pattern has
+    # to be chosen from the rounded value, otherwise 999999 renders as the
+    # nonsensical "1000K" instead of "1M".
+    assert numbers.format_compact_decimal(999999, locale='en_US', format_type="short") == '1M'
+    assert numbers.format_compact_decimal(999999999, locale='en_US', format_type="short") == '1B'
+    assert numbers.format_compact_decimal(999999999999, locale='en_US', format_type="short") == '1T'
+    assert numbers.format_compact_decimal(-999999, locale='en_US', format_type="short") == '-1M'
+    assert numbers.format_compact_decimal(999999, locale='en_US', format_type="long") == '1 million'
+    # Values that do not carry over are unaffected.
+    assert numbers.format_compact_decimal(999499, locale='en_US', format_type="short") == '999K'
+    assert numbers.format_compact_decimal(999949, locale='en_US', format_type="short", fraction_digits=1) == '999.9K'