diff --git a/apps/api-extractor/build-tests.cmd b/apps/api-extractor/build-tests.cmd
index f2ae7a2cc93..cc33d4a4554 100644
--- a/apps/api-extractor/build-tests.cmd
+++ b/apps/api-extractor/build-tests.cmd
@@ -1,3 +1,3 @@
 @ECHO OFF
 @SETLOCAL
-rush test -t api-extractor-lib1-test -t api-extractor-lib2-test -t api-extractor-lib3-test -t api-extractor-scenarios -t api-extractor-test-01 -t api-extractor-test-02 -t api-extractor-test-03 -t api-extractor-test-04 -t api-documenter-test
+rush test -t tag:api-extractor-tests
diff --git a/apps/api-extractor/src/generators/ApiReportGenerator.ts b/apps/api-extractor/src/generators/ApiReportGenerator.ts
index 5ea92974d11..31f6e4ce0bb 100644
--- a/apps/api-extractor/src/generators/ApiReportGenerator.ts
+++ b/apps/api-extractor/src/generators/ApiReportGenerator.ts
@@ -259,7 +259,7 @@ export class ApiReportGenerator {
   ): void {
     // Should we process this declaration at all?
     // eslint-disable-next-line no-bitwise
-    if ((astDeclaration.modifierFlags & ts.ModifierFlags.Private) !== 0) {
+    if (!ApiReportGenerator._shouldIncludeInReport(astDeclaration)) {
       span.modification.skipAll();
       return;
     }
@@ -402,23 +402,27 @@ export class ApiReportGenerator {
             astDeclaration
           );
 
-          if (sortChildren) {
-            span.modification.sortChildren = true;
-            child.modification.sortKey = Collector.getSortKeyIgnoringUnderscore(
-              childAstDeclaration.astSymbol.localName
-            );
-          }
+          if (ApiReportGenerator._shouldIncludeInReport(childAstDeclaration)) {
+            if (sortChildren) {
+              span.modification.sortChildren = true;
+              child.modification.sortKey = Collector.getSortKeyIgnoringUnderscore(
+                childAstDeclaration.astSymbol.localName
+              );
+            }
 
-          if (!insideTypeLiteral) {
-            const messagesToReport: ExtractorMessage[] =
-              collector.messageRouter.fetchAssociatedMessagesForReviewFile(childAstDeclaration);
-            const aedocSynopsis: string = ApiReportGenerator._getAedocSynopsis(
-              collector,
-              childAstDeclaration,
-              messagesToReport
-            );
+            if (!insideTypeLiteral) {
+              const messagesToReport: ExtractorMessage[] =
+                collector.messageRouter.fetchAssociatedMessagesForReviewFile(childAstDeclaration);
 
-            child.modification.prefix = aedocSynopsis + child.modification.prefix;
+              // NOTE: This generates ae-undocumented messages as a side effect
+              const aedocSynopsis: string = ApiReportGenerator._getAedocSynopsis(
+                collector,
+                childAstDeclaration,
+                messagesToReport
+              );
+
+              child.modification.prefix = aedocSynopsis + child.modification.prefix;
+            }
           }
         }
 
@@ -427,6 +431,12 @@ export class ApiReportGenerator {
     }
   }
 
+  private static _shouldIncludeInReport(astDeclaration: AstDeclaration): boolean {
+    // Private declarations are not included in the API report
+    // eslint-disable-next-line no-bitwise
+    return (astDeclaration.modifierFlags & ts.ModifierFlags.Private) === 0;
+  }
+
   /**
    * For declarations marked as `@preapproved`, this is used instead of _modifySpan().
    */
diff --git a/common/changes/@microsoft/api-extractor/octogonz-ae-undocumented-fix_2023-10-13-23-13.json b/common/changes/@microsoft/api-extractor/octogonz-ae-undocumented-fix_2023-10-13-23-13.json
new file mode 100644
index 00000000000..f56ef8a8b6e
--- /dev/null
+++ b/common/changes/@microsoft/api-extractor/octogonz-ae-undocumented-fix_2023-10-13-23-13.json
@@ -0,0 +1,10 @@
+{
+  "changes": [
+    {
+      "packageName": "@microsoft/api-extractor",
+      "comment": "Fix an issue where \"ae-undocumented\" was incorrectly reported for private members",
+      "type": "patch"
+    }
+  ],
+  "packageName": "@microsoft/api-extractor"
+}
\ No newline at end of file
diff --git a/rush.json b/rush.json
index cae1e828681..2823a89fa45 100644
--- a/rush.json
+++ b/rush.json
@@ -483,61 +483,71 @@
       "packageName": "api-documenter-test",
       "projectFolder": "build-tests/api-documenter-test",
       "reviewCategory": "tests",
-      "shouldPublish": false
+      "shouldPublish": false,
+      "tags": ["api-extractor-tests"]
     },
     {
       "packageName": "api-documenter-scenarios",
       "projectFolder": "build-tests/api-documenter-scenarios",
       "reviewCategory": "tests",
-      "shouldPublish": false
+      "shouldPublish": false,
+      "tags": ["api-extractor-tests"]
     },
     {
       "packageName": "api-extractor-lib1-test",
       "projectFolder": "build-tests/api-extractor-lib1-test",
       "reviewCategory": "tests",
-      "shouldPublish": false
+      "shouldPublish": false,
+      "tags": ["api-extractor-tests"]
     },
     {
       "packageName": "api-extractor-lib2-test",
       "projectFolder": "build-tests/api-extractor-lib2-test",
       "reviewCategory": "tests",
-      "shouldPublish": false
+      "shouldPublish": false,
+      "tags": ["api-extractor-tests"]
     },
     {
       "packageName": "api-extractor-lib3-test",
       "projectFolder": "build-tests/api-extractor-lib3-test",
       "reviewCategory": "tests",
-      "shouldPublish": false
+      "shouldPublish": false,
+      "tags": ["api-extractor-tests"]
     },
     {
       "packageName": "api-extractor-scenarios",
       "projectFolder": "build-tests/api-extractor-scenarios",
       "reviewCategory": "tests",
-      "shouldPublish": false
+      "shouldPublish": false,
+      "tags": ["api-extractor-tests"]
     },
     {
       "packageName": "api-extractor-test-01",
       "projectFolder": "build-tests/api-extractor-test-01",
       "reviewCategory": "tests",
-      "shouldPublish": false
+      "shouldPublish": false,
+      "tags": ["api-extractor-tests"]
     },
     {
       "packageName": "api-extractor-test-02",
       "projectFolder": "build-tests/api-extractor-test-02",
       "reviewCategory": "tests",
-      "shouldPublish": false
+      "shouldPublish": false,
+      "tags": ["api-extractor-tests"]
     },
     {
       "packageName": "api-extractor-test-03",
       "projectFolder": "build-tests/api-extractor-test-03",
       "reviewCategory": "tests",
-      "shouldPublish": false
+      "shouldPublish": false,
+      "tags": ["api-extractor-tests"]
     },
     {
       "packageName": "api-extractor-test-04",
       "projectFolder": "build-tests/api-extractor-test-04",
       "reviewCategory": "tests",
-      "shouldPublish": false
+      "shouldPublish": false,
+      "tags": ["api-extractor-tests"]
     },
     {
       "packageName": "eslint-7-7-test",