diff --git a/src/cdk/stepper/stepper.ts b/src/cdk/stepper/stepper.ts
index 70164d14e1f3..7f555569dae5 100644
--- a/src/cdk/stepper/stepper.ts
+++ b/src/cdk/stepper/stepper.ts
@@ -272,6 +272,9 @@ export class CdkStepper implements AfterContentInit, AfterViewInit, OnDestroy {
   /** The list of step headers of the steps in the stepper. */
   @ContentChildren(CdkStepHeader, {descendants: true}) _stepHeader: QueryList<CdkStepHeader>;
 
+  /** List of step headers sorted based on their DOM order. */
+  private _sortedHeaders = new QueryList<CdkStepHeader>();
+
   /** Whether the validity of previous steps should be checked or not. */
   @Input()
   get linear(): boolean {
@@ -362,10 +365,31 @@ export class CdkStepper implements AfterContentInit, AfterViewInit, OnDestroy {
   }
 
   ngAfterViewInit() {
+    // If the step headers are defined outside of the `ngFor` that renders the steps, like in the
+    // Material stepper, they won't appear in the `QueryList` in the same order as they're
+    // rendered in the DOM which will lead to incorrect keyboard navigation. We need to sort
+    // them manually to ensure that they're correct. Alternatively, we can change the Material
+    // template to inline the headers in the `ngFor`, but that'll result in a lot of
+    // code duplciation. See #23539.
+    this._stepHeader.changes
+      .pipe(startWith(this._stepHeader), takeUntil(this._destroyed))
+      .subscribe((headers: QueryList<CdkStepHeader>) => {
+        this._sortedHeaders.reset(headers.toArray().sort((a, b) => {
+          const documentPosition =
+            a._elementRef.nativeElement.compareDocumentPosition(b._elementRef.nativeElement);
+
+          // `compareDocumentPosition` returns a bitmask so we have to use a bitwise operator.
+          // https://developer.mozilla.org/en-US/docs/Web/API/Node/compareDocumentPosition
+          // tslint:disable-next-line:no-bitwise
+          return documentPosition & Node.DOCUMENT_POSITION_FOLLOWING ? -1 : 1;
+        }));
+        this._sortedHeaders.notifyOnChanges();
+      });
+
     // Note that while the step headers are content children by default, any components that
     // extend this one might have them as view children. We initialize the keyboard handling in
     // AfterViewInit so we're guaranteed for both view and content children to be defined.
-    this._keyManager = new FocusKeyManager<FocusableOption>(this._stepHeader)
+    this._keyManager = new FocusKeyManager<FocusableOption>(this._sortedHeaders)
                            .withWrap()
                            .withHomeAndEnd()
                            .withVerticalOrientation(this._orientation === 'vertical');
@@ -393,6 +417,7 @@ export class CdkStepper implements AfterContentInit, AfterViewInit, OnDestroy {
 
   ngOnDestroy() {
     this.steps.destroy();
+    this._sortedHeaders.destroy();
     this._destroyed.next();
     this._destroyed.complete();
   }
diff --git a/src/material/stepper/stepper.spec.ts b/src/material/stepper/stepper.spec.ts
index b7e79c36fc75..b04082e1699f 100644
--- a/src/material/stepper/stepper.spec.ts
+++ b/src/material/stepper/stepper.spec.ts
@@ -1019,6 +1019,16 @@ describe('MatStepper', () => {
       assertArrowKeyInteractionInRtl(fixture, stepHeaders);
     });
 
+    it('should maintain the correct navigation order when a step is added later on', () => {
+      const fixture = createComponent(HorizontalStepperWithDelayedStep);
+      fixture.detectChanges();
+      fixture.componentInstance.renderSecondStep = true;
+      fixture.detectChanges();
+
+      const stepHeaders = fixture.debugElement.queryAll(By.css('.mat-horizontal-stepper-header'));
+      assertCorrectKeyboardInteraction(fixture, stepHeaders, 'horizontal');
+    });
+
     it('should reverse arrow key focus when switching into RTL after init', () => {
       const fixture = createComponent(SimpleMatHorizontalStepperApp);
       fixture.detectChanges();
@@ -2032,3 +2042,16 @@ class StepperWithStaticOutOfBoundsIndex {
 class StepperWithLazyContent {
   selectedIndex = 0;
 }
+
+@Component({
+  template: `
+    <mat-stepper>
+      <mat-step label="Step 1">Content 1</mat-step>
+      <mat-step label="Step 2" *ngIf="renderSecondStep">Content 2</mat-step>
+      <mat-step label="Step 3">Content 3</mat-step>
+    </mat-stepper>
+  `
+})
+class HorizontalStepperWithDelayedStep {
+  renderSecondStep = false;
+}