diff --git a/.eslintrc.json b/.eslintrc.json
index 4fe46964516009..763603865944f8 100644
--- a/.eslintrc.json
+++ b/.eslintrc.json
@@ -8,6 +8,7 @@
 	],
 	"env": {
 		"browser": false,
+		"es6": true,
 		"node": true,
 		"mocha": true
 	},
diff --git a/components/form-token-field/style.scss b/components/form-token-field/style.scss
index 21dba507942310..29413b21e6b6cc 100644
--- a/components/form-token-field/style.scss
+++ b/components/form-token-field/style.scss
@@ -4,8 +4,9 @@
 	margin: 0;
 	padding: 0;
 	background-color: $white;
+	border-radius: 4px;
 	border: 1px solid $light-gray-500;
-	color: $dark-gray-800;
+	color: $dark-gray-700;
 	cursor: text;
 	transition: all .15s ease-in-out;
 
@@ -28,7 +29,7 @@
 	display: flex;
 	flex-wrap: wrap;
 	align-items: flex-start;
-	padding: 5px 14px 5px 0;
+	padding: 4px;
 }
 
 // Token input
@@ -37,13 +38,13 @@ input[type="text"].components-form-token-field__input {
 	width: auto;
 	max-width: 100%;
 	margin: 2px 0 2px 8px;
-	padding: 0 0 0 6px;
+	padding: 0;
 	line-height: 24px;
 	background: inherit;
 	border: 0;
 	outline: none;
 	font-family: inherit;
-	font-size: 14px;
+	font-size: $default-font-size;
 	color: $dark-gray-800;
 	box-shadow: none;
 
@@ -54,10 +55,10 @@ input[type="text"].components-form-token-field__input {
 
 // Tokens
 .components-form-token-field__token {
-	font-size: 14px;
+	font-size: $default-font-size;
 	display: flex;
-	margin: 2px 0 2px 8px;
-	color: $white;
+	margin: 2px 4px 2px 0;
+	color: $dark-gray-700;
 	overflow: hidden;
 
 	&.is-success {
@@ -127,32 +128,31 @@ input[type="text"].components-form-token-field__input {
 }
 
 .components-form-token-field__token-text,
-.components-form-token-field__remove-token {
+.components-form-token-field__remove-token.components-icon-button {
 	display: inline-block;
 	line-height: 24px;
-	background: $dark-gray-500;
+	background: $light-gray-500;
 	transition: all .2s cubic-bezier( .4, 1, .4, 1 );
 }
 
 .components-form-token-field__token-text {
-	border-radius: 4px 0 0 4px;
-	padding: 0 4px 0 6px;
+	border-radius: 12px 0 0 12px;
+	padding: 0 4px 0 8px;
 	white-space: nowrap;
 	overflow: hidden;
 	text-overflow: ellipsis;
 }
 
-.components-form-token-field__remove-token {
+.components-form-token-field__remove-token.components-icon-button {
 	cursor: pointer;
-	border-radius: 0 4px 4px 0;
+	border-radius: 0 12px 12px 0;
 	padding: 0 2px;
 	font-size: 10px;
-	color: $light-gray-500;
+	color: $dark-gray-500;
 	line-height: 10px;
 
 	&:hover {
-		color: white;
-		background: $dark-gray-600;
+		color: $dark-gray-700;
 	}
 }
 
diff --git a/components/form-token-field/token.js b/components/form-token-field/token.js
index f42d46cb0759d4..e16734d413435d 100644
--- a/components/form-token-field/token.js
+++ b/components/form-token-field/token.js
@@ -43,7 +43,7 @@ function Token( {
 			</span>
 			<IconButton
 				className="components-form-token-field__remove-token"
-				icon="no-alt"
+				icon="dismiss"
 				onClick={ ! disabled && onClick }
 			/>
 		</span>
diff --git a/components/index.js b/components/index.js
index 1582340f6b380e..5a7e9876cf3f8f 100644
--- a/components/index.js
+++ b/components/index.js
@@ -1,6 +1,7 @@
 export { default as Button } from './button';
 export { default as Dashicon } from './dashicon';
 export { default as FormToggle } from './form-toggle';
+export { default as FormTokenField } from './form-token-field';
 export { default as HtmlEmbed } from './html-embed';
 export { default as IconButton } from './icon-button';
 export { default as Panel } from './panel';
diff --git a/editor/sidebar/post-taxonomies/tags-selector.js b/editor/sidebar/post-taxonomies/tags-selector.js
index f0918e3ce64451..9d1af1ac29cc76 100644
--- a/editor/sidebar/post-taxonomies/tags-selector.js
+++ b/editor/sidebar/post-taxonomies/tags-selector.js
@@ -1,36 +1,132 @@
+/**
+ * External dependencies
+ */
+import { connect } from 'react-redux';
+import { unescape, find } from 'lodash';
+
 /**
  * WordPress dependencies
  */
 import { Component } from 'element';
-import FormTokenField from 'components/form-token-field';
+import { FormTokenField } from 'components';
+import { getEditedPostAttribute } from '../../selectors';
+import { editPost } from '../../actions';
+
+const DEFAULT_TAGS_QUERY = {
+	number: -1,
+	orderby: 'count',
+	order: 'DESC',
+};
+const MAX_TERMS_SUGGESTIONS = 20;
 
 class TagsSelector extends Component {
 	constructor() {
 		super( ...arguments );
-		this.onTokensChange = this.onTokensChange.bind( this );
+		this.onTagsChange = this.onTagsChange.bind( this );
 		this.state = {
-			tokens: [ 'React', 'Vue' ],
+			loading: true,
+			availableTags: [],
+			selectedTags: [],
 		};
 	}
 
-	onTokensChange( value ) {
-		this.setState( { tokens: value } );
+	componentDidMount() {
+		this.fetchTagsRequest = new wp.api.collections.Tags().fetch( DEFAULT_TAGS_QUERY )
+			.done( ( tags ) => {
+				this.setState( {
+					loading: false,
+					availableTags: tags,
+				} );
+				this.updateSelectedTags( this.props.tags );
+			} )
+			.fail( ( xhr ) => {
+				if ( xhr.statusText === 'abort' ) {
+					return;
+				}
+				this.setState( {
+					loading: false,
+				} );
+			} );
+	}
+
+	componentWillUnmount() {
+		if ( this.fetchTagsRequest ) {
+			this.fetchTagsRequest.abort();
+		}
+	}
+
+	componentWillReceiveProps( newProps ) {
+		if ( newProps.tags !== this.props.tags ) {
+			this.updateSelectedTags( newProps.tags );
+		}
+	}
+
+	updateSelectedTags( tags = [] ) {
+		const selectedTags = tags.map( ( tagId ) => {
+			const tagObject = find( this.state.availableTags, ( tag ) => tag.id === tagId );
+			return tagObject ? tagObject.name : '';
+		} );
+		this.setState( {
+			selectedTags,
+		} );
+	}
+
+	onTagsChange( tagNames ) {
+		this.setState( { selectedTags: tagNames } );
+		const newTagNames = tagNames.filter( ( tagName ) =>
+			! find( this.state.availableTags, ( tag ) => tag.name === tagName )
+		);
+		const tagNamesToIds = ( names, availableTags ) => {
+			return names
+				.map( ( tagName ) =>
+					find( availableTags, ( tag ) => tag.name === tagName ).id
+				);
+		};
+
+		if ( newTagNames.length === 0 ) {
+			return this.props.onUpdateTags( tagNamesToIds( tagNames, this.state.availableTags ) );
+		}
+		const createTag = ( tagName ) => new wp.api.models.Tag( { name: tagName } ).save();
+		Promise
+			.all( newTagNames.map( createTag ) )
+			.then( ( newTags ) => {
+				const newAvailableTags = this.state.availableTags.concat( newTags );
+				this.setState( { availableTags: newAvailableTags } );
+				return this.props.onUpdateTags( tagNamesToIds( tagNames, newAvailableTags ) );
+			} );
 	}
 
 	render() {
-		const suggestions = [ 'React', 'Vue', 'Angular', 'Cycle', 'PReact', 'Inferno' ];
+		const { loading, availableTags, selectedTags } = this.state;
+		const tagNames = availableTags.map( ( tag ) => tag.name );
 
 		return (
 			<div className="editor-post-taxonomies__tags-selector">
 				<FormTokenField
-					value={ this.state.tokens }
-					suggestions={ suggestions }
-					onChange={ this.onTokensChange }
+					value={ selectedTags }
+					displayTransform={ unescape }
+					suggestions={ tagNames }
+					onChange={ this.onTagsChange }
+					maxSuggestions={ MAX_TERMS_SUGGESTIONS }
+					disabled={ loading }
 				/>
 			</div>
 		);
 	}
 }
 
-export default TagsSelector;
+export default connect(
+	( state ) => {
+		return {
+			tags: getEditedPostAttribute( state, 'tags' ),
+		};
+	},
+	( dispatch ) => {
+		return {
+			onUpdateTags( tags ) {
+				dispatch( editPost( { tags } ) );
+			},
+		};
+	}
+)( TagsSelector );