diff --git a/CHANGELOG.md b/CHANGELOG.md
index 76d76770b5..0f3a5856fe 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -24,6 +24,7 @@ This project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0.htm
 ### Features
 - Accessibility for menu divider @jurokapsiar ([#822](https://github.com/stardust-ui/react/pull/822))
 - Added slot class names in `ChatMessage`, `ChatItem`, `Dropdown`, `ItemLayout`, `Layout`, `MenuItem` @mnajdova ([#827](https://github.com/stardust-ui/react/pull/827))
+- Add `badge` and `badgePosition` properties on the `ChatMessage` @mnajdova ([#823](https://github.com/stardust-ui/react/pull/823))
 
 ### Fixes
 - Fix `Dropdown` component styles regression @Bugaa92 ([#824](https://github.com/stardust-ui/react/pull/824))
diff --git a/docs/src/examples/components/Chat/Types/ChatMessageExampleBadge.shorthand.tsx b/docs/src/examples/components/Chat/Types/ChatMessageExampleBadge.shorthand.tsx
new file mode 100644
index 0000000000..34b9d16a59
--- /dev/null
+++ b/docs/src/examples/components/Chat/Types/ChatMessageExampleBadge.shorthand.tsx
@@ -0,0 +1,51 @@
+import * as React from 'react'
+import { Avatar, Chat } from '@stardust-ui/react'
+
+const janeAvatar = {
+  image: 'public/images/avatar/small/ade.jpg',
+  status: { color: 'green', icon: 'check' },
+}
+
+const items = [
+  {
+    message: {
+      content: (
+        <Chat.Message
+          content="Hi, can we talk? It's important!"
+          author="John Doe"
+          timestamp="Yesterday, 10:15 PM"
+          mine
+          badge={{
+            icon: 'exclamation',
+            color: 'red',
+          }}
+          badgePosition="start"
+        />
+      ),
+    },
+    contentPosition: 'end',
+    key: 'message-id-1',
+  },
+  {
+    gutter: { content: <Avatar {...janeAvatar} /> },
+    message: {
+      content: (
+        <Chat.Message
+          content="Sure @John. Let's schedule a meeting."
+          author="Jane Doe"
+          timestamp="Yesterday, 10:15 PM"
+          badge={{
+            icon: 'at',
+            color: 'red',
+          }}
+        />
+      ),
+    },
+    attached: 'top',
+    key: 'message-id-4',
+  },
+]
+
+const ChatExample = () => <Chat items={items} />
+
+export default ChatExample
diff --git a/docs/src/examples/components/Chat/Types/ChatMessageExampleStyled.shorthand.tsx b/docs/src/examples/components/Chat/Types/ChatMessageExampleStyled.shorthand.tsx
index 2d6d1c1489..36733fdda2 100644
--- a/docs/src/examples/components/Chat/Types/ChatMessageExampleStyled.shorthand.tsx
+++ b/docs/src/examples/components/Chat/Types/ChatMessageExampleStyled.shorthand.tsx
@@ -17,10 +17,11 @@ const content = (
   </div>
 )
 
-const slotLabelStyles: any = (label, beforeStyles) => ({
+const slotLabelStyles: any = (label, beforeStyles?, slotStyles?) => ({
   position: 'relative',
   border: '1px solid #000',
   padding: '12px',
+  ...slotStyles,
   ':before': {
     content: `'${label}'`,
     position: 'absolute',
@@ -56,6 +57,14 @@ const ChatMessageExampleStyled = () => (
           }),
           content: { ...slotLabelStyles('content'), backgroundColor: '#F08080' },
           timestamp: { ...slotLabelStyles('timestamp'), backgroundColor: '#FFFFE0' },
+          badge: {
+            ...slotLabelStyles(
+              'badge',
+              { textAlign: 'center', left: '0px' },
+              { position: 'absolute', overflow: 'visible' },
+            ),
+            backgroundColor: '#FFFF00',
+          },
         },
       },
       componentVariables: {
@@ -77,6 +86,8 @@ const ChatMessageExampleStyled = () => (
                 author="John Doe"
                 timestamp="Yesterday, 10:15 PM"
                 mine
+                badge={{ icon: 'at' }}
+                badgePosition="start"
               />
             ),
           },
@@ -92,6 +103,7 @@ const ChatMessageExampleStyled = () => (
                 content={{ content }}
                 author="Jane Doe"
                 timestamp="Yesterday, 10:15 PM"
+                badge={{ icon: 'exclamation' }}
               />
             ),
           },
diff --git a/docs/src/examples/components/Chat/Types/index.tsx b/docs/src/examples/components/Chat/Types/index.tsx
index 935c668be7..83952f611a 100644
--- a/docs/src/examples/components/Chat/Types/index.tsx
+++ b/docs/src/examples/components/Chat/Types/index.tsx
@@ -19,6 +19,11 @@ const Types = () => (
       description="A Chat item with custom styles for every slot."
       examplePath="components/Chat/Types/ChatMessageExampleStyled"
     />
+    <ComponentExample
+      title="Badge"
+      description="A Chat message may contained badge positioned at the start or end of the message."
+      examplePath="components/Chat/Types/ChatMessageExampleBadge"
+    />
   </ExampleSection>
 )
 
diff --git a/packages/react/src/components/Chat/ChatMessage.tsx b/packages/react/src/components/Chat/ChatMessage.tsx
index ad6f27045e..4ff85ae46b 100644
--- a/packages/react/src/components/Chat/ChatMessage.tsx
+++ b/packages/react/src/components/Chat/ChatMessage.tsx
@@ -22,10 +22,12 @@ import { Accessibility, AccessibilityActionHandlers } from '../../lib/accessibil
 
 import Text from '../Text/Text'
 import Box from '../Box/Box'
+import Label from '../Label/Label'
 
 export interface ChatMessageSlotClassNames {
   author: string
   timestamp: string
+  badge: string
   content: string
 }
 
@@ -48,6 +50,12 @@ export interface ChatMessageProps
   /** Timestamp of the message. */
   timestamp?: ShorthandValue
 
+  /** Badge attached to the message. */
+  badge?: ShorthandValue
+
+  /** A message can format the badge to appear at the start or the end of the message. */
+  badgePosition?: 'start' | 'end'
+
   /**
    * Called after user's focus.
    * @param {SyntheticEvent} event - React's original SyntheticEvent.
@@ -76,6 +84,8 @@ class ChatMessage extends UIComponent<ReactProps<ChatMessageProps>, ChatMessageS
     ...commonPropTypes.createCommon({ content: 'shorthand' }),
     accessibility: PropTypes.oneOfType([PropTypes.object, PropTypes.func]),
     author: customPropTypes.itemShorthand,
+    badge: customPropTypes.itemShorthand,
+    badgePosition: PropTypes.oneOf(['start', 'end']),
     mine: PropTypes.bool,
     timestamp: customPropTypes.itemShorthand,
     onFocus: PropTypes.func,
@@ -84,6 +94,7 @@ class ChatMessage extends UIComponent<ReactProps<ChatMessageProps>, ChatMessageS
   static defaultProps = {
     accessibility: chatMessageBehavior,
     as: 'div',
+    badgePosition: 'end',
   }
 
   public state = {
@@ -110,9 +121,15 @@ class ChatMessage extends UIComponent<ReactProps<ChatMessageProps>, ChatMessageS
     unhandledProps,
     styles,
   }: RenderResultConfig<ChatMessageProps>) {
-    const { author, children, content, timestamp } = this.props
+    const { author, children, content, timestamp, badge, badgePosition } = this.props
     const childrenPropExists = childrenExist(children)
     const className = childrenPropExists ? cx(classes.root, classes.content) : classes.root
+    const badgeElement = Label.create(badge, {
+      defaultProps: {
+        className: ChatMessage.slotClassNames.badge,
+        styles: styles.badge,
+      },
+    })
 
     return (
       <ElementType
@@ -127,6 +144,7 @@ class ChatMessage extends UIComponent<ReactProps<ChatMessageProps>, ChatMessageS
           children
         ) : (
           <>
+            {badgePosition === 'start' && badgeElement}
             {Text.create(author, {
               defaultProps: {
                 size: 'small',
@@ -142,12 +160,14 @@ class ChatMessage extends UIComponent<ReactProps<ChatMessageProps>, ChatMessageS
                 className: ChatMessage.slotClassNames.timestamp,
               },
             })}
+
             {Box.create(content, {
               defaultProps: {
                 className: ChatMessage.slotClassNames.content,
                 styles: styles.content,
               },
             })}
+            {badgePosition === 'end' && badgeElement}
           </>
         )}
       </ElementType>
@@ -159,6 +179,7 @@ ChatMessage.create = createShorthandFactory(ChatMessage, 'content')
 ChatMessage.slotClassNames = {
   author: `${ChatMessage.className}__author`,
   timestamp: `${ChatMessage.className}__timestamp`,
+  badge: `${ChatMessage.className}__badge`,
   content: `${ChatMessage.className}__content`,
 }
 
diff --git a/packages/react/src/themes/teams/components/Chat/chatMessageStyles.ts b/packages/react/src/themes/teams/components/Chat/chatMessageStyles.ts
index 3f8a84d0ec..a3a270044a 100644
--- a/packages/react/src/themes/teams/components/Chat/chatMessageStyles.ts
+++ b/packages/react/src/themes/teams/components/Chat/chatMessageStyles.ts
@@ -6,6 +6,7 @@ import { pxToRem } from '../../../../lib'
 
 const chatMessageStyles: ComponentSlotStylesInput<ChatMessageProps, ChatMessageVariables> = {
   root: ({ props: p, variables: v }): ICSSInJSStyle => ({
+    position: 'relative',
     display: 'inline-block',
     paddingLeft: v.padding,
     paddingRight: v.padding,
@@ -44,6 +45,21 @@ const chatMessageStyles: ComponentSlotStylesInput<ChatMessageProps, ChatMessageV
       textDecoration: 'underline',
     },
   }),
+  badge: ({ props: p, variables: v }) => {
+    const sidePosition = p.badgePosition === 'start' ? 'left' : 'right'
+    return {
+      boxShadow: v.badgeShadow,
+      position: 'absolute',
+      padding: pxToRem(4),
+      height: 'auto',
+      width: 'auto',
+      borderRadius: '50%',
+      top: pxToRem(4),
+      zIndex: '1',
+      [sidePosition]: 0,
+      transform: p.badgePosition === 'start' ? 'translateX(-50%)' : 'translateX(50%)',
+    }
+  },
 }
 
 export default chatMessageStyles
diff --git a/packages/react/src/themes/teams/components/Chat/chatMessageVariables.ts b/packages/react/src/themes/teams/components/Chat/chatMessageVariables.ts
index 9b473f6795..cf85908a51 100644
--- a/packages/react/src/themes/teams/components/Chat/chatMessageVariables.ts
+++ b/packages/react/src/themes/teams/components/Chat/chatMessageVariables.ts
@@ -11,6 +11,7 @@ export interface ChatMessageVariables {
   headerMarginBottom: string
   contentFocusOutlineColor: string
   border: string
+  badgeShadow: string
 }
 
 export default (siteVars): ChatMessageVariables => ({
@@ -24,4 +25,5 @@ export default (siteVars): ChatMessageVariables => ({
   headerMarginBottom: pxToRem(2),
   contentFocusOutlineColor: siteVars.brand,
   border: 'none',
+  badgeShadow: siteVars.shadowLevel1Darker,
 })
diff --git a/packages/react/src/themes/teams/siteVariables.ts b/packages/react/src/themes/teams/siteVariables.ts
index f7cf0aac2f..010188f9a1 100644
--- a/packages/react/src/themes/teams/siteVariables.ts
+++ b/packages/react/src/themes/teams/siteVariables.ts
@@ -45,6 +45,7 @@ export const green04 = '#237b4b'
 // SHADOW LEVELS
 //
 export const shadowLevel1 = '0 .2rem .4rem -.075rem rgba(0, 0, 0, 0.1)'
+export const shadowLevel1Darker = '0 .2rem .4rem -.075rem rgba(0, 0, 0, 0.5)'
 
 //
 // FONT SIZES