diff --git a/apps/zero-runtime-next-app/next.config.js b/apps/zero-runtime-next-app/next.config.js
index 283752eae66cba..57a52d81b50b8d 100644
--- a/apps/zero-runtime-next-app/next.config.js
+++ b/apps/zero-runtime-next-app/next.config.js
@@ -3,7 +3,18 @@
 const { withZeroPlugin } = require('@mui/zero-next-plugin');
 const { experimental_extendTheme: extendTheme } = require('@mui/material/styles');
 
-const theme = extendTheme({ cssVarPrefix: 'app' });
+const theme = extendTheme({
+  cssVarPrefix: 'app',
+  components: {
+    MuiBadge: {
+      defaultProps: {
+        color: 'error',
+      },
+    },
+  },
+});
+theme.getColorSchemeSelector = (targetColorScheme) =>
+  `[data-mui-color-scheme="${targetColorScheme}"] &`;
 
 /**
  * @typedef {import('@mui/zero-next-plugin').ZeroPluginConfig} ZeroPluginConfig
diff --git a/apps/zero-runtime-next-app/src/app/page.tsx b/apps/zero-runtime-next-app/src/app/page.tsx
index bba7f57f7f6074..377dca936779c3 100644
--- a/apps/zero-runtime-next-app/src/app/page.tsx
+++ b/apps/zero-runtime-next-app/src/app/page.tsx
@@ -1,5 +1,6 @@
 import Image from 'next/image';
 import { styled } from '@mui/zero-runtime';
+import Badge from '@mui/material/Badge';
 import styles from './page.module.css';
 
 const Main = styled.main({
@@ -77,6 +78,9 @@ const Description = styled.div({
 export default function Home() {
   return (
     <Main>
+      <Badge variant="dot">
+        <div>Hey</div>
+      </Badge>
       <Description>
         <p>
           Get started by editing&nbsp;
diff --git a/packages/eslint-plugin-material-ui/src/rules/mui-name-matches-component-name.js b/packages/eslint-plugin-material-ui/src/rules/mui-name-matches-component-name.js
index 70aabd06e4d7f8..db51e2b85a4023 100644
--- a/packages/eslint-plugin-material-ui/src/rules/mui-name-matches-component-name.js
+++ b/packages/eslint-plugin-material-ui/src/rules/mui-name-matches-component-name.js
@@ -68,6 +68,15 @@ const rule = {
 
     return {
       CallExpression(node) {
+        const isCreateUseThemePropsCall = node.callee.name === 'createUseThemeProps';
+        if (isCreateUseThemePropsCall) {
+          if (!node.arguments.length) {
+            context.report({ node, messageId: 'noNameValue' });
+          } else if (node.arguments[0].type !== 'Literal' || !node.arguments[0].value) {
+            context.report({ node: node.arguments[0], messageId: 'noNameValue' });
+          }
+        }
+
         let nameLiteral = null;
         const isUseThemePropsCall = node.callee.name === 'useThemeProps';
         if (isUseThemePropsCall) {
diff --git a/packages/eslint-plugin-material-ui/src/rules/mui-name-matches-component-name.test.js b/packages/eslint-plugin-material-ui/src/rules/mui-name-matches-component-name.test.js
index 34f55378923bed..b151a90806a1f4 100644
--- a/packages/eslint-plugin-material-ui/src/rules/mui-name-matches-component-name.test.js
+++ b/packages/eslint-plugin-material-ui/src/rules/mui-name-matches-component-name.test.js
@@ -45,6 +45,9 @@ ruleTester.run('mui-name-matches-component-name', rule, {
       useThemeProps: (inProps) => useThemeProps({ props: inProps, name: 'MuiGrid2' }),
     }) as OverridableComponent<Grid2TypeMap>;
     `,
+    `
+    const useThemeProps = createUseThemeProps('MuiBadge');
+    `,
     {
       code: `
         const StaticDateRangePicker = React.forwardRef(function StaticDateRangePicker<TDate>(
@@ -142,5 +145,37 @@ ruleTester.run('mui-name-matches-component-name', rule, {
         },
       ],
     },
+    {
+      code: `
+        const useThemeProps = createUseThemeProps();
+
+        const Badge = React.forwardRef(function Badge(inProps, ref) {
+          const props = useThemeProps({ props: inProps, name: 'MuiBadge' });
+        });
+      `,
+      errors: [
+        {
+          message:
+            'Unable to resolve `name`. Please hardcode the `name` i.e. use a string literal.',
+          type: 'CallExpression',
+        },
+      ],
+    },
+    {
+      code: `
+        const useThemeProps = createUseThemeProps({ name: 'MuiBadge' });
+
+        const Badge = React.forwardRef(function Badge(inProps, ref) {
+          const props = useThemeProps({ props: inProps, name: 'MuiBadge' });
+        });
+      `,
+      errors: [
+        {
+          message:
+            'Unable to resolve `name`. Please hardcode the `name` i.e. use a string literal.',
+          type: 'ObjectExpression',
+        },
+      ],
+    },
   ],
 });
diff --git a/packages/mui-material/src/Badge/Badge.js b/packages/mui-material/src/Badge/Badge.js
index bcb554b0b7f65d..0acd4237363ddf 100644
--- a/packages/mui-material/src/Badge/Badge.js
+++ b/packages/mui-material/src/Badge/Badge.js
@@ -6,14 +6,15 @@ import { usePreviousProps } from '@mui/utils';
 import { unstable_composeClasses as composeClasses } from '@mui/base/composeClasses';
 import { useBadge } from '@mui/base/useBadge';
 import { useSlotProps } from '@mui/base';
-import { styled } from '../zero-styled';
-import useThemeProps from '../styles/useThemeProps';
+import { styled, createUseThemeProps } from '../zero-styled';
 import capitalize from '../utils/capitalize';
 import badgeClasses, { getBadgeUtilityClass } from './badgeClasses';
 
 const RADIUS_STANDARD = 10;
 const RADIUS_DOT = 4;
 
+const useThemeProps = createUseThemeProps('MuiBadge');
+
 const useUtilityClasses = (ownerState) => {
   const { color, anchorOrigin, invisible, overlap, variant, classes = {} } = ownerState;
 
diff --git a/packages/mui-material/src/zero-styled/index.d.ts b/packages/mui-material/src/zero-styled/index.d.ts
deleted file mode 100644
index 1fe160d7d76817..00000000000000
--- a/packages/mui-material/src/zero-styled/index.d.ts
+++ /dev/null
@@ -1,2 +0,0 @@
-// eslint-disable-next-line import/prefer-default-export
-export { default as styled } from '../styles/styled';
diff --git a/packages/mui-material/src/zero-styled/index.js b/packages/mui-material/src/zero-styled/index.js
deleted file mode 100644
index 1fe160d7d76817..00000000000000
--- a/packages/mui-material/src/zero-styled/index.js
+++ /dev/null
@@ -1,2 +0,0 @@
-// eslint-disable-next-line import/prefer-default-export
-export { default as styled } from '../styles/styled';
diff --git a/packages/mui-material/src/zero-styled/index.ts b/packages/mui-material/src/zero-styled/index.ts
new file mode 100644
index 00000000000000..fc74b033f7d4a6
--- /dev/null
+++ b/packages/mui-material/src/zero-styled/index.ts
@@ -0,0 +1,8 @@
+import useThemeProps from '../styles/useThemeProps';
+
+export { default as styled } from '../styles/styled';
+
+// eslint-disable-next-line @typescript-eslint/no-unused-vars
+export function createUseThemeProps(name: string) {
+  return useThemeProps;
+}
diff --git a/packages/zero-runtime/exports/createUseThemeProps.js b/packages/zero-runtime/exports/createUseThemeProps.js
new file mode 100644
index 00000000000000..2d5e6f3f8bd60d
--- /dev/null
+++ b/packages/zero-runtime/exports/createUseThemeProps.js
@@ -0,0 +1,5 @@
+Object.defineProperty(exports, '__esModule', {
+  value: true,
+});
+
+exports.default = require('../processors/createUseThemeProps').CreateUseThemePropsProcessor;
diff --git a/packages/zero-runtime/package.json b/packages/zero-runtime/package.json
index 07f9245d9de011..8cd0476ddf4a8e 100644
--- a/packages/zero-runtime/package.json
+++ b/packages/zero-runtime/package.json
@@ -58,7 +58,8 @@
       "sx": "./exports/sx.js",
       "keyframes": "./exports/keyframes.js",
       "generateAtomics": "./exports/generateAtomics.js",
-      "css": "./exports/css.js"
+      "css": "./exports/css.js",
+      "createUseThemeProps": "./exports/createUseThemeProps.js"
     }
   },
   "files": [
@@ -105,6 +106,9 @@
     },
     "./exports/sx": {
       "default": "./exports/sx.js"
+    },
+    "./exports/createUseThemeProps": {
+      "default": "./exports/createUseThemeProps.js"
     }
   }
 }
diff --git a/packages/zero-runtime/src/createUseThemeProps.d.ts b/packages/zero-runtime/src/createUseThemeProps.d.ts
new file mode 100644
index 00000000000000..7fc1bbc9ea4f37
--- /dev/null
+++ b/packages/zero-runtime/src/createUseThemeProps.d.ts
@@ -0,0 +1,5 @@
+interface UseThemeProps {
+  <Props>(params: { theme: Record<string, any>; props: Props; name: string }): Props;
+}
+
+export default function createUseThemeProps(theme: any): UseThemeProps;
diff --git a/packages/zero-runtime/src/createUseThemeProps.js b/packages/zero-runtime/src/createUseThemeProps.js
new file mode 100644
index 00000000000000..da5edcd844ca8a
--- /dev/null
+++ b/packages/zero-runtime/src/createUseThemeProps.js
@@ -0,0 +1,52 @@
+import { internal_resolveProps as resolveProps } from '@mui/utils';
+
+/**
+ * Runtime function for creating `useThemeProps`.
+ * In the codebase, the first argument will be a string that represent the component slug (should match one of the `theme.components.*`).
+ * Then, the transformation will replace the first argument with the `defaultProps` object if provided.
+ */
+export default function createUseThemeProps(nameOrDefaultProps) {
+  return function useThemeProps({ props }) {
+    if (typeof nameOrDefaultProps === 'string') {
+      // if no default props provided in the theme, return the props as is.
+      return props;
+    }
+    const defaultProps = nameOrDefaultProps;
+    // The same logic as in packages/mui-utils/src/resolveProps.ts
+    // TODO: consider reusing the logic from the utils package
+    const output = { ...props };
+
+    Object.keys(defaultProps).forEach((propName) => {
+      if (propName.toString().match(/^(components|slots)$/)) {
+        output[propName] = {
+          ...defaultProps[propName],
+          ...output[propName],
+        };
+      } else if (propName.toString().match(/^(componentsProps|slotProps)$/)) {
+        const defaultSlotProps = defaultProps[propName] || {};
+        const slotProps = props[propName];
+        output[propName] = {};
+
+        if (!slotProps || !Object.keys(slotProps)) {
+          // Reduce the iteration if the slot props is empty
+          output[propName] = defaultSlotProps;
+        } else if (!defaultSlotProps || !Object.keys(defaultSlotProps)) {
+          // Reduce the iteration if the default slot props is empty
+          output[propName] = slotProps;
+        } else {
+          output[propName] = { ...slotProps };
+          Object.keys(defaultSlotProps).forEach((slotPropName) => {
+            output[propName][slotPropName] = resolveProps(
+              defaultSlotProps[slotPropName],
+              slotProps[slotPropName],
+            );
+          });
+        }
+      } else if (output[propName] === undefined) {
+        output[propName] = defaultProps[propName];
+      }
+    });
+
+    return output;
+  };
+}
diff --git a/packages/zero-runtime/src/index.ts b/packages/zero-runtime/src/index.ts
index ac8805ce428e8f..52c2a5e4bc993f 100644
--- a/packages/zero-runtime/src/index.ts
+++ b/packages/zero-runtime/src/index.ts
@@ -3,3 +3,4 @@ export { default as sx } from './sx';
 export { default as keyframes } from './keyframes';
 export { generateAtomics, atomics } from './generateAtomics';
 export { default as css } from './css';
+export { default as createUseThemeProps } from './createUseThemeProps';
diff --git a/packages/zero-runtime/src/processors/createUseThemeProps.ts b/packages/zero-runtime/src/processors/createUseThemeProps.ts
new file mode 100644
index 00000000000000..381285222dd683
--- /dev/null
+++ b/packages/zero-runtime/src/processors/createUseThemeProps.ts
@@ -0,0 +1,68 @@
+import { validateParams, IOptions as IBaseOptions } from '@linaria/tags';
+import type { Expression, Params, TailProcessorParams } from '@linaria/tags';
+import BaseProcessor from './base-processor';
+import { valueToLiteral } from '../utils/valueToLiteral';
+
+type IOptions = IBaseOptions & {
+  themeArgs: {
+    theme: { components?: Record<string, { defaultProps?: Record<string, unknown> }> };
+  };
+};
+
+export class CreateUseThemePropsProcessor extends BaseProcessor {
+  componentName: string;
+
+  constructor(params: Params, ...args: TailProcessorParams) {
+    super(params, ...args);
+    if (params.length > 2) {
+      // no need to do any processing if it is an already transformed call or just a reference.
+      throw BaseProcessor.SKIP;
+    }
+    validateParams(params, ['callee', 'call'], `Invalid use of ${this.tagSource.imported} tag.`);
+    const [, callParam] = params;
+    const [, callArg] = callParam;
+    if (!callArg || callArg.ex.type !== 'StringLiteral') {
+      throw new Error(
+        `Invalid usage of \`createUseThemeProps\` tag, expected one string literal argument but got ${callArg?.ex.type}.`,
+      );
+    }
+    this.componentName = callArg.ex.value;
+  }
+
+  // eslint-disable-next-line class-methods-use-this
+  build(): void {}
+
+  doEvaltimeReplacement(): void {
+    this.replacer(this.value, false);
+  }
+
+  get value(): Expression {
+    return this.astService.nullLiteral();
+  }
+
+  doRuntimeReplacement(): void {
+    const t = this.astService;
+
+    const { themeArgs: { theme } = {} } = this.options as IOptions;
+    if (!theme?.components?.[this.componentName]?.defaultProps) {
+      return;
+    }
+
+    const useThemePropsImportIdentifier = t.addNamedImport(
+      this.tagSource.imported,
+      process.env.PACKAGE_NAME as string,
+    );
+
+    this.replacer(
+      t.callExpression(useThemePropsImportIdentifier, [
+        valueToLiteral(theme.components[this.componentName].defaultProps),
+      ]),
+      true,
+    );
+  }
+
+  public override get asSelector(): string {
+    // For completeness, this is not intended to be used.
+    return `.${this.className}`;
+  }
+}
diff --git a/packages/zero-runtime/src/processors/styled.ts b/packages/zero-runtime/src/processors/styled.ts
index a19841510de232..b59df0c9c8a6d4 100644
--- a/packages/zero-runtime/src/processors/styled.ts
+++ b/packages/zero-runtime/src/processors/styled.ts
@@ -40,8 +40,6 @@ type ComponentMeta = {
   skipSx?: boolean;
 };
 
-type DefaultProps = Record<string, string | number | boolean | unknown>;
-
 /**
  * Linaria tag processor responsible for converting complex `styled()()` calls
  * at build-time to simple `styled` calls supported by runtime.
@@ -115,8 +113,6 @@ export class StyledProcessor extends BaseProcessor {
 
   originalLocation: SourceLocation | null = null;
 
-  defaultProps: DefaultProps = {};
-
   constructor(params: Params, ...args: TailProcessorParams) {
     super(params, ...args);
     if (params.length <= 2) {
@@ -333,11 +329,6 @@ export class StyledProcessor extends BaseProcessor {
         componentMetaExpression = parsedMeta as ObjectExpression;
       }
     }
-    if (this.defaultProps && Object.keys(this.defaultProps).length > 0) {
-      argProperties.push(
-        t.objectProperty(t.identifier('defaultProps'), valueToLiteral(this.defaultProps)),
-      );
-    }
 
     const styledImportIdentifier = t.addNamedImport(
       this.tagSource.imported,
@@ -419,9 +410,6 @@ export class StyledProcessor extends BaseProcessor {
     if ('variants' in componentData && componentData.variants) {
       variantsAccumulator.push(...(componentData.variants as unknown as VariantData[]));
     }
-    if ('defaultProps' in componentData && componentData.defaultProps) {
-      this.defaultProps = componentData.defaultProps as DefaultProps;
-    }
   }
 
   /**
diff --git a/packages/zero-runtime/src/styled.jsx b/packages/zero-runtime/src/styled.jsx
index c91633690ee652..c9c88918c2e73f 100644
--- a/packages/zero-runtime/src/styled.jsx
+++ b/packages/zero-runtime/src/styled.jsx
@@ -40,12 +40,7 @@ function defaultShouldForwardProp(propKey) {
  * @param {Object} componentMeta.defaultProps Default props object copied over and inlined from theme object
  */
 export default function styled(tag, componentMeta = {}) {
-  const {
-    name,
-    slot,
-    defaultProps = {},
-    shouldForwardProp = defaultShouldForwardProp,
-  } = componentMeta;
+  const { name, slot, shouldForwardProp = defaultShouldForwardProp } = componentMeta;
   /**
    * @TODO - Filter props and only pass necessary props to children
    *
@@ -64,7 +59,6 @@ export default function styled(tag, componentMeta = {}) {
    * @param {string} options.name
    * @param {string} options.slot
    * @param {ShouldForwardProp} options.shouldForwardProp
-   * @param {Object} options.defaultProps Default props object copied over and inlined from theme object
    */
   function scopedStyledWithOptions(options = {}) {
     const { displayName, classes = [], vars: cssVars = {}, variants = [] } = options;
@@ -163,7 +157,6 @@ export default function styled(tag, componentMeta = {}) {
     });
 
     StyledComponent.displayName = `Styled(${componentName})`;
-    StyledComponent.defaultProps = defaultProps;
     // eslint-disable-next-line no-underscore-dangle
     StyledComponent.__isStyled = true;
 
diff --git a/packages/zero-runtime/tsup.config.ts b/packages/zero-runtime/tsup.config.ts
index 346f60915c1945..635ac6fa9b2f64 100644
--- a/packages/zero-runtime/tsup.config.ts
+++ b/packages/zero-runtime/tsup.config.ts
@@ -2,7 +2,7 @@ import { Options, defineConfig } from 'tsup';
 import config from '../../tsup.config';
 import packageJson from './package.json';
 
-const processors = ['styled', 'sx', 'keyframes', 'generateAtomics', 'css'];
+const processors = ['styled', 'sx', 'keyframes', 'generateAtomics', 'css', 'createUseThemeProps'];
 const external = ['react', 'react-is', 'prop-types'];
 
 const baseConfig: Options = {
diff --git a/packages/zero-vite-plugin/src/zero-vite-plugin.ts b/packages/zero-vite-plugin/src/zero-vite-plugin.ts
index e4b855d86126b0..bafee077d0c010 100644
--- a/packages/zero-vite-plugin/src/zero-vite-plugin.ts
+++ b/packages/zero-vite-plugin/src/zero-vite-plugin.ts
@@ -205,7 +205,7 @@ export default function zeroVitePlugin({
                   if (tagResult) {
                     return tagResult;
                   }
-                  if (source.endsWith('/zero-styled')) {
+                  if (source.endsWith('/zero-styled') || source.endsWith('/zero-useThemeProps')) {
                     return `${process.env.RUNTIME_PACKAGE_NAME}/exports/${tag}`;
                   }
                   return null;