diff --git a/docs/components/chip.md b/docs/components/chip.md
new file mode 100644
index 00000000..923bbe32
--- /dev/null
+++ b/docs/components/chip.md
@@ -0,0 +1,12 @@
+---
+label: Component
+title: Chip
+---
+
+<page-intro>Filter chips use tags or descriptive words to filter content. Filter chips clearly delineate and display options in a compact area.</page-intro>
+
+<component
+    component="chip"
+    variation="chip"
+    >
+</component>
diff --git a/docs/html/chip/chip.html b/docs/html/chip/chip.html
new file mode 100644
index 00000000..ab1fd3a1
--- /dev/null
+++ b/docs/html/chip/chip.html
@@ -0,0 +1 @@
+<div class="ray-chip">Neighborhoods</div>
diff --git a/packages/core/src/components/chip/_chip.scss b/packages/core/src/components/chip/_chip.scss
new file mode 100644
index 00000000..f4b6fc50
--- /dev/null
+++ b/packages/core/src/components/chip/_chip.scss
@@ -0,0 +1,42 @@
+@import '../../global/variables';
+
+$ray-chip-border-width: 1px;
+$ray-chip-height: $ray-spacing-xs * 2 + 1rem;
+
+.#{$ray-class-prefix}chip {
+  @include no-select;
+  border: $ray-chip-border-width solid $ray-color-blue-50;
+  background-color: $ray-color-white;
+  padding: $ray-spacing-xs $ray-spacing-md;
+  border-radius: $ray-chip-height;
+  color: $ray-color-blue-50;
+  display: inline-block;
+  cursor: pointer;
+
+  &:not(:last-child) {
+    margin-right: $ray-spacing-xs;
+  }
+
+  &:hover {
+    background-color: $ray-color-blue-10;
+    color: $ray-color-blue-50;
+  }
+
+  &:focus {
+    box-shadow: $ray-box-shadow-focus-state;
+  }
+
+  &:active {
+    background-color: $ray-color-blue-20;
+  }
+}
+
+.#{$ray-class-prefix}chip--active {
+  background-color: $ray-color-blue-50;
+  color: $ray-color-white;
+
+  &:hover {
+    background-color: $ray-color-blue-50;
+    color: $ray-color-white;
+  }
+}
diff --git a/packages/core/src/components/chip/index.js b/packages/core/src/components/chip/index.js
new file mode 100644
index 00000000..cf8a5354
--- /dev/null
+++ b/packages/core/src/components/chip/index.js
@@ -0,0 +1,68 @@
+class Chip {
+  static instances = new WeakMap();
+
+  static get cssClasses() {
+    return {};
+  }
+
+  static get strings() {
+    return {
+      INIT_SELECTOR: '.ray-chip'
+    };
+  }
+
+  static create(element, options) {
+    return this.instances.get(element) || new this(element, options);
+  }
+
+  static createAll(target = document, _options = { active: false }) {
+    // Finds all instances of select on the document or within a given element and instantiates them.
+    const options = {
+      initSelector: this.strings.INIT_SELECTOR,
+      ..._options
+    };
+
+    const chips = Array.from(target.querySelectorAll(options.initSelector));
+    chips.forEach(select => this.create(select, options));
+  }
+
+  constructor(root, options) {
+    this._root = root;
+
+    this.constructor.instances.set(this._root, this);
+
+    this.state = {
+      active: options.active
+    };
+
+    this._bindEventListeners();
+    this.assignClasses();
+  }
+
+  _bindEventListeners() {
+    this._root.addEventListener('mousedown', this.onMousedown);
+  }
+
+  assignClasses() {
+    if (this.state.active) {
+      this._root.classList.add('ray-chip--active');
+    } else {
+      this._root.classList.remove('ray-chip--active');
+    }
+  }
+
+  onMousedown = () => {
+    this.state.active = !this.state.active;
+    this.assignClasses();
+  };
+
+  destroy() {
+    // Implement this method to release any resources / deregister any listeners they have
+    // attached. An example of this might be deregistering a resize event from the window object.
+    this._root.removeEventListener('mousedown', this.onMousedown);
+
+    this.constructor.instances.delete(this._root);
+  }
+}
+
+export default Chip;
diff --git a/packages/core/src/components/index.js b/packages/core/src/components/index.js
index 50270da6..0eed6fff 100644
--- a/packages/core/src/components/index.js
+++ b/packages/core/src/components/index.js
@@ -1,4 +1,5 @@
 import Select from './select';
 import { TextField, TextArea } from './text-field';
+import Chip from './chip';
 
-export { Select, TextField, TextArea };
+export { Select, TextField, TextArea, Chip };
diff --git a/packages/core/src/ray-core.scss b/packages/core/src/ray-core.scss
index 59851bfd..c8de0009 100644
--- a/packages/core/src/ray-core.scss
+++ b/packages/core/src/ray-core.scss
@@ -10,6 +10,7 @@
 @import './global/material-grid/mdc-layout-grid';
 
 @import './components/card/card';
+@import './components/chip/chip';
 @import './components/button/button';
 @import './components/breadcrumb/breadcrumb';
 @import './components/radio-checkbox/radio-checkbox';
diff --git a/packages/core/stories/chip.stories.js b/packages/core/stories/chip.stories.js
new file mode 100644
index 00000000..2c840f75
--- /dev/null
+++ b/packages/core/stories/chip.stories.js
@@ -0,0 +1,19 @@
+import React from 'react';
+import { storiesOf } from '@storybook/react';
+
+import Chip from '../src/components/chip';
+
+function initChip() {
+  Chip.createAll();
+}
+
+/* eslint-disable no-script-url */
+storiesOf('Chip', module).add('default', () => {
+  setTimeout(initChip);
+  return (
+    <>
+      <div className="ray-chip">Neighborhoods</div>
+      <div className="ray-chip ray-chip--active">Offices</div>
+    </>
+  );
+});
diff --git a/packages/docs-app/src/data/navigation/navigation.json b/packages/docs-app/src/data/navigation/navigation.json
index f87e8fe9..073a7c80 100644
--- a/packages/docs-app/src/data/navigation/navigation.json
+++ b/packages/docs-app/src/data/navigation/navigation.json
@@ -46,6 +46,9 @@
       "card": {
         "title": "Card"
       },
+      "chip": {
+        "title": "Chip"
+      },
       "image": {
         "title": "Image"
       },