diff --git a/src/components/v-chip/index.ts b/src/components/v-chip/index.ts
new file mode 100644
index 0000000000..587e4a84a2
--- /dev/null
+++ b/src/components/v-chip/index.ts
@@ -0,0 +1,4 @@
+import VChip from './v-chip.vue';
+
+export { VChip };
+export default VChip;
diff --git a/src/components/v-chip/v-chip.readme.md b/src/components/v-chip/v-chip.readme.md
new file mode 100644
index 0000000000..4adb77740c
--- /dev/null
+++ b/src/components/v-chip/v-chip.readme.md
@@ -0,0 +1,67 @@
+# Chip
+
+```html
+<v-chip>I'm a chip!</v-chip>
+```
+
+## Sizes
+
+The chip component supports the following sizes through the use of props:
+
+* x-small
+* small
+* (default)
+* large
+* x-large
+
+```html
+<v-chip x-small>I'm a chip!</v-chip>
+```
+
+## Colors
+
+You can set the color, background color, hover color, and background hover color with the `color`, `background-color`, `hover-color`, and `hover-background-color` props respectively:
+
+```html
+<v-chip
+	color="--red"
+	background-color="--red-50"
+	hover-color="--white"
+	hover-background-color="--red"
+>
+	I'm a chip!
+</v-chip>
+```
+
+## Events
+
+There are two events, one when clicking on the chip called `click` and one when clicking on the enabled close icon called `close`.
+
+```html
+<v-chip @click="sayHi">Hello!</v-chip>
+<v-chip close @close="close">I'm closeable!</v-chip>
+```
+
+| Event   | Description                                                                                    |
+|---------|------------------------------------------------------------------------------------------------|
+| `click` | Triggers when clicked somewhere on the chip                                                    |
+| `close` | Triggers when the `close` prop is enabled and gets clicked (Doesn't trigger the `click` event) |
+
+## Props
+
+| Prop                     | Description                                          | Default                                 |
+|--------------------------|------------------------------------------------------|-----------------------------------------|
+| `active`                 | Change visibility. Can be reacted to via `sync`      | `true`                                  |
+| `close`                  | Displays a close icon which triggers the close event | `false`                                 |
+| `closeIcon`              | Which icon should be displayed instead of `close   ` | `close`                                 |
+| `outlined`               | No background                                        | `false`                                 |
+| `color`                  | Text color                                           | `--chip-primary-text-color`             |
+| `hover-color`            | Text color on hover                                  | `--chip-primary-text-color`             |
+| `background-color`       | Chip color                                           | `--chip-primary-background-color`       |
+| `hover-background-color` | Chip color on hover                                  | `--chip-primary-background-color-hover` |
+| `label`                  | Label style                                          | `false`                                 |
+| `disabled`               | Disabled state                                       | `false`                                 |
+| `x-small`                | Render extra small                                   | `false`                                 |
+| `small`                  | Render small                                         | `false`                                 |
+| `large`                  | Render large                                         | `false`                                 |
+| `x-large`                | Render extra large                                   | `false`                                 |
diff --git a/src/components/v-chip/v-chip.story.ts b/src/components/v-chip/v-chip.story.ts
new file mode 100644
index 0000000000..10f749dbdb
--- /dev/null
+++ b/src/components/v-chip/v-chip.story.ts
@@ -0,0 +1,261 @@
+import { withKnobs, text, boolean, number, optionsKnob as options } from '@storybook/addon-knobs';
+import { action } from '@storybook/addon-actions';
+import Vue from 'vue';
+import VChip from './v-chip.vue';
+import VIcon from '../v-icon/';
+import markdown from './v-chip.readme.md';
+import withPadding from '../../../.storybook/decorators/with-padding';
+
+Vue.component('v-chip', VChip);
+Vue.component('v-icon', VIcon);
+
+export default {
+	title: 'Components / Chip',
+	component: VChip,
+	decorators: [withKnobs, withPadding],
+	parameters: {
+		notes: markdown
+	}
+};
+
+export const withText = () => ({
+	methods: { onClick: action('click'), onClose: action('close') },
+	props: {
+		text: {
+			default: text('Text in chip', 'Click me')
+		},
+		label: {
+			default: boolean('Label', false, 'Button')
+		},
+		outlined: {
+			default: boolean('Outlined', false, 'Button')
+		},
+		size: {
+			default: options(
+				'Size',
+				{
+					'Extra Small': 'xSmall',
+					Small: 'small',
+					'(default)': 'default',
+					Large: 'large',
+					'Extra Large': 'xLarge'
+				},
+				'default',
+				{
+					display: 'select'
+				},
+				'Button'
+			)
+		},
+		close: {
+			default: boolean('Close', false, 'Button')
+		},
+		disabled: {
+			default: boolean('Disabled', false, 'Button')
+		},
+		active: {
+			default: boolean('Active', true, 'Button')
+		},
+		color: {
+			default: text('Color', '--chip-primary-text-color', 'Colors')
+		},
+		backgroundColor: {
+			default: text('Background Color', '--chip-primary-background-color', 'Colors')
+		},
+		hoverColor: {
+			default: text('Color (hover)', '--chip-primary-text-color', 'Colors')
+		},
+		hoverBackgroundColor: {
+			default: text(
+				'Background Color (hover)',
+				'--chip-primary-background-color-hover',
+				'Colors'
+			)
+		}
+	},
+	template: `
+		<v-chip
+			:active.sync="active"
+			:label="label"
+			:outlined="outlined"
+			:color="color"
+			:close="close"
+			:background-color="backgroundColor"
+			:hover-color="hoverColor"
+			:hover-background-color="hoverBackgroundColor"
+			:disabled="disabled"
+			:x-small="size === 'xSmall'"
+			:small="size === 'small'"
+			:large="size === 'large'"
+			:x-large="size === 'xLarge'"
+			@click="onClick"
+			@close="onClose"
+		>
+			{{ text }}
+		</v-chip>
+	`
+});
+
+export const withIcon = () => ({
+	methods: { onClick: action('click'), onClose: action('close') },
+	props: {
+		iconName: {
+			default: text('Material Icon', 'add')
+		},
+		text: {
+			default: text('Text in chip', 'Click me')
+		},
+		label: {
+			default: boolean('Label', false, 'Button')
+		},
+		outlined: {
+			default: boolean('Outlined', false, 'Button')
+		},
+		size: {
+			default: options(
+				'Size',
+				{
+					'Extra Small': 'xSmall',
+					Small: 'small',
+					'(default)': 'default',
+					Large: 'large',
+					'Extra Large': 'xLarge'
+				},
+				'default',
+				{
+					display: 'select'
+				},
+				'Button'
+			)
+		},
+		iconSize: {
+			default: options(
+				'Size (Icon)',
+				{
+					'Extra Small': 'xSmall',
+					Small: 'small',
+					'(default)': 'default',
+					Large: 'large',
+					'Extra Large': 'xLarge'
+				},
+				'default',
+				{
+					display: 'select'
+				},
+				'Button'
+			)
+		},
+		close: {
+			default: boolean('Close', false, 'Button')
+		},
+		disabled: {
+			default: boolean('Disabled', false, 'Button')
+		},
+		active: {
+			default: boolean('Active', true, 'Button')
+		},
+		color: {
+			default: text('Color', '--chip-primary-text-color', 'Colors')
+		},
+		backgroundColor: {
+			default: text('Background Color', '--chip-primary-background-color', 'Colors')
+		},
+		hoverColor: {
+			default: text('Color (hover)', '--chip-primary-text-color', 'Colors')
+		},
+		hoverBackgroundColor: {
+			default: text(
+				'Background Color (hover)',
+				'--chip-primary-background-color-hover',
+				'Colors'
+			)
+		}
+	},
+	template: `
+		<v-chip
+			:active="active"
+			:label="label"
+			:outlined="outlined"
+			:color="color"
+			:close="close"
+			:background-color="backgroundColor"
+			:hover-color="hoverColor"
+			:hover-background-color="hoverBackgroundColor"
+			:disabled="disabled"
+			:x-small="size === 'xSmall'"
+			:small="size === 'small'"
+			:large="size === 'large'"
+			:x-large="size === 'xLarge'"
+			@click="onClick"
+			@close="onClose"
+		>
+			<v-icon
+				:name="iconName"
+				:x-small="iconSize === 'xSmall'"
+				:small="iconSize === 'small'"
+				:large="iconSize === 'large'"
+				:x-large="iconSize === 'xLarge'"
+				left
+			/>
+			{{ text }}
+		</v-chip>
+	`
+});
+
+export const withColor = () => ({
+	template: `
+		<div>
+			<v-chip
+				color="--white"
+				background-color="--red-600"
+				hover-color="--white"
+				hover-background-color="--red-400"
+			>
+				<v-icon
+					name="delete"
+					color="--white"
+					left
+				/>
+				Delete
+			</v-chip>
+			<v-chip
+				color="--white"
+				background-color="--green-600"
+				hover-color="--white"
+				hover-background-color="--green-400"
+			>
+				<v-icon
+					name="add"
+					color="--white"
+					left
+				/>
+				Add Item
+			</v-chip>
+			<v-chip
+				color="--white"
+				background-color="--amber-600"
+				hover-color="--white"
+				hover-background-color="--amber-400"
+			>
+				<v-icon
+					name="warning"
+					color="--white"
+					left
+				/>
+				Watch out
+			</v-chip>
+		</div>
+	`
+});
+
+export const sizes = () => ({
+	template: `
+		<div>
+			<v-chip x-small>Extra small</v-chip>
+			<v-chip small>Small</v-chip>
+			<v-chip>Default</v-chip>
+			<v-chip large>Large</v-chip>
+			<v-chip x-large>Extra large</v-chip>
+		</div>
+	`
+});
diff --git a/src/components/v-chip/v-chip.test.ts b/src/components/v-chip/v-chip.test.ts
new file mode 100644
index 0000000000..5dda62a1d0
--- /dev/null
+++ b/src/components/v-chip/v-chip.test.ts
@@ -0,0 +1,183 @@
+import { mount, createLocalVue, Wrapper } from '@vue/test-utils';
+import VueCompositionAPI from '@vue/composition-api';
+import VChip from './v-chip.vue';
+import VIcon from '@/components/v-icon/';
+
+const localVue = createLocalVue();
+localVue.use(VueCompositionAPI);
+localVue.component('v-icon', VIcon);
+
+describe('Chip', () => {
+	let component: Wrapper<Vue>;
+
+	beforeEach(() => {
+		component = mount(VChip, { localVue });
+	});
+
+	it('Renders the provided markup in the default slow', () => {
+		const component = mount(VChip, {
+			localVue,
+			slots: {
+				default: 'Click me'
+			}
+		});
+
+		expect(component.text()).toContain('Click me');
+	});
+
+	it('Hides the whole component', async () => {
+		component.setProps({
+			active: false
+		});
+
+		await component.vm.$nextTick();
+
+		expect(component.find('span').exists()).toBe(false);
+	});
+
+	it('Adds the outline class for outline chips', async () => {
+		component.setProps({
+			outlined: true
+		});
+
+		await component.vm.$nextTick();
+
+		expect(component.classes()).toContain('outlined');
+	});
+
+	it('Adds the label class for block chips', async () => {
+		component.setProps({
+			label: true
+		});
+
+		await component.vm.$nextTick();
+
+		expect(component.classes()).toContain('label');
+	});
+
+	it('Adds the close icon for icon chips', async () => {
+		component.setProps({
+			close: true
+		});
+
+		await component.vm.$nextTick();
+
+		expect(component.find('.close-outline').exists()).toBe(true);
+	});
+
+	it('Sets the correct CSS variables for custom colors', async () => {
+		component.setProps({
+			color: '--red',
+			hoverColor: '--blue',
+			backgroundColor: '--green',
+			hoverBackgroundColor: '--yellow'
+		});
+
+		await component.vm.$nextTick();
+
+		expect((component.vm as any).styles['--_v-chip-color']).toBe('var(--red)');
+		expect((component.vm as any).styles['--_v-chip-hover-color']).toBe('var(--blue)');
+		expect((component.vm as any).styles['--_v-chip-background-color']).toBe('var(--green)');
+		expect((component.vm as any).styles['--_v-chip-hover-background-color']).toBe(
+			'var(--yellow)'
+		);
+	});
+
+	it('Emits a click event when chip is not disabled', async () => {
+		component.setProps({
+			disabled: false
+		});
+
+		await component.vm.$nextTick();
+
+		(component.vm as any).onClick(new Event('click'));
+
+		expect(component.emitted('click')[0][0]).toBeInstanceOf(Event);
+	});
+
+	it('Does not emit click when disabled', async () => {
+		component.setProps({
+			disabled: true
+		});
+
+		await component.vm.$nextTick();
+
+		(component.vm as any).onClick(new Event('click'));
+
+		expect(component.emitted('click')).toBe(undefined);
+	});
+
+	it('Emits a click event when chip is not disabled and close button is clicked', async () => {
+		component.setProps({
+			disabled: false
+		});
+
+		await component.vm.$nextTick();
+
+		(component.vm as any).onCloseClick(new Event('click'));
+
+		expect(component.emitted('close')[0][0]).toBeInstanceOf(Event);
+	});
+
+	it('Does not emit click when disabled and close button is clicked', async () => {
+		component.setProps({
+			disabled: true
+		});
+
+		await component.vm.$nextTick();
+
+		(component.vm as any).onCloseClick(new Event('click'));
+
+		expect(component.emitted('click')).toBe(undefined);
+	});
+
+	describe('Sizes', () => {
+		const component = mount(VChip, {
+			localVue,
+			propsData: {
+				color: '--blue-grey',
+				name: 'person'
+			}
+		});
+
+		test('Extra Small', () => {
+			component.setProps({
+				xSmall: true,
+				small: false,
+				large: false,
+				xLarge: false
+			});
+			component.vm.$nextTick(() => expect(component.classes()).toContain('x-small'));
+		});
+
+		test('Small', () => {
+			component.setProps({
+				xSmall: false,
+				small: true,
+				large: false,
+				xLarge: false
+			});
+			component.vm.$nextTick(() => expect(component.classes()).toContain('small'));
+		});
+
+		test('Large', () => {
+			component.setProps({
+				xSmall: false,
+				small: false,
+				large: true,
+				xLarge: false
+			});
+			component.vm.$nextTick(() => expect(component.classes()).toContain('large'));
+		});
+
+		test('Extra Large', () => {
+			component.setProps({
+				xSmall: false,
+				small: false,
+				large: false,
+				xLarge: true
+			});
+			component.vm.$nextTick(() => expect(component.classes()).toContain('x-large'));
+		});
+	});
+});
diff --git a/src/components/v-chip/v-chip.vue b/src/components/v-chip/v-chip.vue
new file mode 100644
index 0000000000..139dbb6b3a
--- /dev/null
+++ b/src/components/v-chip/v-chip.vue
@@ -0,0 +1,218 @@
+<template>
+	<span
+		v-if="_active"
+		class="v-chip"
+		:style="styles"
+		:class="[sizeClass, { outlined, label, disabled, close }]"
+		@click="onClick"
+	>
+		<span class="chip-content">
+			<slot />
+			<span
+				v-if="close"
+				class="close-outline"
+				:class="{ disabled }"
+				@click.stop="onCloseClick"
+			>
+				<v-icon class="close" :name="closeIcon" x-small />
+			</span>
+		</span>
+	</span>
+</template>
+
+<script lang="ts">
+import { createComponent, ref, computed } from '@vue/composition-api';
+import parseCSSVar from '@/utils/parse-css-var';
+
+export default createComponent({
+	props: {
+		active: {
+			type: Boolean,
+			default: null
+		},
+		close: {
+			type: Boolean,
+			default: false
+		},
+		closeIcon: {
+			type: String,
+			default: 'close'
+		},
+		outlined: {
+			type: Boolean,
+			default: false
+		},
+		color: {
+			type: String,
+			default: '--chip-primary-text-color'
+		},
+		backgroundColor: {
+			type: String,
+			default: '--chip-primary-background-color'
+		},
+		hoverColor: {
+			type: String,
+			default: '--chip-primary-text-color'
+		},
+		hoverBackgroundColor: {
+			type: String,
+			default: '--chip-primary-background-color-hover'
+		},
+		label: {
+			type: Boolean,
+			default: false
+		},
+		disabled: {
+			type: Boolean,
+			default: false
+		},
+		xSmall: {
+			type: Boolean,
+			default: false
+		},
+		small: {
+			type: Boolean,
+			default: false
+		},
+		large: {
+			type: Boolean,
+			default: false
+		},
+		xLarge: {
+			type: Boolean,
+			default: false
+		}
+	},
+	setup(props, { emit }) {
+		const _localActive = ref(true);
+
+		const _active = computed<boolean>({
+			get: () => {
+				if (props.active !== null) return props.active;
+				return _localActive.value;
+			},
+			set: (active: boolean) => {
+				emit('update:active', active);
+				_localActive.value = active;
+			}
+		});
+
+		const styles = computed(() => ({
+			'--_v-chip-color': parseCSSVar(props.color),
+			'--_v-chip-background-color': parseCSSVar(props.backgroundColor),
+			'--_v-chip-hover-color': parseCSSVar(props.hoverColor),
+			'--_v-chip-hover-background-color': parseCSSVar(props.hoverBackgroundColor)
+		}));
+
+		const sizeClass = computed<string | null>(() => {
+			if (props.xSmall) return 'x-small';
+			if (props.small) return 'small';
+			if (props.large) return 'large';
+			if (props.xLarge) return 'x-large';
+			return null;
+		});
+
+		return { styles, sizeClass, _active, onClick, onCloseClick };
+
+		function onClick(event: MouseEvent) {
+			if (props.disabled) return;
+			emit('click', event);
+		}
+
+		function onCloseClick(event: MouseEvent) {
+			if (props.disabled) return;
+			_active.value = !_active.value;
+			emit('close', event);
+		}
+	}
+});
+</script>
+
+<style lang="scss" scoped>
+.v-chip {
+	display: inline-flex;
+	height: 32px;
+	padding: 0 12px;
+	align-items: center;
+
+	color: var(--_v-chip-color);
+	background-color: var(--_v-chip-background-color);
+	border-radius: 16px;
+	font-weight: var(--weight-normal);
+
+	&:hover {
+		color: var(--_v-chip-hover-color);
+		background-color: var(--_v-chip-hover-background-color);
+	}
+
+	&.label {
+		border-radius: var(--border-radius);
+	}
+
+	&.outlined {
+		background-color: transparent;
+		border: var(--input-border-width) solid var(--_v-chip-background-color);
+	}
+
+	&.disabled {
+		color: var(--chip-primary-text-color-disabled);
+		background-color: var(--chip-primary-background-color-disabled);
+	}
+
+	&.x-small {
+		font-size: 12px;
+		height: 20px;
+		border-radius: 10px;
+	}
+
+	&.small {
+		font-size: 14px;
+		height: 24px;
+		border-radius: 12px;
+	}
+
+	&.large {
+		font-size: 16px;
+		height: 44px;
+		border-radius: 22px;
+	}
+
+	&.x-large {
+		font-size: 18px;
+		height: 48px;
+		border-radius: 24px;
+	}
+
+	.chip-content {
+		display: inline-flex;
+		align-items: center;
+
+		.close-outline {
+			position: relative;
+			display: inline-flex;
+			justify-content: center;
+			align-items: center;
+
+			background-color: var(--chip-primary-close-color);
+			color: var(--chip-primary-background-color);
+			border-radius: 10px;
+			height: 14px;
+			width: 14px;
+			right: -4px;
+			margin-left: 4px;
+
+			&.disabled {
+				background-color: var(--chip-primary-close-color-disabled);
+
+				&:hover {
+					background-color: var(--chip-primary-close-color-disabled);
+				}
+			}
+
+			&:hover {
+				background-color: var(--chip-primary-close-color-hover);
+			}
+		}
+	}
+}
+</style>
diff --git a/src/components/v-overlay/v-overlay.test.ts b/src/components/v-overlay/v-overlay.test.ts
index 7c9ba8ed47..1c8b0bbf89 100644
--- a/src/components/v-overlay/v-overlay.test.ts
+++ b/src/components/v-overlay/v-overlay.test.ts
@@ -1,4 +1,4 @@
-import { mount, createLocalVue, Wrapper } from '@vue/test-utils';
+import { shallowMount, createLocalVue, Wrapper } from '@vue/test-utils';
 import VueCompositionAPI from '@vue/composition-api';
 
 const localVue = createLocalVue();
@@ -10,19 +10,19 @@ describe('Overlay', () => {
 	let component: Wrapper<Vue>;
 
 	beforeEach(() => {
-		component = mount(VOverlay, {
+		component = shallowMount(VOverlay, {
 			localVue
 		});
 	});
 
 	it('Is invisible when active prop is false', () => {
-		expect(component.isVisible()).toBe(false);
+		expect(component.classes()).toEqual(['v-overlay']);
 	});
 
 	it('Is visible when active is true', async () => {
 		component.setProps({ active: true });
 		await component.vm.$nextTick();
-		expect(component.isVisible()).toBe(true);
+		expect(component.classes()).toEqual(['v-overlay', 'active']);
 	});
 
 	it('Sets position absolute based on absolute prop', async () => {
@@ -46,7 +46,7 @@ describe('Overlay', () => {
 	});
 
 	it('Adds the has-click class when click event is passed', async () => {
-		const component = mount(VOverlay, {
+		const component = shallowMount(VOverlay, {
 			localVue,
 			listeners: {
 				click: () => {}
diff --git a/src/routes/debug.vue b/src/routes/debug.vue
new file mode 100644
index 0000000000..fc2e35de79
--- /dev/null
+++ b/src/routes/debug.vue
@@ -0,0 +1,9 @@
+<template>
+	<div>Debug</div>
+</template>
+
+<script lang="ts">
+import { createComponent } from '@vue/composition-api';
+
+export default createComponent({});
+</script>
diff --git a/src/styles/_variables.scss b/src/styles/_variables.scss
index 7aadab60f8..6b32c1b650 100644
--- a/src/styles/_variables.scss
+++ b/src/styles/_variables.scss
@@ -341,6 +341,18 @@ body {
   --button-tertiary-background-color-disabled: var(--blue-grey-400);
   --button-tertiary-text-color-disabled: var(--blue-grey-600);
 
+  // Chip colors
+
+  --chip-primary-text-color: var(--black);
+  --chip-primary-background-color: var(--blue-grey-100);
+  --chip-primary-background-color-hover: var(--blue-grey-200);
+  --chip-primary-close-color: var(--blue-grey-700);
+  --chip-primary-close-color-hover: var(--blue-grey-800);
+  --chip-primary-close-color-disabled: var(--blue-grey-200);
+  --chip-primary-background-color-disabled: var(--blue-grey-50);
+  --chip-primary-text-color-disabled: var(--blue-grey-300);
+
+
   // Table
 
   --table-head-border-color: var(--blue-grey-50);
diff --git a/src/views/public/public-view.test.ts b/src/views/public/public-view.test.ts
index 0360e82568..5d78ab0f9c 100644
--- a/src/views/public/public-view.test.ts
+++ b/src/views/public/public-view.test.ts
@@ -1,10 +1,12 @@
 import VueCompositionAPI from '@vue/composition-api';
 import { mount, createLocalVue } from '@vue/test-utils';
 import { VTooltip } from 'v-tooltip';
+import VIcon from '@/components/v-icon/';
 
 const localVue = createLocalVue();
 localVue.use(VueCompositionAPI);
 localVue.directive('tooltip', VTooltip);
+localVue.component('v-icon', VIcon);
 
 import PublicView from './public-view.vue';