diff --git a/packages/calcite-components/src/components/chip/chip.tsx b/packages/calcite-components/src/components/chip/chip.tsx
index ce4abf64cae..894398aa197 100644
--- a/packages/calcite-components/src/components/chip/chip.tsx
+++ b/packages/calcite-components/src/components/chip/chip.tsx
@@ -204,7 +204,7 @@ export class Chip
     connectInteractive(this);
     connectLocalized(this);
     connectMessages(this);
-    this.setupTextContentObserver();
+    this.mutationObserver?.observe(this.el, { childList: true, subtree: true });
   }
 
   componentDidLoad(): void {
@@ -220,6 +220,7 @@ export class Chip
     disconnectInteractive(this);
     disconnectLocalized(this);
     disconnectMessages(this);
+    this.mutationObserver?.disconnect();
   }
 
   async componentWillLoad(): Promise<void> {
@@ -302,10 +303,6 @@ export class Chip
     this.hasText = this.el.textContent.trim().length > 0;
   }
 
-  private setupTextContentObserver() {
-    this.mutationObserver?.observe(this.el, { childList: true, subtree: true });
-  }
-
   private handleSlotImageChange = (event: Event): void => {
     this.hasImage = slotChangeHasAssignedElement(event);
   };