diff --git a/compose-material/src/debug/java/com/google/android/horologist/compose/material/CompactChipPreview.kt b/compose-material/src/debug/java/com/google/android/horologist/compose/material/CompactChipPreview.kt
new file mode 100644
index 0000000000..06cb95ecc4
--- /dev/null
+++ b/compose-material/src/debug/java/com/google/android/horologist/compose/material/CompactChipPreview.kt
@@ -0,0 +1,50 @@
+/*
+ * Copyright 2023 The Android Open Source Project
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ *      https://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+
+package com.google.android.horologist.compose.material
+
+import androidx.compose.material.icons.Icons
+import androidx.compose.material.icons.filled.Add
+import androidx.compose.runtime.Composable
+import com.google.android.horologist.compose.tools.WearPreview
+
+@WearPreview
+@Composable
+fun CompactChipPreview() {
+    CompactChip(
+        onClick = { },
+        label = "Primary label"
+    )
+}
+
+@WearPreview
+@Composable
+fun CompactChipPreviewWithIcon() {
+    CompactChip(
+        onClick = { },
+        label = "Primary label",
+        icon = Icons.Filled.Add
+    )
+}
+
+@WearPreview
+@Composable
+fun CompactChipPreviewIconOnly() {
+    CompactChip(
+        onClick = { },
+        icon = Icons.Filled.Add
+    )
+}
diff --git a/compose-material/src/main/java/com/google/android/horologist/compose/material/CompactChip.kt b/compose-material/src/main/java/com/google/android/horologist/compose/material/CompactChip.kt
new file mode 100644
index 0000000000..636cddb392
--- /dev/null
+++ b/compose-material/src/main/java/com/google/android/horologist/compose/material/CompactChip.kt
@@ -0,0 +1,156 @@
+/*
+ * Copyright 2023 The Android Open Source Project
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ *      https://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+
+package com.google.android.horologist.compose.material
+
+import androidx.annotation.StringRes
+import androidx.compose.foundation.Image
+import androidx.compose.foundation.interaction.MutableInteractionSource
+import androidx.compose.foundation.layout.BoxScope
+import androidx.compose.foundation.layout.Row
+import androidx.compose.foundation.layout.RowScope
+import androidx.compose.foundation.layout.fillMaxWidth
+import androidx.compose.foundation.layout.size
+import androidx.compose.runtime.Composable
+import androidx.compose.runtime.remember
+import androidx.compose.ui.Modifier
+import androidx.compose.ui.graphics.painter.Painter
+import androidx.compose.ui.graphics.vector.ImageVector
+import androidx.compose.ui.layout.ContentScale
+import androidx.compose.ui.res.stringResource
+import androidx.compose.ui.text.style.TextAlign
+import androidx.compose.ui.text.style.TextOverflow
+import androidx.wear.compose.material.ChipBorder
+import androidx.wear.compose.material.ChipColors
+import androidx.wear.compose.material.ChipDefaults
+import androidx.wear.compose.material.CompactChip
+import androidx.wear.compose.material.LocalContentAlpha
+import androidx.wear.compose.material.Text
+import coil.compose.rememberAsyncImagePainter
+import com.google.android.horologist.annotations.ExperimentalHorologistApi
+import com.google.android.horologist.compose.material.util.DECORATIVE_ELEMENT_CONTENT_DESCRIPTION
+
+@ExperimentalHorologistApi
+@Composable
+public fun CompactChip(
+    onClick: () -> Unit,
+    modifier: Modifier = Modifier,
+    label: String? = null,
+    icon: Any? = null,
+    iconRtlMode: IconRtlMode = IconRtlMode.Default,
+    placeholder: Painter? = null,
+    colors: ChipColors = ChipDefaults.primaryChipColors(),
+    enabled: Boolean = true,
+    interactionSource: MutableInteractionSource = remember { MutableInteractionSource() },
+    border: ChipBorder = ChipDefaults.chipBorder()
+) {
+    val iconParam: (@Composable BoxScope.() -> Unit)? =
+        icon?.let {
+            {
+                Row {
+                    val iconModifier = Modifier
+                        .size(ChipDefaults.SmallIconSize)
+                    when (icon) {
+                        is ImageVector ->
+                            Icon(
+                                imageVector = icon,
+                                contentDescription = DECORATIVE_ELEMENT_CONTENT_DESCRIPTION,
+                                modifier = iconModifier,
+                                rtlMode = iconRtlMode
+                            )
+
+                        is Int ->
+                            Icon(
+                                id = icon,
+                                contentDescription = DECORATIVE_ELEMENT_CONTENT_DESCRIPTION,
+                                modifier = iconModifier
+                            )
+
+                        else ->
+                            Image(
+                                painter = rememberAsyncImagePainter(
+                                    model = icon,
+                                    placeholder = placeholder
+                                ),
+                                contentDescription = DECORATIVE_ELEMENT_CONTENT_DESCRIPTION,
+                                modifier = iconModifier,
+                                contentScale = ContentScale.Crop,
+                                alpha = LocalContentAlpha.current
+                            )
+                    }
+                }
+            }
+        }
+    val hasIcon = icon != null
+
+    val labelParam: (@Composable RowScope.() -> Unit)? =
+        label?.let {
+            {
+                Text(
+                    modifier = Modifier.fillMaxWidth(),
+                    text = label,
+                    textAlign = if (hasIcon) TextAlign.Start else TextAlign.Center,
+                    overflow = TextOverflow.Ellipsis,
+                    maxLines = 1
+                )
+            }
+        }
+
+    CompactChip(
+        modifier = modifier,
+        onClick = onClick,
+        label = labelParam,
+        icon = iconParam,
+        colors = colors,
+        enabled = enabled,
+        interactionSource = interactionSource,
+        border = border
+    )
+}
+
+/**
+ * This component is an alternative to [CompactChip], providing the following:
+ * - a convenient way of providing a string resource label;
+ * - a convenient way of providing an icon and a placeholder, and choosing their size based on the
+ * sizes recommended by the Wear guidelines;
+ */
+@ExperimentalHorologistApi
+@Composable
+public fun CompactChip(
+    @StringRes labelId: Int,
+    onClick: () -> Unit,
+    modifier: Modifier = Modifier,
+    icon: Any? = null,
+    iconRtlMode: IconRtlMode = IconRtlMode.Default,
+    placeholder: Painter? = null,
+    colors: ChipColors = ChipDefaults.primaryChipColors(),
+    enabled: Boolean = true,
+    interactionSource: MutableInteractionSource = remember { MutableInteractionSource() },
+    border: ChipBorder = ChipDefaults.chipBorder()
+) {
+    CompactChip(
+        onClick = onClick,
+        modifier = modifier,
+        label = stringResource(id = labelId),
+        icon = icon,
+        iconRtlMode = iconRtlMode,
+        placeholder = placeholder,
+        colors = colors,
+        enabled = enabled,
+        interactionSource = interactionSource,
+        border = border
+    )
+}
diff --git a/compose-material/src/test/java/com/google/android/horologist/compose/material/CompactChipA11yTest.kt b/compose-material/src/test/java/com/google/android/horologist/compose/material/CompactChipA11yTest.kt
new file mode 100644
index 0000000000..743b60dfdc
--- /dev/null
+++ b/compose-material/src/test/java/com/google/android/horologist/compose/material/CompactChipA11yTest.kt
@@ -0,0 +1,67 @@
+/*
+ * Copyright 2023 The Android Open Source Project
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ *      https://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+
+package com.google.android.horologist.compose.material
+
+import androidx.compose.foundation.layout.Box
+import androidx.compose.foundation.layout.fillMaxSize
+import androidx.compose.material.icons.Icons
+import androidx.compose.material.icons.filled.Add
+import androidx.compose.ui.Alignment
+import androidx.compose.ui.Modifier
+import com.google.android.horologist.screenshots.ScreenshotBaseTest
+import com.google.android.horologist.screenshots.ScreenshotTestRule
+import org.junit.Test
+
+class CompactChipA11yTest : ScreenshotBaseTest(
+    ScreenshotTestRule.screenshotTestRuleParams {
+        enableA11y = true
+        screenTimeText = {}
+    }
+) {
+    @Test
+    fun withIcon() {
+        screenshotTestRule.setContent(takeScreenshot = true) {
+            Box(
+                modifier = Modifier.fillMaxSize(),
+                contentAlignment = Alignment.Center
+            ) {
+                CompactChip(
+                    onClick = { },
+                    label = "Primary label",
+                    icon = Icons.Filled.Add
+                )
+            }
+        }
+    }
+
+    @Test
+    fun disabled() {
+        screenshotTestRule.setContent(takeScreenshot = true) {
+            Box(
+                modifier = Modifier.fillMaxSize(),
+                contentAlignment = Alignment.Center
+            ) {
+                CompactChip(
+                    onClick = { },
+                    label = "Primary label",
+                    icon = Icons.Filled.Add,
+                    enabled = false
+                )
+            }
+        }
+    }
+}
diff --git a/compose-material/src/test/java/com/google/android/horologist/compose/material/CompactChipTest.kt b/compose-material/src/test/java/com/google/android/horologist/compose/material/CompactChipTest.kt
new file mode 100644
index 0000000000..67ba717fa7
--- /dev/null
+++ b/compose-material/src/test/java/com/google/android/horologist/compose/material/CompactChipTest.kt
@@ -0,0 +1,195 @@
+/*
+ * Copyright 2023 The Android Open Source Project
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ *      https://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+
+package com.google.android.horologist.compose.material
+
+import android.R
+import androidx.compose.material.icons.Icons
+import androidx.compose.material.icons.filled.Add
+import androidx.compose.material.icons.filled.DirectionsBike
+import androidx.compose.material.icons.filled.Image
+import androidx.compose.runtime.CompositionLocalProvider
+import androidx.compose.ui.platform.LocalInspectionMode
+import androidx.compose.ui.unit.LayoutDirection
+import androidx.wear.compose.material.MaterialTheme
+import com.google.accompanist.testharness.TestHarness
+import com.google.android.horologist.compose.material.util.rememberVectorPainter
+import com.google.android.horologist.compose.tools.coil.FakeImageLoader
+import com.google.android.horologist.screenshots.ScreenshotBaseTest
+import org.junit.Test
+
+class CompactChipTest : ScreenshotBaseTest() {
+
+    @Test
+    fun default() {
+        screenshotTestRule.setContent(isComponent = true, takeScreenshot = true) {
+            CompactChip(
+                onClick = { },
+                label = "Primary label"
+            )
+        }
+    }
+
+    @Test
+    fun withIcon() {
+        screenshotTestRule.setContent(isComponent = true, takeScreenshot = true) {
+            CompactChip(
+                onClick = { },
+                label = "Primary label",
+                icon = Icons.Filled.Add
+            )
+        }
+    }
+
+    @Test
+    fun iconOnly() {
+        screenshotTestRule.setContent(isComponent = true, takeScreenshot = true) {
+            CompactChip(
+                onClick = { },
+                icon = Icons.Filled.Add
+            )
+        }
+    }
+
+    @Test
+    fun disabled() {
+        screenshotTestRule.setContent(isComponent = true, takeScreenshot = true) {
+            CompactChip(
+                onClick = { },
+                label = "Primary label",
+                icon = Icons.Filled.Add,
+                enabled = false
+            )
+        }
+    }
+
+    @Test
+    fun withLongText() {
+        screenshotTestRule.setContent(isComponent = true, takeScreenshot = true) {
+            CompactChip(
+                onClick = { },
+                label = "Primary label very very very very very very very very very very very very very very very very very long text"
+            )
+        }
+    }
+
+    @Test
+    fun withLongTextAndLargestFontScale() {
+        screenshotTestRule.setContent(isComponent = true, takeScreenshot = true) {
+            TestHarness(fontScale = largestFontScale) {
+                CompactChip(
+                    onClick = { },
+                    label = "Primary label very very very very very very very very very very very very very very very very very long text"
+                )
+            }
+        }
+    }
+
+    @Test
+    fun usingDrawableResAsIcon() {
+        screenshotTestRule.setContent(isComponent = true, takeScreenshot = true) {
+            CompactChip(
+                onClick = { },
+                label = "Primary label",
+                icon = R.drawable.ic_delete
+            )
+        }
+    }
+
+    @Test
+    fun withPlaceholderIcon() {
+        screenshotTestRule.setContent(isComponent = true, takeScreenshot = true) {
+            // In inspection mode will jump to placeholder
+            CompositionLocalProvider(LocalInspectionMode.provides(true)) {
+                CompactChip(
+                    onClick = { },
+                    label = "Primary label",
+                    icon = "iconUri",
+                    placeholder = rememberVectorPainter(
+                        image = Icons.Default.Image,
+                        tintColor = MaterialTheme.colors.primary
+                    )
+                )
+            }
+        }
+    }
+
+    @Test
+    fun disabledWithIconPlaceholder() {
+        screenshotTestRule.setContent(
+            isComponent = true,
+            takeScreenshot = true,
+            fakeImageLoader = FakeImageLoader.Never
+        ) {
+            // In inspection mode will jump to placeholder
+            CompositionLocalProvider(LocalInspectionMode.provides(true)) {
+                CompactChip(
+                    onClick = { },
+                    label = "Primary label",
+                    icon = "iconUri",
+                    placeholder = rememberVectorPainter(
+                        image = Icons.Default.Image,
+                        tintColor = MaterialTheme.colors.primary
+                    ),
+                    enabled = false
+                )
+            }
+        }
+    }
+
+    @Test
+    fun withIconRtl() {
+        screenshotTestRule.setContent(isComponent = true, takeScreenshot = true) {
+            TestHarness(layoutDirection = LayoutDirection.Rtl) {
+                CompactChip(
+                    onClick = { },
+                    label = "Primary label",
+                    icon = Icons.Default.DirectionsBike
+                )
+            }
+        }
+    }
+
+    @Test
+    fun mirrored() {
+        screenshotTestRule.setContent(isComponent = true, takeScreenshot = true) {
+            CompactChip(
+                onClick = { },
+                label = "Primary label",
+                icon = Icons.Default.DirectionsBike,
+                iconRtlMode = IconRtlMode.Mirrored
+            )
+        }
+    }
+
+    @Test
+    fun mirroredRtl() {
+        screenshotTestRule.setContent(isComponent = true, takeScreenshot = true) {
+            TestHarness(layoutDirection = LayoutDirection.Rtl) {
+                CompactChip(
+                    onClick = { },
+                    label = "Primary label",
+                    icon = Icons.Default.DirectionsBike,
+                    iconRtlMode = IconRtlMode.Mirrored
+                )
+            }
+        }
+    }
+
+    companion object {
+        private const val largestFontScale = 1.18f
+    }
+}