diff --git a/app/components-preview/page.tsx b/app/components-preview/page.tsx
index aa1cd99..e74b0a6 100644
--- a/app/components-preview/page.tsx
+++ b/app/components-preview/page.tsx
@@ -2,11 +2,32 @@
 
 import { useState } from "react";
 import RuleCard from "../components/RuleCard";
+import Chip from "../components/Chip";
 import Image from "next/image";
 import { getAssetPath } from "../../lib/assetUtils";
 
+interface ChipData {
+  id: string;
+  label: string;
+  state: "Unselected" | "Selected" | "Custom";
+  palette: "Default" | "Inverse";
+  size: "S" | "M";
+}
+
 export default function ComponentsPreview() {
   const [expandedCard, setExpandedCard] = useState<string | null>(null);
+  const [chipStates, setChipStates] = useState<Record<string, "Unselected" | "Selected">>({
+    "default-s": "Unselected",
+    "default-m": "Unselected",
+    "inverse-s": "Unselected",
+    "inverse-m": "Unselected",
+  });
+  
+  // Manage custom chips separately
+  const [customChips, setCustomChips] = useState<ChipData[]>([
+    { id: "custom-1", label: "", state: "Custom", palette: "Default", size: "S" },
+    { id: "custom-2", label: "", state: "Custom", palette: "Default", size: "M" },
+  ]);
 
   const sampleCategories = [
     {
@@ -44,10 +65,173 @@ export default function ComponentsPreview() {
             Component Preview
           </h1>
           <p className="font-inter text-[18px] leading-[24px] text-[var(--color-content-default-secondary)]">
-            RuleCard component examples - collapsed/expanded states, size variants, and interactions
+            RuleCard and Chip component examples - states, palettes, sizes, and interactions
           </p>
         </header>
 
+        {/* Chip Component - Controls */}
+        <section className="space-y-[var(--spacing-scale-024)]">
+          <h2 className="font-bricolage-grotesque text-[32px] leading-[40px] font-bold text-[var(--color-content-default-primary)]">
+            Chip Component (Controls)
+          </h2>
+          <div className="bg-[var(--color-surface-default-secondary)] rounded-[var(--radius-300,12px)] p-[var(--spacing-scale-032)] space-y-[var(--spacing-scale-024)]">
+            {/* Default palette */}
+            <div className="space-y-[var(--spacing-scale-016)]">
+              <h3 className="font-inter text-[20px] leading-[24px] font-semibold text-[var(--color-content-default-primary)]">
+                Default palette
+              </h3>
+              <div className="flex flex-wrap items-center gap-[var(--spacing-scale-016)]">
+                <Chip
+                  label="Small"
+                  state={chipStates["default-s"]}
+                  palette="Default"
+                  size="S"
+                  onClick={() =>
+                    setChipStates((prev) => ({
+                      ...prev,
+                      "default-s": prev["default-s"] === "Selected" ? "Unselected" : "Selected",
+                    }))
+                  }
+                />
+                <Chip
+                  label="Medium"
+                  state={chipStates["default-m"]}
+                  palette="Default"
+                  size="M"
+                  onClick={() =>
+                    setChipStates((prev) => ({
+                      ...prev,
+                      "default-m": prev["default-m"] === "Selected" ? "Unselected" : "Selected",
+                    }))
+                  }
+                />
+                <Chip
+                  label="Disabled"
+                  state="Disabled"
+                  palette="Default"
+                  size="S"
+                />
+                {customChips
+                  .filter((chip) => chip.palette === "Default")
+                  .map((chip) => (
+                    <Chip
+                      key={chip.id}
+                      label={chip.state === "Custom" ? "" : chip.label}
+                      state={chip.state}
+                      palette={chip.palette}
+                      size={chip.size}
+                      onCheck={(value, e) => {
+                        e.stopPropagation();
+                        setCustomChips((prev) =>
+                          prev.map((c) =>
+                            c.id === chip.id
+                              ? { ...c, label: value, state: "Selected" as const }
+                              : c
+                          )
+                        );
+                      }}
+                      onClose={(e) => {
+                        e.stopPropagation();
+                        setCustomChips((prev) => prev.filter((c) => c.id !== chip.id));
+                      }}
+                      onClick={(e) => {
+                        e.stopPropagation();
+                        // Only toggle if the chip is in Selected or Unselected state (not Custom)
+                        if (chip.state === "Selected" || chip.state === "Unselected") {
+                          setCustomChips((prev) =>
+                            prev.map((c) =>
+                              c.id === chip.id
+                                ? {
+                                    ...c,
+                                    state: c.state === "Selected" ? ("Unselected" as const) : ("Selected" as const),
+                                  }
+                                : c
+                            )
+                          );
+                        }
+                      }}
+                    />
+                  ))}
+                {/* Add new custom chip button - Ghost button style */}
+                <button
+                  type="button"
+                  onClick={() => {
+                    const newId = `custom-${Date.now()}`;
+                    setCustomChips((prev) => [
+                      ...prev,
+                      { id: newId, label: "", state: "Custom", palette: "Default", size: "S" },
+                    ]);
+                  }}
+                  className="flex gap-[var(--measures-spacing-050,2px)] items-center justify-center p-[var(--measures-spacing-200,8px)] rounded-[var(--measures-radius-full,9999px)] shrink-0 hover:opacity-80 transition-opacity"
+                >
+                  {/* Plus icon */}
+                  <svg
+                    width="14"
+                    height="14"
+                    viewBox="0 0 14 14"
+                    fill="none"
+                    xmlns="http://www.w3.org/2000/svg"
+                    className="text-[var(--color-content-default-brand-primary,#fefcc9)] shrink-0"
+                  >
+                    <path
+                      d="M7 3V11M3 7H11"
+                      stroke="currentColor"
+                      strokeWidth="1.5"
+                      strokeLinecap="round"
+                      strokeLinejoin="round"
+                    />
+                  </svg>
+                  {/* Text */}
+                  <span className="font-inter font-medium text-[length:var(--sizing-300,12px)] leading-[14px] text-[color:var(--color-content-default-brand-primary,#fefcc9)]">
+                    Add Applicable Scope
+                  </span>
+                </button>
+              </div>
+            </div>
+
+            {/* Inverse palette - on white background */}
+            <div className="space-y-[var(--spacing-scale-016)]">
+              <h3 className="font-inter text-[20px] leading-[24px] font-semibold text-[var(--color-content-default-primary)]">
+                Inverse palette (on white background)
+              </h3>
+              <div className="!bg-white p-[var(--spacing-scale-032)] rounded-[var(--radius-300,12px)]" style={{ backgroundColor: '#ffffff' }}>
+                <div className="flex flex-wrap items-center gap-[var(--spacing-scale-016)]">
+                  <Chip
+                    label="Small"
+                    state={chipStates["inverse-s"]}
+                    palette="Inverse"
+                    size="S"
+                    onClick={() =>
+                      setChipStates((prev) => ({
+                        ...prev,
+                        "inverse-s": prev["inverse-s"] === "Selected" ? "Unselected" : "Selected",
+                      }))
+                    }
+                  />
+                  <Chip
+                    label="Medium"
+                    state={chipStates["inverse-m"]}
+                    palette="Inverse"
+                    size="M"
+                    onClick={() =>
+                      setChipStates((prev) => ({
+                        ...prev,
+                        "inverse-m": prev["inverse-m"] === "Selected" ? "Unselected" : "Selected",
+                      }))
+                    }
+                  />
+                  <Chip
+                    label="Disabled"
+                    state="Disabled"
+                    palette="Inverse"
+                    size="S"
+                  />
+                </div>
+              </div>
+            </div>
+          </div>
+        </section>
+
         {/* Collapsed State - Large */}
         <section className="space-y-[var(--spacing-scale-024)]">
           <h2 className="font-bricolage-grotesque text-[32px] leading-[40px] font-bold text-[var(--color-content-default-primary)]">
diff --git a/app/components/Chip/Chip.container.tsx b/app/components/Chip/Chip.container.tsx
new file mode 100644
index 0000000..d26acec
--- /dev/null
+++ b/app/components/Chip/Chip.container.tsx
@@ -0,0 +1,98 @@
+"use client";
+
+import { memo, useState, useEffect, useRef } from "react";
+import ChipView from "./Chip.view";
+import type { ChipProps } from "./Chip.types";
+import {
+  normalizeChipPalette,
+  normalizeChipSize,
+  normalizeChipState,
+} from "../../../lib/propNormalization";
+
+const ChipContainer = memo<ChipProps>(
+  ({
+    label,
+    state: stateProp = "Unselected",
+    palette: paletteProp = "Default",
+    size: sizeProp = "S",
+    className = "",
+    disabled,
+    onClick,
+    onRemove,
+    onCheck,
+    onClose,
+    ariaLabel,
+  }) => {
+    const state = normalizeChipState(stateProp);
+    const palette = normalizeChipPalette(paletteProp);
+    const size = normalizeChipSize(sizeProp);
+
+    const isDisabled = disabled ?? state === "disabled";
+    const isCustom = state === "custom";
+
+    // Manage input value for custom state
+    const [inputValue, setInputValue] = useState("");
+    const inputRef = useRef<HTMLInputElement>(null);
+
+    // Focus input when custom state is active
+    useEffect(() => {
+      if (isCustom && inputRef.current) {
+        inputRef.current.focus();
+      }
+    }, [isCustom]);
+
+    const handleCheck = (value: string, event: React.MouseEvent<HTMLButtonElement>) => {
+      if (onCheck && value.trim()) {
+        onCheck(value.trim(), event);
+        // Reset input after successful check
+        setInputValue("");
+      }
+    };
+
+    const handleClose = (event: React.MouseEvent<HTMLButtonElement>) => {
+      if (onClose) {
+        onClose(event);
+      } else if (onRemove) {
+        // Fallback to onRemove if onClose not provided
+        onRemove(event);
+      }
+      // Reset input value when closing
+      setInputValue("");
+    };
+
+    const handleKeyDown = (event: React.KeyboardEvent<HTMLInputElement>) => {
+      if (event.key === "Enter" && inputValue.trim() && onCheck) {
+        event.preventDefault();
+        handleCheck(inputValue.trim(), event as unknown as React.MouseEvent<HTMLButtonElement>);
+      } else if (event.key === "Escape" && onClose) {
+        event.preventDefault();
+        handleClose(event as unknown as React.MouseEvent<HTMLButtonElement>);
+      }
+    };
+
+    return (
+      <ChipView
+        label={label}
+        state={state}
+        palette={palette}
+        size={size}
+        className={className}
+        disabled={isDisabled}
+        onClick={onClick}
+        onRemove={onRemove}
+        onCheck={handleCheck}
+        onClose={handleClose}
+        inputValue={isCustom ? inputValue : undefined}
+        onInputChange={isCustom ? setInputValue : undefined}
+        onInputKeyDown={isCustom ? handleKeyDown : undefined}
+        inputRef={isCustom ? inputRef : undefined}
+        ariaLabel={ariaLabel}
+      />
+    );
+  },
+);
+
+ChipContainer.displayName = "Chip";
+
+export default ChipContainer;
+
diff --git a/app/components/Chip/Chip.types.ts b/app/components/Chip/Chip.types.ts
new file mode 100644
index 0000000..0a240b3
--- /dev/null
+++ b/app/components/Chip/Chip.types.ts
@@ -0,0 +1,71 @@
+import type {
+  ChipPaletteValue,
+  ChipSizeValue,
+  ChipStateValue,
+} from "../../../lib/propNormalization";
+
+export interface ChipProps {
+  label: string;
+  /**
+   * Visual state of the chip, aligned with Figma:
+   * - "Unselected"
+   * - "Selected"
+   * - "Disabled"
+   * - "Custom" (editable chips with check/close buttons)
+   *
+   * Accepts both PascalCase (Figma) and lowercase values.
+   */
+  state?: ChipStateValue;
+  /**
+   * Palette of the chip, aligned with Figma:
+   * - "Default"
+   * - "Inverse"
+   *
+   * Accepts both PascalCase (Figma) and lowercase values.
+   */
+  palette?: ChipPaletteValue;
+  /**
+   * Size of the chip, aligned with Figma:
+   * - "S"
+   * - "M"
+   *
+   * Accepts both uppercase (Figma) and lowercase values.
+   */
+  size?: ChipSizeValue;
+  className?: string;
+  disabled?: boolean;
+  onClick?: (event: React.MouseEvent<HTMLButtonElement>) => void;
+  /**
+   * Optional remove/close handler for chips that can be dismissed.
+   */
+  onRemove?: (event: React.MouseEvent<HTMLButtonElement>) => void;
+  /**
+   * Optional check/confirm handler for custom state chips.
+   * Called with the input value when user confirms the input.
+   */
+  onCheck?: (value: string, event: React.MouseEvent<HTMLButtonElement>) => void;
+  /**
+   * Optional callback when custom chip is closed/removed.
+   */
+  onClose?: (event: React.MouseEvent<HTMLButtonElement>) => void;
+  ariaLabel?: string;
+}
+
+export interface ChipViewProps {
+  label: string;
+  state: "unselected" | "selected" | "disabled" | "custom";
+  palette: "default" | "inverse";
+  size: "s" | "m";
+  className?: string;
+  disabled?: boolean;
+  onClick?: (event: React.MouseEvent<HTMLButtonElement>) => void;
+  onRemove?: (event: React.MouseEvent<HTMLButtonElement>) => void;
+  onCheck?: (value: string, event: React.MouseEvent<HTMLButtonElement>) => void;
+  onClose?: (event: React.MouseEvent<HTMLButtonElement>) => void;
+  inputValue?: string;
+  onInputChange?: (value: string) => void;
+  onInputKeyDown?: (event: React.KeyboardEvent<HTMLInputElement>) => void;
+  inputRef?: React.RefObject<HTMLInputElement>;
+  ariaLabel?: string;
+}
+
diff --git a/app/components/Chip/Chip.view.tsx b/app/components/Chip/Chip.view.tsx
new file mode 100644
index 0000000..a8a91a1
--- /dev/null
+++ b/app/components/Chip/Chip.view.tsx
@@ -0,0 +1,287 @@
+"use client";
+
+import { memo } from "react";
+import type { ChipViewProps } from "./Chip.types";
+
+function ChipView({
+  label,
+  state,
+  palette,
+  size,
+  className = "",
+  disabled = false,
+  onClick,
+  onRemove,
+  onCheck,
+  onClose,
+  inputValue,
+  onInputChange,
+  onInputKeyDown,
+  inputRef,
+  ariaLabel,
+}: ChipViewProps) {
+  const isDisabled = disabled || state === "disabled";
+  const isSelected = state === "selected";
+  const isCustom = state === "custom";
+
+  const isInverse = palette === "inverse";
+  const isDefault = palette === "default";
+
+  const isSmall = size === "s";
+
+  // Size-based styles from Figma tokens
+  // Custom state has different padding
+  const sizeClasses = isCustom
+    ? isSmall
+      ? "px-[var(--measures-spacing-100,4px)] py-[3px] text-[length:var(--sizing-300,12px)] leading-[16px]"
+      : "px-[var(--measures-spacing-150,6px)] py-[10px] text-[length:var(--sizing-400,16px)] leading-[24px]"
+    : isSmall
+      ? "h-[30px] px-[var(--measures-spacing-200,8px)] gap-[var(--measures-spacing-050,2px)] text-[length:var(--sizing-300,12px)] leading-[14px]"
+      : "px-[var(--measures-spacing-300,12px)] py-[var(--measures-spacing-300,12px)] gap-[var(--measures-spacing-150,6px)] text-[length:var(--sizing-400,16px)] leading-[20px]";
+
+  // Palette + state styling based on Figma examples
+  // Use consistent border width to prevent layout shift
+  const borderWidth = isSmall ? "border-[1.25px]" : "border-2";
+  
+  let background = "bg-[var(--color-surface-default-transparent,rgba(0,0,0,0))]";
+  let border =
+    `${borderWidth} border-[var(--color-border-default-tertiary,#464646)]`;
+  let textColor =
+    "text-[color:var(--color-content-default-brand-primary,#fefcc9)]";
+
+  if (isDefault) {
+    if (state === "custom") {
+      background =
+        "bg-[var(--color-surface-default-secondary,#141414)]"; // dark background for custom
+      border = "border-none";
+      textColor =
+        "text-[color:var(--color-content-default-tertiary,#b4b4b4)]";
+    } else if (state === "disabled") {
+      background =
+        "bg-[var(--color-surface-default-secondary,#141414)]"; // dark background
+      border = "border-none";
+      textColor =
+        "text-[color:var(--color-content-default-tertiary,#b4b4b4)]";
+    } else if (isSelected) {
+      background =
+        "bg-[var(--color-surface-inverse-brandaccent,#fdfaa8)]"; // yellow selected
+      border = `${borderWidth} border-[var(--color-border-default-brand-primary,#fdfaa8)]`;
+      textColor =
+        "text-[color:var(--color-content-inverse-primary,black)]";
+    } else {
+      // Unselected default
+      background =
+        "bg-[var(--color-surface-default-transparent,rgba(0,0,0,0))]";
+      border = `${borderWidth} border-[var(--color-border-default-tertiary,#464646)]`;
+      textColor =
+        "text-[color:var(--color-content-default-brand-primary,#fefcc9)]";
+    }
+  } else if (isInverse) {
+    if (state === "disabled") {
+      background =
+        "bg-[var(--color-surface-inverse-tertiary,#d2d2d2)]";
+      border = "border-none";
+      textColor =
+        "text-[color:var(--color-content-inverse-primary,black)]";
+    } else if (isSelected) {
+      background =
+        "bg-[var(--color-surface-default-semi-opaque,rgba(0,0,0,0.05))]";
+      border = `${borderWidth} border-[var(--color-border-default-primary,#141414)]`;
+      textColor =
+        "text-[color:var(--color-content-inverse-primary,black)]";
+    } else {
+      // Unselected / custom inverse
+      background =
+        "bg-[var(--color-surface-default-transparent,rgba(0,0,0,0))]";
+      border = `${borderWidth} border-[var(--color-border-default-primary,#141414)]`;
+      textColor =
+        "text-[color:var(--color-content-inverse-primary,black)]";
+    }
+  }
+
+  const baseClasses = `
+    inline-flex
+    items-center
+    justify-center
+    rounded-[var(--measures-radius-full,9999px)]
+    overflow-clip
+    box-border
+    focus:outline-none
+    focus-visible:ring-2
+    focus-visible:ring-[var(--color-border-default-primary,#141414)]
+    focus-visible:ring-offset-2
+    focus-visible:ring-offset-transparent
+    transition-[background,border-color,color,box-shadow,transform]
+    duration-200
+    ease-in-out
+  `
+    .trim()
+    .replace(/\s+/g, " ");
+
+  const stateClasses = isDisabled
+    ? "cursor-not-allowed opacity-60"
+    : "cursor-pointer hover:scale-[1.02]";
+
+  const combinedClasses = [
+    baseClasses,
+    sizeClasses,
+    background,
+    border,
+    textColor,
+    stateClasses,
+    className,
+  ]
+    .filter(Boolean)
+    .join(" ");
+
+  const handleClick: React.MouseEventHandler<HTMLButtonElement> = (event) => {
+    if (isDisabled) {
+      event.preventDefault();
+      return;
+    }
+    onClick?.(event);
+  };
+
+  const sharedA11y = {
+    "aria-label": ariaLabel,
+  };
+
+  // Custom state rendering with check/close buttons
+  if (isCustom) {
+    return (
+      <div
+        className={combinedClasses}
+        role="button"
+        tabIndex={0}
+        onClick={handleClick}
+        onKeyDown={(e) => {
+          if (e.key === "Enter" || e.key === " ") {
+            e.preventDefault();
+            handleClick(e as unknown as React.MouseEvent<HTMLButtonElement>);
+          }
+        }}
+        {...sharedA11y}
+      >
+        <div className={`flex items-center ${isSmall ? "gap-[8px]" : "gap-[12px]"}`}>
+          {/* Check button */}
+          {onCheck && (
+            <button
+              type="button"
+              className="flex items-center justify-center p-[var(--measures-spacing-150,6px)] rounded-full hover:bg-[var(--color-surface-default-semi-opaque,rgba(0,0,0,0.1))] transition-colors disabled:opacity-50 disabled:cursor-not-allowed"
+              aria-label="Confirm"
+              disabled={!inputValue || !inputValue.trim()}
+              onClick={(event) => {
+                event.stopPropagation();
+                // The container's handleCheck will get the value from state
+                if (inputValue && inputValue.trim() && onCheck) {
+                  onCheck(inputValue.trim(), event);
+                }
+              }}
+            >
+              <svg
+                width="12"
+                height="12"
+                viewBox="0 0 12 12"
+                fill="none"
+                xmlns="http://www.w3.org/2000/svg"
+                className="text-[var(--color-content-default-brand-primary,#fefcc9)]"
+              >
+                <path
+                  d="M10 3L4.5 8.5L2 6"
+                  stroke="currentColor"
+                  strokeWidth="1.5"
+                  strokeLinecap="round"
+                  strokeLinejoin="round"
+                />
+              </svg>
+            </button>
+          )}
+
+          {/* Input field */}
+          <div className="flex items-center flex-1 min-w-0">
+            <input
+              ref={inputRef}
+              type="text"
+              value={inputValue ?? ""}
+              onChange={(e) => onInputChange?.(e.target.value)}
+              onKeyDown={onInputKeyDown}
+              placeholder="Type to add"
+              className="bg-transparent border-none outline-none flex-1 min-w-0 font-inter font-normal text-[color:var(--color-content-default-tertiary,#b4b4b4)] placeholder:text-[color:var(--color-content-default-tertiary,#b4b4b4)]"
+              style={{
+                fontSize: isSmall ? "var(--sizing-300,12px)" : "var(--sizing-400,16px)",
+                lineHeight: isSmall ? "16px" : "24px",
+              }}
+              onClick={(e) => e.stopPropagation()}
+              onFocus={(e) => e.stopPropagation()}
+            />
+          </div>
+
+          {/* Close button */}
+          {onClose && (
+            <button
+              type="button"
+              className="flex items-center justify-center p-[var(--measures-spacing-150,6px)] rounded-full hover:bg-[var(--color-surface-default-semi-opaque,rgba(0,0,0,0.1))] transition-colors"
+              aria-label="Close"
+              onClick={(event) => {
+                event.stopPropagation();
+                onClose(event);
+              }}
+            >
+              <svg
+                width="12"
+                height="12"
+                viewBox="0 0 12 12"
+                fill="none"
+                xmlns="http://www.w3.org/2000/svg"
+                className="text-[var(--color-content-default-brand-primary,#fefcc9)]"
+              >
+                <path
+                  d="M9 3L3 9M3 3L9 9"
+                  stroke="currentColor"
+                  strokeWidth="1.5"
+                  strokeLinecap="round"
+                  strokeLinejoin="round"
+                />
+              </svg>
+            </button>
+          )}
+        </div>
+      </div>
+    );
+  }
+
+  // Regular state rendering
+  return (
+    <button
+      type="button"
+      className={combinedClasses}
+      disabled={isDisabled}
+      onClick={handleClick}
+      {...sharedA11y}
+    >
+      <span className="flex items-center justify-center">
+        {label}
+      </span>
+      {onRemove && !isDisabled && (
+        <button
+          type="button"
+          className="ml-[var(--measures-spacing-050,2px)] p-[var(--measures-spacing-050,2px)] rounded-full hover:bg-[var(--color-surface-default-semi-opaque,rgba(0,0,0,0.05))]"
+          aria-label={`Remove ${label}`}
+          onClick={(event) => {
+            event.stopPropagation();
+            onRemove(event);
+          }}
+        >
+          <span className="block w-[12px] h-[12px] leading-none text-[10px]">
+            ×
+          </span>
+        </button>
+      )}
+    </button>
+  );
+}
+
+ChipView.displayName = "ChipView";
+
+export default memo(ChipView);
+
diff --git a/app/components/Chip/index.tsx b/app/components/Chip/index.tsx
new file mode 100644
index 0000000..a6776a8
--- /dev/null
+++ b/app/components/Chip/index.tsx
@@ -0,0 +1,3 @@
+export { default } from "./Chip.container";
+export type { ChipProps } from "./Chip.types";
+
diff --git a/lib/propNormalization.ts b/lib/propNormalization.ts
index b063b73..cbb05e5 100644
--- a/lib/propNormalization.ts
+++ b/lib/propNormalization.ts
@@ -527,3 +527,78 @@ export function normalizeRuleCardSize(
   }
   return defaultValue;
 }
+
+/**
+ * Type helper for case-insensitive Chip state prop
+ */
+export type ChipStateValue =
+  | "unselected"
+  | "selected"
+  | "disabled"
+  | "custom"
+  | "Unselected"
+  | "Selected"
+  | "Disabled"
+  | "Custom";
+
+/**
+ * Type helper for case-insensitive Chip palette prop
+ */
+export type ChipPaletteValue =
+  | "default"
+  | "inverse"
+  | "Default"
+  | "Inverse";
+
+/**
+ * Type helper for case-insensitive Chip size prop
+ */
+export type ChipSizeValue = "s" | "m" | "S" | "M";
+
+/**
+ * Normalize Chip state prop values (Unselected/Selected/Disabled/Custom)
+ */
+export function normalizeChipState(
+  value: string | undefined,
+  defaultValue: "unselected" = "unselected",
+): "unselected" | "selected" | "disabled" | "custom" {
+  if (!value) return defaultValue;
+  const normalized = value.toLowerCase();
+  const states = ["unselected", "selected", "disabled", "custom"];
+  if (states.includes(normalized)) {
+    return normalized as typeof defaultValue;
+  }
+  return defaultValue;
+}
+
+/**
+ * Normalize Chip palette prop values (Default/Inverse -> default/inverse)
+ */
+export function normalizeChipPalette(
+  value: string | undefined,
+  defaultValue: "default" = "default",
+): "default" | "inverse" {
+  if (!value) return defaultValue;
+  const normalized = value.toLowerCase();
+  const palettes = ["default", "inverse"];
+  if (palettes.includes(normalized)) {
+    return normalized as typeof defaultValue;
+  }
+  return defaultValue;
+}
+
+/**
+ * Normalize Chip size prop values (S/M -> s/m)
+ */
+export function normalizeChipSize(
+  value: string | undefined,
+  defaultValue: "s" = "s",
+): "s" | "m" {
+  if (!value) return defaultValue;
+  const normalized = value.toLowerCase();
+  const sizes = ["s", "m"];
+  if (sizes.includes(normalized)) {
+    return normalized as typeof defaultValue;
+  }
+  return defaultValue;
+}