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diff --git a/src/chip.css.ts b/src/chip.css.ts
index ee588b7e2..73380489e 100644
--- a/src/chip.css.ts
+++ b/src/chip.css.ts
@@ -1,4 +1,4 @@
-import {style, styleVariants} from '@vanilla-extract/css';
+import {style, styleVariants, globalStyle} from '@vanilla-extract/css';
 import * as mq from './media-queries.css';
 import {vars} from './skins/skin-contract.css';
 import {sprinkles} from './sprinkles.css';
@@ -54,6 +54,16 @@ export const chipVariants = styleVariants({
             color: vars.colors.textPrimary,
         }),
     ],
+    inverse: [
+        containerBase,
+        sprinkles({
+            background: vars.colors.brandLow,
+            color: vars.colors.controlActivated,
+        }),
+        {
+            borderColor: vars.colors.controlActivated,
+        },
+    ],
     active: [
         chipActive,
         containerBase,
@@ -68,52 +78,57 @@ export const chipVariants = styleVariants({
     ],
 });
 
-export const interactive = style({
-    position: 'relative',
-    overflow: 'hidden',
+const interactive = style({
     userSelect: 'none',
-    cursor: 'pointer',
+    '@media': {
+        [mq.supportsHover]: {
+            selectors: {
+                [`&:hover:not(${chipActive})`]: {
+                    color: vars.colors.textActivated,
+                    backgroundColor: vars.colors.brandLow,
+                    cursor: 'pointer',
+                },
+            },
+        },
+    },
 });
 
-export const button = style({
+export const button = sprinkles({
     border: 'none',
     background: 'transparent',
     padding: 0,
 });
 
-export const interactiveChipOverlay = style([
-    sprinkles({
-        left: 0,
-        right: 0,
-        top: 0,
-        bottom: 0,
-        position: 'absolute',
-    }),
-    {
-        backgroundColor: 'transparent',
-        transition: 'background-color 0.1s ease-in-out',
-        selectors: {
-            [`${interactive}:active &`]: {
-                backgroundColor: vars.colors.backgroundContainerPressed,
+export const chipInteractiveVariants = styleVariants({
+    light: [
+        interactive,
+        {
+            '@media': {
+                [mq.supportsHover]: {
+                    selectors: {
+                        [`&:hover:not(${chipActive})`]: {
+                            borderColor: vars.colors.brandLow,
+                        },
+                    },
+                },
             },
         },
-        '@media': {
-            [mq.supportsHover]: {
-                selectors: {
-                    [`${interactive}:hover &`]: {
-                        backgroundColor: vars.colors.backgroundContainerHover,
-                    },
-                    [`${interactive}:active &`]: {
-                        backgroundColor: vars.colors.backgroundContainerPressed,
+    ],
+    dark: [
+        interactive,
+        {
+            '@media': {
+                [mq.supportsHover]: {
+                    selectors: {
+                        [`&:hover:not(${chipActive})`]: {
+                            borderColor: vars.colors.background,
+                        },
                     },
                 },
             },
-            [mq.touchableOnly]: {
-                transition: 'none',
-            },
         },
-    },
-]);
+    ],
+});
 
 export const icon = style([
     sprinkles({paddingRight: 4}),
@@ -134,3 +149,19 @@ export const rightPadding = styleVariants({
     default: [sprinkles({paddingRight: {mobile: 20, desktop: 12}})],
     withIcon: [sprinkles({paddingRight: {mobile: 16, desktop: 8}})],
 });
+
+globalStyle(`${interactive}:hover:not(${chipActive}) > ${icon}`, {
+    '@media': {
+        [mq.supportsHover]: {
+            color: vars.colors.controlActivated,
+        },
+    },
+});
+
+globalStyle(`${interactive}:hover:not(${chipActive}) > ${iconActive}`, {
+    '@media': {
+        [mq.supportsHover]: {
+            color: vars.colors.controlActivated,
+        },
+    },
+});
diff --git a/src/chip.tsx b/src/chip.tsx
index 4b2c6ea5d..617db773e 100644
--- a/src/chip.tsx
+++ b/src/chip.tsx
@@ -41,14 +41,20 @@ type ChipProps = ExclusifyUnion<ClosableChipProps | ToggleChipProps | ClickableC
 
 const Chip = (props: ChipProps): JSX.Element => {
     const {Icon, children, id, dataAttributes, active, badge, onClose, closeButtonLabel} = props;
-    const {texts, textPresets, t} = useTheme();
+    const {texts, isDarkMode, textPresets, t} = useTheme();
 
     const overAlternative = useThemeVariant() === 'alternative';
+    const inverse = useThemeVariant() === 'inverse';
 
     const body = (
         <>
             {Icon && (
-                <div className={active ? styles.iconActive : styles.icon}>
+                <div
+                    className={classnames({
+                        [styles.iconActive]: active || !!inverse,
+                        [styles.icon]: !active && !inverse,
+                    })}
+                >
                     <Icon color="currentColor" size={pxToRem(16)} />
                 </div>
             )}
@@ -66,7 +72,11 @@ const Chip = (props: ChipProps): JSX.Element => {
         return (
             <div
                 className={classnames(
-                    overAlternative ? styles.chipVariants.overAlternative : styles.chipVariants.default,
+                    inverse
+                        ? styles.chipVariants.inverse
+                        : overAlternative
+                          ? styles.chipVariants.overAlternative
+                          : styles.chipVariants.default,
                     styles.chipWrapper,
                     Icon ? styles.leftPadding.withIcon : styles.leftPadding.default,
                     styles.rightPadding.withIcon
@@ -103,18 +113,19 @@ const Chip = (props: ChipProps): JSX.Element => {
     const renderContent = (dataAttributes?: DataAttributes) => (
         <div
             className={classnames(
-                styles.chipVariants[active ? 'active' : overAlternative ? 'overAlternative' : 'default'],
+                styles.chipVariants[
+                    active ? 'active' : inverse ? 'inverse' : overAlternative ? 'overAlternative' : 'default'
+                ],
                 // If the chip is wrapped inside a BaseTouchable, we set inline-flex to the Touchable instead
                 isTouchable ? styles.wrappedContent : styles.chipWrapper,
                 {
-                    [styles.interactive]: isInteractive,
+                    [styles.chipInteractiveVariants[isDarkMode ? 'dark' : 'light']]: isInteractive,
                 },
                 Icon ? styles.leftPadding.withIcon : styles.leftPadding.default,
                 badge ? styles.rightPadding.withIcon : styles.rightPadding.default
             )}
             {...getPrefixedDataAttributes(dataAttributes)}
         >
-            {isInteractive && <div className={styles.interactiveChipOverlay} />}
             {body}
             {renderBadge()}
         </div>