diff --git a/libs/components/src/banner/banner.component.html b/libs/components/src/banner/banner.component.html
index 531682b640..8ce7da97ed 100644
--- a/libs/components/src/banner/banner.component.html
+++ b/libs/components/src/banner/banner.component.html
@@ -1,5 +1,5 @@
 <div
-  class="tw-flex tw-items-center tw-gap-2 tw-py-2.5 tw-px-4 tw-text-contrast"
+  class="tw-flex tw-items-center tw-gap-2 tw-py-2.5 tw-px-4 tw-pr-2.5 tw-text-contrast"
   [ngClass]="bannerClass"
   [attr.role]="useAlertRole ? 'status' : null"
   [attr.aria-live]="useAlertRole ? 'polite' : null"
@@ -8,7 +8,12 @@
   <span class="tw-grow tw-text-base">
     <ng-content></ng-content>
   </span>
-  <button class="tw-border-0 tw-bg-transparent tw-p-0 tw-text-contrast" (click)="onClose.emit()">
-    <i class="bwi bwi-close tw-text-sm" *ngIf="icon" aria-hidden="true"></i>
-  </button>
+  <button
+    bitIconButton="bwi-close"
+    buttonType="contrast"
+    size="default"
+    (click)="onClose.emit()"
+    [attr.title]="'close' | i18n"
+    [attr.aria-label]="'close' | i18n"
+  ></button>
 </div>
diff --git a/libs/components/src/banner/banner.component.spec.ts b/libs/components/src/banner/banner.component.spec.ts
index 2cb7fdc15b..0fe2391a5f 100644
--- a/libs/components/src/banner/banner.component.spec.ts
+++ b/libs/components/src/banner/banner.component.spec.ts
@@ -1,5 +1,10 @@
 import { ComponentFixture, TestBed } from "@angular/core/testing";
 
+import { I18nService } from "@bitwarden/common/abstractions/i18n.service";
+
+import { SharedModule } from "../shared/shared.module";
+import { I18nMockService } from "../utils/i18n-mock.service";
+
 import { BannerComponent } from "./banner.component";
 
 describe("BannerComponent", () => {
@@ -8,7 +13,17 @@ describe("BannerComponent", () => {
 
   beforeEach(async () => {
     await TestBed.configureTestingModule({
+      imports: [SharedModule],
       declarations: [BannerComponent],
+      providers: [
+        {
+          provide: I18nService,
+          useFactory: () =>
+            new I18nMockService({
+              close: "Close",
+            }),
+        },
+      ],
     }).compileComponents();
 
     fixture = TestBed.createComponent(BannerComponent);
diff --git a/libs/components/src/banner/banner.module.ts b/libs/components/src/banner/banner.module.ts
index df8c8f29b3..2c819fbc5b 100644
--- a/libs/components/src/banner/banner.module.ts
+++ b/libs/components/src/banner/banner.module.ts
@@ -1,10 +1,13 @@
 import { CommonModule } from "@angular/common";
 import { NgModule } from "@angular/core";
 
+import { IconButtonModule } from "../icon-button";
+import { SharedModule } from "../shared/shared.module";
+
 import { BannerComponent } from "./banner.component";
 
 @NgModule({
-  imports: [CommonModule],
+  imports: [CommonModule, SharedModule, IconButtonModule],
   exports: [BannerComponent],
   declarations: [BannerComponent],
 })
diff --git a/libs/components/src/banner/banner.stories.ts b/libs/components/src/banner/banner.stories.ts
index 871b069a7a..693731e372 100644
--- a/libs/components/src/banner/banner.stories.ts
+++ b/libs/components/src/banner/banner.stories.ts
@@ -1,19 +1,43 @@
-import { Meta, Story } from "@storybook/angular";
+import { Meta, moduleMetadata, Story } from "@storybook/angular";
+
+import { I18nService } from "@bitwarden/common/abstractions/i18n.service";
+
+import { IconButtonModule } from "../icon-button";
+import { SharedModule } from "../shared/shared.module";
+import { I18nMockService } from "../utils/i18n-mock.service";
 
 import { BannerComponent } from "./banner.component";
 
 export default {
   title: "Component Library/Banner",
   component: BannerComponent,
+  decorators: [
+    moduleMetadata({
+      imports: [SharedModule, IconButtonModule],
+      providers: [
+        {
+          provide: I18nService,
+          useFactory: () => {
+            return new I18nMockService({
+              close: "Close",
+            });
+          },
+        },
+      ],
+    }),
+  ],
   args: {
     bannerType: "warning",
   },
+  argTypes: {
+    onClose: { action: "onClose" },
+  },
 } as Meta;
 
 const Template: Story<BannerComponent> = (args: BannerComponent) => ({
   props: args,
   template: `
-    <bit-banner [bannerType]="bannerType">Content Really Long Text Lorem Ipsum Ipsum Ipsum <button>Button</button></bit-banner>
+    <bit-banner [bannerType]="bannerType" (onClose)="onClose($event)">Content Really Long Text Lorem Ipsum Ipsum Ipsum <button>Button</button></bit-banner>
   `,
 });
 
diff --git a/libs/components/src/button/button.directive.ts b/libs/components/src/button/button.directive.ts
index b36da8620e..59e7b4269f 100644
--- a/libs/components/src/button/button.directive.ts
+++ b/libs/components/src/button/button.directive.ts
@@ -9,8 +9,6 @@ const buttonStyles: Record<ButtonTypes, string[]> = {
     "!tw-text-contrast",
     "hover:tw-bg-primary-700",
     "hover:tw-border-primary-700",
-    "focus:tw-bg-primary-700",
-    "focus:tw-border-primary-700",
     "disabled:tw-bg-primary-500/60",
     "disabled:tw-border-primary-500/60",
     "disabled:!tw-text-contrast/60",
@@ -23,9 +21,6 @@ const buttonStyles: Record<ButtonTypes, string[]> = {
     "hover:tw-bg-secondary-500",
     "hover:tw-border-secondary-500",
     "hover:!tw-text-contrast",
-    "focus:tw-bg-secondary-500",
-    "focus:tw-border-secondary-500",
-    "focus:!tw-text-contrast",
     "disabled:tw-bg-transparent",
     "disabled:tw-border-text-muted/60",
     "disabled:!tw-text-muted/60",
@@ -37,9 +32,6 @@ const buttonStyles: Record<ButtonTypes, string[]> = {
     "hover:tw-bg-danger-500",
     "hover:tw-border-danger-500",
     "hover:!tw-text-contrast",
-    "focus:tw-bg-danger-500",
-    "focus:tw-border-danger-500",
-    "focus:!tw-text-contrast",
     "disabled:tw-bg-transparent",
     "disabled:tw-border-danger-500/60",
     "disabled:!tw-text-danger/60",
@@ -62,10 +54,10 @@ export class ButtonDirective {
       "tw-text-center",
       "hover:tw-no-underline",
       "focus:tw-outline-none",
-      "focus:tw-ring",
-      "focus:tw-ring-offset-2",
-      "focus:tw-ring-primary-700",
-      "focus:tw-z-10",
+      "focus-visible:tw-ring",
+      "focus-visible:tw-ring-offset-2",
+      "focus-visible:tw-ring-primary-700",
+      "focus-visible:tw-z-10",
     ]
       .concat(this.block ? ["tw-w-full", "tw-block"] : ["tw-inline-block"])
       .concat(buttonStyles[this.buttonType ?? "secondary"]);
diff --git a/libs/components/src/dialog/dialog.module.ts b/libs/components/src/dialog/dialog.module.ts
index 535972417c..3492a38f10 100644
--- a/libs/components/src/dialog/dialog.module.ts
+++ b/libs/components/src/dialog/dialog.module.ts
@@ -1,6 +1,7 @@
 import { DialogModule as CdkDialogModule } from "@angular/cdk/dialog";
 import { NgModule } from "@angular/core";
 
+import { IconButtonModule } from "../icon-button";
 import { SharedModule } from "../shared";
 
 import { DialogService } from "./dialog.service";
@@ -10,11 +11,11 @@ import { DialogTitleContainerDirective } from "./directives/dialog-title-contain
 import { SimpleDialogComponent } from "./simple-dialog/simple-dialog.component";
 
 @NgModule({
-  imports: [SharedModule, CdkDialogModule],
+  imports: [SharedModule, IconButtonModule, CdkDialogModule],
   declarations: [
     DialogCloseDirective,
-    DialogComponent,
     DialogTitleContainerDirective,
+    DialogComponent,
     SimpleDialogComponent,
   ],
   exports: [CdkDialogModule, DialogComponent, SimpleDialogComponent],
diff --git a/libs/components/src/dialog/dialog/dialog.component.html b/libs/components/src/dialog/dialog/dialog.component.html
index 1bc95d5208..40e1fe7505 100644
--- a/libs/components/src/dialog/dialog/dialog.component.html
+++ b/libs/components/src/dialog/dialog/dialog.component.html
@@ -3,19 +3,19 @@
   class="tw-my-4 tw-flex tw-max-h-screen tw-flex-col tw-overflow-hidden tw-rounded tw-border tw-border-solid tw-border-secondary-300 tw-bg-text-contrast tw-text-main"
 >
   <div
-    class="tw-flex tw-gap-4 tw-border-0 tw-border-b tw-border-solid tw-border-secondary-300 tw-p-4"
+    class="tw-flex tw-items-center tw-gap-4 tw-border-0 tw-border-b tw-border-solid tw-border-secondary-300 tw-p-4"
   >
     <h1 bitDialogTitleContainer class="tw-mb-0 tw-grow tw-text-lg tw-uppercase">
       <ng-content select="[bitDialogTitle]"></ng-content>
     </h1>
     <button
+      bitIconButton="bwi-close"
+      buttonType="main"
+      size="default"
       bitDialogClose
-      class="tw-border-0 tw-bg-transparent tw-p-0"
-      title="{{ 'close' | i18n }}"
-      attr.aria-label="{{ 'close' | i18n }}"
-    >
-      <i class="bwi bwi-close tw-text-xs tw-font-bold tw-text-main" aria-hidden="true"></i>
-    </button>
+      [attr.title]="'close' | i18n"
+      [attr.aria-label]="'close' | i18n"
+    ></button>
   </div>
 
   <div class="tw-overflow-y-auto tw-p-4 tw-pb-8">
diff --git a/libs/components/src/dialog/dialog/dialog.stories.ts b/libs/components/src/dialog/dialog/dialog.stories.ts
index 3bf8457d12..8e2826111f 100644
--- a/libs/components/src/dialog/dialog/dialog.stories.ts
+++ b/libs/components/src/dialog/dialog/dialog.stories.ts
@@ -3,6 +3,7 @@ import { Meta, moduleMetadata, Story } from "@storybook/angular";
 import { I18nService } from "@bitwarden/common/abstractions/i18n.service";
 
 import { ButtonModule } from "../../button";
+import { IconButtonModule } from "../../icon-button";
 import { SharedModule } from "../../shared";
 import { I18nMockService } from "../../utils/i18n-mock.service";
 import { DialogCloseDirective } from "../directives/dialog-close.directive";
@@ -15,7 +16,7 @@ export default {
   component: DialogComponent,
   decorators: [
     moduleMetadata({
-      imports: [SharedModule, ButtonModule],
+      imports: [ButtonModule, SharedModule, IconButtonModule],
       declarations: [DialogTitleContainerDirective, DialogCloseDirective],
       providers: [
         {
@@ -46,9 +47,16 @@ const Template: Story<DialogComponent> = (args: DialogComponent) => ({
   <bit-dialog [dialogSize]="dialogSize">
     <span bitDialogTitle>{{title}}</span>
     <span bitDialogContent>Dialog body text goes here.</span>
-    <div bitDialogFooter class="tw-flex tw-flex-row tw-gap-2">
+    <div bitDialogFooter class="tw-flex tw-items-center tw-flex-row tw-gap-2">
       <button bitButton buttonType="primary">Save</button>
       <button bitButton buttonType="secondary">Cancel</button>
+      <button
+        class="tw-ml-auto"
+        bitIconButton="bwi-trash"
+        buttonType="danger"
+        size="default"
+        title="Delete"
+        aria-label="Delete"></button>
     </div>
   </bit-dialog>
   `,
diff --git a/libs/components/src/dialog/simple-dialog.service.stories.ts b/libs/components/src/dialog/simple-dialog.service.stories.ts
index 90963515aa..ab973484c8 100644
--- a/libs/components/src/dialog/simple-dialog.service.stories.ts
+++ b/libs/components/src/dialog/simple-dialog.service.stories.ts
@@ -2,7 +2,12 @@ import { DialogModule, DialogRef, DIALOG_DATA } from "@angular/cdk/dialog";
 import { Component, Inject } from "@angular/core";
 import { Meta, moduleMetadata, Story } from "@storybook/angular";
 
+import { I18nService } from "@bitwarden/common/abstractions/i18n.service";
+
 import { ButtonModule } from "../button";
+import { IconButtonModule } from "../icon-button";
+import { SharedModule } from "../shared/shared.module";
+import { I18nMockService } from "../utils/i18n-mock.service";
 
 import { DialogService } from "./dialog.service";
 import { DialogCloseDirective } from "./directives/dialog-close.directive";
@@ -60,13 +65,23 @@ export default {
   decorators: [
     moduleMetadata({
       declarations: [
-        DialogCloseDirective,
-        SimpleDialogComponent,
-        DialogTitleContainerDirective,
         StoryDialogContentComponent,
+        DialogCloseDirective,
+        DialogTitleContainerDirective,
+        SimpleDialogComponent,
+      ],
+      imports: [SharedModule, IconButtonModule, ButtonModule, DialogModule],
+      providers: [
+        DialogService,
+        {
+          provide: I18nService,
+          useFactory: () => {
+            return new I18nMockService({
+              close: "Close",
+            });
+          },
+        },
       ],
-      imports: [ButtonModule, DialogModule],
-      providers: [DialogService],
     }),
   ],
   parameters: {
diff --git a/libs/components/src/icon-button/icon-button.component.ts b/libs/components/src/icon-button/icon-button.component.ts
new file mode 100644
index 0000000000..cd6f1be402
--- /dev/null
+++ b/libs/components/src/icon-button/icon-button.component.ts
@@ -0,0 +1,115 @@
+import { Component, HostBinding, Input } from "@angular/core";
+
+export type IconButtonStyle = "contrast" | "main" | "muted" | "primary" | "secondary" | "danger";
+
+const styles: Record<IconButtonStyle, string[]> = {
+  contrast: [
+    "tw-bg-transparent",
+    "!tw-text-contrast",
+    "tw-border-transparent",
+    "hover:tw-bg-transparent-hover",
+    "hover:tw-border-text-contrast",
+    "focus-visible:before:tw-ring-text-contrast",
+    "disabled:hover:tw-bg-transparent",
+  ],
+  main: [
+    "tw-bg-transparent",
+    "!tw-text-main",
+    "tw-border-transparent",
+    "hover:tw-bg-transparent-hover",
+    "hover:tw-border-text-main",
+    "focus-visible:before:tw-ring-text-main",
+    "disabled:hover:tw-bg-transparent",
+  ],
+  muted: [
+    "tw-bg-transparent",
+    "!tw-text-muted",
+    "tw-border-transparent",
+    "hover:tw-bg-transparent-hover",
+    "hover:tw-border-primary-700",
+    "focus-visible:before:tw-ring-primary-700",
+    "disabled:hover:tw-bg-transparent",
+  ],
+  primary: [
+    "tw-bg-primary-500",
+    "!tw-text-contrast",
+    "tw-border-primary-500",
+    "hover:tw-bg-primary-700",
+    "hover:tw-border-primary-700",
+    "focus-visible:before:tw-ring-primary-700",
+    "disabled:hover:tw-bg-primary-500",
+  ],
+  secondary: [
+    "tw-bg-transparent",
+    "!tw-text-muted",
+    "tw-border-text-muted",
+    "hover:!tw-text-contrast",
+    "hover:tw-bg-text-muted",
+    "focus-visible:before:tw-ring-primary-700",
+    "disabled:hover:tw-bg-transparent",
+    "disabled:hover:!tw-text-muted",
+    "disabled:hover:tw-border-text-muted",
+  ],
+  danger: [
+    "tw-bg-transparent",
+    "!tw-text-danger",
+    "tw-border-danger-500",
+    "hover:!tw-text-contrast",
+    "hover:tw-bg-danger-500",
+    "focus-visible:before:tw-ring-primary-700",
+    "disabled:hover:tw-bg-transparent",
+    "disabled:hover:!tw-text-danger",
+    "disabled:hover:tw-border-danger-500",
+  ],
+};
+
+export type IconButtonSize = "default" | "small";
+
+const sizes: Record<IconButtonSize, string[]> = {
+  default: ["tw-px-2.5", "tw-py-1.5"],
+  small: ["tw-leading-none", "tw-text-base", "tw-p-1"],
+};
+
+@Component({
+  selector: "button[bitIconButton]",
+  template: `<i class="bwi" [ngClass]="icon" aria-hidden="true"></i>`,
+})
+export class BitIconButtonComponent {
+  @Input("bitIconButton") icon: string;
+
+  @Input() buttonType: IconButtonStyle = "main";
+
+  @Input() size: IconButtonSize = "default";
+
+  @HostBinding("class") get classList() {
+    return [
+      "tw-font-semibold",
+      "tw-border",
+      "tw-border-solid",
+      "tw-rounded",
+      "tw-transition",
+      "hover:tw-no-underline",
+      "disabled:tw-opacity-60",
+      "disabled:hover:tw-border-transparent",
+      "focus:tw-outline-none",
+
+      // Workaround for box-shadow with transparent offset issue:
+      // https://github.com/tailwindlabs/tailwindcss/issues/3595
+      // Remove `before:` and use regular `tw-ring` when browser no longer has bug, or better:
+      // switch to `outline` with `outline-offset` when Safari supports border radius on outline.
+      // Using `box-shadow` to create outlines is a hack and as such `outline` should be preferred.
+      "tw-relative",
+      "before:tw-content-['']",
+      "before:tw-block",
+      "before:tw-absolute",
+      "before:-tw-inset-[3px]",
+      "before:tw-rounded-md",
+      "before:tw-transition",
+      "before:tw-ring",
+      "focus-visible:before:tw-ring-text-contrast",
+      "focus-visible:tw-z-10",
+    ]
+      .concat(styles[this.buttonType])
+      .concat(sizes[this.size]);
+  }
+}
diff --git a/libs/components/src/icon-button/icon-button.module.ts b/libs/components/src/icon-button/icon-button.module.ts
new file mode 100644
index 0000000000..fb4e858971
--- /dev/null
+++ b/libs/components/src/icon-button/icon-button.module.ts
@@ -0,0 +1,11 @@
+import { CommonModule } from "@angular/common";
+import { NgModule } from "@angular/core";
+
+import { BitIconButtonComponent } from "./icon-button.component";
+
+@NgModule({
+  imports: [CommonModule],
+  declarations: [BitIconButtonComponent],
+  exports: [BitIconButtonComponent],
+})
+export class IconButtonModule {}
diff --git a/libs/components/src/icon-button/icon-button.stories.ts b/libs/components/src/icon-button/icon-button.stories.ts
new file mode 100644
index 0000000000..7be45d3f71
--- /dev/null
+++ b/libs/components/src/icon-button/icon-button.stories.ts
@@ -0,0 +1,59 @@
+import { Meta, Story } from "@storybook/angular";
+
+import { BitIconButtonComponent } from "./icon-button.component";
+
+export default {
+  title: "Component Library/Icon Button",
+  component: BitIconButtonComponent,
+  args: {
+    bitIconButton: "bwi-plus",
+    buttonType: "primary",
+    size: "default",
+    disabled: false,
+  },
+} as Meta;
+
+const Template: Story<BitIconButtonComponent> = (args: BitIconButtonComponent) => ({
+  props: args,
+  template: `
+  <div class="tw-p-5" [class.tw-bg-primary-500]="buttonType === 'contrast'">
+    <button
+      [bitIconButton]="bitIconButton"
+      [buttonType]="buttonType"
+      [size]="size"
+      [disabled]="disabled"
+      title="Example icon button"
+      aria-label="Example icon button"></button>
+  </div>
+  `,
+});
+
+export const Contrast = Template.bind({});
+Contrast.args = {
+  buttonType: "contrast",
+};
+
+export const Main = Template.bind({});
+Main.args = {
+  buttonType: "main",
+};
+
+export const Muted = Template.bind({});
+Muted.args = {
+  buttonType: "muted",
+};
+
+export const Primary = Template.bind({});
+Primary.args = {
+  buttonType: "primary",
+};
+
+export const Secondary = Template.bind({});
+Secondary.args = {
+  buttonType: "secondary",
+};
+
+export const Danger = Template.bind({});
+Danger.args = {
+  buttonType: "danger",
+};
diff --git a/libs/components/src/icon-button/index.ts b/libs/components/src/icon-button/index.ts
new file mode 100644
index 0000000000..9da4a3162b
--- /dev/null
+++ b/libs/components/src/icon-button/index.ts
@@ -0,0 +1 @@
+export * from "./icon-button.module";
diff --git a/libs/components/src/index.ts b/libs/components/src/index.ts
index 2acd60765f..1f1ae6a8d2 100644
--- a/libs/components/src/index.ts
+++ b/libs/components/src/index.ts
@@ -4,6 +4,7 @@ export * from "./button";
 export * from "./callout";
 export * from "./form-field";
 export * from "./icon";
+export * from "./icon-button";
 export * from "./menu";
 export * from "./dialog";
 export * from "./submit-button";
diff --git a/libs/components/src/tw-theme.css b/libs/components/src/tw-theme.css
index 3801dd2e9e..f76c838585 100644
--- a/libs/components/src/tw-theme.css
+++ b/libs/components/src/tw-theme.css
@@ -1,4 +1,6 @@
 :root {
+  --color-transparent-hover: rgb(0 0 0 / 0.03);
+
   --color-background: 255 255 255;
   --color-background-alt: 251 251 251;
   --color-background-alt2: 23 92 219;
@@ -37,6 +39,8 @@
 }
 
 .theme_dark {
+  --color-transparent-hover: rgb(255 255 255 / 0.12);
+
   --color-background: 31 36 46;
   --color-background-alt: 22 28 38;
   --color-background-alt2: 47 52 61;
diff --git a/libs/components/tailwind.config.base.js b/libs/components/tailwind.config.base.js
index 67eb96a6c3..082abe7372 100644
--- a/libs/components/tailwind.config.base.js
+++ b/libs/components/tailwind.config.base.js
@@ -12,7 +12,10 @@ module.exports = {
   corePlugins: { preflight: false },
   theme: {
     colors: {
-      transparent: colors.transparent,
+      transparent: {
+        DEFAULT: colors.transparent,
+        hover: "var(--color-transparent-hover)",
+      },
       current: colors.current,
       black: colors.black,
       primary: {