diff --git a/packages/craftcms-cp/src/components/badge-indicator/badge-indicator.stories.ts b/packages/craftcms-cp/src/components/badge-indicator/badge-indicator.stories.ts
new file mode 100644
index 00000000000..73dfcba5e84
--- /dev/null
+++ b/packages/craftcms-cp/src/components/badge-indicator/badge-indicator.stories.ts
@@ -0,0 +1,46 @@
+import type {Meta, StoryObj} from '@storybook/web-components-vite';
+
+import {html} from 'lit';
+
+import './badge-indicator.js';
+
+// More on how to set up stories at: https://storybook.js.org/docs/writing-stories
+const meta = {
+  title: 'Components/Badge Indicator',
+  component: 'craft-badge-indicator',
+  argTypes: {},
+  render: (args) => html`
+    <craft-badge-indicator></craft-badge-indicator>
+  `,
+} satisfies Meta<any>;
+
+export default meta;
+type Story = StoryObj<any>;
+
+// More on writing stories with args: https://storybook.js.org/docs/writing-stories/args
+export const DotBadge: Story = {
+  name: 'Dot Badge',
+  args: {
+    srText: 'Has Notifications'
+  },
+  argTypes: {
+    number: {
+      control: { type: null }
+    },
+  },
+  render: (args) => html`
+    <craft-badge-indicator .srText="${args.srText}"></craft-badge-indicator>
+  `,
+}
+
+export const NumberedBadge: Story = {
+  name: 'Numbered Badge',
+  args: {
+    number: 5,
+    srText: 'updates'
+  },
+  render: (args) => html`
+    <craft-badge-indicator .number="${args.number}" .srText="${args.srText}"></craft-badge-indicator>
+  `,
+}
+
diff --git a/packages/craftcms-cp/src/components/badge-indicator/badge-indicator.styles.ts b/packages/craftcms-cp/src/components/badge-indicator/badge-indicator.styles.ts
new file mode 100644
index 00000000000..7fbbd2ede58
--- /dev/null
+++ b/packages/craftcms-cp/src/components/badge-indicator/badge-indicator.styles.ts
@@ -0,0 +1,26 @@
+import {css} from 'lit';
+
+export default css`
+  .badge-indicator {
+    display: inline-flex;
+    width: var(--c-size-icon-xs);
+    height: var(--c-size-icon-xs);
+    justify-content: center;
+    align-items: center;
+    background-color: var(--c-color-accent-bg-emphasis);
+    color: white;
+    border-radius: var(--c-radius-full);
+  }
+  
+  .badge-indicator--with-number {
+    padding: 8px;
+    
+  }
+  
+  .number {
+    font-size: var(--c-text-xs);
+    font-weight: 600;
+    line-height: 1;
+    display: inline-block;
+  }
+`;
diff --git a/packages/craftcms-cp/src/components/badge-indicator/badge-indicator.ts b/packages/craftcms-cp/src/components/badge-indicator/badge-indicator.ts
new file mode 100644
index 00000000000..4023c56d0a0
--- /dev/null
+++ b/packages/craftcms-cp/src/components/badge-indicator/badge-indicator.ts
@@ -0,0 +1,73 @@
+import {html, css, LitElement, nothing} from 'lit';
+import {property} from 'lit/decorators.js';
+import styles from './badge-indicator.styles.js';
+import {classMap} from 'lit/directives/class-map.js';
+import '@shoelace-style/shoelace/dist/components/visually-hidden/visually-hidden.js';
+
+/**
+ * @summary A badge indicator component. Used in various places to indicate that 
+ * something is new or has been updated. The indicator can have an optional 
+ * notification count.
+ */
+
+export default class CraftBadgeIndicator extends LitElement {
+  static override styles = [styles];
+
+  /** Number of notifications */
+  @property() number: number | null = null;
+
+  /** Accessible text for screen reader users */
+  @property() srText: string | null = null;
+
+  @property()
+  override id: string;
+
+  constructor() {
+    super();
+    this.id = this.id || Math.floor(Math.random() * 1000000000).toString();
+  }
+
+  private truncatedNumber() {
+    if (!this.number) {
+      return null;
+    }
+
+    if (this.number > 99) {
+      return '99+';
+    } else {
+      return this.number.toString();
+    }
+  }
+  override render() {
+    const hasNumber = this.number !== null;
+    const badgeId = this.id ?? nothing;
+    const labelId = badgeId ? `${badgeId}-label` : nothing;
+
+    return html`
+      <div 
+        id=${badgeId}
+        class="${classMap({
+          'badge-indicator': true,
+          'badge-indicator--with-number': this.number !== null,
+        })}"
+        role="${!hasNumber ? 'img' : nothing }"
+        aria-labelledby="${!hasNumber ? labelId : nothing }"
+      >
+        ${hasNumber
+          ? html`<span class="number">${this.truncatedNumber()}</span>`
+          : nothing}
+        <sl-visually-hidden id=${labelId}> ${this.srText}</sl-visually-hidden>
+      </div>
+    `;
+  }
+}
+
+if (!customElements.get('craft-badge-indicator')) {
+  customElements.define('craft-badge-indicator', CraftBadgeIndicator);
+}
+
+declare global {
+  interface HTMLElementTagNameMap {
+    'craft-badge-indicator': CraftBadgeIndicator;
+  }
+}
diff --git a/packages/craftcms-cp/src/components/indicator/indicator.ts b/packages/craftcms-cp/src/components/indicator/indicator.ts
index 99f9e240c16..8d37645216f 100644
--- a/packages/craftcms-cp/src/components/indicator/indicator.ts
+++ b/packages/craftcms-cp/src/components/indicator/indicator.ts
@@ -36,7 +36,9 @@ export default class CraftIndicator extends LitElement {
         'indicator--warning': this.variant === Variant.Warning,
         'indicator--info': this.variant === Variant.Info,
       })}"
-    ></span>`;
+    >
+      <slot></slot>
+    </span>`;
   }
 }
 
diff --git a/packages/craftcms-cp/src/components/nav-item/nav-item.stories.ts b/packages/craftcms-cp/src/components/nav-item/nav-item.stories.ts
index 52592b95062..d02801a7724 100644
--- a/packages/craftcms-cp/src/components/nav-item/nav-item.stories.ts
+++ b/packages/craftcms-cp/src/components/nav-item/nav-item.stories.ts
@@ -3,7 +3,7 @@ import type {Meta, StoryObj} from '@storybook/web-components-vite';
 import {html} from 'lit';
 
 import '../icon/icon.js';
-import '../navigation/navigation.js';
+import '../nav-list/nav-list.js';
 import '../button/button.js';
 import './nav-item.js';
 
diff --git a/packages/craftcms-cp/src/styles/shared/tokens.css b/packages/craftcms-cp/src/styles/shared/tokens.css
index fa624db52f7..d34cbd69a30 100644
--- a/packages/craftcms-cp/src/styles/shared/tokens.css
+++ b/packages/craftcms-cp/src/styles/shared/tokens.css
@@ -3,6 +3,7 @@
   --c-text-lg: calc(16rem / 16);
   --c-text-base: calc(14rem / 16);
   --c-text-sm: calc(11rem / 16);
+  --c-text-xs: calc(9rem / 16);
 
   --c-leading-normal: 1.42;