diff --git a/.changeset/pretty-bears-nail.md b/.changeset/pretty-bears-nail.md
new file mode 100644
index 00000000..832400aa
--- /dev/null
+++ b/.changeset/pretty-bears-nail.md
@@ -0,0 +1,6 @@
+---
+'storybook-manifest': minor
+'@project44-manifest/react': minor
+---
+
+Added dialog version 2
diff --git a/apps/storybook/.storybook/manager.js b/apps/storybook/.storybook/manager.js
index a3dfaf47..9240bc59 100644
--- a/apps/storybook/.storybook/manager.js
+++ b/apps/storybook/.storybook/manager.js
@@ -1,4 +1,4 @@
-import { addons } from '@storybook/addons';
+import { addons } from '@storybook/manager-api';
 import theme from './theme';
 
 addons.setConfig({ theme });
diff --git a/packages/react/src/components/Dialogv2/dialogv2.styles.ts b/packages/react/src/components/Dialogv2/dialogv2.styles.ts
new file mode 100644
index 00000000..56435101
--- /dev/null
+++ b/packages/react/src/components/Dialogv2/dialogv2.styles.ts
@@ -0,0 +1,37 @@
+import { pxToRem, styled } from '@project44-manifest/react-styles';
+
+export const DialogV2Wrapper = styled('div', {
+  display: 'flex',
+  backgroundColor: '$background-primary',
+  borderRadius: '$small',
+  boxShadow: '$small',
+  boxSizing: 'border-box',
+  flexDirection: 'column',
+  outline: 0,
+  padding: '$large',
+  position: 'relative',
+  maxHeight: 'calc(100vh - 75px) !important',
+  overflowY: 'auto',
+  variants: {
+    size: {
+      small: {
+        width: pxToRem(480),
+      },
+      medium: {
+        width: pxToRem(640),
+      },
+      large: {
+        width: pxToRem(960),
+      },
+    },
+    edgeToEdge: {
+      noPadding: {
+        padding: '0px',
+      },
+    },
+  },
+  defaultVariants: {
+    size: 'large',
+    edgeToEdge: '',
+  },
+});
diff --git a/packages/react/src/components/Dialogv2/dialogv2.tsx b/packages/react/src/components/Dialogv2/dialogv2.tsx
new file mode 100644
index 00000000..f6e30c0a
--- /dev/null
+++ b/packages/react/src/components/Dialogv2/dialogv2.tsx
@@ -0,0 +1,117 @@
+import React from 'react';
+import { useDialog } from '@react-aria/dialog';
+import { mergeProps } from '@react-aria/utils';
+import { cx } from '@project44-manifest/react-styles';
+import type { ForwardRefComponent } from '@project44-manifest/react-types';
+import { useMergedRef } from '../../hooks';
+import { DialogProvider } from '../Dialog/Dialog.context';
+import { DialogElement } from '../Dialog/Dialog.types';
+import { DialogContent } from '../DialogContent';
+import { DialogFooter } from '../DialogFooter';
+import { DialogHeader } from '../DialogHeader';
+import { Modal } from '../Modal';
+import { ModalPosition } from '../Modal/Modal.types';
+import { DialogV2Wrapper } from './dialogv2.styles';
+
+export enum DialogV2Size {
+  small = 'small',
+  medium = 'medium',
+  large = 'large',
+}
+
+export interface DialogV2Props {
+  isOpen?: boolean;
+  headerProps: {
+    title: string;
+    onClose: () => void;
+  };
+  body: React.ReactNode | string;
+  footer?: React.ReactNode | string;
+  isDismissable?: boolean;
+  isKeyboardDismissDisabled?: boolean;
+  size?: DialogV2Size;
+  edgeToEdge?: boolean;
+  position?: ModalPosition;
+}
+
+export const DialogV2Impl = React.forwardRef((props, forwardedRef) => {
+  const {
+    as,
+    children,
+    className: classNameProp,
+    isDismissable,
+    headerProps,
+    body,
+    footer,
+    edgeToEdge,
+    size = DialogV2Size.medium,
+    ...other
+  } = props;
+
+  const { title, onClose } = headerProps;
+
+  const dialogRef = React.useRef<HTMLDivElement>(null);
+  const mergedRef = useMergedRef(dialogRef, forwardedRef);
+
+  const { dialogProps, titleProps } = useDialog({ role: 'dialog' }, dialogRef);
+
+  const context = React.useMemo(
+    () => ({
+      isDismissable,
+      titleProps,
+      onClose,
+    }),
+    [isDismissable, onClose, titleProps],
+  );
+
+  const className = cx('manifest-dialog', classNameProp, {
+    [`manifest-dialog-${size}`]: size,
+    'manifest-dialog-edgeToEdge': edgeToEdge,
+  });
+
+  return (
+    <DialogProvider value={context}>
+      <DialogV2Wrapper
+        {...mergeProps(dialogProps, other)}
+        ref={mergedRef}
+        as={as}
+        className={className}
+        data-testid="dialogV2Wrapper"
+        edgeToEdge={edgeToEdge ? 'noPadding' : undefined}
+        size={size}
+      >
+        <DialogHeader data-testid="dialogV2Header">{title}</DialogHeader>
+        <DialogContent data-testid="dialogV2Content">{body}</DialogContent>
+        {footer && <DialogFooter data-testid="dialogV2Footer">{footer}</DialogFooter>}
+      </DialogV2Wrapper>
+    </DialogProvider>
+  );
+}) as ForwardRefComponent<DialogElement, DialogV2Props>;
+
+DialogV2Impl.displayName = 'DialogImpl';
+
+export const DialogV2 = React.forwardRef((props, forwardedRef) => {
+  const {
+    isDismissable = true,
+    isKeyboardDismissDisabled = false,
+    isOpen,
+    position,
+    ...other
+  } = props;
+
+  const { onClose } = other.headerProps;
+  return (
+    <Modal
+      data-testid="dialogV2Modal"
+      isDismissable={isDismissable}
+      isKeyboardDismissDisabled={isKeyboardDismissDisabled}
+      isOpen={isOpen}
+      position={position}
+      onClose={onClose}
+    >
+      <DialogV2Impl {...other} isDismissable={isDismissable} />
+    </Modal>
+  );
+}) as ForwardRefComponent<DialogElement, DialogV2Props>;
+
+DialogV2.displayName = 'DialogV2';
diff --git a/packages/react/src/components/Dialogv2/story/Dialogv2.stories.tsx b/packages/react/src/components/Dialogv2/story/Dialogv2.stories.tsx
new file mode 100644
index 00000000..af105833
--- /dev/null
+++ b/packages/react/src/components/Dialogv2/story/Dialogv2.stories.tsx
@@ -0,0 +1,66 @@
+import * as React from 'react';
+import { Meta, StoryFn } from '@storybook/react';
+import { Button } from '../../..';
+import { ModalPosition } from '../../Modal/Modal.types';
+import { DialogV2, DialogV2Props, DialogV2Size } from '../dialogv2';
+
+const meta: Meta<DialogV2Props> = {
+  component: DialogV2,
+  title: 'Components/Dialogv2',
+  argTypes: {
+    size: {
+      options: [DialogV2Size.small, DialogV2Size.medium, DialogV2Size.large],
+      control: { type: 'radio' },
+    },
+    position: {
+      options: [ModalPosition.top, ModalPosition.center],
+      control: { type: 'radio' },
+    },
+  },
+};
+
+export default meta;
+
+export const Default: StoryFn<DialogV2Props> = (args: DialogV2Props) => {
+  const [isOpen, setIsOpen] = React.useState(false);
+
+  const handleClose = React.useCallback(() => void setIsOpen(false), []);
+  const handleOpen = React.useCallback(() => void setIsOpen(true), []);
+
+  const props: DialogV2Props = {
+    isOpen,
+    headerProps: {
+      title: 'Dialog Title',
+      onClose: handleClose,
+    },
+    body: `Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt
+    ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation
+    ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in
+    reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur
+    sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id
+    est laborum.`,
+    footer: (
+      <>
+        <Button variant="secondary" onPress={handleClose}>
+          Close
+        </Button>
+        <Button onPress={handleClose}>Confirm</Button>
+      </>
+    ),
+  };
+
+  return (
+    <>
+      <Button onPress={handleOpen}>Open Dialog</Button>
+      <DialogV2 {...args} {...props} />
+    </>
+  );
+};
+
+Default.args = {
+  isDismissable: true,
+  isKeyboardDismissDisabled: true,
+  edgeToEdge: false,
+  size: DialogV2Size.small,
+  position: ModalPosition.top,
+};
diff --git a/packages/react/src/components/Dialogv2/tests/dialogV2.test.tsx b/packages/react/src/components/Dialogv2/tests/dialogV2.test.tsx
new file mode 100644
index 00000000..8cb547a7
--- /dev/null
+++ b/packages/react/src/components/Dialogv2/tests/dialogV2.test.tsx
@@ -0,0 +1,68 @@
+import { act, render, screen } from '@testing-library/react';
+import { DialogV2, DialogV2Size } from '../dialogv2';
+
+beforeAll(() => {
+  jest.useFakeTimers();
+});
+
+afterEach(() => {
+  jest.clearAllMocks();
+
+  act(() => {
+    jest.runAllTimers();
+  });
+});
+
+afterAll(() => {
+  jest.restoreAllMocks();
+});
+
+it('should render dialogV2', () => {
+  const onClose = jest.fn();
+  render(
+    <DialogV2
+      isOpen
+      body="Some string"
+      headerProps={{
+        onClose,
+        title: 'some title',
+      }}
+    />,
+  );
+
+  expect(screen.getByTestId('dialogV2Wrapper')).toBeInTheDocument();
+});
+
+it('should render footer', () => {
+  const onClose = jest.fn();
+  render(
+    <DialogV2
+      isOpen
+      body="Some string"
+      footer="Some footer text that i need to place"
+      headerProps={{
+        onClose,
+        title: 'some title',
+      }}
+    />,
+  );
+
+  expect(screen.getByTestId('dialogV2Footer')).toBeInTheDocument();
+});
+
+it('should react to size', () => {
+  const onClose = jest.fn();
+  render(
+    <DialogV2
+      isOpen
+      body="Some string"
+      footer="Some footer text that i need to place"
+      headerProps={{
+        onClose,
+        title: 'some title',
+      }}
+      size={DialogV2Size.small}
+    />,
+  );
+  expect(screen.getByTestId('dialogV2Wrapper').className).toContain('manifest-dialog-small');
+});
diff --git a/packages/react/src/components/Modal/Modal.styles.ts b/packages/react/src/components/Modal/Modal.styles.ts
index 4743dec7..c23102b7 100644
--- a/packages/react/src/components/Modal/Modal.styles.ts
+++ b/packages/react/src/components/Modal/Modal.styles.ts
@@ -46,6 +46,23 @@ export const StyledModalWrapper = styled('div', {
         visibility: 'visible',
       },
     },
+    position: {
+      top: {
+        top: '64px',
+        inlineSize: 'auto',
+        left: '0px',
+        right: '0px',
+        alignItems: 'flex-start',
+      },
+      center: {
+        alignItems: 'center',
+        justifyContent: 'center',
+      },
+    },
+  },
+
+  defaultVariants: {
+    position: 'top',
   },
 });
 
diff --git a/packages/react/src/components/Modal/Modal.tsx b/packages/react/src/components/Modal/Modal.tsx
index dc6bb4a4..f40ce3e2 100644
--- a/packages/react/src/components/Modal/Modal.tsx
+++ b/packages/react/src/components/Modal/Modal.tsx
@@ -6,7 +6,7 @@ import { useMergedRef } from '../../hooks';
 import { mergeProps } from '../../utils';
 import { Overlay } from '../Overlay';
 import { StyledModal, StyledModalWrapper, StyledUnderlay } from './Modal.styles';
-import type { ModalElement, ModalProps } from './Modal.types';
+import { ModalElement, ModalPosition, ModalProps } from './Modal.types';
 
 /**
  * Modal implementation; Need to initialize the overlay component before calling
@@ -24,6 +24,7 @@ const ModalImpl = React.forwardRef((props, forwardedRef) => {
     isKeyboardDismissDisabled,
     isOpen,
     onClose,
+    position = ModalPosition.top,
     ...other
   } = props;
 
@@ -51,7 +52,7 @@ const ModalImpl = React.forwardRef((props, forwardedRef) => {
   return (
     <>
       <StyledUnderlay {...underlayProps} className="manifest-underlay" isOpen={isOpen} />
-      <StyledModalWrapper className="manifest-modal-wrapper" isOpen={isOpen}>
+      <StyledModalWrapper className="manifest-modal-wrapper" isOpen={isOpen} position={position}>
         <StyledModal
           {...mergeProps(overlayProps, other)}
           ref={mergedRef}
diff --git a/packages/react/src/components/Modal/Modal.types.ts b/packages/react/src/components/Modal/Modal.types.ts
index 7bab02d6..ccdbcf76 100644
--- a/packages/react/src/components/Modal/Modal.types.ts
+++ b/packages/react/src/components/Modal/Modal.types.ts
@@ -1,5 +1,10 @@
 import type { CSS } from '@project44-manifest/react-styles';
 
+export enum ModalPosition {
+  top = 'top',
+  center = 'center',
+}
+
 export type ModalElement = 'div';
 
 export interface ModalProps {
@@ -27,4 +32,9 @@ export interface ModalProps {
    * Handler that is called when the modal should close.
    */
   onClose?: () => void;
+
+  /**
+   * Handles position of modal wrapper
+   */
+  position?: ModalPosition;
 }