diff --git a/libs/components/src/toggle-group/toggle-group.mdx b/libs/components/src/toggle-group/toggle-group.mdx
index c5726555695..cd487934cec 100644
--- a/libs/components/src/toggle-group/toggle-group.mdx
+++ b/libs/components/src/toggle-group/toggle-group.mdx
@@ -1,4 +1,4 @@
-import { Meta, Story, Primary, Controls } from "@storybook/addon-docs";
+import { Meta, Story, Primary, Controls, Canvas } from "@storybook/addon-docs";
 
 import * as stories from "./toggle-group.stories";
 
@@ -15,22 +15,23 @@ Toggle groups function as radio buttons and a radio group under the hood.
 A button in a toggle group can have a badge counter added to show the number of items existing
 within that filter.
 
-For focus states, use `focus-visible`.
+If the labels in a toggle group would overflow the width of the toggle group container, then the
+labels will wrap to 2 lines and truncate with an ellipsis past that. The full label text is
+accessible via the `title` prop (i.e. visible on hover).
+
+<Canvas>
+  <Story of={stories.Default} />
+</Canvas>
+
+<Canvas>
+  <Story of={stories.LabelWrap} />
+</Canvas>
 
-<Primary />
 <Controls />
 
 ## Accessibility
 
-- Follow contrast rules for the main button styles.
-- Focus:
-  - Implement as a radio group with button styling and a context label (context label can be screen
-    reader only depending on use case).
-  - Since only 1 button can be selected at a time to filter the toggle group acts similarly to a
-    radio group.
-  - When moving focus to a button group, the focus should always move to the selected button. The
-    screen reader should then announce the button group: example “[context label], [button content]
-    selected, of [# of buttons]”), the number of buttons and the currently selected button. The user
-    may navigate the options then via left/right arrow keys.
-
-See WCAG for more: https://www.w3.org/WAI/ARIA/apg/patterns/radio/
+- Since only 1 button can be selected at a time, the toggle group acts similarly to a radio group.
+- The user may navigate the options via left/right arrow keys.
+- The screen reader will announce the button group: example “[context label], [button content]
+  selected, of [# of buttons]”), the number of buttons and the currently selected button.
diff --git a/libs/components/src/toggle-group/toggle-group.stories.ts b/libs/components/src/toggle-group/toggle-group.stories.ts
index 8fdd22efe3f..78f7d700b57 100644
--- a/libs/components/src/toggle-group/toggle-group.stories.ts
+++ b/libs/components/src/toggle-group/toggle-group.stories.ts
@@ -46,3 +46,31 @@ export const Default: Story = {
     selected: "all",
   },
 };
+
+export const LabelWrap: Story = {
+  render: (args) => ({
+    props: args,
+    template: /* HTML */ `
+      <bit-toggle-group
+        [(selected)]="selected"
+        aria-label="People list filter"
+        class="tw-max-w-[500px]"
+      >
+        <bit-toggle value="all">
+          All of the best things <span bitBadge variant="info">3</span>
+        </bit-toggle>
+
+        <bit-toggle value="invited"> Invited to a cool party </bit-toggle>
+
+        <bit-toggle value="accepted">
+          Accepted the invitation<span bitBadge variant="info">2</span>
+        </bit-toggle>
+
+        <bit-toggle value="deactivated"> Deactivated forever</bit-toggle>
+      </bit-toggle-group>
+    `,
+  }),
+  args: {
+    selected: "all",
+  },
+};
diff --git a/libs/components/src/toggle-group/toggle.component.html b/libs/components/src/toggle-group/toggle.component.html
index 471ed5f0c03..4e12aee9064 100644
--- a/libs/components/src/toggle-group/toggle.component.html
+++ b/libs/components/src/toggle-group/toggle.component.html
@@ -6,6 +6,11 @@
   [checked]="selected"
   (change)="onInputInteraction()"
 />
-<label for="bit-toggle-{{ id }}" [ngClass]="labelClasses">
-  <ng-content></ng-content>
+<label for="bit-toggle-{{ id }}" [ngClass]="labelClasses" [title]="labelTextContent">
+  <span class="group-hover/toggle:tw-underline tw-line-clamp-2" #labelContent>
+    <ng-content></ng-content>
+  </span>
+  <span class="tw-shrink-0" #bitBadgeContainer [hidden]="!bitBadgeContainerHasChidlren()">
+    <ng-content select="[bitBadge]"></ng-content>
+  </span>
 </label>
diff --git a/libs/components/src/toggle-group/toggle.component.ts b/libs/components/src/toggle-group/toggle.component.ts
index b07ecd82a8d..b42d03f3256 100644
--- a/libs/components/src/toggle-group/toggle.component.ts
+++ b/libs/components/src/toggle-group/toggle.component.ts
@@ -1,4 +1,12 @@
-import { Component, HostBinding, Input } from "@angular/core";
+import {
+  AfterContentChecked,
+  Component,
+  ElementRef,
+  HostBinding,
+  Input,
+  signal,
+  ViewChild,
+} from "@angular/core";
 
 import { ToggleGroupComponent } from "./toggle-group.component";
 
@@ -9,15 +17,19 @@ let nextId = 0;
   templateUrl: "./toggle.component.html",
   preserveWhitespaces: false,
 })
-export class ToggleComponent<TValue> {
+export class ToggleComponent<TValue> implements AfterContentChecked {
   id = nextId++;
 
   @Input() value?: TValue;
+  @ViewChild("labelContent") labelContent: ElementRef<HTMLSpanElement>;
+  @ViewChild("bitBadgeContainer") bitBadgeContainer: ElementRef<HTMLSpanElement>;
 
   constructor(private groupComponent: ToggleGroupComponent<TValue>) {}
 
   @HostBinding("tabIndex") tabIndex = "-1";
-  @HostBinding("class") classList = ["tw-group/toggle"];
+  @HostBinding("class") classList = ["tw-group/toggle", "tw-flex"];
+
+  protected bitBadgeContainerHasChidlren = signal(false);
 
   get name() {
     return this.groupComponent.name;
@@ -31,51 +43,58 @@ export class ToggleComponent<TValue> {
     return ["tw-peer/toggle-input", "tw-appearance-none", "tw-outline-none"];
   }
 
+  get labelTextContent() {
+    return this.labelContent?.nativeElement.innerText ?? null;
+  }
+
   get labelClasses() {
     return [
+      "tw-h-full",
+      "tw-flex",
+      "tw-items-center",
+      "tw-gap-1.5",
       "!tw-font-semibold",
+      "tw-leading-5",
       "tw-transition",
       "tw-text-center",
-      "tw-border-text-muted",
-      "!tw-text-muted",
+      "tw-border-primary-600",
+      "!tw-text-primary-600",
       "tw-border-solid",
       "tw-border-y",
       "tw-border-r",
       "tw-border-l-0",
       "tw-cursor-pointer",
       "group-first-of-type/toggle:tw-border-l",
-      "group-first-of-type/toggle:tw-rounded-l",
-      "group-last-of-type/toggle:tw-rounded-r",
+      "group-first-of-type/toggle:tw-rounded-l-full",
+      "group-last-of-type/toggle:tw-rounded-r-full",
 
-      "peer-focus/toggle-input:tw-outline-none",
-      "peer-focus/toggle-input:tw-ring",
-      "peer-focus/toggle-input:tw-ring-offset-2",
-      "peer-focus/toggle-input:tw-ring-primary-600",
-      "peer-focus/toggle-input:tw-z-10",
-      "peer-focus/toggle-input:tw-bg-primary-600",
-      "peer-focus/toggle-input:tw-border-primary-600",
-      "peer-focus/toggle-input:!tw-text-contrast",
-
-      "hover:tw-no-underline",
-      "hover:tw-bg-text-muted",
-      "hover:tw-border-text-muted",
-      "hover:!tw-text-contrast",
+      "peer-focus-visible/toggle-input:tw-outline-none",
+      "peer-focus-visible/toggle-input:tw-ring",
+      "peer-focus-visible/toggle-input:tw-ring-offset-2",
+      "peer-focus-visible/toggle-input:tw-ring-primary-600",
+      "peer-focus-visible/toggle-input:tw-z-10",
+      "peer-focus-visible/toggle-input:tw-bg-primary-600",
+      "peer-focus-visible/toggle-input:tw-border-primary-600",
+      "peer-focus-visible/toggle-input:!tw-text-contrast",
 
       "peer-checked/toggle-input:tw-bg-primary-600",
       "peer-checked/toggle-input:tw-border-primary-600",
       "peer-checked/toggle-input:!tw-text-contrast",
       "tw-py-1.5",
-      "tw-px-3",
+      "tw-px-4",
 
       // Fix for bootstrap styles that add bottom margin
       "!tw-mb-0",
-
-      // Fix for badge being slightly off center vertically
-      "[&>[bitBadge]]:tw-mt-px",
     ];
   }
 
   onInputInteraction() {
     this.groupComponent.onInputInteraction(this.value);
   }
+
+  ngAfterContentChecked() {
+    this.bitBadgeContainerHasChidlren.set(
+      this.bitBadgeContainer?.nativeElement.childElementCount > 0,
+    );
+  }
 }