diff --git a/.changeset/bright-tigers-occur.md b/.changeset/bright-tigers-occur.md
new file mode 100644
index 0000000000..2fc8c7e4fc
--- /dev/null
+++ b/.changeset/bright-tigers-occur.md
@@ -0,0 +1,5 @@
+---
+"@stackoverflow/stacks": patch
+---
+
+Improve badge layout
diff --git a/packages/stacks-classic/lib/components/badge/badge.less b/packages/stacks-classic/lib/components/badge/badge.less
index c8ffd719fa..7898d553d1 100644
--- a/packages/stacks-classic/lib/components/badge/badge.less
+++ b/packages/stacks-classic/lib/components/badge/badge.less
@@ -1,54 +1,108 @@
 .s-badge {
-    --_ba-as: unset;
     --_ba-bc: transparent;
     --_ba-bg: var(--black-100);
     --_ba-fc: var(--black-500);
-    --_ba-fs: var(--fs-caption); //13px
+    --_ba-fs: var(--fs-caption);
     --_ba-px: var(--su6);
     --_ba-py: var(--su4);
     --_ba-tt: unset;
     --_ba-wmn: 0;
     --_ba-bl: 0;
     --_ba-fw: unset;
+    --_ba-g: unset;
+    --_ba-svg-p: var(--su2);
     --_ba-sq-bg: var(--black-200);
-    --_ba-bx-sh-w: var(--su2);
-    --_ba-gap: unset;
-    --_ba-bx-sh-inset: ~"";
+    
+    // CONTEXTUAL STYLES
+    .highcontrast-mode({
+        --_ba-bx-sh-w: var(--su1);
 
-    // SIZES
-    &&__sm {
-        --_ba-wmn: calc(var(--su16) + var(--su2));
-        --_ba-as: flex-start;
-        --_ba-fs: var(--fs-fine); //12px
-        --_ba-px: var(--su4);
-        --_ba-py: var(--su1);
-        --_ba-bx-sh-w: 0px;
-        --_ba-bx-sh-inset: inset;
-    }
+        &.s-badge__sm {
+            --_ba-bx-sh-w: 0;
+        }
 
-    &&__lg {
-        --_ba-fs: var(--fs-body1); //14px
-        --_ba-px: var(--su8);
-        --_ba-py: calc(var(--su4) + var(--su1)); //5px
-        --_ba-bx-sh-w: var(--su4);
+        &.s-badge__lg {
+            --_ba-bx-sh-w: var(--su4);
+        }
+
+        &:not(.s-badge__important) > svg { 
+            //Add border around the square in high contrast mode
+            box-shadow: 0 0 0 calc(var(--_ba-bx-sh-w) - var(--su1)) var(--_ba-sq-bg), 
+                0 0 0 max(var(--su1), var(--_ba-bx-sh-w)) currentcolor inset;
+        }
+
+        a[href] {
+            &,
+            &:hover {
+                text-decoration: underline !important;
+            }
+        }
+    });
+
+    &:has(> .s-bling__filled),
+    &&__squared,
+    &:has(> svg) {
+        &,
+        &.s-badge__lg,
+        &.s-badge__sm {
+            --_ba-px: 0;
+            --_ba-py: 0;
+        }
+
+        &.s-badge__lg {
+            --_ba-pr: var(--su8);
+        }
+
+        &.s-badge__sm {
+            --_ba-pr: var(--su4);
+        }
+
+        --_ba-pr: var(--su6);
     }
 
-    // We need negative margin to make up for the positive badge padding
-    & .s-bling__filled {
-        margin: calc(var(--_ba-py) * -1) 0 calc(var(--_ba-py) * -1) calc(var(--_ba-px) * -1);
+    &:has(> .s-bling__filled),
+    &&__squared {
+        &.s-badge__lg {
+            --_ba-g: var(--su8);
+        }
+
+        &.s-badge__sm {
+            --_ba-g: var(--su4);
+        }
+
+        --_ba-g: var(--su6);
     }
-    & svg {
-        margin: calc(var(--_ba-py) * -1) 0 calc(var(--_ba-py) * -1) var(--sun4);
+
+    &:not(&__squared):has(> svg){
+        --_ba-g: var(--su2);
     }
 
+
     &:has(.s-bling__rep) {
         --_ba-fw: 600;
         --_ba-fc: var(--black-600);
     }
+
     &:has(.s-bling) {
         --_ba-bg: var(--black-150);
     }
 
+    // SIZES
+    &&__sm {
+        --_ba-fs: var(--fs-fine);
+        --_ba-px: var(--su4);
+        --_ba-py: var(--su1);
+        --_ba-wmn: calc(var(--su16) + var(--su2));
+        --_ba-svg-p: var(--_ba-py);
+    }
+
+    &&__lg {
+        --_ba-fs: var(--fs-body1);
+        --_ba-px: var(--su8);
+        --_ba-py: calc(var(--su4) + var(--su1));
+        --_ba-svg-p: var(--_ba-py);
+    }
+
     // TAG
     &&__gold,
     &&__silver,
@@ -84,8 +138,23 @@
         --_ba-fc: var(--black-600);
     }
 
+    &&__moderator,
+    &&__new {
+        &:before {
+            background-color: var(--_ba-bc);
+            height: var(--_ba-before-h);
+            width: var(--_ba-before-w);
+            -webkit-mask: var(--_ba-before-icon) no-repeat center;
+            mask: var(--_ba-before-icon) no-repeat center;
+            
+            content: "";
+            display: inline-block;
+            -webkit-mask-size: contain;
+            mask-size: contain;
+        }
+    }
+
     &&__moderator {
-        // :before icon
         --_ba-bc: var(--blue-500);
         --_ba-before-h: calc(var(--su12) + var(--su1)); // 13px
         --_ba-before-w: calc(var(--su12) - var(--su1)); // 11px
@@ -98,68 +167,40 @@
         }
 
         &:before {
-            height: var(--_ba-before-h);
             margin-top: var(--sun1);
-            width: var(--_ba-before-w);
-
-            content: "";
-            display: inline-block;
-            background-color: var(--_ba-bc);
-            -webkit-mask: var(--_ba-before-icon) no-repeat center;
-            mask: var(--_ba-before-icon) no-repeat center;
-            -webkit-mask-size: contain;
-            mask-size: contain;
         }
     }
 
     &&__staff {
-        // Staff should always be "StackOverflow orange"
         --_ba-bc: var(--orange-400);
     }
+
     &&__admin {
-        // Only the admin badge is themeable
         --_ba-bc: var(--theme-primary-500, var(--orange-500));
     }
+
     &&__ai {
         --_ba-bc: var(--purple-400);
     }
+
     &&__bot {
         --_ba-bc: var(--black-400);
     }
 
+    // TODO reassess if we need this modifier or should rely on embedding an svg (our `__featured` example is the same as this badge)
     &&__new {
         --_ba-bg: var(--purple-100);
         --_ba-fc: var(--purple-500);
         --_ba-sq-bg: var(--purple-200);
         --_ba-bc: var(--purple-400);
-        --_ba-gap: var(--su2); // 2px gap between icon and text
-        --_ba-before-h: calc(var(--su12) + var(--su4)); // 16px
-        --_ba-before-w: calc(var(--su12) + var(--su4)); // 16px
-        --_ba-before-icon: url("data:image/svg+xml;,%3Csvg width='20' height='20' xmlns='http://www.w3.org/2000/svg'%3E%3Cpath d='M12.25 7h7.28l-5.89 4.29.68 2.08-2.07-1.5-.04-.12-.33-1.04.88-.64 2.16-1.56h-3.76l-.34-1.04L10 4.94l-.82 2.53-.34 1.04H5.08l2.16 1.56.88.64-.33 1.04-.83 2.54 2.16-1.57.87-.64 5.12 3.72.78 2.41L10 13.93l-5.9 4.28 2.26-6.92L.46 7h7.29L10 .08z' /%3E%3C/svg%3E");
-
-        &.s-badge__sm {
-            --_ba-before-h: calc(var(--su12) + var(--su2)); // 14px
-            --_ba-before-w: calc(var(--su12) + var(--su2)); // 14px
-        }
-
-        &.s-badge__lg {
-            --_ba-before-h: calc(var(--su12) + var(--su6)); // 18px
-            --_ba-before-w: calc(var(--su12) + var(--su6)); // 18px
-        }
+        --_ba-gap: var(--su2);
+        --_ba-before-h: calc(var(--su12) + var(--su2));
+        --_ba-before-w: calc(var(--su12) + var(--su2));
+        --_ba-before-icon: url("data:image/svg+xml;,%3Csvg width='14' height='14' viewBox='0 0 16 16' xmlns='http://www.w3.org/2000/svg'%3E%3Cpath d='M8 1a7 7 0 1 1 0 14A7 7 0 0 1 8 1m0 1.25a5.75 5.75 0 1 0 0 11.5 5.75 5.75 0 0 0 0-11.5m1 10.06H7V10.6h2zM8.14 4c1.78 0 2.77.96 2.77 2.5 0 1.79-2.1 2.2-2.1 3.25h-1.6c0-2 2-2.08 2-3.26 0-.54-.27-.96-1.02-.96-.7 0-1.03.46-1.1 1.23H5.4A2.75 2.75 0 0 1 8.13 4' fill='%23fff'/%3E%3C/svg%3E");
 
         &:before {
-            height: var(--_ba-before-h);
-            margin-top: 0;
             margin-left: var(--sun2);
-            width: var(--_ba-before-w);
-
-            content: "";
-            display: inline-block;
-            background-color: var(--_ba-bc);
-            -webkit-mask: var(--_ba-before-icon) no-repeat center;
-            mask: var(--_ba-before-icon) no-repeat center;
-            -webkit-mask-size: contain;
-            mask-size: contain;
+            margin-top: 0;
         }
     }
 
@@ -168,60 +209,73 @@
         --_ba-bg: var(--blue-100);
         --_ba-fc: var(--blue-500);
         --_ba-sq-bg: var(--blue-200);
+
         &.s-badge__important {
             --_ba-bg: var(--blue-400);
             --_ba-sq-bg: var(--blue-500);
         }
     }
+
     &&__warning {
         --_ba-bg: var(--yellow-100);
         --_ba-fc: var(--yellow-500);
         --_ba-sq-bg: var(--yellow-200);
+
         &.s-badge__important {
             --_ba-bg: var(--yellow-400);
             --_ba-sq-bg: var(--yellow-500);
         }
     }
+
     &&__danger {
         --_ba-bg: var(--red-100);
         --_ba-fc: var(--red-500);
         --_ba-sq-bg: var(--red-200);
+
         &.s-badge__important {
             --_ba-bg: var(--red-400);
             --_ba-sq-bg: var(--red-500);
         }
     }
+
     &&__critical {
         --_ba-bg: var(--red-200);
         --_ba-fc: var(--red-600);
         --_ba-sq-bg: var(--red-300);
+
         &.s-badge__important {
             --_ba-bg: var(--red-500);
             --_ba-sq-bg: var(--red-600);
         }
     }
+
     &&__tonal {
         --_ba-bg: var(--black-200);
         --_ba-fc: var(--black-600);
         --_ba-sq-bg: var(--black-300);
+
         &.s-badge__important {
             --_ba-bg: var(--black-500);
             --_ba-sq-bg: var(--black-600);
         }
     }
+
     &&__success {
         --_ba-bg: var(--green-100);
         --_ba-fc: var(--green-600);
         --_ba-sq-bg: var(--green-200);
+
         &.s-badge__important {
             --_ba-bg: var(--green-500);
             --_ba-sq-bg: var(--green-600);
         }
     }
+
     &&__featured {
         --_ba-bg: var(--purple-100);
         --_ba-fc: var(--purple-500);
         --_ba-sq-bg: var(--purple-200);
+
         &.s-badge__important {
             --_ba-bg: var(--purple-400);
             --_ba-sq-bg: var(--purple-500);
@@ -229,34 +283,25 @@
     }
 
     // SQUARED
-    &&__squared {
-        --_ba_box-shadow: 0 0 0 var(--_ba-bx-sh-w) var(--_ba-sq-bg);
-        svg {
-            background-color: var(--_ba-sq-bg);
-            box-shadow: var(--_ba_box-shadow);
-            margin-right: var(--_ba-bx-sh-w)
-        }
-    }
-    &&__squared:not(&__important) {
-        .highcontrast-mode({
-            //Add border around the square in high contrast mode
-            --_ba_box-shadow: 0 0 0 calc(var(--_ba-bx-sh-w) - var(--su1)) var(--_ba-sq-bg), 
-                0 0 0 max(var(--su1), var(--_ba-bx-sh-w)) currentcolor var(--_ba-bx-sh-inset);
-        });
-    }
-
-    // ICONS
-    &:not(&__squared):has(> svg){
-        //We want a smaller gap for icons that aren't squared
-        --_ba-gap: calc(var(--_ba-px) - var(--su2));
+    &&__squared svg {
+        background-color: var(--_ba-sq-bg);
     }
 
     // IMPORTANT
     &&__important {
         --_ba-bg: var(--black-400);
-        --_ba-sq-bg: var(--black-500);
-        --_ba-fw: 600;
         --_ba-fc: var(--black-050);
+        --_ba-fw: 600;
+        --_ba-sq-bg: var(--black-500);
+    }
+
+    // CHILD ELEMENTS
+    svg {
+        aspect-ratio: 1 / 1;
+        box-sizing: content-box;
+        display: block;
+        height: calc(var(--su16) + var(--su4));
+        padding: var(--_ba-svg-p);
     }
 
     // INTERACTION
@@ -264,21 +309,20 @@
         text-decoration: none;
     }
 
-    align-self: var(--_ba-as);
     background-color: var(--_ba-bg);
     border-left: var(--_ba-bl) solid var(--_ba-bc);
     color: var(--_ba-fc);
     font-size: var(--_ba-fs);
     font-weight: var(--_ba-fw);
-    gap: var(--_ba-gap, var(--_ba-px));
-    padding: var(--_ba-py) var(--_ba-px);
-    line-height: var(--lh-md);
+    gap: var(--_ba-g, var(--_ba-px));
+    padding: var(--_ba-py) var(--_ba-pr, var(--_ba-px)) var(--_ba-py) var(--_ba-px);
     min-width: var(--_ba-wmn);
     text-transform: var(--_ba-tt);
-
+    
     align-items: center;
     display: inline-flex;
     justify-content: center;
+    line-height: var(--lh-md);
     text-decoration: none;
     vertical-align: middle;
     white-space: nowrap;
diff --git a/packages/stacks-classic/screenshots/Chromium/baseline/s-badge-dark-critical-important-squared-state.ico b/packages/stacks-classic/screenshots/Chromium/baseline/s-badge-dark-critical-important-squared-state.ico
index 5e7b4b5f00..4f6f96faaa 100644
--- a/packages/stacks-classic/screenshots/Chromium/baseline/s-badge-dark-critical-important-squared-state.ico
+++ b/packages/stacks-classic/screenshots/Chromium/baseline/s-badge-dark-critical-important-squared-state.ico
@@ -1,3 +1,3 @@
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-oid sha256:ee1e96b96e51c57c69c4270322215ee8718e24b739ff33c64aa290adbc4f4459
-size 1840
+oid sha256:a6c8b6bb1eccf477028521a851946b2be6cb118c9dacae6f7b708ac2af0d6e75
+size 1844
diff --git a/packages/stacks-classic/screenshots/Chromium/baseline/s-badge-dark-critical-squared-state.ico b/packages/stacks-classic/screenshots/Chromium/baseline/s-badge-dark-critical-squared-state.ico
index 3f60b886a2..0568fb7088 100644
--- a/packages/stacks-classic/screenshots/Chromium/baseline/s-badge-dark-critical-squared-state.ico
+++ b/packages/stacks-classic/screenshots/Chromium/baseline/s-badge-dark-critical-squared-state.ico
@@ -1,3 +1,3 @@
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-oid sha256:16a4037666d3d485ba2dc22275da195e0c5821ddf2f1cfa955e1dccd440ca9f9
-size 1821
+oid sha256:de28e16fcf341b23ad30b23e7f7743728160fddc90dff2fa043315092f6e7300
+size 1817
diff --git a/packages/stacks-classic/screenshots/Chromium/baseline/s-badge-dark-danger-important-squared-state.ico b/packages/stacks-classic/screenshots/Chromium/baseline/s-badge-dark-danger-important-squared-state.ico
index eb1403ce83..4532ec180f 100644
--- a/packages/stacks-classic/screenshots/Chromium/baseline/s-badge-dark-danger-important-squared-state.ico
+++ b/packages/stacks-classic/screenshots/Chromium/baseline/s-badge-dark-danger-important-squared-state.ico
@@ -1,3 +1,3 @@
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-oid sha256:22746b1b5338be037bd6de2c58ef26b4138fb9ebae4e06e7304325db1e823b91
-size 1839
+oid sha256:4786e1d96aced50fdcbff01c458280ae7548c661aa885e5a65c468d977807544
+size 1841
diff --git a/packages/stacks-classic/screenshots/Chromium/baseline/s-badge-dark-danger-squared-state.ico b/packages/stacks-classic/screenshots/Chromium/baseline/s-badge-dark-danger-squared-state.ico
index 1cd1d81e12..cfdd72fe83 100644
--- a/packages/stacks-classic/screenshots/Chromium/baseline/s-badge-dark-danger-squared-state.ico
+++ b/packages/stacks-classic/screenshots/Chromium/baseline/s-badge-dark-danger-squared-state.ico
@@ -1,3 +1,3 @@
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-oid sha256:791b5bc345c85af40ee66f4cd51e337766602bda2a164a941a97adb9d389e323
-size 1852
+oid sha256:4c404a6242da4a036ac40a73c89d46cb051a486c7abb4be1f88a802f1199e70d
+size 1855
diff --git a/packages/stacks-classic/screenshots/Chromium/baseline/s-badge-dark-featured-important-squared-state.ico b/packages/stacks-classic/screenshots/Chromium/baseline/s-badge-dark-featured-important-squared-state.ico
index 42f67df14d..b66a3116f8 100644
--- a/packages/stacks-classic/screenshots/Chromium/baseline/s-badge-dark-featured-important-squared-state.ico
+++ b/packages/stacks-classic/screenshots/Chromium/baseline/s-badge-dark-featured-important-squared-state.ico
@@ -1,3 +1,3 @@
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-oid sha256:b46152a1cbabe649cadab7fd04d2d963b0a0c71bc208fc77e34a260a6bb943d4
-size 1875
+oid sha256:e18fb5a25ab6409a2b6718ac56eb20a3fa8fbdf1babc99be237c58e2d27dc1ed
+size 1880
diff --git a/packages/stacks-classic/screenshots/Chromium/baseline/s-badge-dark-featured-squared-state.ico b/packages/stacks-classic/screenshots/Chromium/baseline/s-badge-dark-featured-squared-state.ico
index 78c0f68018..f944e97966 100644
--- a/packages/stacks-classic/screenshots/Chromium/baseline/s-badge-dark-featured-squared-state.ico
+++ b/packages/stacks-classic/screenshots/Chromium/baseline/s-badge-dark-featured-squared-state.ico
@@ -1,3 +1,3 @@
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-size 1890
+oid sha256:3093ac54845169fe16754d2d94e2ccf57fd42c2e165f2583e94336bf5e2fb10b
+size 1888
diff --git a/packages/stacks-classic/screenshots/Chromium/baseline/s-badge-dark-important-squared-state.ico b/packages/stacks-classic/screenshots/Chromium/baseline/s-badge-dark-important-squared-state.ico
index d692107570..bd1881b603 100644
--- a/packages/stacks-classic/screenshots/Chromium/baseline/s-badge-dark-important-squared-state.ico
+++ b/packages/stacks-classic/screenshots/Chromium/baseline/s-badge-dark-important-squared-state.ico
@@ -1,3 +1,3 @@
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-size 1871
+oid sha256:6d461c21944c3a48e01919f6a62204db72d9e760f740e42577e9050f4cfe32c8
+size 1877
diff --git a/packages/stacks-classic/screenshots/Chromium/baseline/s-badge-dark-info-important-squared-state.ico b/packages/stacks-classic/screenshots/Chromium/baseline/s-badge-dark-info-important-squared-state.ico
index 78e07f1308..bb4c4e8f24 100644
--- a/packages/stacks-classic/screenshots/Chromium/baseline/s-badge-dark-info-important-squared-state.ico
+++ b/packages/stacks-classic/screenshots/Chromium/baseline/s-badge-dark-info-important-squared-state.ico
@@ -1,3 +1,3 @@
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-oid sha256:83f10a20f820e377c9fbbd39ac0b19b226b1deb92792529a54ef7372e740a4c7
-size 1891
+oid sha256:80a31529e128f8cb0c81d51122ebd84992651e3a90f23ff20963d0086a14ae6f
+size 1893
diff --git a/packages/stacks-classic/screenshots/Chromium/baseline/s-badge-dark-info-squared-state.ico b/packages/stacks-classic/screenshots/Chromium/baseline/s-badge-dark-info-squared-state.ico
index ff160335cd..ba30b86f1c 100644
--- a/packages/stacks-classic/screenshots/Chromium/baseline/s-badge-dark-info-squared-state.ico
+++ b/packages/stacks-classic/screenshots/Chromium/baseline/s-badge-dark-info-squared-state.ico
@@ -1,3 +1,3 @@
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