diff --git a/CHANGELOG.md b/CHANGELOG.md
index 1f47a111..07222dcd 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -26,6 +26,8 @@ The format is based on [Keep a Changelog](http://keepachangelog.com/) and this p
 -   new icons:
     -   `state-confirmed-all`
     -   `state-declined-all`
+-   `<Tag />`
+    - added `outlined` property
 
 ### Fixed
 
diff --git a/src/components/Tag/Tag.tsx b/src/components/Tag/Tag.tsx
index b0923489..f8b8d661 100644
--- a/src/components/Tag/Tag.tsx
+++ b/src/components/Tag/Tag.tsx
@@ -10,6 +10,9 @@ import { TestIconProps } from "../Icon/TestIcon";
 
 import decideContrastColorValue from "./../../common/utils/colorDecideContrastvalue";
 
+const WHITE = '#FFFFFF';
+const BLACK = '#000000';
+
 export interface TagProps
     extends Omit<
         BlueprintTagProps,
@@ -22,11 +25,16 @@ export interface TagProps
      * Sets the background color of a tag, depends on the `Color` object provided by the
      * [npm color module](https://www.npmjs.com/export package/color) v3. You can use it with
      * all allowed [CSS color values](https://developer.mozilla.org/de/docs/Web/CSS/color_value).
-     *
-     * The front color is set automatically, so the tag label is always readable.
+     * When `outlined` is true, it becomes the border. When `outlined` is false, it behaves like expected (fills the background).
      */
     backgroundColor?: Color | string;
 
+    /**
+     * Display tag with outlined style — transparent background with only a colored border.
+     * Works with `backgroundColor`, `intent`, or default colors for the border styling.
+     */
+    outlined?: boolean;
+
     /**
      * visual appearance and "thickness" of the tag
      */
@@ -59,25 +67,51 @@ function Tag({
     small = false,
     large = false,
     backgroundColor,
+    color,
+    outlined = false,
     ...otherProps
 }: TagProps) {
-    otherProps["interactive"] = otherProps.interactive ?? !!otherProps.onClick ? true : false;
-    if (backgroundColor) {
-        const additionalStyles = otherProps.style ?? {};
-        let color = Color("#ffffff");
+    otherProps["interactive"] = otherProps.interactive ?? !!otherProps.onClick;
+
+    const additionalStyles = otherProps.style ?? {};
+
+    if (outlined) {
+        let colorObj = Color(BLACK);
         try {
-            color = Color(backgroundColor);
-        } catch (ex) {
+            colorObj = Color(backgroundColor);
+        } catch (ex: unknown) {
             // eslint-disable-next-line no-console
             console.warn("Received invalid background color for tag: " + backgroundColor);
         }
+        otherProps["style"] = {
+            ...additionalStyles,
+            borderColor: colorObj.rgb().toString(),
+            color: colorObj.rgb().toString()
+        };
+    } else if (!outlined && backgroundColor) {
+        let backgroundObj = Color(WHITE);
+
+        try {
+            backgroundObj = Color(backgroundColor);
+        } catch {
+            // eslint-disable-next-line no-console
+            console.warn("Received invalid background color for tag: " + backgroundColor);
+        }
+
+        let colorObj = Color(decideContrastColorValue({ testColor: backgroundObj }));
+        if (color) {
+            try {
+                colorObj = Color(color);
+            } catch {
+                // eslint-disable-next-line no-console
+                console.warn("Received invalid color for tag: " + color);
+            }
+        }
 
         otherProps["style"] = {
             ...additionalStyles,
-            ...{
-                backgroundColor: color.rgb().toString(),
-                color: decideContrastColorValue({ testColor: color }),
-            },
+            backgroundColor: backgroundObj.rgb().toString(),
+            color: colorObj.rgb().toString(),
         };
     }
     const leftIcon = !!icon && typeof icon === "string" ? <Icon name={icon} /> : icon;
@@ -89,6 +123,7 @@ function Tag({
                 (intent ? ` ${intentClassName(intent)}` : "") +
                 (small ? ` ${eccgui}-tag--small` : "") +
                 (large ? ` ${eccgui}-tag--large` : "") +
+                (outlined ? ` ${eccgui}-tag--outlined` : "") +
                 (className ? " " + className : "")
             }
             minimal={minimal}
diff --git a/src/components/Tag/tag.scss b/src/components/Tag/tag.scss
index 8abfb2e1..7f56d0d1 100644
--- a/src/components/Tag/tag.scss
+++ b/src/components/Tag/tag.scss
@@ -272,6 +272,12 @@ $tag-round-adjustment: 0 !default;
     }
 }
 
+.#{$ns}-tag.#{$eccgui}-tag--outlined,
+.#{$ns}-tag.#{$ns}-minimal.#{$eccgui}-tag--outlined {
+    background-color: transparent;
+    border-color: currentcolor;
+}
+
 @media print {
     .#{$eccgui}-tag__item {
         print-color-adjust: exact;
diff --git a/src/components/Tag/tests/Tag.test.tsx b/src/components/Tag/tests/Tag.test.tsx
new file mode 100644
index 00000000..87b0e7e0
--- /dev/null
+++ b/src/components/Tag/tests/Tag.test.tsx
@@ -0,0 +1,107 @@
+import React from "react";
+import { render, screen } from "@testing-library/react";
+
+import "@testing-library/jest-dom";
+
+import { Default } from "../stories/Tag.stories";
+import Tag from "../Tag";
+
+const eccgui = "eccgui";
+
+describe("Tag", () => {
+    it("renders tag content", () => {
+        render(<Tag {...Default.args}>Tag label</Tag>);
+        expect(screen.getByText("Tag label")).toBeInTheDocument();
+    });
+
+    it("always has base class and default emphasis class", () => {
+        const { container } = render(<Tag>label</Tag>);
+        const tag = container.firstChild as HTMLElement;
+        expect(tag).toHaveClass(`${eccgui}-tag__item`);
+        expect(tag).toHaveClass(`${eccgui}-tag--normalemphasis`);
+    });
+
+    it("applies small class when small prop is set", () => {
+        const { container } = render(<Tag small>label</Tag>);
+        expect(container.firstChild).toHaveClass(`${eccgui}-tag--small`);
+    });
+
+    it("applies large class when large prop is set", () => {
+        const { container } = render(<Tag large>label</Tag>);
+        expect(container.firstChild).toHaveClass(`${eccgui}-tag--large`);
+    });
+
+    it("applies correct emphasis class", () => {
+        const { container } = render(<Tag emphasis="stronger">label</Tag>);
+        expect(container.firstChild).toHaveClass(`${eccgui}-tag--strongeremphasis`);
+    });
+
+    it("applies intent class when intent prop is set", () => {
+        const { container } = render(<Tag intent="primary">label</Tag>);
+        expect(container.firstChild).toHaveClass(`${eccgui}-intent--primary`);
+    });
+
+    it("applies outlined class when outlined prop is set", () => {
+        const { container } = render(<Tag outlined>label</Tag>);
+        expect(container.firstChild).toHaveClass(`${eccgui}-tag--outlined`);
+    });
+
+    it("does not apply outlined class by default", () => {
+        const { container } = render(<Tag>label</Tag>);
+        expect(container.firstChild).not.toHaveClass(`${eccgui}-tag--outlined`);
+    });
+
+    describe("backgroundColor", () => {
+        it("sets background-color and text color inline styles", () => {
+            const { container } = render(<Tag backgroundColor="#ff0000">label</Tag>);
+            const tag = container.firstChild as HTMLElement;
+            expect(tag.style.backgroundColor).toBeTruthy();
+            expect(tag.style.color).toBeTruthy();
+        });
+
+        it("does not set inline background-color when outlined", () => {
+            const { container } = render(<Tag outlined backgroundColor="#ff0000">label</Tag>);
+            const tag = container.firstChild as HTMLElement;
+            expect(tag.style.backgroundColor).toBeFalsy();
+        });
+
+        it("sets border-color from backgroundColor when outlined", () => {
+            const { container } = render(<Tag outlined backgroundColor="#ff0000">label</Tag>);
+            const tag = container.firstChild as HTMLElement;
+            expect(tag.style.borderColor).toBeTruthy();
+        });
+
+        it("sets black border-color by default when outlined without backgroundColor", () => {
+            const { container } = render(<Tag outlined>label</Tag>);
+            const tag = container.firstChild as HTMLElement;
+            expect(tag.style.borderColor).toBe("rgb(0, 0, 0)");
+        });
+
+        it("does not set any inline color style when no backgroundColor is provided", () => {
+            const { container } = render(<Tag>label</Tag>);
+            const tag = container.firstChild as HTMLElement;
+            expect(tag.style.backgroundColor).toBeFalsy();
+            expect(tag.style.color).toBeFalsy();
+            expect(tag.style.borderColor).toBeFalsy();
+        });
+    });
+
+    describe("icon", () => {
+        it("renders icon when icon prop is a string", () => {
+            const { container } = render(<Tag icon="item-info">label</Tag>);
+            expect(container.getElementsByClassName(`${eccgui}-icon`).length).toBeGreaterThan(0);
+        });
+    });
+
+    describe("interactive", () => {
+        it("is not interactive by default", () => {
+            const { container } = render(<Tag>label</Tag>);
+            expect(container.firstChild).not.toHaveClass("bp5-interactive");
+        });
+
+        it("is interactive when onClick is provided", () => {
+            const { container } = render(<Tag onClick={jest.fn()}>label</Tag>);
+            expect(container.firstChild).toHaveClass("bp5-interactive");
+        });
+    });
+});