diff --git a/docs/assets/screenshots/chip-1.png b/docs/assets/screenshots/chip-1.png
new file mode 100644
index 0000000..ff2213d
Binary files /dev/null and b/docs/assets/screenshots/chip-1.png differ
diff --git a/docs/assets/screenshots/chip-2.png b/docs/assets/screenshots/chip-2.png
new file mode 100644
index 0000000..e0b36c2
Binary files /dev/null and b/docs/assets/screenshots/chip-2.png differ
diff --git a/example/assets/avatar.jpg b/example/assets/avatar.jpg
new file mode 100644
index 0000000..26f00d4
Binary files /dev/null and b/example/assets/avatar.jpg differ
diff --git a/example/src/ChipExample.js b/example/src/ChipExample.js
new file mode 100644
index 0000000..1306d9e
--- /dev/null
+++ b/example/src/ChipExample.js
@@ -0,0 +1,56 @@
+/* @flow */
+
+import * as React from 'react';
+import { View, StyleSheet, Image } from 'react-native';
+import { Chip, withTheme } from 'react-native-paper';
+import type { Theme } from 'react-native-paper/types';
+
+type Props = {
+  theme: Theme,
+};
+
+class ChipExample extends React.Component<Props> {
+  static title = 'Chip';
+
+  render() {
+    const {
+      theme: {
+        colors: { background },
+      },
+    } = this.props;
+    return (
+      <View style={[styles.container, { backgroundColor: background }]}>
+        <View style={styles.row}>
+          <Chip onPress={() => {}}>Simple Chip</Chip>
+          <Chip onDelete={() => {}}>Chip with delete button</Chip>
+          <Chip icon="info">Chip with icon</Chip>
+          <Chip
+            icon={({ size }) => (
+              <Image
+                source={require('../assets/avatar.jpg')}
+                style={{ height: size, width: size, borderRadius: size / 2 }}
+              />
+            )}
+            onDelete={() => {}}
+          >
+            Chip with image
+          </Chip>
+        </View>
+      </View>
+    );
+  }
+}
+
+const styles = StyleSheet.create({
+  container: {
+    flex: 1,
+    padding: 4,
+  },
+
+  row: {
+    flexDirection: 'row',
+    flexWrap: 'wrap',
+  },
+});
+
+export default withTheme(ChipExample);
diff --git a/example/src/ExampleList.js b/example/src/ExampleList.js
index b8c3884..b322d33 100644
--- a/example/src/ExampleList.js
+++ b/example/src/ExampleList.js
@@ -7,6 +7,7 @@ import BottomNavigationExample from './BottomNavigationExample';
 import ButtonExample from './ButtonExample';
 import CardExample from './CardExample';
 import CheckboxExample from './CheckboxExample';
+import ChipExample from './ChipExample';
 import DialogExample from './DialogExample';
 import DividerExample from './DividerExample';
 import FABExample from './FABExample';
@@ -35,6 +36,7 @@ export const examples = {
   button: ButtonExample,
   card: CardExample,
   checkbox: CheckboxExample,
+  chip: ChipExample,
   dialog: DialogExample,
   divider: DividerExample,
   fab: FABExample,
diff --git a/src/components/Chip.js b/src/components/Chip.js
new file mode 100644
index 0000000..f2051fe
--- /dev/null
+++ b/src/components/Chip.js
@@ -0,0 +1,121 @@
+/* @flow */
+
+import * as React from 'react';
+import { View, StyleSheet, TouchableWithoutFeedback } from 'react-native';
+import color from 'color';
+import Icon from './Icon';
+import Text from './Typography/Text';
+import { black, white } from '../styles/colors';
+import withTheme from '../core/withTheme';
+import type { Theme } from '../types';
+import type { IconSource } from './Icon';
+
+type Props = {
+  /**
+   * Text content of the `Chip`.
+   */
+  children: React.Node,
+  /**
+   * Icon to display for the `Chip`.
+   */
+  icon?: IconSource,
+  /**
+   * Function to execute on press.
+   */
+  onPress?: () => mixed,
+  /**
+   * Function to execute on delete. The delete button appears only when this prop is specified.
+   */
+  onDelete?: () => mixed,
+  style?: any,
+  /**
+   * @optional
+   */
+  theme: Theme,
+};
+
+/**
+ * A Chip can be used to display entities in small blocks.
+ *
+ * <div class="screenshots">
+ *   <img src="screenshots/chip-1.png" />
+ *   <img src="screenshots/chip-2.png" />
+ * </div>
+ *
+ * ## Usage
+ * ```js
+ * import * as React from 'react';
+ * import { Chip } from 'react-native-paper';
+ *
+ * const MyComponent = () => (
+ *   <Chip icon="info" onPress={() => {}}>Example Chip</Chip>
+ * );
+ * ```
+ */
+class Chip extends React.Component<Props> {
+  render() {
+    const { children, icon, onPress, onDelete, style, theme } = this.props;
+    const { dark, colors } = theme;
+
+    const backgroundColor = color(dark ? white : black)
+      .alpha(0.12)
+      .rgb()
+      .string();
+    const textColor = dark
+      ? colors.text
+      : color(colors.text)
+          .alpha(0.87)
+          .rgb()
+          .string();
+    const iconColor = color(colors.text)
+      .alpha(dark ? 0.7 : 0.54)
+      .rgb()
+      .string();
+
+    return (
+      <TouchableWithoutFeedback onPress={onPress}>
+        <View style={[styles.content, { backgroundColor }, style]}>
+          {icon ? <Icon name={icon} color={iconColor} size={32} /> : null}
+          <Text
+            numberOfLines={1}
+            style={[
+              styles.text,
+              {
+                color: textColor,
+                marginLeft: icon ? 8 : 12,
+                marginRight: onDelete ? 0 : 12,
+              },
+            ]}
+          >
+            {children}
+          </Text>
+          {onDelete ? (
+            <TouchableWithoutFeedback onPress={onDelete}>
+              <View style={styles.delete}>
+                <Icon name="cancel" size={20} color={iconColor} />
+              </View>
+            </TouchableWithoutFeedback>
+          ) : null}
+        </View>
+      </TouchableWithoutFeedback>
+    );
+  }
+}
+
+const styles = StyleSheet.create({
+  content: {
+    borderRadius: 16,
+    flexDirection: 'row',
+    alignItems: 'center',
+    justifyContent: 'space-around',
+    margin: 4,
+  },
+  delete: {
+    padding: 6,
+  },
+  text: {
+    marginVertical: 8,
+  },
+});
+
+export default withTheme(Chip);
diff --git a/src/components/Icon.js b/src/components/Icon.js
index 1632d9c..b6622c9 100644
--- a/src/components/Icon.js
+++ b/src/components/Icon.js
@@ -37,7 +37,7 @@ export type IconSource =
 
 type IconProps = {
   color: string,
-  size?: number,
+  size: number,
 };
 
 type Props = IconProps & {
diff --git a/src/components/__tests__/Chip.test.js b/src/components/__tests__/Chip.test.js
new file mode 100644
index 0000000..0a1419b
--- /dev/null
+++ b/src/components/__tests__/Chip.test.js
@@ -0,0 +1,31 @@
+/* @flow */
+
+import * as React from 'react';
+import renderer from 'react-test-renderer';
+import Chip from '../Chip';
+
+it('renders chip with onPress', () => {
+  const tree = renderer
+    .create(<Chip onPress={() => {}}>Example Chip</Chip>)
+    .toJSON();
+
+  expect(tree).toMatchSnapshot();
+});
+
+it('renders chip with icon', () => {
+  const tree = renderer.create(<Chip icon="info">Example Chip</Chip>).toJSON();
+
+  expect(tree).toMatchSnapshot();
+});
+
+it('renders deletable chip', () => {
+  const tree = renderer
+    .create(
+      <Chip icon="info" onDelete={() => {}}>
+        Example Chip
+      </Chip>
+    )
+    .toJSON();
+
+  expect(tree).toMatchSnapshot();
+});
diff --git a/src/components/__tests__/__snapshots__/Chip.test.js.snap b/src/components/__tests__/__snapshots__/Chip.test.js.snap
new file mode 100644
index 0000000..48ee801
--- /dev/null
+++ b/src/components/__tests__/__snapshots__/Chip.test.js.snap
@@ -0,0 +1,344 @@
+// Jest Snapshot v1, https://goo.gl/fbAQLP
+
+exports[`renders chip with icon 1`] = `
+<View
+  accessibilityComponentType={undefined}
+  accessibilityLabel={undefined}
+  accessibilityTraits={undefined}
+  accessible={true}
+  hitSlop={undefined}
+  nativeID={undefined}
+  onLayout={undefined}
+  onResponderGrant={[Function]}
+  onResponderMove={[Function]}
+  onResponderRelease={[Function]}
+  onResponderTerminate={[Function]}
+  onResponderTerminationRequest={[Function]}
+  onStartShouldSetResponder={[Function]}
+  style={
+    Array [
+      Object {
+        "alignItems": "center",
+        "borderRadius": 16,
+        "flexDirection": "row",
+        "justifyContent": "space-around",
+        "margin": 4,
+      },
+      Object {
+        "backgroundColor": "rgba(0, 0, 0, 0.12)",
+      },
+      undefined,
+    ]
+  }
+  testID={undefined}
+>
+  <Text
+    accessible={true}
+    allowFontScaling={false}
+    ellipsizeMode="tail"
+    pointerEvents="none"
+    style={
+      Array [
+        Object {
+          "color": "rgba(0, 0, 0, 0.54)",
+          "fontSize": 32,
+        },
+        Object {
+          "backgroundColor": "transparent",
+        },
+        Object {
+          "fontFamily": "Material Icons",
+          "fontStyle": "normal",
+          "fontWeight": "normal",
+        },
+      ]
+    }
+  >
+    
+  </Text>
+  <Text
+    accessible={true}
+    allowFontScaling={true}
+    ellipsizeMode="tail"
+    numberOfLines={1}
+    style={
+      Array [
+        Object {
+          "color": "#000000",
+          "fontFamily": "Helvetica Neue",
+        },
+        Array [
+          Object {
+            "marginVertical": 8,
+          },
+          Object {
+            "color": "rgba(0, 0, 0, 0.87)",
+            "marginLeft": 8,
+            "marginRight": 12,
+          },
+        ],
+      ]
+    }
+    theme={
+      Object {
+        "colors": Object {
+          "accent": "#ff4081",
+          "background": "#fafafa",
+          "disabled": "rgba(0, 0, 0, 0.26)",
+          "error": "#ff1744",
+          "paper": "#ffffff",
+          "placeholder": "rgba(0, 0, 0, 0.38)",
+          "primary": "#3f51b5",
+          "text": "#000000",
+        },
+        "dark": false,
+        "fonts": Object {
+          "light": "HelveticaNeue-Light",
+          "medium": "HelveticaNeue-Medium",
+          "regular": "Helvetica Neue",
+          "thin": "HelveticaNeue-Thin",
+        },
+        "roundness": 2,
+      }
+    }
+  >
+    Example Chip
+  </Text>
+</View>
+`;
+
+exports[`renders chip with onPress 1`] = `
+<View
+  accessibilityComponentType={undefined}
+  accessibilityLabel={undefined}
+  accessibilityTraits={undefined}
+  accessible={true}
+  hitSlop={undefined}
+  nativeID={undefined}
+  onLayout={undefined}
+  onResponderGrant={[Function]}
+  onResponderMove={[Function]}
+  onResponderRelease={[Function]}
+  onResponderTerminate={[Function]}
+  onResponderTerminationRequest={[Function]}
+  onStartShouldSetResponder={[Function]}
+  style={
+    Array [
+      Object {
+        "alignItems": "center",
+        "borderRadius": 16,
+        "flexDirection": "row",
+        "justifyContent": "space-around",
+        "margin": 4,
+      },
+      Object {
+        "backgroundColor": "rgba(0, 0, 0, 0.12)",
+      },
+      undefined,
+    ]
+  }
+  testID={undefined}
+>
+  <Text
+    accessible={true}
+    allowFontScaling={true}
+    ellipsizeMode="tail"
+    numberOfLines={1}
+    style={
+      Array [
+        Object {
+          "color": "#000000",
+          "fontFamily": "Helvetica Neue",
+        },
+        Array [
+          Object {
+            "marginVertical": 8,
+          },
+          Object {
+            "color": "rgba(0, 0, 0, 0.87)",
+            "marginLeft": 12,
+            "marginRight": 12,
+          },
+        ],
+      ]
+    }
+    theme={
+      Object {
+        "colors": Object {
+          "accent": "#ff4081",
+          "background": "#fafafa",
+          "disabled": "rgba(0, 0, 0, 0.26)",
+          "error": "#ff1744",
+          "paper": "#ffffff",
+          "placeholder": "rgba(0, 0, 0, 0.38)",
+          "primary": "#3f51b5",
+          "text": "#000000",
+        },
+        "dark": false,
+        "fonts": Object {
+          "light": "HelveticaNeue-Light",
+          "medium": "HelveticaNeue-Medium",
+          "regular": "Helvetica Neue",
+          "thin": "HelveticaNeue-Thin",
+        },
+        "roundness": 2,
+      }
+    }
+  >
+    Example Chip
+  </Text>
+</View>
+`;
+
+exports[`renders deletable chip 1`] = `
+<View
+  accessibilityComponentType={undefined}
+  accessibilityLabel={undefined}
+  accessibilityTraits={undefined}
+  accessible={true}
+  hitSlop={undefined}
+  nativeID={undefined}
+  onLayout={undefined}
+  onResponderGrant={[Function]}
+  onResponderMove={[Function]}
+  onResponderRelease={[Function]}
+  onResponderTerminate={[Function]}
+  onResponderTerminationRequest={[Function]}
+  onStartShouldSetResponder={[Function]}
+  style={
+    Array [
+      Object {
+        "alignItems": "center",
+        "borderRadius": 16,
+        "flexDirection": "row",
+        "justifyContent": "space-around",
+        "margin": 4,
+      },
+      Object {
+        "backgroundColor": "rgba(0, 0, 0, 0.12)",
+      },
+      undefined,
+    ]
+  }
+  testID={undefined}
+>
+  <Text
+    accessible={true}
+    allowFontScaling={false}
+    ellipsizeMode="tail"
+    pointerEvents="none"
+    style={
+      Array [
+        Object {
+          "color": "rgba(0, 0, 0, 0.54)",
+          "fontSize": 32,
+        },
+        Object {
+          "backgroundColor": "transparent",
+        },
+        Object {
+          "fontFamily": "Material Icons",
+          "fontStyle": "normal",
+          "fontWeight": "normal",
+        },
+      ]
+    }
+  >
+    
+  </Text>
+  <Text
+    accessible={true}
+    allowFontScaling={true}
+    ellipsizeMode="tail"
+    numberOfLines={1}
+    style={
+      Array [
+        Object {
+          "color": "#000000",
+          "fontFamily": "Helvetica Neue",
+        },
+        Array [
+          Object {
+            "marginVertical": 8,
+          },
+          Object {
+            "color": "rgba(0, 0, 0, 0.87)",
+            "marginLeft": 8,
+            "marginRight": 0,
+          },
+        ],
+      ]
+    }
+    theme={
+      Object {
+        "colors": Object {
+          "accent": "#ff4081",
+          "background": "#fafafa",
+          "disabled": "rgba(0, 0, 0, 0.26)",
+          "error": "#ff1744",
+          "paper": "#ffffff",
+          "placeholder": "rgba(0, 0, 0, 0.38)",
+          "primary": "#3f51b5",
+          "text": "#000000",
+        },
+        "dark": false,
+        "fonts": Object {
+          "light": "HelveticaNeue-Light",
+          "medium": "HelveticaNeue-Medium",
+          "regular": "Helvetica Neue",
+          "thin": "HelveticaNeue-Thin",
+        },
+        "roundness": 2,
+      }
+    }
+  >
+    Example Chip
+  </Text>
+  <View
+    accessibilityComponentType={undefined}
+    accessibilityLabel={undefined}
+    accessibilityTraits={undefined}
+    accessible={true}
+    hitSlop={undefined}
+    nativeID={undefined}
+    onLayout={undefined}
+    onResponderGrant={[Function]}
+    onResponderMove={[Function]}
+    onResponderRelease={[Function]}
+    onResponderTerminate={[Function]}
+    onResponderTerminationRequest={[Function]}
+    onStartShouldSetResponder={[Function]}
+    style={
+      Object {
+        "padding": 6,
+      }
+    }
+    testID={undefined}
+  >
+    <Text
+      accessible={true}
+      allowFontScaling={false}
+      ellipsizeMode="tail"
+      pointerEvents="none"
+      style={
+        Array [
+          Object {
+            "color": "rgba(0, 0, 0, 0.54)",
+            "fontSize": 20,
+          },
+          Object {
+            "backgroundColor": "transparent",
+          },
+          Object {
+            "fontFamily": "Material Icons",
+            "fontStyle": "normal",
+            "fontWeight": "normal",
+          },
+        ]
+      }
+    >
+      
+    </Text>
+  </View>
+</View>
+`;
diff --git a/src/index.js b/src/index.js
index 48e98a9..3171854 100644
--- a/src/index.js
+++ b/src/index.js
@@ -17,6 +17,7 @@ export { default as CardActions } from './components/Card/CardActions';
 export { default as CardContent } from './components/Card/CardContent';
 export { default as CardCover } from './components/Card/CardCover';
 export { default as Checkbox } from './components/Checkbox';
+export { default as Chip } from './components/Chip';
 export { default as Dialog } from './components/Dialog/Dialog';
 export { default as DialogActions } from './components/Dialog/DialogActions';
 export { default as DialogContent } from './components/Dialog/DialogContent';