diff --git a/packages/calcite-components/src/components/chip/chip.e2e.ts b/packages/calcite-components/src/components/chip/chip.e2e.ts
index f1bf25254b7..84344bda1b9 100644
--- a/packages/calcite-components/src/components/chip/chip.e2e.ts
+++ b/packages/calcite-components/src/components/chip/chip.e2e.ts
@@ -67,19 +67,6 @@ describe("calcite-chip", () => {
     expect(eventSpy).toHaveReceivedEvent();
   });
 
-  it("should emit event after the close button is clicked", async () => {
-    const page = await newE2EPage();
-    await page.setContent(`<calcite-chip closable>cheetos</calcite-chip>`);
-
-    const eventSpy = await page.spyOnEvent("calciteChipClose", "window");
-
-    const closeButton = await page.find(`calcite-chip >>> .${CSS.close}`);
-
-    await closeButton.click();
-
-    expect(eventSpy).toHaveReceivedEvent();
-  });
-
   it("should receive focus when clicked", async () => {
     const page = await newE2EPage();
     await page.setContent(`<calcite-chip id="chip-1">cheetos</calcite-chip>`);
@@ -98,6 +85,9 @@ describe("calcite-chip", () => {
     expect(element).toEqualAttribute("appearance", "solid");
     expect(element).toEqualAttribute("kind", "neutral");
     expect(element).toEqualAttribute("scale", "m");
+
+    const close = await page.find(`calcite-chip >>> .${CSS.close}`);
+    expect(close).toBeNull();
   });
 
   it("renders requested props when valid props are provided", async () => {
@@ -120,20 +110,45 @@ describe("calcite-chip", () => {
     expect(element).toEqualAttribute("scale", "l");
   });
 
-  it("renders a close button when requested", async () => {
-    const page = await newE2EPage();
-    await page.setContent(`<calcite-chip closable>Chip content</calcite-chip>`);
+  describe("closing", () => {
+    it("via mouse", async () => {
+      const page = await newE2EPage();
+      await page.setContent(`<calcite-chip closable>cheetos</calcite-chip>`);
+      const chip = await page.find("calcite-chip");
+      const eventSpy = await chip.spyOnEvent("calciteChipClose");
 
-    const close = await page.find("calcite-chip >>> button.close");
-    expect(close).not.toBeNull();
-  });
+      await page.click(`calcite-chip >>> .${CSS.close}`);
+      expect(eventSpy).toHaveReceivedEventTimes(1);
 
-  it("does not render a close button when not requested", async () => {
-    const page = await newE2EPage();
-    await page.setContent(`<calcite-chip>Chip content</calcite-chip>`);
+      await chip.callMethod("setFocus");
+      await chip.press("Delete");
+      expect(eventSpy).toHaveReceivedEventTimes(1);
 
-    const close = await page.find("calcite-chip >>> button.close");
-    expect(close).toBeNull();
+      await chip.setProperty("closed", false);
+      await page.waitForChanges();
+
+      await chip.callMethod("setFocus");
+      await chip.press("Backspace");
+      expect(eventSpy).toHaveReceivedEventTimes(1);
+    });
+
+    it("can be closed via keyboard", async () => {
+      const page = await newE2EPage();
+      await page.setContent(`<calcite-chip closable close-on-delete>cheetos</calcite-chip>`);
+      const chip = await page.find("calcite-chip");
+      const eventSpy = await chip.spyOnEvent("calciteChipClose");
+
+      await chip.callMethod("setFocus");
+      await chip.press("Delete");
+      expect(eventSpy).toHaveReceivedEventTimes(1);
+
+      await chip.setProperty("closed", false);
+      await page.waitForChanges();
+
+      await chip.callMethod("setFocus");
+      await chip.press("Backspace");
+      expect(eventSpy).toHaveReceivedEventTimes(2);
+    });
   });
 
   describe("CSS properties for light/dark mode", () => {
diff --git a/packages/calcite-components/src/components/chip/chip.tsx b/packages/calcite-components/src/components/chip/chip.tsx
index de84a0580ef..1d90e0c3749 100644
--- a/packages/calcite-components/src/components/chip/chip.tsx
+++ b/packages/calcite-components/src/components/chip/chip.tsx
@@ -71,6 +71,9 @@ export class Chip extends LitElement implements InteractiveComponent, LoadableCo
   /** When `true`, hides the component. */
   @property({ reflect: true }) closed = false;
 
+  /** When `true`, the component closes when the Delete or Backspace key is pressed while focused. */
+  @property({ reflect: true }) closeOnDelete = false;
+
   /** When `true`, interaction is prevented and the component is displayed with lower opacity. */
   @property({ reflect: true }) disabled = false;
 
@@ -222,6 +225,13 @@ export class Chip extends LitElement implements InteractiveComponent, LoadableCo
           this.handleEmittingEvent();
           event.preventDefault();
           break;
+        case "Backspace":
+        case "Delete":
+          if (this.closable && !this.closed && this.closeOnDelete) {
+            event.preventDefault();
+            this.close();
+          }
+          break;
         case "ArrowRight":
         case "ArrowLeft":
         case "Home":