diff --git a/packages/react-components/react-tags/etc/react-tags.api.md b/packages/react-components/react-tags/etc/react-tags.api.md
index 2cdee8d68e511..b731080fb1171 100644
--- a/packages/react-components/react-tags/etc/react-tags.api.md
+++ b/packages/react-components/react-tags/etc/react-tags.api.md
@@ -84,7 +84,7 @@ export type TagProps<Value = string> = ComponentProps<Partial<TagSlots>> & {
 
 // @public (undocumented)
 export type TagSlots = {
-    root: NonNullable<Slot<'button'>>;
+    root: NonNullable<Slot<'button', 'span'>>;
     media?: Slot<'span'>;
     icon?: Slot<'span'>;
     primaryText: Slot<'span'>;
diff --git a/packages/react-components/react-tags/src/components/Tag/Tag.test.tsx b/packages/react-components/react-tags/src/components/Tag/Tag.test.tsx
index 174ddfaad88b7..ed002889a23df 100644
--- a/packages/react-components/react-tags/src/components/Tag/Tag.test.tsx
+++ b/packages/react-components/react-tags/src/components/Tag/Tag.test.tsx
@@ -14,7 +14,7 @@ const requiredProps: TagProps = {
 };
 
 describe('Tag', () => {
-  isConformant({
+  isConformant<TagProps>({
     Component: Tag,
     displayName: 'Tag',
     requiredProps,
diff --git a/packages/react-components/react-tags/src/components/Tag/Tag.types.ts b/packages/react-components/react-tags/src/components/Tag/Tag.types.ts
index 1869fb1368ec9..2dd7710c60367 100644
--- a/packages/react-components/react-tags/src/components/Tag/Tag.types.ts
+++ b/packages/react-components/react-tags/src/components/Tag/Tag.types.ts
@@ -11,7 +11,7 @@ export type TagContextValues = {
 };
 
 export type TagSlots = {
-  root: NonNullable<Slot<'button'>>;
+  root: NonNullable<Slot<'button', 'span'>>;
 
   /**
    * Slot for an icon or other visual element
diff --git a/packages/react-components/react-tags/src/components/Tag/useTagStyles.styles.ts b/packages/react-components/react-tags/src/components/Tag/useTagStyles.styles.ts
index 16f9f35174451..edc4c3943ba06 100644
--- a/packages/react-components/react-tags/src/components/Tag/useTagStyles.styles.ts
+++ b/packages/react-components/react-tags/src/components/Tag/useTagStyles.styles.ts
@@ -37,6 +37,7 @@ export const useTagBaseStyles = makeStyles({
     ...typographyStyles.body1,
     paddingLeft: tokens.spacingHorizontalXXS,
     paddingRight: tokens.spacingHorizontalXXS,
+    whiteSpace: 'nowrap',
   },
   primaryTextWithSecondaryText: {
     ...shorthands.gridArea('primary'),
@@ -47,6 +48,7 @@ export const useTagBaseStyles = makeStyles({
     paddingLeft: tokens.spacingHorizontalXXS,
     paddingRight: tokens.spacingHorizontalXXS,
     ...typographyStyles.caption2,
+    whiteSpace: 'nowrap',
   },
 });
 
diff --git a/packages/react-components/react-tags/stories/TagGroup/TagGroupOverflow.stories.tsx b/packages/react-components/react-tags/stories/TagGroup/TagGroupOverflow.stories.tsx
new file mode 100644
index 0000000000000..8fbe1614c2cae
--- /dev/null
+++ b/packages/react-components/react-tags/stories/TagGroup/TagGroupOverflow.stories.tsx
@@ -0,0 +1,151 @@
+import * as React from 'react';
+import { TagGroup, Tag, TagProps } from '@fluentui/react-tags';
+import {
+  makeStyles,
+  shorthands,
+  Menu,
+  MenuItem,
+  MenuList,
+  MenuPopover,
+  MenuTrigger,
+  useIsOverflowItemVisible,
+  useOverflowMenu,
+  Overflow,
+  OverflowItem,
+  Avatar,
+  tokens,
+} from '@fluentui/react-components';
+
+const names = [
+  'Johnie McConnell',
+  'Allan Munger',
+  'Erik Nason',
+  'Kristin Patterson',
+  'Daisy Phillips',
+  'Carole Poland',
+  'Carlos Slattery',
+  'Robert Tolbert',
+  'Kevin Sturgis',
+  'Charlotte Waltson',
+  'Elliot Woodward',
+];
+const defaultItems: TagProps[] = names.map(name => ({
+  value: name.replace(' ', '_'),
+  children: name,
+  media: (
+    <Avatar
+      name={name}
+      badge={{
+        status: 'available',
+      }}
+    />
+  ),
+  secondaryText: 'Available',
+}));
+
+//----- OverflowMenuItem -----//
+
+type OverflowMenuItemProps = {
+  tag: TagProps;
+};
+
+const useMenuItemStyles = makeStyles({
+  menuItem: shorthands.padding(tokens.spacingVerticalSNudge, tokens.spacingHorizontalXS),
+  tag: {
+    backgroundColor: 'transparent',
+    ...shorthands.borderColor('transparent'),
+  },
+});
+
+/**
+ * A menu item for an overflow menu that only displays when the tab is not visible
+ */
+const OverflowMenuItem = (props: OverflowMenuItemProps) => {
+  const { tag } = props;
+  const isVisible = useIsOverflowItemVisible(tag.value!);
+
+  const styles = useMenuItemStyles();
+
+  if (isVisible) {
+    return null;
+  }
+
+  return (
+    <MenuItem key={tag.value} className={styles.menuItem}>
+      <Tag {...tag} as="span" className={styles.tag} />
+    </MenuItem>
+  );
+};
+
+//----- OverflowMenu -----//
+
+/**
+ * A menu for viewing tags that have overflowed and are not visible.
+ */
+const OverflowMenu = () => {
+  const { ref, isOverflowing, overflowCount } = useOverflowMenu<HTMLButtonElement>();
+
+  if (!isOverflowing) {
+    return null;
+  }
+
+  return (
+    <Menu>
+      <MenuTrigger disableButtonEnhancement>
+        <Tag ref={ref} aria-label={`${overflowCount} more tags`}>{`+${overflowCount}`}</Tag>
+      </MenuTrigger>
+      <MenuPopover>
+        <MenuList>
+          {defaultItems.map(item => (
+            <OverflowMenuItem key={item.value} tag={item} />
+          ))}
+        </MenuList>
+      </MenuPopover>
+    </Menu>
+  );
+};
+
+//----- Stories -----//
+
+const useStyles = makeStyles({
+  container: {
+    ...shorthands.overflow('hidden'),
+    ...shorthands.padding('5px'),
+    zIndex: 0, // stop the browser resize handle from piercing the overflow menu
+    height: 'fit-content',
+    minWidth: '150px',
+    resize: 'horizontal',
+    width: '100%',
+  },
+  tagGroup: {
+    display: 'flex', // TagGroup is inline-flex by default, but we want it to be same width as the container
+  },
+});
+
+export const WithOverflow = () => {
+  const styles = useStyles();
+
+  return (
+    <div className={styles.container}>
+      <Overflow minimumVisible={2} padding={30}>
+        <TagGroup className={styles.tagGroup}>
+          {defaultItems.map(item => (
+            <OverflowItem key={item.value} id={item.value!}>
+              <Tag key={item.value} {...item} />
+            </OverflowItem>
+          ))}
+          <OverflowMenu />
+        </TagGroup>
+      </Overflow>
+    </div>
+  );
+};
+
+WithOverflow.storyName = 'With Overflow';
+WithOverflow.parameters = {
+  docs: {
+    description: {
+      story: 'A TagGroup can support overflow by using Overflow and OverflowItem.',
+    },
+  },
+};
diff --git a/packages/react-components/react-tags/stories/TagGroup/index.stories.tsx b/packages/react-components/react-tags/stories/TagGroup/index.stories.tsx
index 09880bb5bd497..a07a090b5f856 100644
--- a/packages/react-components/react-tags/stories/TagGroup/index.stories.tsx
+++ b/packages/react-components/react-tags/stories/TagGroup/index.stories.tsx
@@ -6,6 +6,7 @@ import bestPracticesMd from './TagGroupBestPractices.md';
 export { Default } from './TagGroupDefault.stories';
 export { Dismiss } from './TagGroupDismiss.stories';
 export { Sizes } from './TagGroupSizes.stories';
+export { WithOverflow } from './TagGroupOverflow.stories';
 
 export default {
   title: 'Preview Components/Tag/TagGroup',