diff --git a/src/lib/boarding-types.ts b/src/lib/boarding-types.ts
index d2c46b1..b98103e 100644
--- a/src/lib/boarding-types.ts
+++ b/src/lib/boarding-types.ts
@@ -13,6 +13,11 @@ export interface BoardingSharedOptions {
    * @default true
    */
   animate: boolean;
+  /**
+   * Rounded corner radius for cutout (px)
+   * @default 5
+   */
+  radius: number;
   /**
    * Options to be passed to scrollIntoView if supported by browser
    * @default { behavior: 'instant', block: 'center' }
diff --git a/src/lib/boarding.ts b/src/lib/boarding.ts
index 14cfbf3..8575a59 100644
--- a/src/lib/boarding.ts
+++ b/src/lib/boarding.ts
@@ -9,6 +9,7 @@ import {
   SHOULD_STRICT_CLICK_HANDLE,
   CLASS_NO_CLICK_BODY,
   CLASS_STRICT_CLICK_BODY,
+  OVERLAY_RADIUS,
 } from "./common/constants";
 import { assertIsElement } from "./common/utils";
 import HighlightElement from "./core/highlight-element";
@@ -69,6 +70,7 @@ class Boarding {
       strictClickHandling = SHOULD_STRICT_CLICK_HANDLE, // Whether to only allow clicking the highlighted element
       animate = SHOULD_ANIMATE_OVERLAY, // Whether to animate or not
       padding = OVERLAY_PADDING, // Spacing around the element from the overlay
+      radius = OVERLAY_RADIUS, // Rounded corners for cutout
       scrollIntoViewOptions = {
         behavior: "auto",
         block: "center",
@@ -83,6 +85,7 @@ class Boarding {
       strictClickHandling,
       animate,
       padding,
+      radius,
       scrollIntoViewOptions,
       allowClose,
       keyboardControl,
@@ -98,6 +101,7 @@ class Boarding {
     this.overlay = new Overlay({
       animate: this.options.animate,
       padding: this.options.padding,
+      radius: this.options.radius,
       onReset: this.options.onReset,
       opacity: this.options.opacity,
       onOverlayClick: () => {
@@ -698,6 +702,7 @@ class Boarding {
         onPrevious: currentStep.onPrevious || this.options.onPrevious,
         strictClickHandling: currentStep.strictClickHandling,
         padding: currentStep.padding, // note this is ONLY the stepLvl padding, the "custom padding", so we can later check if it exists using getCustomPadding
+        radius: currentStep.radius, // note this is ONLY the stepLvl radius, the "custom radius", so we can later check if it exists using getCustomRadius
       },
       popover,
     });
diff --git a/src/lib/common/constants.ts b/src/lib/common/constants.ts
index 653a961..ea75219 100644
--- a/src/lib/common/constants.ts
+++ b/src/lib/common/constants.ts
@@ -1,4 +1,5 @@
 export const OVERLAY_OPACITY = 0.75;
+export const OVERLAY_RADIUS = 5;
 export const OVERLAY_PADDING = 10;
 export const POPOVER_OFFSET = 10;
 
diff --git a/src/lib/core/cutout.ts b/src/lib/core/cutout.ts
index 0c53ff8..3aa2eb8 100644
--- a/src/lib/core/cutout.ts
+++ b/src/lib/core/cutout.ts
@@ -8,6 +8,7 @@ export interface CutoutDefinition {
     height: number;
   };
   padding?: number;
+  radius?: number;
   fillColor?: string;
   opacity?: number;
   animated?: boolean;
@@ -16,15 +17,30 @@ export interface CutoutDefinition {
 export function generateSvgCutoutPathString({
   hightlightBox,
   padding = 0,
+  radius = 0,
 }: CutoutDefinition) {
   const windowX = window.innerWidth;
   const windowY = window.innerHeight;
 
-  const highlightBoxX1 = hightlightBox.x - padding;
-  const highlightBoxY1 = hightlightBox.y - padding;
-  const highlightBoxX2 = hightlightBox.x + hightlightBox.width + padding;
-  const highlightBoxY2 = hightlightBox.y + hightlightBox.height + padding;
-  return `M${windowX},0L0,0L0,${windowY}L${windowX},${windowY}L${windowX},0ZM${highlightBoxX2},${highlightBoxY1}L${highlightBoxX1},${highlightBoxY1}L${highlightBoxX1},${highlightBoxY2}L${highlightBoxX2},${highlightBoxY2}L${highlightBoxX2},${highlightBoxY1}Z`;
+  const highlightBoxWidthBase = hightlightBox.width + padding * 2;
+  const highlightBoxHeightBase = hightlightBox.height + padding * 2;
+
+  // prevent glitches when highlightBox is too small for radius
+  const limitedRadius = Math.min(
+    radius,
+    highlightBoxWidthBase / 2,
+    highlightBoxHeightBase / 2
+  );
+  // no value below 0 allowed + round down
+  const normalizedRadius = Math.floor(Math.max(limitedRadius, 0));
+
+  const highlightBoxX = hightlightBox.x - padding + normalizedRadius;
+  const highlightBoxY = hightlightBox.y - padding;
+  const highlightBoxWidth = highlightBoxWidthBase - normalizedRadius * 2;
+  const highlightBoxHeight = highlightBoxHeightBase - normalizedRadius * 2;
+
+  return `M${windowX},0L0,0L0,${windowY}L${windowX},${windowY}L${windowX},0Z
+    M${highlightBoxX},${highlightBoxY} h${highlightBoxWidth} a${normalizedRadius},${normalizedRadius} 0 0 1 ${normalizedRadius},${normalizedRadius} v${highlightBoxHeight} a${normalizedRadius},${normalizedRadius} 0 0 1 -${normalizedRadius},${normalizedRadius} h-${highlightBoxWidth} a${normalizedRadius},${normalizedRadius} 0 0 1 -${normalizedRadius},-${normalizedRadius} v-${highlightBoxHeight} a${normalizedRadius},${normalizedRadius} 0 0 1 ${normalizedRadius},-${normalizedRadius} z`;
 }
 
 export function createSvgCutout({
diff --git a/src/lib/core/highlight-element.ts b/src/lib/core/highlight-element.ts
index 188031a..1f3120f 100644
--- a/src/lib/core/highlight-element.ts
+++ b/src/lib/core/highlight-element.ts
@@ -12,7 +12,7 @@ type HighlightElementSupportedSharedOptions = Pick<
 /** The options of popover that will come from the top-level but can also be overwritten */
 export interface HighlightElementHybridOptions
   extends Partial<
-    Pick<BoardingSharedOptions, "padding" | "strictClickHandling">
+    Pick<BoardingSharedOptions, "padding" | "radius" | "strictClickHandling">
   > {
   /**
    * Callback to be called when element is about to be highlighted
@@ -138,6 +138,13 @@ class HighlightElement {
     return this.options.padding;
   }
 
+  /**
+   * Return the element's custom radius option if available
+   */
+  public getCustomRadius() {
+    return this.options.radius;
+  }
+
   /**
    * Is called when the element is about to be highlighted
    */
diff --git a/src/lib/core/overlay.ts b/src/lib/core/overlay.ts
index a09bf94..8b71247 100644
--- a/src/lib/core/overlay.ts
+++ b/src/lib/core/overlay.ts
@@ -16,7 +16,7 @@ import HighlightElement from "./highlight-element";
 /** The top-level options that are shared between multiple classes that overlay supports */
 type OverlaySupportedSharedOptions = Pick<
   BoardingSharedOptions,
-  "animate" | "padding"
+  "animate" | "padding" | "radius"
 >;
 
 /** The options of overlay that will come from the top-level */
@@ -43,7 +43,7 @@ interface OverlayOptions
 
 type AnimatableCutoutDefinition = Pick<
   CutoutDefinition,
-  "padding" | "hightlightBox"
+  "padding" | "hightlightBox" | "radius"
 >;
 
 /**
@@ -203,6 +203,7 @@ class Overlay {
       : {
           hightlightBox: fromElement.getElement().getBoundingClientRect(),
           padding: fromElement.getCustomPadding(),
+          radius: fromElement.getCustomRadius(),
         };
 
     const toRect = toElement.getElement().getBoundingClientRect();
@@ -210,10 +211,18 @@ class Overlay {
       this.options.padding,
       toElement.getCustomPadding()
     );
+    const toRadius = checkOptionalValue(
+      this.options.radius,
+      toElement.getCustomRadius()
+    );
     const fromPadding = checkOptionalValue(
       this.options.padding,
       fromDefinition.padding
     );
+    const fromRadius = checkOptionalValue(
+      this.options.radius,
+      fromDefinition.radius
+    );
 
     const x = easeInOutQuad(
       ellapsed,
@@ -245,10 +254,17 @@ class Overlay {
       toPadding - fromPadding,
       duration
     );
+    const radius = easeInOutQuad(
+      ellapsed,
+      fromRadius,
+      toRadius - fromRadius,
+      duration
+    );
 
     const newCutoutPosition: AnimatableCutoutDefinition = {
       hightlightBox: { x: x, y: y, width: width, height: height },
       padding: padding,
+      radius,
     };
     this.activeSvgCutoutDefinition = newCutoutPosition;
     this.updateCutoutPosition(newCutoutPosition);
@@ -282,6 +298,10 @@ class Overlay {
             this.options.padding,
             this.currentHighlightedElement.getCustomPadding()
           ),
+          radius: checkOptionalValue(
+            this.options.radius,
+            this.currentHighlightedElement.getCustomRadius()
+          ),
         };
         // update cutout
         this.updateCutoutPosition(newCutoutPosition);
@@ -349,6 +369,7 @@ class Overlay {
       hightlightBox: definition.hightlightBox,
       padding: definition.padding,
       opacity: this.options.opacity,
+      radius: definition.radius,
       animated: this.options.animate,
     };