diff --git a/chips/chip-set.ts b/chips/chip-set.ts
new file mode 100644
index 0000000000..26594e2756
--- /dev/null
+++ b/chips/chip-set.ts
@@ -0,0 +1,27 @@
+/**
+ * @license
+ * Copyright 2023 Google LLC
+ * SPDX-License-Identifier: Apache-2.0
+ */
+
+import {customElement} from 'lit/decorators.js';
+
+import {ChipSet} from './lib/chip-set.js';
+import {styles} from './lib/chip-set-styles.css.js';
+
+declare global {
+  interface HTMLElementTagNameMap {
+    'md-chip-set': MdChipSet;
+  }
+}
+
+/**
+ * TODO(b/243982145): add docs
+ *
+ * @final
+ * @suppress {visibility}
+ */
+@customElement('md-chip-set')
+export class MdChipSet extends ChipSet {
+  static override styles = [styles];
+}
diff --git a/chips/demo/stories.ts b/chips/demo/stories.ts
index 26d1b47c57..eaa86bce18 100644
--- a/chips/demo/stories.ts
+++ b/chips/demo/stories.ts
@@ -5,6 +5,7 @@
  */
 
 import '@material/web/icon/icon.js';
+import '@material/web/chips/chip-set.js';
 import '@material/web/chips/assist-chip.js';
 import '@material/web/chips/filter-chip.js';
 import '@material/web/chips/input-chip.js';
@@ -34,18 +35,20 @@ const standard: MaterialStoryInit<StoryKnobs> = {
   name: 'Assist chips',
   render({label, elevated, disabled}) {
     return html`
-      <md-assist-chip
-        label=${label || 'Assist chip'}
-        ?disabled=${disabled ?? false}
-        ?elevated=${elevated ?? false}
-      ></md-assist-chip>
-      <md-assist-chip
-        label=${label || 'Assist chip with icon'}
-        ?disabled=${disabled ?? false}
-        ?elevated=${elevated ?? false}
-      >
-        <md-icon slot="icon" aria-hidden="true">local_laundry_service</md-icon>
-      </md-assist-chip>
+      <md-chip-set>
+        <md-assist-chip
+          label=${label || 'Assist chip'}
+          ?disabled=${disabled ?? false}
+          ?elevated=${elevated ?? false}
+        ></md-assist-chip>
+        <md-assist-chip
+          label=${label || 'Assist chip with icon'}
+          ?disabled=${disabled ?? false}
+          ?elevated=${elevated ?? false}
+        >
+          <md-icon slot="icon" aria-hidden="true">local_laundry_service</md-icon>
+        </md-assist-chip>
+      </md-chip-set>
     `;
   }
 };
@@ -54,13 +57,15 @@ const links: MaterialStoryInit<StoryKnobs> = {
   name: 'Assist link chips',
   render({label, elevated, disabled}) {
     return html`
-      <md-assist-chip
-        label=${label || 'Assist link chip'}
-        ?disabled=${disabled ?? false}
-        ?elevated=${elevated ?? false}
-        href="https://google.com"
-        target="_blank"
-      >${GOOGLE_LOGO}</md-assist-chip>
+      <md-chip-set>
+        <md-assist-chip
+          label=${label || 'Assist link chip'}
+          ?disabled=${disabled ?? false}
+          ?elevated=${elevated ?? false}
+          href="https://google.com"
+          target="_blank"
+        >${GOOGLE_LOGO}</md-assist-chip>
+      </md-chip-set>
     `;
   }
 };
@@ -69,68 +74,74 @@ const filters: MaterialStoryInit<StoryKnobs> = {
   name: 'Filter chips',
   render({label, elevated, disabled}) {
     return html`
-      <md-filter-chip
-        label=${label || 'Filter chip'}
-        ?disabled=${disabled ?? false}
-        ?elevated=${elevated ?? false}
-      ></md-filter-chip>
-      <md-filter-chip
-        label=${label || 'Filter chip with icon'}
-        ?disabled=${disabled ?? false}
-        ?elevated=${elevated ?? false}
-      >
-        <md-icon slot="icon" aria-hidden="true">local_laundry_service</md-icon>
-      </md-filter-chip>
-      <md-filter-chip
-        label=${label || 'Removable filter chip'}
-        ?disabled=${disabled}
-        ?elevated=${elevated ?? false}
-        removable
-      ></md-filter-chip>
+      <md-chip-set>
+        <md-filter-chip
+          label=${label || 'Filter chip'}
+          ?disabled=${disabled ?? false}
+          ?elevated=${elevated ?? false}
+        ></md-filter-chip>
+        <md-filter-chip
+          label=${label || 'Filter chip with icon'}
+          ?disabled=${disabled ?? false}
+          ?elevated=${elevated ?? false}
+        >
+          <md-icon slot="icon" aria-hidden="true">local_laundry_service</md-icon>
+        </md-filter-chip>
+        <md-filter-chip
+          label=${label || 'Removable filter chip'}
+          ?disabled=${disabled}
+          ?elevated=${elevated ?? false}
+          removable
+        ></md-filter-chip>
+      </md-chip-set>
     `;
   }
 };
 
 const inputs: MaterialStoryInit<StoryKnobs> = {
   name: 'Input chips',
-  render({label, elevated, disabled}) {
+  render({label, disabled}) {
     return html`
-      <md-input-chip
-        label=${label || 'Input chip'}
-        ?disabled=${disabled ?? false}
-      ></md-input-chip>
-      <md-input-chip
-        label=${label || 'Input chip with icon'}
-        ?disabled=${disabled ?? false}
-      >
-        <md-icon slot="icon">local_laundry_service</md-icon>
-      </md-input-chip>
-      <md-input-chip
-        label=${label || 'Input chip with avatar'}
-        ?disabled=${disabled ?? false}
-        avatar
-      >
-        <img slot="icon" src="https://lh3.googleusercontent.com/a/default-user=s48">
-      </md-input-chip>
-      <md-input-chip
-        label=${label || 'Remove-only input chip'}
-        ?disabled=${disabled ?? false}
-        remove-only
-      ></md-input-chip>
+      <md-chip-set>
+        <md-input-chip
+          label=${label || 'Input chip'}
+          ?disabled=${disabled ?? false}
+        ></md-input-chip>
+        <md-input-chip
+          label=${label || 'Input chip with icon'}
+          ?disabled=${disabled ?? false}
+        >
+          <md-icon slot="icon">local_laundry_service</md-icon>
+        </md-input-chip>
+        <md-input-chip
+          label=${label || 'Input chip with avatar'}
+          ?disabled=${disabled ?? false}
+          avatar
+        >
+          <img slot="icon" src="https://lh3.googleusercontent.com/a/default-user=s48">
+        </md-input-chip>
+        <md-input-chip
+          label=${label || 'Remove-only input chip'}
+          ?disabled=${disabled ?? false}
+          remove-only
+        ></md-input-chip>
+      </md-chip-set>
     `;
   }
 };
 
 const inputLinks: MaterialStoryInit<StoryKnobs> = {
   name: 'Input link chips',
-  render({label, elevated, disabled}) {
+  render({label, disabled}) {
     return html`
-      <md-input-chip
-        label=${label || 'Input link chip'}
-        ?disabled=${disabled ?? false}
-        href="https://google.com"
-        target="_blank"
-      >${GOOGLE_LOGO}</md-input-chip>
+      <md-chip-set>
+        <md-input-chip
+          label=${label || 'Input link chip'}
+          ?disabled=${disabled ?? false}
+          href="https://google.com"
+          target="_blank"
+        >${GOOGLE_LOGO}</md-input-chip>
+      </md-chip-set>
     `;
   }
 };
@@ -139,18 +150,20 @@ const suggestions: MaterialStoryInit<StoryKnobs> = {
   name: 'Suggestion chips',
   render({label, elevated, disabled}) {
     return html`
-      <md-suggestion-chip
-        label=${label || 'Suggestion chip'}
-        ?disabled=${disabled ?? false}
-        ?elevated=${elevated ?? false}
-      ></md-suggestion-chip>
-      <md-suggestion-chip
-        label=${label || 'Suggestion chip with icon'}
-        ?disabled=${disabled ?? false}
-        ?elevated=${elevated ?? false}
-      >
-        <md-icon slot="icon" aria-hidden="true">local_laundry_service</md-icon>
-      </md-suggestion-chip>
+      <md-chip-set>
+        <md-suggestion-chip
+          label=${label || 'Suggestion chip'}
+          ?disabled=${disabled ?? false}
+          ?elevated=${elevated ?? false}
+        ></md-suggestion-chip>
+        <md-suggestion-chip
+          label=${label || 'Suggestion chip with icon'}
+          ?disabled=${disabled ?? false}
+          ?elevated=${elevated ?? false}
+        >
+          <md-icon slot="icon" aria-hidden="true">local_laundry_service</md-icon>
+        </md-suggestion-chip>
+      </md-chip-set>
     `;
   }
 };
@@ -159,13 +172,15 @@ const suggestionLinks: MaterialStoryInit<StoryKnobs> = {
   name: 'Suggestion link chips',
   render({label, elevated, disabled}) {
     return html`
-      <md-suggestion-chip
-        label=${label || 'Suggestion link chip'}
-        ?disabled=${disabled ?? false}
-        ?elevated=${elevated ?? false}
-        href="https://google.com"
-        target="_blank"
-      >${GOOGLE_LOGO}</md-suggestion-chip>
+      <md-chip-set>
+        <md-suggestion-chip
+          label=${label || 'Suggestion link chip'}
+          ?disabled=${disabled ?? false}
+          ?elevated=${elevated ?? false}
+          href="https://google.com"
+          target="_blank"
+        >${GOOGLE_LOGO}</md-suggestion-chip>
+      </md-chip-set>
     `;
   }
 };
diff --git a/chips/lib/_chip-set.scss b/chips/lib/_chip-set.scss
new file mode 100644
index 0000000000..d52a4c19a7
--- /dev/null
+++ b/chips/lib/_chip-set.scss
@@ -0,0 +1,12 @@
+//
+// Copyright 2023 Google LLC
+// SPDX-License-Identifier: Apache-2.0
+//
+
+@mixin styles() {
+  :host {
+    display: flex;
+    flex-wrap: wrap;
+    gap: 8px;
+  }
+}
diff --git a/chips/lib/chip-set-styles.scss b/chips/lib/chip-set-styles.scss
new file mode 100644
index 0000000000..321d833dcf
--- /dev/null
+++ b/chips/lib/chip-set-styles.scss
@@ -0,0 +1,10 @@
+//
+// Copyright 2023 Google LLC
+// SPDX-License-Identifier: Apache-2.0
+//
+
+// go/keep-sorted start
+@use './chip-set';
+// go/keep-sorted end
+
+@include chip-set.styles;
diff --git a/chips/lib/chip-set.ts b/chips/lib/chip-set.ts
new file mode 100644
index 0000000000..b0560e66b9
--- /dev/null
+++ b/chips/lib/chip-set.ts
@@ -0,0 +1,126 @@
+/**
+ * @license
+ * Copyright 2023 Google LLC
+ * SPDX-License-Identifier: Apache-2.0
+ */
+
+import {html, isServer, LitElement} from 'lit';
+import {queryAssignedElements} from 'lit/decorators.js';
+
+import {Chip} from './chip.js';
+
+/**
+ * A chip set component.
+ */
+export class ChipSet extends LitElement {
+  get chips() {
+    return this.childElements.filter(
+        (child => child instanceof Chip) as (child: HTMLElement) =>
+            child is Chip);
+  }
+
+  @queryAssignedElements({flatten: true})
+  private readonly childElements!: HTMLElement[];
+
+  constructor() {
+    super();
+    if (!isServer) {
+      this.addEventListener('focusin', this.updateTabIndices.bind(this));
+      this.addEventListener('keydown', this.handleKeyDown.bind(this));
+    }
+  }
+
+  protected override render() {
+    return html`<slot @slotchange=${this.updateTabIndices}></slot>`;
+  }
+
+  private handleKeyDown(event: KeyboardEvent) {
+    const isDown = event.key === 'ArrowDown';
+    const isUp = event.key === 'ArrowUp';
+    const isLeft = event.key === 'ArrowLeft';
+    const isRight = event.key === 'ArrowRight';
+    const isHome = event.key === 'Home';
+    const isEnd = event.key === 'End';
+    // Ignore non-navigation keys
+    if (!isLeft && !isRight && !isDown && !isUp && !isHome && !isEnd) {
+      return;
+    }
+
+    // Prevent default interactions, such as scrolling.
+    event.preventDefault();
+
+    const {chips} = this;
+    // Don't try to select another chip if there aren't any.
+    if (chips.length < 2) {
+      return;
+    }
+
+    if (isHome || isEnd) {
+      const index = isHome ? 0 : chips.length - 1;
+      chips[index].focus();
+      this.updateTabIndices();
+      return;
+    }
+
+    // Check if moving forwards or backwards
+    const isRtl = getComputedStyle(this).direction === 'rtl';
+    const forwards = isRtl ? isLeft || isDown : isRight || isDown;
+    const focusedChip = chips.find(chip => chip.matches(':focus-within'));
+    if (!focusedChip) {
+      // If there is not already a chip focused, select the first or last chip
+      // based on the direction we're traveling.
+      const nextChip = forwards ? chips[0] : chips[chips.length - 1];
+      nextChip.focus();
+      this.updateTabIndices();
+      return;
+    }
+
+    const currentIndex = chips.indexOf(focusedChip);
+    let nextIndex = forwards ? currentIndex + 1 : currentIndex - 1;
+    // Search for the next sibling that is not disabled to select.
+    // If we return to the host index, there is nothing to select.
+    while (nextIndex !== currentIndex) {
+      if (nextIndex >= chips.length) {
+        // Return to start if moving past the last item.
+        nextIndex = 0;
+      } else if (nextIndex < 0) {
+        // Go to end if moving before the first item.
+        nextIndex = chips.length - 1;
+      }
+
+      // Check if the next sibling is disabled. If so,
+      // move the index and continue searching.
+      const nextChip = chips[nextIndex];
+      if (nextChip.disabled) {
+        if (forwards) {
+          nextIndex++;
+        } else {
+          nextIndex--;
+        }
+
+        continue;
+      }
+
+      nextChip.focus();
+      this.updateTabIndices();
+      break;
+    }
+  }
+
+  private updateTabIndices() {
+    const {chips} = this;
+    let hasFocusedChip = false;
+    for (const chip of chips) {
+      if (chip.matches(':focus-within')) {
+        chip.removeAttribute('tabindex');
+        hasFocusedChip = true;
+      } else {
+        chip.tabIndex = -1;
+      }
+    }
+
+    if (!hasFocusedChip) {
+      chips[0]?.removeAttribute('tabindex');
+    }
+  }
+}
diff --git a/chips/lib/chip.ts b/chips/lib/chip.ts
index b074d2ef9a..d3a391b30d 100644
--- a/chips/lib/chip.ts
+++ b/chips/lib/chip.ts
@@ -21,6 +21,11 @@ export abstract class Chip extends LitElement {
     requestUpdateOnAriaChange(this);
   }
 
+  static override shadowRootOptions = {
+    ...LitElement.shadowRootOptions,
+    delegatesFocus: true
+  };
+
   @property({type: Boolean}) disabled = false;
   @property() label = '';