diff --git a/e2e/tooltip.e2e.ts b/e2e/tooltip.e2e.ts
new file mode 100644
index 00000000..5d5a7a98
--- /dev/null
+++ b/e2e/tooltip.e2e.ts
@@ -0,0 +1,23 @@
+import { expect, test } from "@playwright/test";
+
+const testUrl = "/components/tooltip";
+
+test("Should render tooltip", async ({ page }) => {
+  await page.goto(testUrl);
+  await page.setViewportSize({ width: 400, height: 720 });
+
+  const showcase = page.getByTestId("showcase");
+  await showcase.scrollIntoViewIfNeeded();
+
+  await expect(
+    showcase.getByTestId("tooltip-component").nth(1).locator(".tooltip"),
+  ).not.toBeVisible();
+
+  showcase.locator("button.secondary").nth(1).hover();
+
+  await expect(
+    showcase.getByTestId("tooltip-component").nth(1).locator(".tooltip"),
+  ).toBeVisible();
+
+  await expect(page).toHaveScreenshot();
+});
diff --git a/e2e/tooltip.e2e.ts-snapshots/Should-render-tooltip-1-Google-Chrome-linux.png b/e2e/tooltip.e2e.ts-snapshots/Should-render-tooltip-1-Google-Chrome-linux.png
new file mode 100644
index 00000000..1292f4cf
Binary files /dev/null and b/e2e/tooltip.e2e.ts-snapshots/Should-render-tooltip-1-Google-Chrome-linux.png differ
diff --git a/src/docs/constants/docs.constants.ts b/src/docs/constants/docs.constants.ts
index e8bf0437..7b48a1f0 100644
--- a/src/docs/constants/docs.constants.ts
+++ b/src/docs/constants/docs.constants.ts
@@ -253,6 +253,12 @@ export const COMPONENT_ROUTES: ComponentRoute[] = [
     description: "An opinionated theme toggle.",
   },
 
+  {
+    path: "/components/tooltip",
+    title: "Tooltip",
+    description: "Tooltips provide extra information on hover or tap.",
+  },
+
   {
     path: "/components/toggle",
     title: "Toggle",
diff --git a/src/lib/components/Tooltip.svelte b/src/lib/components/Tooltip.svelte
new file mode 100644
index 00000000..6d105923
--- /dev/null
+++ b/src/lib/components/Tooltip.svelte
@@ -0,0 +1,170 @@
+<script lang="ts">
+  import { onDestroy } from "svelte";
+  import { debounce } from "@dfinity/utils";
+
+  export let id: string;
+  export let testId = "tooltip-component";
+  export let text = "";
+  export let noWrap = false;
+  export let top = false;
+  export let center = false;
+  export let containerSelector = "main";
+
+  let tooltipComponent: HTMLDivElement | undefined = undefined;
+  let target: HTMLDivElement | undefined = undefined;
+  let innerWidth: number | undefined = undefined;
+  let tooltipStyle: string | undefined = undefined;
+
+  const setPosition = debounce(() => {
+    // The debounce might effectively happen after the component has been destroyed, this is particularly the case in unit tests.
+    // That is why we are using a guard to avoid to perform any logic in case the Tooltip does not exist anymore.
+    if (destroyed) {
+      return;
+    }
+
+    // We need the main reference because at the moment the scrollbar is displayed in that element therefore it's the way to get to know the real width - i.e. window width - scrollbar width
+    const main: HTMLElement | null = document.querySelector(containerSelector);
+
+    if (
+      main === null ||
+      tooltipComponent === undefined ||
+      target === undefined
+    ) {
+      // Do nothing, we need the elements to be rendered in order to get their size and position to fix the tooltip
+      return;
+    }
+
+    const SCROLLBAR_FALLBACK_WIDTH = 20;
+
+    const { clientWidth, offsetWidth } = main;
+    const { left: containerLeft } = main.getBoundingClientRect();
+    const scrollbarWidth =
+      offsetWidth - clientWidth > 0
+        ? offsetWidth - clientWidth
+        : SCROLLBAR_FALLBACK_WIDTH;
+
+    const { left: targetLeft, width: targetWidth } =
+      target.getBoundingClientRect();
+    const targetCenter = targetLeft + targetWidth / 2;
+
+    const { width: tooltipWidth } = tooltipComponent.getBoundingClientRect();
+
+    // Space at the left of the center of the target until the containerSelector.
+    const spaceLeft = targetCenter - containerLeft;
+    // Space at the right of the center of the target until the containerSelector.
+    const spaceRight =
+      containerLeft + clientWidth - scrollbarWidth - targetCenter;
+
+    const overflowLeft = spaceLeft > 0 ? tooltipWidth / 2 - spaceLeft : 0;
+    const overflowRight = spaceRight > 0 ? tooltipWidth / 2 - spaceRight : 0;
+
+    const { left: mainLeft, right: mainRight } = main.getBoundingClientRect();
+
+    // If we cannot calculate the overflow left we then avoid overflow by setting no transform on the left side
+    const leftToMainCenter =
+      mainLeft + (mainRight - mainLeft) / 2 > targetCenter;
+
+    // If tooltip overflow both on left and right, we only set the left anchor.
+    // It would need the width to be maximized to window screen too but it seems to be an acceptable edge case.
+    tooltipStyle = center
+      ? `--tooltip-transform-x: calc(-50%)`
+      : overflowLeft > 0
+      ? `--tooltip-transform-x: calc(-50% + ${overflowLeft}px)`
+      : overflowRight > 0
+      ? `--tooltip-transform-x: calc(-50% - ${overflowRight}px)`
+      : leftToMainCenter
+      ? `--tooltip-transform-x: 0`
+      : undefined;
+  });
+
+  $: innerWidth, tooltipComponent, target, setPosition();
+
+  let destroyed = false;
+  onDestroy(() => (destroyed = true));
+</script>
+
+<svelte:window bind:innerWidth />
+
+<div class="tooltip-wrapper" data-tid={testId}>
+  <div class="tooltip-target" aria-describedby={id} bind:this={target}>
+    <slot />
+  </div>
+  <div
+    class="tooltip"
+    role="tooltip"
+    {id}
+    class:noWrap
+    class:top
+    bind:this={tooltipComponent}
+    style={tooltipStyle}
+  >
+    {text}
+  </div>
+</div>
+
+<style lang="scss">
+  .tooltip-wrapper {
+    position: relative;
+    display: var(--tooltip-display, block);
+    width: var(--tooltip-width);
+  }
+
+  .tooltip {
+    z-index: calc(var(--overlay-z-index) + 1);
+
+    position: absolute;
+    display: inline-block;
+
+    left: 50%;
+    bottom: var(--padding-0_5x);
+    --tooltip-transform-x-default: calc(-50% - var(--padding-4x));
+    transform: translate(
+      var(--tooltip-transform-x, var(--tooltip-transform-x-default)),
+      100%
+    );
+
+    opacity: 0;
+    visibility: hidden;
+    transition:
+      opacity 150ms,
+      visibility 150ms;
+
+    padding: 4px 6px;
+    border-radius: 4px;
+
+    font-size: var(--font-size-small);
+
+    background: var(--card-background-contrast);
+    color: var(--card-background);
+
+    // limit width
+    white-space: pre-wrap;
+    max-width: 240px;
+    width: max-content;
+    overflow-wrap: break-word;
+
+    &.noWrap {
+      white-space: nowrap;
+    }
+
+    &.top {
+      bottom: unset;
+      top: calc(-1 * var(--padding));
+      transform: translate(
+        var(--tooltip-transform-x, var(--tooltip-transform-x-default)),
+        -100%
+      );
+    }
+
+    pointer-events: none;
+  }
+
+  .tooltip-target {
+    height: 100%;
+
+    &:hover + .tooltip {
+      opacity: 1;
+      visibility: initial;
+    }
+  }
+</style>
diff --git a/src/routes/(split)/components/tooltip/+page.md b/src/routes/(split)/components/tooltip/+page.md
new file mode 100644
index 00000000..6c95a72f
--- /dev/null
+++ b/src/routes/(split)/components/tooltip/+page.md
@@ -0,0 +1,110 @@
+<script lang="ts">
+    import Tooltip from "$lib/components/Tooltip.svelte";
+</script>
+
+# Tooltip
+
+Used to provide extra information, often about why a button is disabled, on
+hover or tap over the target element.
+
+```javascript
+<Tooltip
+  id="example-button"
+  text={"This button is disabled because of a long and complicated explanation
+  that doesn't fit in the margin of this webpage."}
+>
+  <button class="secondary" disabled>Disabled</button>
+</Tooltip>
+```
+
+## Properties
+
+| Property            | Description                                                     | Type      | Default               |
+| ------------------- | --------------------------------------------------------------- | --------- | --------------------- |
+| `id`                | Used to link the target to the tooltip via `aria-describedby`   | `string`  |                       |
+| `testId`            | Add a `data-tid` attribute to the DOM, useful for test purpose. | `string`  | `"tooltip-component"` |
+| `text`              | The text displayed in the tooltip.                              | `string`  | `""`                  |
+| `noWrap`            | Whether to prevent the tooltip text from taking mulitple lines. | `boolean` | `false`               |
+| `top`               | Whether to prevent the tooltip text from taking mulitple lines. | `boolean` | `false`               |
+| `center`            | Whether to ignore overflow logic an just center align instead.  | `boolean` | `false`               |
+| `containerSelector` | Used to query for the container used to determine overflow.     | `string`  | `"main"`              |
+
+## Slots
+
+| Slot name    | Description                |
+| ------------ | -------------------------- |
+| Default slot | The target of the tooltip. |
+
+## Showcase
+
+The tooltips will appear when the buttons are hovered or tapped.
+
+<div class="tooltip-target-container" data-tid="showcase">
+  <div class="row">
+    <Tooltip
+      id="example-button"
+      containerSelector=".tooltip-target-container"
+      text={"This button is disabled because of a long and complicated explanation that doesn't fit in the margin of this webpage."}
+    >
+      <button class="secondary" disabled>Disabled</button>
+    </Tooltip>
+    <Tooltip
+      id="example-button"
+      containerSelector=".tooltip-target-container"
+      text={"This button is disabled because of a long and complicated explanation that doesn't fit in the margin of this webpage."}
+    >
+      <button class="secondary" disabled>Disabled</button>
+    </Tooltip>
+    <Tooltip
+      id="example-button"
+      containerSelector=".tooltip-target-container"
+      text={"This button is disabled because of a long and complicated explanation that doesn't fit in the margin of this webpage."}
+    >
+      <button class="secondary" disabled>Disabled</button>
+    </Tooltip>
+  </div>
+  <div class="row">
+    <Tooltip
+      id="example-button"
+      top={true}
+      containerSelector=".tooltip-target-container"
+      text={"This button is disabled because of a long and complicated explanation that doesn't fit in the margin of this webpage."}
+    >
+      <button class="secondary" disabled>Disabled</button>
+    </Tooltip>
+    <Tooltip
+      id="example-button"
+      top={true}
+      containerSelector=".tooltip-target-container"
+      text={"This button is disabled because of a long and complicated explanation that doesn't fit in the margin of this webpage."}
+    >
+      <button class="secondary" disabled>Disabled</button>
+    </Tooltip>
+    <Tooltip
+      id="example-button"
+      top={true}
+      containerSelector=".tooltip-target-container"
+      text={"This button is disabled because of a long and complicated explanation that doesn't fit in the margin of this webpage."}
+    >
+      <button class="secondary" disabled>Disabled</button>
+    </Tooltip>
+  </div>
+</div>
+
+<style lang="scss">
+  @use "../../../../lib/styles/mixins/media";
+
+  .tooltip-target-container {
+    background-color: var(--card-background);
+    padding: var(--padding);
+    display: flex;
+    flex-direction: column;
+    gap: 100px;
+    overflow: hidden;
+  }
+
+  .row {
+    display: flex;
+    justify-content: space-between;
+  }
+</style>
diff --git a/src/tests/lib/components/Tooltip.spec.ts b/src/tests/lib/components/Tooltip.spec.ts
new file mode 100644
index 00000000..474117ed
--- /dev/null
+++ b/src/tests/lib/components/Tooltip.spec.ts
@@ -0,0 +1,21 @@
+import { render } from "@testing-library/svelte";
+import TooltipTest from "./TooltipTest.svelte";
+
+describe("Tooltip", () => {
+  it("should render target content", () => {
+    const { container } = render(TooltipTest);
+
+    const element: HTMLParagraphElement | null = container.querySelector("p");
+
+    expect(element).toBeInTheDocument();
+    expect(element?.innerHTML).toBe("content");
+  });
+
+  it("should render aria-describedby and relevant id", () => {
+    const { container } = render(TooltipTest);
+    expect(
+      container.querySelector("[aria-describedby='tid']"),
+    ).toBeInTheDocument();
+    expect(container.querySelector("[id='tid']")).toBeInTheDocument();
+  });
+});
diff --git a/src/tests/lib/components/TooltipTest.svelte b/src/tests/lib/components/TooltipTest.svelte
new file mode 100644
index 00000000..82757cf8
--- /dev/null
+++ b/src/tests/lib/components/TooltipTest.svelte
@@ -0,0 +1,7 @@
+<script>
+  import Tooltip from "$lib/components/Tooltip.svelte";
+</script>
+
+<Tooltip id="tid" text="text">
+  <p>content</p>
+</Tooltip>