diff --git a/.changeset/wise-stingrays-heal.md b/.changeset/wise-stingrays-heal.md
new file mode 100644
index 00000000000..f5504eba9ac
--- /dev/null
+++ b/.changeset/wise-stingrays-heal.md
@@ -0,0 +1,5 @@
+---
+"@hashicorp/design-system-components": minor
+---
+
+`Card` - Add `tag` argument to choose between using a `div` tag (the default) or an `li` tag
diff --git a/packages/components/src/components/hds/card/container.hbs b/packages/components/src/components/hds/card/container.hbs
index 404c9f8e100..6666c26716d 100644
--- a/packages/components/src/components/hds/card/container.hbs
+++ b/packages/components/src/components/hds/card/container.hbs
@@ -2,6 +2,14 @@
   Copyright (c) HashiCorp, Inc.
   SPDX-License-Identifier: MPL-2.0
 }}
-<div class={{this.classNames}} ...attributes>
-  {{yield}}
-</div>
\ No newline at end of file
+{{!
+  Dynamically generating an HTML tag in Ember creates a dynamic component class (with the corresponding tagName), while rendering
+  a plain HTML element requires less computing cycles for Ember (you will notice it doesn't add the `ember-view` class to it).
+}}
+{{#if (eq this.componentTag "div")}}
+  <div class={{this.classNames}} ...attributes>{{yield}}</div>
+{{else}}
+  {{#let (element this.componentTag) as |Tag|}}
+    <Tag class={{this.classNames}} role={{if (eq this.componentTag "li") "listitem"}} ...attributes>{{yield}}</Tag>
+  {{/let}}
+{{/if}}
\ No newline at end of file
diff --git a/packages/components/src/components/hds/card/container.ts b/packages/components/src/components/hds/card/container.ts
index cb230e72ceb..3c21b9dd5df 100644
--- a/packages/components/src/components/hds/card/container.ts
+++ b/packages/components/src/components/hds/card/container.ts
@@ -5,20 +5,25 @@
 
 import Component from '@glimmer/component';
 import { assert } from '@ember/debug';
+
 import {
   HdsCardBackgroundValues,
   HdsCardLevelValues,
   HdsCardOverflowValues,
+  HdsCardTagValues,
 } from './types.ts';
+
 import type {
   HdsCardBackground,
   HdsCardLevel,
   HdsCardOverflow,
+  HdsCardTag,
 } from './types.ts';
 
 export const DEFAULT_LEVEL = HdsCardLevelValues.Base;
 export const DEFAULT_BACKGROUND = HdsCardBackgroundValues.NeutralPrimary;
 export const DEFAULT_OVERFLOW = HdsCardOverflowValues.Visible;
+export const DEFAULT_TAG = HdsCardTagValues.Div;
 export const AVAILABLE_LEVELS: string[] = Object.values(HdsCardLevelValues);
 export const AVAILABLE_BACKGROUNDS: string[] = Object.values(
   HdsCardBackgroundValues
@@ -26,6 +31,7 @@ export const AVAILABLE_BACKGROUNDS: string[] = Object.values(
 export const AVAILABLE_OVERFLOWS: string[] = Object.values(
   HdsCardOverflowValues
 );
+export const AVAILABLE_TAGS: string[] = Object.values(HdsCardTagValues);
 
 export interface HdsCardContainerSignature {
   Args: {
@@ -35,22 +41,16 @@ export interface HdsCardContainerSignature {
     background?: HdsCardBackground;
     hasBorder?: boolean;
     overflow?: HdsCardOverflow;
+    tag?: HdsCardTag;
   };
   Blocks: {
     default: [];
   };
-  Element: HTMLDivElement;
+  Element: HTMLElement;
 }
 
 export default class HdsCardContainer extends Component<HdsCardContainerSignature> {
-  /**
-   * Sets the "elevation" level for the component
-   * Accepted values: base, mid, high
-   *
-   * @param level
-   * @type {HdsCardLevel}
-   * @default 'base'
-   */
+  // Sets the "elevation" level for the component
   get level(): HdsCardLevel {
     const { level = DEFAULT_LEVEL } = this.args;
 
@@ -64,13 +64,7 @@ export default class HdsCardContainer extends Component<HdsCardContainerSignatur
     return level;
   }
 
-  /**
-   * Sets the "elevation" level for the component on ":hover" state
-   * Accepted values: base, mid, high
-   *
-   * @param levelHover
-   * @type {HdsCardLevel}
-   */
+  // Sets the "elevation" level for the component on ":hover" state
   get levelHover(): HdsCardLevel | undefined {
     const { levelHover } = this.args;
 
@@ -86,13 +80,7 @@ export default class HdsCardContainer extends Component<HdsCardContainerSignatur
     return levelHover;
   }
 
-  /**
-   * Sets the "elevation" level for the component on ":active" state
-   * Accepted values: base, mid, high
-   *
-   * @param levelActive
-   * @type {HdsCardLevel}
-   */
+  // Sets the "elevation" level for the component on ":active" state
   get levelActive(): HdsCardLevel | undefined {
     const { levelActive } = this.args;
 
@@ -108,14 +96,7 @@ export default class HdsCardContainer extends Component<HdsCardContainerSignatur
     return levelActive;
   }
 
-  /**
-   * Sets the background for the component
-   * Accepted values: neutral-primary, neutral-secondary
-   *
-   * @param background
-   * @type {HdsCardBackground}
-   * @default 'base'
-   */
+  // Sets the background for the component
   get background(): HdsCardBackground {
     const { background = DEFAULT_BACKGROUND } = this.args;
 
@@ -129,14 +110,7 @@ export default class HdsCardContainer extends Component<HdsCardContainerSignatur
     return background;
   }
 
-  /**
-   * Sets the level for the card
-   * Accepted values: visible, hidden
-   *
-   * @param overflow
-   * @type {HdsCardOverflow}
-   * @default 'visible'
-   */
+  // Sets the level for the card
   get overflow(): HdsCardOverflow {
     const { overflow = DEFAULT_OVERFLOW } = this.args;
 
@@ -150,11 +124,18 @@ export default class HdsCardContainer extends Component<HdsCardContainerSignatur
     return overflow;
   }
 
-  /**
-   * Get the class names to apply to the component.
-   * @method Card#classNames
-   * @return {string} The "class" attribute to apply to the component.
-   */
+  get componentTag(): HdsCardTag {
+    const { tag = DEFAULT_TAG } = this.args;
+
+    assert(
+      `@tag for "Hds::Card::Container" must be one of the following: ${AVAILABLE_TAGS.join(', ')}; received: ${tag}`,
+      AVAILABLE_TAGS.includes(tag)
+    );
+
+    return tag;
+  }
+
+  // Get the class names to apply to the component.
   get classNames(): string {
     const classes = ['hds-card__container'];
 
diff --git a/packages/components/src/components/hds/card/types.ts b/packages/components/src/components/hds/card/types.ts
index 4f4ab4801cf..5f11145d552 100644
--- a/packages/components/src/components/hds/card/types.ts
+++ b/packages/components/src/components/hds/card/types.ts
@@ -31,3 +31,10 @@ export enum HdsCardOverflowValues {
 export type HdsCardOverflow =
   | HdsCardOverflowValues.Hidden
   | HdsCardOverflowValues.Visible;
+
+export enum HdsCardTagValues {
+  Div = 'div',
+  Li = 'li',
+}
+
+export type HdsCardTag = `${HdsCardTagValues}`;
diff --git a/showcase/app/styles/showcase-pages/card.scss b/showcase/app/styles/showcase-pages/card.scss
index 29dac503f19..39a4042e191 100644
--- a/showcase/app/styles/showcase-pages/card.scss
+++ b/showcase/app/styles/showcase-pages/card.scss
@@ -25,4 +25,10 @@ body.components-card {
       border-radius: 8px;
     }
   }
+
+  .shw-component-card-list {
+    margin: 0;
+    padding: 0;
+    list-style-type: none;
+  }
 }
diff --git a/showcase/app/templates/components/card.hbs b/showcase/app/templates/components/card.hbs
index 2783ef4e23d..9605631bb8a 100644
--- a/showcase/app/templates/components/card.hbs
+++ b/showcase/app/templates/components/card.hbs
@@ -56,6 +56,7 @@
       {{/each}}
     </Shw::Grid>
   </div>
+
   <Shw::Text::H2>Background</Shw::Text::H2>
 
   <div class="shw-component-card-wrapper">
@@ -71,6 +72,7 @@
   </div>
 
   <Shw::Text::H2>Overflow</Shw::Text::H2>
+
   <div class="shw-component-card-wrapper">
     <Shw::Grid @columns={{2}} @gap="2rem" {{style width="fit-content"}} as |SG|>
       <SG.Item>
@@ -92,4 +94,24 @@
     </Shw::Grid>
   </div>
 
+  <Shw::Text::H2>Tag</Shw::Text::H2>
+
+  <div class="shw-component-card-wrapper">
+    <Shw::Grid @columns={{2}} @gap="2rem" {{style width="fit-content"}} as |SG|>
+      <SG.Item @label="Card using default div tag">
+        <Hds::Card::Container @level="mid" @hasBorder={{true}}>
+          <Shw::Placeholder @text="div" @width="200" @height="200" @background="transparent" />
+        </Hds::Card::Container>
+      </SG.Item>
+
+      <SG.Item @label="Card using list item tag">
+        <ul class="shw-component-card-list">
+          <Hds::Card::Container @level="mid" @hasBorder={{true}} @tag="li">
+            <Shw::Placeholder @text="li" @width="200" @height="200" @background="transparent" />
+          </Hds::Card::Container>
+        </ul>
+      </SG.Item>
+    </Shw::Grid>
+  </div>
+
 </section>
\ No newline at end of file
diff --git a/showcase/tests/integration/components/hds/card/container-test.js b/showcase/tests/integration/components/hds/card/container-test.js
index dfb42d85420..51c7eee3346 100644
--- a/showcase/tests/integration/components/hds/card/container-test.js
+++ b/showcase/tests/integration/components/hds/card/container-test.js
@@ -79,6 +79,26 @@ module('Integration | Component | hds/card/container', function (hooks) {
       .hasClass('hds-card__container--overflow-hidden');
   });
 
+  // TAG
+
+  test(`it should render a div if no @tag prop is declared and it should not have a role`, async function (assert) {
+    await render(hbs`<Hds::Card::Container id="test-card-container" />`);
+    assert
+      .dom('#test-card-container')
+      .hasTagName('div')
+      .doesNotHaveAttribute('role');
+  });
+
+  test(`it should render an li if specified in the @tag prop and it should have the correct role`, async function (assert) {
+    await render(
+      hbs`<Hds::Card::Container id="test-card-container" @tag="li" />`
+    );
+    assert
+      .dom('#test-card-container')
+      .hasTagName('li')
+      .hasAttribute('role', 'listitem');
+  });
+
   // ASSERTIONS
 
   test('it should throw an assertion if an incorrect value for @level is provided', async function (assert) {
@@ -117,4 +137,18 @@ module('Integration | Component | hds/card/container', function (hooks) {
       throw new Error(errorMessage);
     });
   });
+
+  // If a tag other than div or li is passed, it should throw an assertion
+  test('it should throw an assertion if an incorrect value for @tag is provided', async function (assert) {
+    const errorMessage =
+      '@tag for "Hds::Card::Container" must be one of the following: div, li; received: section';
+    assert.expect(2);
+    setupOnerror(function (error) {
+      assert.strictEqual(error.message, `Assertion Failed: ${errorMessage}`);
+    });
+    await render(hbs`<Hds::Card::Container @tag="section" />`);
+    assert.throws(function () {
+      throw new Error(errorMessage);
+    });
+  });
 });