diff --git a/.changeset/ten-llamas-unite.md b/.changeset/ten-llamas-unite.md
new file mode 100644
index 0000000000..a92e8bbfe1
--- /dev/null
+++ b/.changeset/ten-llamas-unite.md
@@ -0,0 +1,5 @@
+---
+"@frontify/fondue": patch
+---
+
+fix: fix padding in badge component which cause the status to be offset
diff --git a/packages/fondue/src/components/Badge/Badge.cy.tsx b/packages/fondue/src/components/Badge/Badge.cy.tsx
index 6c748520d3..ad1e7eaeb8 100644
--- a/packages/fondue/src/components/Badge/Badge.cy.tsx
+++ b/packages/fondue/src/components/Badge/Badge.cy.tsx
@@ -14,9 +14,9 @@ const BADGE_DISMISS = '[data-test-id=badge-dismiss]';
 const BADGE_BUTTON = '[data-test-id=badge-button]';
 
 const checkMediumSize = () => {
-    cy.get(BADGE_BUTTON).should('have.class', 'tw-px-2');
+    cy.get(BADGE_BUTTON).should('have.class', 'tw-px-2.5');
     cy.get(BADGE_BUTTON).should('have.class', 'tw-h-6');
-    cy.get(BADGE_BUTTON).should('have.class', 'tw-gap-x-0.5');
+    cy.get(BADGE_BUTTON).should('have.class', 'tw-gap-x-1');
 };
 
 describe('Badge component', () => {
@@ -50,13 +50,13 @@ describe('Badge component', () => {
     it('should render badge with icon with specific size', () => {
         cy.mount(<Badge icon={<IconDocumentText size={IconSize.Size16} />}>{BADGE_TEXT}</Badge>);
 
-        cy.get(BADGE_ICON_ID).should('exist').and('have.css', 'width', '20px');
+        cy.get(BADGE_ICON_ID).should('exist').and('have.css', 'width', '16px');
     });
 
     it('should render with small size', () => {
         cy.mount(<Badge size="small">{BADGE_TEXT}</Badge>);
 
-        cy.get(BADGE_BUTTON).should('have.class', 'tw-px-1.5');
+        cy.get(BADGE_BUTTON).should('have.class', 'tw-px-2');
         cy.get(BADGE_BUTTON).should('have.class', 'tw-h-5');
     });
 
@@ -247,16 +247,4 @@ describe('Badge component', () => {
 
         cy.get(BADGE_BUTTON).invoke('attr', 'title').should('equal', `${BADGE_TEXT}_1_${BADGE_TEXT}_2_${BADGE_TEXT}`);
     });
-
-    it('should have padding between icon and label', () => {
-        cy.mount(<Badge icon={<IconDocumentText />}>{BADGE_TEXT}</Badge>);
-
-        cy.get(BADGE_ICON_ID).should('have.css', 'padding-right', '4px');
-    });
-
-    it('should have no icon padding if there is no label', () => {
-        cy.mount(<Badge icon={<IconDocumentText />} />);
-
-        cy.get(BADGE_ICON_ID).should('have.css', 'padding-right', '0px');
-    });
 });
diff --git a/packages/fondue/src/components/Badge/Badge.tsx b/packages/fondue/src/components/Badge/Badge.tsx
index c7f2280a5c..f70173b42b 100644
--- a/packages/fondue/src/components/Badge/Badge.tsx
+++ b/packages/fondue/src/components/Badge/Badge.tsx
@@ -73,17 +73,13 @@ export const Badge = ({
                 {icon && (
                     <span
                         data-test-id={`${dataTestId}-icon`}
-                        className={merge([
-                            'tw-flex-none tw-leading-none',
-                            disabled && 'tw-opacity-30',
-                            !!children && 'tw-pr-1',
-                        ])}
+                        className={merge(['tw-flex-none tw-leading-none', disabled && 'tw-opacity-30'])}
                     >
                         {cloneElement(icon, { size: IconSize.Size16 })}
                     </span>
                 )}
                 {children && (
-                    <span className="tw-text-center tw-text-xxs tw-font-sans tw-font-normal tw-truncate tw-px-0.5">
+                    <span className="tw-text-center tw-text-xxs tw-font-sans tw-font-normal tw-truncate">
                         {children}
                     </span>
                 )}
diff --git a/packages/fondue/src/components/Badge/BadgeStatusIcon.tsx b/packages/fondue/src/components/Badge/BadgeStatusIcon.tsx
index 02b9fbe5ef..1fb8afeadf 100644
--- a/packages/fondue/src/components/Badge/BadgeStatusIcon.tsx
+++ b/packages/fondue/src/components/Badge/BadgeStatusIcon.tsx
@@ -9,7 +9,7 @@ import { badgeStatusClasses, isBadgeStatus } from './helpers';
 import { type BadgeStatusIconProps } from './types';
 
 export const BadgeStatusIcon = ({ status, disabled, 'data-test-id': dataTestId = 'badge' }: BadgeStatusIconProps) => (
-    <div className="tw-px-0.5 tw-flex-none tw-inline-flex tw-justify-center tw-items-center tw-pr-1">
+    <div className="tw-flex-none tw-inline-flex tw-justify-center tw-items-center ">
         <span
             data-test-id={`${dataTestId}-status`}
             className={merge([
diff --git a/packages/fondue/src/components/Badge/helpers.ts b/packages/fondue/src/components/Badge/helpers.ts
index e815d64dbb..851e774031 100644
--- a/packages/fondue/src/components/Badge/helpers.ts
+++ b/packages/fondue/src/components/Badge/helpers.ts
@@ -72,12 +72,21 @@ export const getSizeClasses = (
     isDismissable: boolean,
 ) => {
     const isSmall = size === 'small';
+    const hasMaximumTwoComponents = !(children && status && icon);
 
     if (isSmall) {
-        return merge(['tw-h-5 tw-px-1.5', isDismissable && 'tw-pr-5']);
+        return merge([
+            'tw-h-5 tw-px-2 tw-gap-x-1',
+            hasMaximumTwoComponents && 'tw-gap-x-1.5',
+            isDismissable && 'tw-pr-5',
+        ]);
     } else {
-        const hasMaximumTwoComponents = !(children && status && icon);
-        return merge(['tw-h-6', 'tw-px-2', hasMaximumTwoComponents && 'tw-gap-x-0.5', isDismissable && 'tw-pr-6']);
+        return merge([
+            'tw-h-6',
+            'tw-px-2.5 tw-gap-x-1',
+            hasMaximumTwoComponents && 'tw-gap-x-2',
+            isDismissable && 'tw-pr-6',
+        ]);
     }
 };