diff --git a/jest.config.ts b/jest.config.ts
index 7054afa00e..d4e79561da 100644
--- a/jest.config.ts
+++ b/jest.config.ts
@@ -41,7 +41,9 @@ const config: Config = {
         "recorderWorkletFactory": "<rootDir>/__mocks__/empty.js",
         "^fetch-mock$": "<rootDir>/node_modules/fetch-mock",
     },
-    transformIgnorePatterns: ["/node_modules/(?!(mime|matrix-js-sdk|uuid|p-retry|is-network-error)).+$"],
+    transformIgnorePatterns: [
+        "/node_modules/(?!(mime|matrix-js-sdk|uuid|p-retry|is-network-error|react-merge-refs)).+$",
+    ],
     collectCoverageFrom: [
         "<rootDir>/src/**/*.{js,ts,tsx}",
         // getSessionLock is piped into a different JS context via stringification, and the coverage functionality is
diff --git a/package.json b/package.json
index f7f67c4707..55e65df828 100644
--- a/package.json
+++ b/package.json
@@ -150,6 +150,7 @@
         "react-blurhash": "^0.3.0",
         "react-dom": "^19.0.0",
         "react-focus-lock": "^2.5.1",
+        "react-merge-refs": "^3.0.2",
         "react-string-replace": "^1.1.1",
         "react-transition-group": "^4.4.1",
         "react-virtuoso": "^4.14.0",
diff --git a/playwright/e2e/crypto/crypto.spec.ts b/playwright/e2e/crypto/crypto.spec.ts
index 998a5e49a4..9822f0522e 100644
--- a/playwright/e2e/crypto/crypto.spec.ts
+++ b/playwright/e2e/crypto/crypto.spec.ts
@@ -25,9 +25,7 @@ const startDMWithBob = async (page: Page, bob: Bot) => {
     await page.getByRole("menuitem", { name: "Start chat" }).click();
     await page.getByTestId("invite-dialog-input").fill(bob.credentials.userId);
     await page.getByRole("option", { name: bob.credentials.displayName }).click();
-    await expect(
-        page.locator(".mx_InviteDialog_userTile_pill .mx_InviteDialog_userTile_name").getByText("Bob"),
-    ).toBeVisible();
+    await expect(page.getByTestId("invite-dialog-input-wrapper").getByText("Bob")).toBeVisible();
     await page.getByRole("button", { name: "Go" }).click();
 };
 
diff --git a/playwright/e2e/invite/invite-dialog.spec.ts b/playwright/e2e/invite/invite-dialog.spec.ts
index 1c0cb3fa81..cdf877f95e 100644
--- a/playwright/e2e/invite/invite-dialog.spec.ts
+++ b/playwright/e2e/invite/invite-dialog.spec.ts
@@ -54,9 +54,7 @@ test.describe("Invite dialog", function () {
 
         await other.getByRole("option", { name: botName }).click();
 
-        await expect(
-            other.locator(".mx_InviteDialog_userTile_pill .mx_InviteDialog_userTile_name").getByText(botName),
-        ).toBeVisible();
+        await expect(other.getByTestId("invite-dialog-input-wrapper").getByText(botName)).toBeVisible();
 
         // Take a snapshot of the invite dialog with a user pill
         await expect(page.locator(".mx_Dialog")).toMatchScreenshot("invite-dialog-room-with-user-pill.png");
@@ -95,9 +93,7 @@ test.describe("Invite dialog", function () {
             await expect(other.getByRole("option", { name: botName }).getByText(bot.credentials.userId)).toBeVisible();
             await other.getByRole("option", { name: botName }).click();
 
-            await expect(
-                other.locator(".mx_InviteDialog_userTile_pill .mx_InviteDialog_userTile_name").getByText(botName),
-            ).toBeVisible();
+            await expect(other.getByTestId("invite-dialog-input-wrapper").getByText(botName)).toBeVisible();
 
             // Take a snapshot of the invite dialog with a user pill
             await expect(page.locator(".mx_Dialog")).toMatchScreenshot("invite-dialog-dm-with-user-pill.png");
diff --git a/playwright/shared-component-snapshots/pillinput-pill--default-linux.png b/playwright/shared-component-snapshots/pillinput-pill--default-linux.png
new file mode 100644
index 0000000000..cd8eb65ba1
Binary files /dev/null and b/playwright/shared-component-snapshots/pillinput-pill--default-linux.png differ
diff --git a/playwright/shared-component-snapshots/pillinput-pill--without-close-button-linux.png b/playwright/shared-component-snapshots/pillinput-pill--without-close-button-linux.png
new file mode 100644
index 0000000000..451de895dc
Binary files /dev/null and b/playwright/shared-component-snapshots/pillinput-pill--without-close-button-linux.png differ
diff --git a/playwright/shared-component-snapshots/pillinput-pillinput--default-linux.png b/playwright/shared-component-snapshots/pillinput-pillinput--default-linux.png
new file mode 100644
index 0000000000..93bf6317a9
Binary files /dev/null and b/playwright/shared-component-snapshots/pillinput-pillinput--default-linux.png differ
diff --git a/playwright/shared-component-snapshots/pillinput-pillinput--no-child-linux.png b/playwright/shared-component-snapshots/pillinput-pillinput--no-child-linux.png
new file mode 100644
index 0000000000..a303e726b5
Binary files /dev/null and b/playwright/shared-component-snapshots/pillinput-pillinput--no-child-linux.png differ
diff --git a/playwright/snapshots/invite/invite-dialog.spec.ts/invite-dialog-dm-with-user-pill-linux.png b/playwright/snapshots/invite/invite-dialog.spec.ts/invite-dialog-dm-with-user-pill-linux.png
index cdeb49f128..86154ad35d 100644
Binary files a/playwright/snapshots/invite/invite-dialog.spec.ts/invite-dialog-dm-with-user-pill-linux.png and b/playwright/snapshots/invite/invite-dialog.spec.ts/invite-dialog-dm-with-user-pill-linux.png differ
diff --git a/playwright/snapshots/invite/invite-dialog.spec.ts/invite-dialog-dm-without-user-linux.png b/playwright/snapshots/invite/invite-dialog.spec.ts/invite-dialog-dm-without-user-linux.png
index b481505235..e63333c1e9 100644
Binary files a/playwright/snapshots/invite/invite-dialog.spec.ts/invite-dialog-dm-without-user-linux.png and b/playwright/snapshots/invite/invite-dialog.spec.ts/invite-dialog-dm-without-user-linux.png differ
diff --git a/playwright/snapshots/invite/invite-dialog.spec.ts/invite-dialog-room-with-user-pill-linux.png b/playwright/snapshots/invite/invite-dialog.spec.ts/invite-dialog-room-with-user-pill-linux.png
index 043e35b6be..0c0695ad64 100644
Binary files a/playwright/snapshots/invite/invite-dialog.spec.ts/invite-dialog-room-with-user-pill-linux.png and b/playwright/snapshots/invite/invite-dialog.spec.ts/invite-dialog-room-with-user-pill-linux.png differ
diff --git a/playwright/snapshots/invite/invite-dialog.spec.ts/invite-dialog-room-without-user-linux.png b/playwright/snapshots/invite/invite-dialog.spec.ts/invite-dialog-room-without-user-linux.png
index 910040e20f..cee338835f 100644
Binary files a/playwright/snapshots/invite/invite-dialog.spec.ts/invite-dialog-room-without-user-linux.png and b/playwright/snapshots/invite/invite-dialog.spec.ts/invite-dialog-room-without-user-linux.png differ
diff --git a/res/css/_common.pcss b/res/css/_common.pcss
index 997848091d..908da2bdda 100644
--- a/res/css/_common.pcss
+++ b/res/css/_common.pcss
@@ -603,6 +603,7 @@ legend {
         .mx_IdentityServerPicker button,
         .mx_AccessSecretStorageDialog button,
         .mx_InviteDialog_section button,
+        .mx_InviteDialog_editor button,
         [class|="maplibregl"]
     ),
 .mx_Dialog_buttons button:not(.mx_Dialog_nonDialogButton, .mx_AccessibleButton),
@@ -645,7 +646,8 @@ legend {
         .mx_UnpinAllDialog button,
         .mx_ShareDialog button,
         .mx_EncryptionUserSettingsTab button,
-        .mx_InviteDialog_section button
+        .mx_InviteDialog_section button,
+        .mx_InviteDialog_editor button
     ):focus,
 .mx_Dialog input[type="submit"]:focus,
 .mx_Dialog_buttons button:not(.mx_Dialog_nonDialogButton, .mx_AccessibleButton):focus,
diff --git a/res/css/views/dialogs/_InviteDialog.pcss b/res/css/views/dialogs/_InviteDialog.pcss
index 571b1ad506..fc13023f66 100644
--- a/res/css/views/dialogs/_InviteDialog.pcss
+++ b/res/css/views/dialogs/_InviteDialog.pcss
@@ -24,37 +24,7 @@ Please see LICENSE files in the repository root for full details.
 
     .mx_InviteDialog_editor {
         flex: 1;
-        width: 100%; /* Needed to make the Field inside grow */
-        background-color: $header-panel-bg-color;
-        border-radius: 4px;
-        min-height: 25px;
-        padding-inline-start: $spacing-8;
-        overflow-x: hidden;
-        overflow-y: auto;
-        display: flex;
-        flex-wrap: wrap;
-
-        .mx_InviteDialog_userTile {
-            margin: 6px 6px 0 0;
-            display: inline-block;
-            min-width: max-content; /* prevent manipulation by flexbox */
-        }
-
-        /* overrides bunch of our default text input styles */
-        > input[type="text"] {
-            margin: 6px 0 !important;
-            height: 24px;
-            font: var(--cpd-font-body-md-regular);
-            line-height: $font-24px;
-            padding-inline-start: $spacing-12;
-            border: 0 !important;
-            outline: 0 !important;
-            resize: none;
-            box-sizing: border-box;
-            min-width: 40%;
-            flex: 1 !important;
-            color: $primary-content !important;
-        }
+        margin-left: var(--cpd-space-0-5x);
     }
 
     .mx_InviteDialog_goButton {
@@ -112,51 +82,6 @@ Please see LICENSE files in the repository root for full details.
     }
 }
 
-/* Many of these styles are stolen from mx_UserPill, but adjusted for the invite dialog. */
-.mx_InviteDialog_userTile {
-    margin-inline-end: $spacing-8;
-
-    .mx_InviteDialog_userTile_pill {
-        background-color: var(--cpd-color-bg-canvas-default);
-        border: 1px solid var(--cpd-color-gray-400);
-        border-radius: 99px;
-        display: inline-block;
-        height: 24px;
-        line-height: $font-24px;
-        padding-inline: $spacing-8;
-        vertical-align: middle;
-        color: var(--cpd-color-gray-1100);
-
-        .mx_SearchResultAvatar {
-            border-radius: 20px;
-            position: relative;
-            left: -5px;
-            top: 2px;
-        }
-
-        img.mx_SearchResultAvatar {
-            vertical-align: top;
-        }
-
-        .mx_InviteDialog_userTile_name {
-            vertical-align: top;
-        }
-
-        .mx_SearchResultAvatar_threepidAvatar {
-            background-color: #ffffff; /* this is fine without a var because it's for both themes */
-        }
-    }
-
-    .mx_InviteDialog_userTile_remove {
-        display: inline-block;
-        vertical-align: middle;
-
-        svg {
-            vertical-align: middle;
-        }
-    }
-}
-
 .mx_InviteDialog_other {
     /* Prevent the dialog from jumping around randomly when elements change. */
     display: flex;
diff --git a/src/components/views/dialogs/InviteDialog.tsx b/src/components/views/dialogs/InviteDialog.tsx
index bc0ca71d4d..6108883c88 100644
--- a/src/components/views/dialogs/InviteDialog.tsx
+++ b/src/components/views/dialogs/InviteDialog.tsx
@@ -12,7 +12,6 @@ import { KnownMembership } from "matrix-js-sdk/src/types";
 import { type MatrixCall } from "matrix-js-sdk/src/webrtc/call";
 import { logger } from "matrix-js-sdk/src/logger";
 import { uniqBy } from "lodash";
-import { CloseIcon } from "@vector-im/compound-design-tokens/assets/web/icons";
 
 import { Icon as EmailPillAvatarIcon } from "../../../../res/img/icon-email-pill-avatar.svg";
 import { _t, _td } from "../../../languageHandler";
@@ -66,6 +65,8 @@ import { type UserProfilesStore } from "../../../stores/UserProfilesStore";
 import InviteProgressBody from "./InviteProgressBody.tsx";
 import { RichList } from "../../../shared-components/rich-list/RichList";
 import { RichItem } from "../../../shared-components/rich-list/RichItem";
+import { PillInput } from "../../../shared-components/pill-input/PillInput";
+import { Pill } from "../../../shared-components/pill-input/Pill";
 
 // we have a number of types defined from the Matrix spec which can't reasonably be altered here.
 /* eslint-disable camelcase */
@@ -121,27 +122,10 @@ class DMUserTile extends React.PureComponent<IDMUserTileProps> {
         const avatarSize = "20px";
         const avatar = <SearchResultAvatar user={this.props.member} size={avatarSize} />;
 
-        let closeButton;
-        if (this.props.onRemove) {
-            closeButton = (
-                <AccessibleButton
-                    className="mx_InviteDialog_userTile_remove"
-                    onClick={this.onRemove}
-                    aria-label={_t("action|remove")}
-                >
-                    <CloseIcon width="16px" height="16px" />
-                </AccessibleButton>
-            );
-        }
-
         return (
-            <span className="mx_InviteDialog_userTile">
-                <span className="mx_InviteDialog_userTile_pill">
-                    {avatar}
-                    <span className="mx_InviteDialog_userTile_name">{this.props.member.name}</span>
-                </span>
-                {closeButton}
-            </span>
+            <Pill label={this.props.member.name} onClick={this.onRemove}>
+                {avatar}
+            </Pill>
         );
     }
 }
@@ -609,13 +593,6 @@ export default class InviteDialog extends React.PureComponent<Props, IInviteDial
         const action = getKeyBindingsManager().getAccessibilityAction(e);
 
         switch (action) {
-            case KeyBindingAction.Backspace:
-                if (value || this.state.targets.length <= 0) break;
-
-                // when the field is empty and the user hits backspace remove the right-most target
-                this.removeMember(this.state.targets[this.state.targets.length - 1]);
-                handled = true;
-                break;
             case KeyBindingAction.Space:
                 if (!value || !value.includes("@") || value.includes(" ")) break;
 
@@ -908,16 +885,6 @@ export default class InviteDialog extends React.PureComponent<Props, IInviteDial
         }
     };
 
-    private onClickInputArea = (e: React.MouseEvent): void => {
-        // Stop the browser from highlighting text
-        e.preventDefault();
-        e.stopPropagation();
-
-        if (this.editorRef && this.editorRef.current) {
-            this.editorRef.current.focus();
-        }
-    };
-
     private onUseDefaultIdentityServerClick = (e: ButtonEvent): void => {
         e.preventDefault();
 
@@ -1041,35 +1008,33 @@ export default class InviteDialog extends React.PureComponent<Props, IInviteDial
     }
 
     private renderEditor(): JSX.Element {
-        const hasPlaceholder =
-            this.props.kind == InviteKind.CallTransfer &&
-            this.state.targets.length === 0 &&
-            this.state.filterText.length === 0;
         const targets = this.state.targets.map((t) => (
             <DMUserTile member={t} onRemove={this.state.busy ? undefined : this.removeMember} key={t.userId} />
         ));
-        const input = (
-            <input
-                type="text"
-                onKeyDown={this.onKeyDown}
-                onChange={this.updateFilter}
-                value={this.state.filterText}
-                ref={this.editorRef}
-                onPaste={this.onPaste}
-                autoFocus={true}
-                disabled={
-                    this.state.busy || (this.props.kind == InviteKind.CallTransfer && this.state.targets.length > 0)
-                }
-                autoComplete="off"
-                placeholder={hasPlaceholder ? _t("action|search") : undefined}
-                data-testid="invite-dialog-input"
-            />
-        );
+
         return (
-            <div className="mx_InviteDialog_editor" onClick={this.onClickInputArea}>
+            <PillInput
+                data-testid="invite-dialog-input-wrapper"
+                className="mx_InviteDialog_editor"
+                inputProps={{
+                    "ref": this.editorRef,
+                    "value": this.state.filterText,
+                    "onKeyDown": this.onKeyDown,
+                    "onChange": this.updateFilter,
+                    "onPaste": this.onPaste,
+                    "placeholder": _t("action|search"),
+                    "autoFocus": true,
+                    "disabled":
+                        this.state.busy ||
+                        (this.props.kind == InviteKind.CallTransfer && this.state.targets.length > 0),
+                    "data-testid": "invite-dialog-input",
+                }}
+                onRemoveChildren={() =>
+                    !this.state.busy && this.removeMember(this.state.targets[this.state.targets.length - 1])
+                }
+            >
                 {targets}
-                {input}
-            </div>
+            </PillInput>
         );
     }
 
diff --git a/src/shared-components/pill-input/Pill/Pill.module.css b/src/shared-components/pill-input/Pill/Pill.module.css
new file mode 100644
index 0000000000..59df489e06
--- /dev/null
+++ b/src/shared-components/pill-input/Pill/Pill.module.css
@@ -0,0 +1,17 @@
+/*
+ * Copyright 2025 New Vector Ltd.
+ *
+ * SPDX-License-Identifier: AGPL-3.0-only OR GPL-3.0-only OR LicenseRef-Element-Commercial
+ * Please see LICENSE files in the repository root for full details.
+ */
+
+.pill {
+    background-color: var(--cpd-color-bg-action-primary-rest);
+    padding: var(--cpd-space-1x) var(--cpd-space-1-5x) var(--cpd-space-1x) var(--cpd-space-1x);
+    border-radius: 99px;
+}
+
+.label {
+    color: var(--cpd-color-text-on-solid-primary);
+    font: var(--cpd-font-body-sm-medium);
+}
diff --git a/src/shared-components/pill-input/Pill/Pill.stories.tsx b/src/shared-components/pill-input/Pill/Pill.stories.tsx
new file mode 100644
index 0000000000..1ed233adf8
--- /dev/null
+++ b/src/shared-components/pill-input/Pill/Pill.stories.tsx
@@ -0,0 +1,33 @@
+/*
+ * Copyright 2025 New Vector Ltd.
+ *
+ * SPDX-License-Identifier: AGPL-3.0-only OR GPL-3.0-only OR LicenseRef-Element-Commercial
+ * Please see LICENSE files in the repository root for full details.
+ */
+
+import React from "react";
+import { fn } from "storybook/test";
+
+import type { Meta, StoryObj } from "@storybook/react-vite";
+import { Pill } from "./Pill";
+
+const meta = {
+    title: "PillInput/Pill",
+    component: Pill,
+    tags: ["autodocs"],
+    args: {
+        label: "Pill",
+        children: <div style={{ width: 20, height: 20, borderRadius: "100%", backgroundColor: "#ccc" }} />,
+        onClick: fn(),
+    },
+} satisfies Meta<typeof Pill>;
+
+export default meta;
+type Story = StoryObj<typeof meta>;
+
+export const Default: Story = {};
+export const WithoutCloseButton: Story = {
+    args: {
+        onClick: undefined,
+    },
+};
diff --git a/src/shared-components/pill-input/Pill/Pill.test.tsx b/src/shared-components/pill-input/Pill/Pill.test.tsx
new file mode 100644
index 0000000000..a539f6c295
--- /dev/null
+++ b/src/shared-components/pill-input/Pill/Pill.test.tsx
@@ -0,0 +1,26 @@
+/*
+ * Copyright 2025 New Vector Ltd.
+ *
+ * SPDX-License-Identifier: AGPL-3.0-only OR GPL-3.0-only OR LicenseRef-Element-Commercial
+ * Please see LICENSE files in the repository root for full details.
+ */
+
+import { composeStories } from "@storybook/react-vite";
+import { render } from "jest-matrix-react";
+import React from "react";
+
+import * as stories from "./Pill.stories";
+
+const { Default, WithoutCloseButton } = composeStories(stories);
+
+describe("Pill", () => {
+    it("renders the pill", () => {
+        const { container } = render(<Default />);
+        expect(container).toMatchSnapshot();
+    });
+
+    it("renders the pill without close button", () => {
+        const { container } = render(<WithoutCloseButton />);
+        expect(container).toMatchSnapshot();
+    });
+});
diff --git a/src/shared-components/pill-input/Pill/Pill.tsx b/src/shared-components/pill-input/Pill/Pill.tsx
new file mode 100644
index 0000000000..51f5ef0f2f
--- /dev/null
+++ b/src/shared-components/pill-input/Pill/Pill.tsx
@@ -0,0 +1,62 @@
+/*
+ * Copyright 2025 New Vector Ltd.
+ *
+ * SPDX-License-Identifier: AGPL-3.0-only OR GPL-3.0-only OR LicenseRef-Element-Commercial
+ * Please see LICENSE files in the repository root for full details.
+ */
+
+import React, { type MouseEventHandler, type JSX, type PropsWithChildren, type HTMLAttributes, useId } from "react";
+import classNames from "classnames";
+import { IconButton } from "@vector-im/compound-web";
+import CloseIcon from "@vector-im/compound-design-tokens/assets/web/icons/close";
+
+import { Flex } from "../../utils/Flex";
+import styles from "./Pill.module.css";
+import { _t } from "../../utils/i18n";
+
+export interface PillProps extends Omit<HTMLAttributes<HTMLDivElement>, "onClick"> {
+    /**
+     * The text label to display inside the pill.
+     */
+    label: string;
+    /**
+     * Optional click handler for a close button.
+     * If provided, a close button will be rendered.
+     */
+    onClick?: MouseEventHandler<HTMLButtonElement>;
+}
+
+/**
+ * A pill component that can display a label and an optional close button.
+ * The badge can also contain child elements, such as icons or avatars.
+ *
+ * @example
+ * ```tsx
+ * <Pill label="New" onClick={() => console.log("Closed")}>
+ *     <SomeIcon />
+ * </Pill>
+ * ```
+ */
+export function Pill({ className, children, label, onClick, ...props }: PropsWithChildren<PillProps>): JSX.Element {
+    const id = useId();
+
+    return (
+        <Flex
+            display="inline-flex"
+            gap="var(--cpd-space-1-5x)"
+            align="center"
+            className={classNames(styles.pill, className)}
+            {...props}
+        >
+            {children}
+            <span id={id} className={styles.label}>
+                {label}
+            </span>
+            {onClick && (
+                <IconButton aria-describedby={id} size="16px" onClick={onClick} aria-label={_t("action|delete")}>
+                    <CloseIcon color="var(--cpd-color-icon-tertiary)" />
+                </IconButton>
+            )}
+        </Flex>
+    );
+}
diff --git a/src/shared-components/pill-input/Pill/__snapshots__/Pill.test.tsx.snap b/src/shared-components/pill-input/Pill/__snapshots__/Pill.test.tsx.snap
new file mode 100644
index 0000000000..ce81390347
--- /dev/null
+++ b/src/shared-components/pill-input/Pill/__snapshots__/Pill.test.tsx.snap
@@ -0,0 +1,66 @@
+// Jest Snapshot v1, https://goo.gl/fbAQLP
+
+exports[`Pill renders the pill 1`] = `
+<div>
+  <div
+    class="flex pill"
+    style="--mx-flex-display: inline-flex; --mx-flex-direction: row; --mx-flex-align: center; --mx-flex-justify: start; --mx-flex-gap: var(--cpd-space-1-5x); --mx-flex-wrap: nowrap;"
+  >
+    <div
+      style="width: 20px; height: 20px; border-radius: 100%; background-color: rgb(204, 204, 204);"
+    />
+    <span
+      class="label"
+      id="«r0»"
+    >
+      Pill
+    </span>
+    <button
+      aria-describedby="«r0»"
+      aria-label="Delete"
+      class="_icon-button_1pz9o_8"
+      data-kind="primary"
+      role="button"
+      style="--cpd-icon-button-size: 16px;"
+      tabindex="0"
+    >
+      <div
+        class="_indicator-icon_zr2a0_17"
+        style="--cpd-icon-button-size: 100%;"
+      >
+        <svg
+          color="var(--cpd-color-icon-tertiary)"
+          fill="currentColor"
+          height="1em"
+          viewBox="0 0 24 24"
+          width="1em"
+          xmlns="http://www.w3.org/2000/svg"
+        >
+          <path
+            d="M6.293 6.293a1 1 0 0 1 1.414 0L12 10.586l4.293-4.293a1 1 0 1 1 1.414 1.414L13.414 12l4.293 4.293a1 1 0 0 1-1.414 1.414L12 13.414l-4.293 4.293a1 1 0 0 1-1.414-1.414L10.586 12 6.293 7.707a1 1 0 0 1 0-1.414"
+          />
+        </svg>
+      </div>
+    </button>
+  </div>
+</div>
+`;
+
+exports[`Pill renders the pill without close button 1`] = `
+<div>
+  <div
+    class="flex pill"
+    style="--mx-flex-display: inline-flex; --mx-flex-direction: row; --mx-flex-align: center; --mx-flex-justify: start; --mx-flex-gap: var(--cpd-space-1-5x); --mx-flex-wrap: nowrap;"
+  >
+    <div
+      style="width: 20px; height: 20px; border-radius: 100%; background-color: rgb(204, 204, 204);"
+    />
+    <span
+      class="label"
+      id="«r1»"
+    >
+      Pill
+    </span>
+  </div>
+</div>
+`;
diff --git a/src/shared-components/pill-input/Pill/index.ts b/src/shared-components/pill-input/Pill/index.ts
new file mode 100644
index 0000000000..1e0a4b6b66
--- /dev/null
+++ b/src/shared-components/pill-input/Pill/index.ts
@@ -0,0 +1,8 @@
+/*
+ * Copyright 2025 New Vector Ltd.
+ *
+ * SPDX-License-Identifier: AGPL-3.0-only OR GPL-3.0-only OR LicenseRef-Element-Commercial
+ * Please see LICENSE files in the repository root for full details.
+ */
+
+export { Pill } from "./Pill";
diff --git a/src/shared-components/pill-input/PillInput/PillInput.module.css b/src/shared-components/pill-input/PillInput/PillInput.module.css
new file mode 100644
index 0000000000..888da57746
--- /dev/null
+++ b/src/shared-components/pill-input/PillInput/PillInput.module.css
@@ -0,0 +1,34 @@
+/*
+ * Copyright 2025 New Vector Ltd.
+ *
+ * SPDX-License-Identifier: AGPL-3.0-only OR GPL-3.0-only OR LicenseRef-Element-Commercial
+ * Please see LICENSE files in the repository root for full details.
+ */
+
+.pillInput {
+    background-color: var(--cpd-color-bg-subtle-secondary);
+    border-radius: 20px;
+    padding: var(--cpd-space-2x) var(--cpd-space-3x) var(--cpd-space-2x) var(--cpd-space-3x);
+    /* To match pill height in order to avoid the PillInput to grow when a pill is inserted */
+    min-height: 28px;
+}
+
+.pillInput:has(.input:focus) {
+    outline: var(--cpd-border-width-1) solid var(--cpd-color-gray-1400);
+}
+
+.input {
+    all: unset;
+    width: 100%;
+    flex: 1;
+    color: var(--cpd-color-text-primary);
+}
+
+.input::placeholder {
+    color: var(--cpd-color-text-secondary);
+    font: var(--cpd-font-body-md-regular);
+}
+
+.largerInput {
+    padding: var(--cpd-space-2x) 0;
+}
diff --git a/src/shared-components/pill-input/PillInput/PillInput.stories.tsx b/src/shared-components/pill-input/PillInput/PillInput.stories.tsx
new file mode 100644
index 0000000000..3bb119dc75
--- /dev/null
+++ b/src/shared-components/pill-input/PillInput/PillInput.stories.tsx
@@ -0,0 +1,38 @@
+/*
+ * Copyright 2025 New Vector Ltd.
+ *
+ * SPDX-License-Identifier: AGPL-3.0-only OR GPL-3.0-only OR LicenseRef-Element-Commercial
+ * Please see LICENSE files in the repository root for full details.
+ */
+
+import React from "react";
+import { fn } from "storybook/test";
+
+import type { Meta, StoryObj } from "@storybook/react-vite";
+import { PillInput } from "./PillInput";
+
+const meta = {
+    title: "PillInput/PillInput",
+    component: PillInput,
+    tags: ["autodocs"],
+    args: {
+        children: (
+            <>
+                <div style={{ minWidth: 162, height: 28, backgroundColor: "#ccc", borderRadius: "99px" }} />
+                <div style={{ minWidth: 162, height: 28, backgroundColor: "#ccc", borderRadius: "99px" }} />
+            </>
+        ),
+        onChange: fn(),
+        onRemoveChildren: fn(),
+        inputProps: {
+            "placeholder": "Type something...",
+            "aria-label": "pill input",
+        },
+    },
+} satisfies Meta<typeof PillInput>;
+
+export default meta;
+type Story = StoryObj<typeof meta>;
+
+export const Default: Story = {};
+export const NoChild: Story = { args: { children: undefined } };
diff --git a/src/shared-components/pill-input/PillInput/PillInput.test.tsx b/src/shared-components/pill-input/PillInput/PillInput.test.tsx
new file mode 100644
index 0000000000..b20b53c6e4
--- /dev/null
+++ b/src/shared-components/pill-input/PillInput/PillInput.test.tsx
@@ -0,0 +1,43 @@
+/*
+ * Copyright 2025 New Vector Ltd.
+ *
+ * SPDX-License-Identifier: AGPL-3.0-only OR GPL-3.0-only OR LicenseRef-Element-Commercial
+ * Please see LICENSE files in the repository root for full details.
+ */
+
+import { render, screen } from "jest-matrix-react";
+import React from "react";
+import { composeStories } from "@storybook/react-vite";
+import userEvent from "@testing-library/user-event";
+
+import * as stories from "./PillInput.stories";
+import { PillInput } from "./PillInput";
+
+const { Default, NoChild } = composeStories(stories);
+
+describe("PillInput", () => {
+    it("renders the pill input", () => {
+        const { container } = render(<Default />);
+        expect(container).toMatchSnapshot();
+    });
+
+    it("renders only the input without children", () => {
+        const { container } = render(<NoChild />);
+        expect(container).toMatchSnapshot();
+    });
+
+    it("calls onRemoveChildren when backspace is pressed and input is empty", async () => {
+        const user = userEvent.setup();
+        const mockOnRemoveChildren = jest.fn();
+
+        render(<PillInput onRemoveChildren={mockOnRemoveChildren} />);
+
+        const input = screen.getByRole("textbox");
+
+        // Focus the input and press backspace (input should be empty by default)
+        await user.click(input);
+        await user.keyboard("{Backspace}");
+
+        expect(mockOnRemoveChildren).toHaveBeenCalledTimes(1);
+    });
+});
diff --git a/src/shared-components/pill-input/PillInput/PillInput.tsx b/src/shared-components/pill-input/PillInput/PillInput.tsx
new file mode 100644
index 0000000000..bcb2cb1932
--- /dev/null
+++ b/src/shared-components/pill-input/PillInput/PillInput.tsx
@@ -0,0 +1,96 @@
+/*
+ * Copyright 2025 New Vector Ltd.
+ *
+ * SPDX-License-Identifier: AGPL-3.0-only OR GPL-3.0-only OR LicenseRef-Element-Commercial
+ * Please see LICENSE files in the repository root for full details.
+ */
+
+import React, {
+    type PropsWithChildren,
+    type JSX,
+    useRef,
+    type KeyboardEventHandler,
+    type HTMLAttributes,
+    type HTMLProps,
+    Children,
+} from "react";
+import classNames from "classnames";
+import { omit } from "lodash";
+import { useMergeRefs } from "react-merge-refs";
+
+import styles from "./PillInput.module.css";
+import { Flex } from "../../utils/Flex";
+
+export interface PillInputProps extends HTMLAttributes<HTMLDivElement> {
+    /**
+     * Callback for when the user presses backspace on an empty input.
+     */
+    onRemoveChildren?: KeyboardEventHandler;
+    /**
+     * Props to pass to the input element.
+     */
+    inputProps?: HTMLProps<HTMLInputElement> & { "data-testid"?: string };
+}
+
+/**
+ * An input component that can contain multiple child elements and an input field.
+ *
+ * @example
+ * ```tsx
+ * <PillInput>
+ *   <div>Child 1</div>
+ *   <div>Child 2</div>
+ * </PillInput>
+ * ```
+ */
+export function PillInput({
+    className,
+    children,
+    onRemoveChildren,
+    inputProps,
+    ...props
+}: PropsWithChildren<PillInputProps>): JSX.Element {
+    const inputRef = useRef<HTMLInputElement>(null);
+    const inputAttributes = omit(inputProps, ["onKeyDown", "ref"]);
+    const ref = useMergeRefs([inputRef, inputProps?.ref]);
+
+    const hasChildren = Children.toArray(children).length > 0;
+
+    return (
+        <Flex
+            {...props}
+            gap="var(--cpd-space-1x)"
+            direction="column"
+            className={classNames(styles.pillInput, className)}
+            onClick={(evt) => {
+                evt.preventDefault();
+                evt.stopPropagation();
+                inputRef.current?.focus();
+            }}
+        >
+            {hasChildren && (
+                <Flex gap="var(--cpd-space-1x)" wrap="wrap" align="center">
+                    {children}
+                </Flex>
+            )}
+            <input
+                ref={ref}
+                autoComplete="off"
+                className={classNames(styles.input, { [styles.largerInput]: hasChildren })}
+                onKeyDown={(evt) => {
+                    const value = evt.currentTarget.value.trim();
+
+                    // If the input is empty and the user presses backspace, we call the onRemoveChildren handler
+                    if (evt.key === "Backspace" && !value) {
+                        evt.preventDefault();
+                        onRemoveChildren?.(evt);
+                        return;
+                    }
+
+                    inputProps?.onKeyDown?.(evt);
+                }}
+                {...inputAttributes}
+            />
+        </Flex>
+    );
+}
diff --git a/src/shared-components/pill-input/PillInput/__snapshots__/PillInput.test.tsx.snap b/src/shared-components/pill-input/PillInput/__snapshots__/PillInput.test.tsx.snap
new file mode 100644
index 0000000000..7675610f6c
--- /dev/null
+++ b/src/shared-components/pill-input/PillInput/__snapshots__/PillInput.test.tsx.snap
@@ -0,0 +1,44 @@
+// Jest Snapshot v1, https://goo.gl/fbAQLP
+
+exports[`PillInput renders only the input without children 1`] = `
+<div>
+  <div
+    class="flex pillInput"
+    style="--mx-flex-display: flex; --mx-flex-direction: column; --mx-flex-align: start; --mx-flex-justify: start; --mx-flex-gap: var(--cpd-space-1x); --mx-flex-wrap: nowrap;"
+  >
+    <input
+      aria-label="pill input"
+      autocomplete="off"
+      class="input"
+      placeholder="Type something..."
+    />
+  </div>
+</div>
+`;
+
+exports[`PillInput renders the pill input 1`] = `
+<div>
+  <div
+    class="flex pillInput"
+    style="--mx-flex-display: flex; --mx-flex-direction: column; --mx-flex-align: start; --mx-flex-justify: start; --mx-flex-gap: var(--cpd-space-1x); --mx-flex-wrap: nowrap;"
+  >
+    <div
+      class="flex"
+      style="--mx-flex-display: flex; --mx-flex-direction: row; --mx-flex-align: center; --mx-flex-justify: start; --mx-flex-gap: var(--cpd-space-1x); --mx-flex-wrap: wrap;"
+    >
+      <div
+        style="min-width: 162px; height: 28px; background-color: rgb(204, 204, 204); border-radius: 99px;"
+      />
+      <div
+        style="min-width: 162px; height: 28px; background-color: rgb(204, 204, 204); border-radius: 99px;"
+      />
+    </div>
+    <input
+      aria-label="pill input"
+      autocomplete="off"
+      class="input largerInput"
+      placeholder="Type something..."
+    />
+  </div>
+</div>
+`;
diff --git a/src/shared-components/pill-input/PillInput/index.ts b/src/shared-components/pill-input/PillInput/index.ts
new file mode 100644
index 0000000000..76cb6e4625
--- /dev/null
+++ b/src/shared-components/pill-input/PillInput/index.ts
@@ -0,0 +1,8 @@
+/*
+ * Copyright 2025 New Vector Ltd.
+ *
+ * SPDX-License-Identifier: AGPL-3.0-only OR GPL-3.0-only OR LicenseRef-Element-Commercial
+ * Please see LICENSE files in the repository root for full details.
+ */
+
+export { PillInput } from "./PillInput";
diff --git a/test/unit-tests/components/views/dialogs/InviteDialog-test.tsx b/test/unit-tests/components/views/dialogs/InviteDialog-test.tsx
index 4341095614..a9774a00b5 100644
--- a/test/unit-tests/components/views/dialogs/InviteDialog-test.tsx
+++ b/test/unit-tests/components/views/dialogs/InviteDialog-test.tsx
@@ -7,7 +7,7 @@ Please see LICENSE files in the repository root for full details.
 */
 
 import React from "react";
-import { fireEvent, render, screen } from "jest-matrix-react";
+import { fireEvent, render, screen, findByText } from "jest-matrix-react";
 import userEvent from "@testing-library/user-event";
 import { RoomType, type MatrixClient, MatrixError, Room } from "matrix-js-sdk/src/matrix";
 import { KnownMembership } from "matrix-js-sdk/src/types";
@@ -401,7 +401,7 @@ describe("InviteDialog", () => {
         const btn = await screen.findByRole("option", { name: aliceId });
         fireEvent.click(btn);
 
-        const tile = await screen.findByText(aliceId, { selector: ".mx_InviteDialog_userTile_name" });
+        const tile = await findByText(screen.getByTestId("invite-dialog-input-wrapper"), aliceId);
         expect(tile).toBeInTheDocument();
     });
 
diff --git a/yarn.lock b/yarn.lock
index 1401f3bbc5..91ba2fe54d 100644
--- a/yarn.lock
+++ b/yarn.lock
@@ -13223,6 +13223,11 @@ react-is@^17.0.2:
   resolved "https://registry.yarnpkg.com/react-is/-/react-is-17.0.2.tgz#e691d4a8e9c789365655539ab372762b0efb54f0"
   integrity sha512-w2GsyukL62IJnlaff/nRegPQR94C/XXamvMWmSHRJ4y7Ts/4ocGRmTHvOs8PSE6pB3dWOrD/nueuU5sduBsQ4w==
 
+react-merge-refs@^3.0.2:
+  version "3.0.2"
+  resolved "https://registry.yarnpkg.com/react-merge-refs/-/react-merge-refs-3.0.2.tgz#483b4e8029f89d805c4e55c8d22e9b8f77e3b58e"
+  integrity sha512-MSZAfwFfdbEvwkKWP5EI5chuLYnNUxNS7vyS0i1Jp+wtd8J4Ga2ddzhaE68aMol2Z4vCnRM/oGOo1a3V75UPlw==
+
 react-property@2.0.2:
   version "2.0.2"
   resolved "https://registry.yarnpkg.com/react-property/-/react-property-2.0.2.tgz#d5ac9e244cef564880a610bc8d868bd6f60fdda6"