diff --git a/.changeset/dull-readers-relate.md b/.changeset/dull-readers-relate.md
new file mode 100644
index 00000000000..f3232f8e393
--- /dev/null
+++ b/.changeset/dull-readers-relate.md
@@ -0,0 +1,5 @@
+---
+"@siemens/ix": major
+---
+
+Removed the left margin for **ix-chip** and **ix-pill**. This margin was also present if there was no leading sibling that is also a chip/pill causing it to waste screen real estate and distort layout alignments.
diff --git a/packages/core/src/components/chip/chip.scss b/packages/core/src/components/chip/chip.scss
index 79745ec9a24..4cbe492e0c4 100644
--- a/packages/core/src/components/chip/chip.scss
+++ b/packages/core/src/components/chip/chip.scss
@@ -16,7 +16,6 @@
   position: relative;
   height: 2rem;
   max-height: 2rem;
-  margin-left: vars.$tiny-space;
 
   @include component.ix-component;
 }
diff --git a/packages/core/src/components/pill/pill.scss b/packages/core/src/components/pill/pill.scss
index 2bb4c5efe06..ec8ae36aa4d 100644
--- a/packages/core/src/components/pill/pill.scss
+++ b/packages/core/src/components/pill/pill.scss
@@ -16,7 +16,6 @@
   position: relative;
   height: 1.25rem;
   max-height: 1.25rem;
-  margin-left: 0.25rem;
 
   @include component.ix-component;
 }
diff --git a/testing/visual-testing/__screenshots__/tests/blind/blind.e2e.ts/blind-custom-header-1-chromium---classic-dark-linux.png b/testing/visual-testing/__screenshots__/tests/blind/blind.e2e.ts/blind-custom-header-1-chromium---classic-dark-linux.png
index db281c89528..7f162e5f635 100644
Binary files a/testing/visual-testing/__screenshots__/tests/blind/blind.e2e.ts/blind-custom-header-1-chromium---classic-dark-linux.png and b/testing/visual-testing/__screenshots__/tests/blind/blind.e2e.ts/blind-custom-header-1-chromium---classic-dark-linux.png differ
diff --git a/testing/visual-testing/__screenshots__/tests/blind/blind.e2e.ts/blind-custom-header-1-chromium---classic-light-linux.png b/testing/visual-testing/__screenshots__/tests/blind/blind.e2e.ts/blind-custom-header-1-chromium---classic-light-linux.png
index b9d6fcc587b..f6c8339dff7 100644
Binary files a/testing/visual-testing/__screenshots__/tests/blind/blind.e2e.ts/blind-custom-header-1-chromium---classic-light-linux.png and b/testing/visual-testing/__screenshots__/tests/blind/blind.e2e.ts/blind-custom-header-1-chromium---classic-light-linux.png differ
diff --git a/testing/visual-testing/tests/chip/basic/index.html b/testing/visual-testing/tests/chip/basic/index.html
index eec1bd5512c..51a656f0192 100644
--- a/testing/visual-testing/tests/chip/basic/index.html
+++ b/testing/visual-testing/tests/chip/basic/index.html
@@ -13,6 +13,11 @@
       content="width=device-width, initial-scale=1.0, minimum-scale=1.0, maximum-scale=5.0"
     />
     <title>Stencil Component Starter</title>
+    <style>
+      ix-chip {
+        margin-left: 0.25rem;
+      }
+    </style>
     <script type="module">
       import { addIcons } from '@siemens/ix-icons';
       import { iconPrint } from '@siemens/ix-icons/icons';
@@ -36,8 +41,12 @@
         Primary
       </ix-chip>
 
-      <ix-chip variant="critical" closable outline> Critical </ix-chip>
-      <ix-chip variant="alarm" icon="print"> Alarm with icon </ix-chip>
+      <ix-chip variant="critical" closable outline>
+        Critical
+      </ix-chip>
+      <ix-chip variant="alarm" icon="print">
+        Alarm with icon
+      </ix-chip>
       <ix-chip
         variant="alarm"
         icon="print"
@@ -79,15 +88,27 @@
           max-width: 300px;
         "
       >
-        <ix-chip icon="print" variant="primary" outline closable
-          >Primary</ix-chip
+        <ix-chip icon="print" variant="primary" outline closable>
+          Primary
+        </ix-chip>
+        <ix-chip icon="print" variant="alarm" outline closable>
+          Alarm
+        </ix-chip>
+        <ix-chip icon="print" variant="critical" outline>
+          Critical
+        </ix-chip>
+        <ix-chip icon="print" variant="warning" outline>
+          Warning
+        </ix-chip>
+        <ix-chip icon="print" variant="info" outline>
+          Info
+        </ix-chip>
+        <ix-chip icon="print" variant="success" outline>
+          Success
+        </ix-chip>
+        <ix-chip icon="print" variant="neutral" outline class="chip-left-margin"
+          >Neutral</ix-chip
         >
-        <ix-chip icon="print" variant="alarm" outline closable>Alarm</ix-chip>
-        <ix-chip icon="print" variant="critical" outline>Critical</ix-chip>
-        <ix-chip icon="print" variant="warning" outline>Warning</ix-chip>
-        <ix-chip icon="print" variant="info" outline>Info</ix-chip>
-        <ix-chip icon="print" variant="success" outline>Success</ix-chip>
-        <ix-chip icon="print" variant="neutral" outline>Neutral</ix-chip>
         <ix-chip
           icon="print"
           variant="custom"
diff --git a/testing/visual-testing/tests/chip/custom/index.html b/testing/visual-testing/tests/chip/custom/index.html
index bc430360ed4..441bfec5e99 100644
--- a/testing/visual-testing/tests/chip/custom/index.html
+++ b/testing/visual-testing/tests/chip/custom/index.html
@@ -13,6 +13,11 @@
       content="width=device-width, initial-scale=1.0, minimum-scale=1.0, maximum-scale=5.0"
     />
     <title>Stencil Component Starter</title>
+    <style>
+      ix-chip {
+        margin-left: 0.25rem;
+      }
+    </style>
     <script type="module">
       import { addIcons } from '@siemens/ix-icons';
       import { iconPrint } from '@siemens/ix-icons/icons';
diff --git a/testing/visual-testing/tests/content-header/basic/index.html b/testing/visual-testing/tests/content-header/basic/index.html
index dc281f4e19f..1d877dc1404 100644
--- a/testing/visual-testing/tests/content-header/basic/index.html
+++ b/testing/visual-testing/tests/content-header/basic/index.html
@@ -17,6 +17,9 @@
       .margin-top {
         margin-top: 0.375rem;
       }
+      ix-pill {
+        margin-left: 0.25rem;
+      }
     </style>
     <script type="module">
       import { addIcons } from '@siemens/ix-icons';
diff --git a/testing/visual-testing/tests/content-header/secondary/index.html b/testing/visual-testing/tests/content-header/secondary/index.html
index 50dedb02d55..96fee1d83fe 100644
--- a/testing/visual-testing/tests/content-header/secondary/index.html
+++ b/testing/visual-testing/tests/content-header/secondary/index.html
@@ -17,6 +17,9 @@
       .margin-top {
         margin-top: 0.375rem;
       }
+      ix-pill {
+        margin-left: 0.25rem;
+      }
     </style>
     <script type="module">
       import { addIcons } from '@siemens/ix-icons';
diff --git a/testing/visual-testing/tests/pill/basic/index.html b/testing/visual-testing/tests/pill/basic/index.html
index 031743187b8..c7fa8db1b57 100644
--- a/testing/visual-testing/tests/pill/basic/index.html
+++ b/testing/visual-testing/tests/pill/basic/index.html
@@ -13,6 +13,11 @@
       content="width=device-width, initial-scale=1.0, minimum-scale=1.0, maximum-scale=5.0"
     />
     <title>Stencil Component Starter</title>
+    <style>
+     ix-pill {
+        margin-left: 0.25rem;
+      }
+    </style>
     <script type="module">
       import { addIcons } from '@siemens/ix-icons';
       import { iconPrint } from '@siemens/ix-icons/icons';
@@ -23,50 +28,43 @@
     </script>
   </head>
   <body>
-    <div
-      style="
-        display: flex;
-        justify-content: center;
-        position: relative;
-        margin-top: 2rem;
-      "
-    >
-      <ix-pill outline> Primary </ix-pill>
-      <ix-pill icon="print">Primary with icon</ix-pill>
-      <ix-pill icon="print" style="width: 10rem" onClose="{console.log}">
-        Primary
-      </ix-pill>
-
-      <ix-pill variant="critical" icon="print" outline> Critical </ix-pill>
-      <ix-pill variant="alarm" icon="print"> Alarm with icon </ix-pill>
-      <ix-pill
-        variant="alarm"
+    <div style="text-align: center; margin-top: 2rem">
+      <ix-pill outline> Primary </ix-pill
+      ><ix-pill icon="print">Primary with icon</ix-pill
+      ><ix-pill
         icon="print"
         style="width: 10rem"
         onClose="{console.log}"
+        >Primary</ix-pill
+      ><ix-pill
+        variant="critical"
+        icon="print"
+        outline
       >
-        Alarm
-      </ix-pill>
-      <ix-pill
+        Critical </ix-pill
+      ><ix-pill variant="alarm" icon="print">
+        Alarm with icon </ix-pill
+      ><ix-pill
+        variant="alarm"
+        icon="print"
+        style="width: 10rem"
+        onClose="{console.log}"
+        >Alarm</ix-pill
+      ><ix-pill
         variant="warning"
         icon="print"
         style="width: 10rem"
         onClose="{console.log}"
-      >
-        Warning
-      </ix-pill>
-      <ix-pill
+        >Warning</ix-pill
+      ><ix-pill
         background="purple"
         pill-color="green"
         variant="custom"
         icon="print"
         style="width: 10rem"
         onClose="{console.log}"
-      >
-        Custom
-      </ix-pill>
-
-      <ix-pill
+        >Custom</ix-pill
+      ><ix-pill
         background="purple"
         pill-color="green"
         variant="custom"
@@ -74,55 +72,43 @@
         style="width: 10rem"
         onClose="{console.log}"
         outline
+        >Custom</ix-pill
       >
-        Custom
-      </ix-pill>
     </div>
 
-    <div
-      style="
-        display: flex;
-        justify-content: center;
-        position: relative;
-        margin-top: 2rem;
-      "
-    >
-      <ix-pill align-left outline> Primary </ix-pill>
-      <ix-pill align-left icon="print">Primary with icon</ix-pill>
-      <ix-pill
+    <div style="text-align: center; margin-top: 2rem">
+      <ix-pill align-left outline> Primary </ix-pill
+      ><ix-pill align-left icon="print"
+        >Primary with icon</ix-pill
+      ><ix-pill
         align-left
         icon="print"
         style="width: 10rem"
         onClose="{console.log}"
-      >
-        Primary
-      </ix-pill>
-
-      <ix-pill align-left variant="critical" icon="print" outline>
-        Critical
-      </ix-pill>
-      <ix-pill align-left variant="alarm" icon="print">
-        Alarm with icon
-      </ix-pill>
-      <ix-pill
+        >Primary</ix-pill
+      ><ix-pill
+        align-left
+        variant="critical"
+        icon="print"
+        outline
+        >Critical</ix-pill
+      ><ix-pill align-left variant="alarm" icon="print"
+        >Alarm with icon</ix-pill
+      ><ix-pill
         align-left
         variant="alarm"
         icon="print"
         style="width: 10rem"
         onClose="{console.log}"
-      >
-        Alarm
-      </ix-pill>
-      <ix-pill
+        >Alarm</ix-pill
+      ><ix-pill
         align-left
         variant="warning"
         icon="print"
         style="width: 10rem"
         onClose="{console.log}"
-      >
-        Alarm
-      </ix-pill>
-      <ix-pill
+        >Alarm</ix-pill
+      ><ix-pill
         align-left
         background="purple"
         pill-color="green"
@@ -130,11 +116,8 @@
         icon="print"
         style="width: 10rem"
         onClose="{console.log}"
-      >
-        Custom
-      </ix-pill>
-
-      <ix-pill
+        >Custom</ix-pill
+      ><ix-pill
         align-left
         background="purple"
         pill-color="green"
@@ -143,9 +126,8 @@
         style="width: 10rem"
         onClose="{console.log}"
         outline
+        >Custom</ix-pill
       >
-        Custom
-      </ix-pill>
     </div>
     <div
       style="
@@ -167,9 +149,20 @@
         margin-top: 2rem;
       "
     >
-      <ix-pill align-left icon="print" style="width: 10rem"></ix-pill>
-      <ix-pill outline align-left icon="print" style="width: 10rem"></ix-pill>
-      <ix-pill align-left style="width: 10rem">Primary</ix-pill>
+      <ix-pill
+        align-left
+        icon="print"
+        style="width: 10rem"
+      ></ix-pill>
+      <ix-pill
+        outline
+        align-left
+        icon="print"
+        style="width: 10rem"
+      ></ix-pill>
+      <ix-pill align-left style="width: 10rem"
+        >Primary</ix-pill
+      >
     </div>
     <div style="text-align: center; margin-top: 2rem">
       <ix-pill>Label</ix-pill>