diff --git a/design-library/src/components/BccDialog/BccDialog.css b/design-library/src/components/BccDialog/BccDialog.css
new file mode 100644
index 00000000..a5df9d91
--- /dev/null
+++ b/design-library/src/components/BccDialog/BccDialog.css
@@ -0,0 +1,83 @@
+
+@layer components {
+    .bcc-dialog {
+        @apply relative flex flex-col gap-6 rounded-lg bg-primary p-6 text-primary shadow-xl sm:min-w-[28.5rem] sm:max-w-[28.5rem] xl:max-w-[32rem] max-h-[80vh];
+    }
+
+    /* Overlay/Wrapper */
+    .bcc-dialog-overlay-wrapper {
+        @apply fixed inset-0 z-50;
+    }
+
+    .bcc-dialog-container {
+        @apply flex h-[100dvh] w-[100dvw] items-center justify-center overflow-hidden;
+    }
+  
+    .bcc-dialog-overlay {
+        @apply fixed inset-0 bg-black/80 backdrop-blur-sm transition-opacity;
+    }
+
+    .bcc-dialog-wrapper {
+        @apply flex h-full w-full transform flex-col justify-end transition-all sm:items-center sm:justify-center p-4;
+    }
+
+    /* Header */
+    .bcc-dialog-header + .bcc-dialog-body {
+        @apply border-t border-on-primary pt-5;
+    }
+
+    /* Body */
+    .bcc-dialog-body {
+        @apply flex flex-col gap-2 overflow-y-auto;
+    }
+
+    /* Title */
+    .bcc-dialog-title {
+        @apply text-heading-lg flex justify-between items-start;
+    }
+    .bcc-dialog-close-button {
+        @apply text-black;
+    }
+    .bcc-dialog-close-icon {
+        @apply h-6 w-6;
+    }
+
+    .bcc-dialog-subtitle {
+        @apply text-caption-lg text-secondary;
+    }
+
+    /* Content */
+    .bcc-dialog-content {
+        @apply text-body overflow-y-auto py-6;
+    }
+
+    /* Footer */
+    .bcc-dialog-footer {
+        @apply sticky bottom-0 left-0 right-0 bg-primary;
+    }
+
+    .bcc-dialog-footer-content {
+        @apply mb-5;
+    }
+
+    /* Actions */
+    .bcc-dialog-actions {
+        @apply flex gap-4;
+    }
+    .bcc-dialog-secondary-action {
+        @apply flex-1 w-full;
+        button {
+            @apply w-full;
+        }
+    }
+    .bcc-dialog-primary-action {
+        @apply flex-1 w-full;
+        button {
+            @apply w-full;
+        }
+    }
+
+    .bcc-dialog-alert .bcc-dialog-actions {
+        @apply justify-center;
+    }
+}
diff --git a/design-library/src/components/BccDialog/BccDialog.spec.ts b/design-library/src/components/BccDialog/BccDialog.spec.ts
new file mode 100644
index 00000000..ded08921
--- /dev/null
+++ b/design-library/src/components/BccDialog/BccDialog.spec.ts
@@ -0,0 +1,99 @@
+import { describe, it, expect } from "vitest";
+import { mount } from "@vue/test-utils";
+import BccDialog from "./BccDialog.vue"; // replace with the actual component name
+import BccButton from "../BccButton/BccButton.vue";
+
+describe("BccDialog", () => {
+  it("renders a dialog", () => {
+    const wrapper = mount(BccDialog, {
+      props: { open: true, title: "Dialog title", subtitle: "Dialog subtitle" },
+      slots: {
+        default: "Dialog content",
+        header: "Header slot",
+        footer: "Footer slot",
+        primaryAction: "Primary action",
+        secondaryAction: "Secondary action",
+      },
+      global: {
+        renderStubDefaultSlot: true,
+      },
+      shallow: true,
+    });
+
+    expect(wrapper.text()).toContain("Header slot");
+    expect(wrapper.text()).toContain("Dialog title");
+    expect(wrapper.text()).toContain("Dialog subtitle");
+    expect(wrapper.text()).toContain("Dialog content");
+    expect(wrapper.text()).toContain("Footer slot");
+    expect(wrapper.text()).toContain("Primary action");
+    expect(wrapper.text()).toContain("Secondary action");
+  });
+
+  it("closes when the close button is clicked", async () => {
+    const wrapper = mount(BccDialog, {
+      props: { open: true },
+      slots: {
+        default: "Dialog content",
+      },
+      global: {
+        renderStubDefaultSlot: true,
+      },
+      shallow: true,
+    });
+
+    await wrapper.find(".bcc-dialog-close-button").trigger("click");
+
+    expect(wrapper.emitted("close")?.length).toBe(1);
+  });
+
+  it("doesn't show the close button when there is a header", () => {
+    const wrapper = mount(BccDialog, {
+      props: { open: true },
+      slots: {
+        default: "Dialog content",
+        header: "Header content",
+      },
+      global: {
+        renderStubDefaultSlot: true,
+      },
+      shallow: true,
+    });
+
+    expect(wrapper.html()).not.toContain("bcc-dialog-close-button");
+  });
+
+  it("renders the correct variant class", () => {
+    const wrapper = mount(BccDialog, {
+      props: { open: true, variant: "alert" },
+      slots: {
+        default: "Dialog content",
+      },
+      global: {
+        renderStubDefaultSlot: true,
+      },
+      shallow: true,
+    });
+
+    expect(wrapper.find(".bcc-dialog").classes()).toContain("bcc-dialog-alert");
+  });
+
+  it("renders the correct button context for primary action", () => {
+    const wrapper = mount(BccDialog, {
+      props: { open: true, destructive: true },
+      slots: {
+        primaryAction: "<BccButton>Primary action</BccButton>",
+      },
+      global: {
+        components: {
+          BccButton,
+        },
+        renderStubDefaultSlot: true,
+      },
+      shallow: true,
+    });
+
+    const primaryButton = wrapper.findComponent(BccButton);
+    expect(primaryButton.exists()).toBe(true);
+    expect(primaryButton.props("context")).toBe("danger");
+  });
+});
diff --git a/design-library/src/components/BccDialog/BccDialog.stories.ts b/design-library/src/components/BccDialog/BccDialog.stories.ts
new file mode 100644
index 00000000..506f8f67
--- /dev/null
+++ b/design-library/src/components/BccDialog/BccDialog.stories.ts
@@ -0,0 +1,132 @@
+import BccButton from "../BccButton/BccButton.vue";
+import BccDialog from "./BccDialog.vue";
+
+import type { Meta, StoryFn } from "@storybook/vue3";
+
+export default {
+  title: "Common/BccDialog",
+  component: BccDialog,
+  argTypes: {
+    variant: {
+      control: { type: "select" },
+      options: ["action", "alert"],
+    },
+    destructive: {
+      control: { type: "boolean" },
+    },
+  },
+} as Meta<typeof BccDialog>;
+
+const Template: StoryFn<typeof BccDialog> = (args) => ({
+  components: { BccDialog, BccButton },
+  setup() {
+    return { args };
+  },
+  template: `
+    <div>
+      <BccDialog v-bind="args" @close="args.open = false">
+          <template #default>
+            <span v-if="args.slotDefault">
+              {{ args.slotDefault }}
+            </span>
+            <span v-else>
+              Lorem ipsum dolor sit amet, consectetur adipiscing elit. Suspendisse ac posuere turpis. Orci varius natoque penatibus et magnis dis parturient montes, nascetur ridiculus mus.
+            </span>
+          </template>
+
+          <template v-if="args.variant === 'action' && args.slotSecondaryAction" #secondaryAction>
+            <BccButton variant="secondary" @click="args.open = false">
+              {{ args.secondaryActionText || "Cancel" }}
+            </BccButton>
+          </template>
+
+          <template v-if="args.slotPrimaryAction" #primaryAction>
+            <BccButton :context="args.destructive ? 'danger' : 'default'" @click="args.open = false">
+              {{ args.primaryActionText || "Submit" }}
+            </BccButton>
+          </template>
+      </BccDialog>
+
+      <BccButton variant="secondary" @click="args.open=true">Open dialog</BccButton>
+    </div>
+  `,
+});
+
+// Default story
+export const Default = Template.bind({});
+Default.args = {
+  open: false,
+  title: "Question?",
+  subtitle: "Subtitle if needed",
+  closeButton: true,
+  variant: "action",
+  destructive: false,
+  slotDefault: "",
+  slotSecondaryAction: true,
+  slotPrimaryAction: true,
+};
+Default.parameters = {
+  docs: {
+    source: {
+      language: "html",
+      code: `
+<BccDialog title="Here is the question?" :open="showDialog" @close="showDialog = false">
+  Do you want to update something?
+
+  <template #secondaryAction>
+    <BccButton variant="secondary" @click="showDialog = false">Cancel</BccButton>
+  </template>
+
+  <template #primaryAction>
+    <BccButton @click="showDialog = false">Submit</BccButton>
+  </template>
+</BccDialog>
+      `,
+    },
+  },
+};
+
+export const ActionVariant = Template.bind({});
+ActionVariant.args = {
+  ...Default.args,
+  variant: "action",
+  destructive: false,
+};
+
+export const DestructiveAction = Template.bind({});
+DestructiveAction.args = {
+  ...Default.args,
+  variant: "action",
+  destructive: true,
+};
+
+export const DestructiveAlert = Template.bind({});
+DestructiveAlert.args = {
+  ...Default.args,
+  variant: "alert",
+  destructive: true, // Enforce destructive for alert
+};
+
+export const NoActions = Template.bind({});
+NoActions.args = {
+  open: false,
+  title: "Question?",
+  closeButton: true,
+  variant: "action",
+  destructive: false,
+  slotDefault: "",
+  slotSecondaryAction: false,
+  slotPrimaryAction: false,
+};
+NoActions.parameters = {
+  docs: {
+    source: {
+      language: "html",
+      code: `
+<BccDialog title="Here is the question?" :open="showDialog" @close="showDialog = false">
+  Do you want to update something?
+</BccDialog>
+      `,
+    },
+  },
+};
diff --git a/design-library/src/components/BccDialog/BccDialog.vue b/design-library/src/components/BccDialog/BccDialog.vue
new file mode 100644
index 00000000..a987e157
--- /dev/null
+++ b/design-library/src/components/BccDialog/BccDialog.vue
@@ -0,0 +1,131 @@
+<script setup lang="ts">
+import { Dialog, DialogPanel, DialogTitle, TransitionChild, TransitionRoot } from "@headlessui/vue";
+import { CloseIcon } from "@bcc-code/icons-vue";
+import BccButton from "../BccButton/BccButton.vue";
+import { computed, useSlots } from "vue";
+
+// eslint-disable-next-line no-undef
+defineOptions({
+  inheritAttrs: false,
+});
+
+type Props = {
+  open: boolean;
+  title?: string;
+  subtitle?: string;
+  closeButton?: boolean;
+  variant?: keyof typeof variants;
+  destructive?: boolean;
+};
+
+const props = withDefaults(defineProps<Props>(), {
+  open: false,
+  closeButton: true,
+  variant: "action",
+  destructive: false,
+});
+
+const emit = defineEmits(["close"]);
+
+const slots = useSlots();
+const showCloseButton = computed(
+  () => props.closeButton && !slots.header && props.variant !== "alert"
+);
+const primaryActionVariant = computed(() =>
+  props.variant === "alert" || props.destructive ? "danger" : "default"
+);
+
+const variants = {
+  action: "bcc-dialog-action",
+  alert: "bcc-dialog-alert",
+};
+</script>
+
+<template>
+  <TransitionRoot as="template" :show="open">
+    <Dialog as="div" class="bcc-dialog-overlay-wrapper" @close="emit('close')">
+      <div class="bcc-dialog-container">
+        <TransitionChild
+          as="div"
+          enter="ease-out duration-300"
+          enter-from="opacity-0"
+          enter-to="opacity-100"
+          leave="ease-in duration-200"
+          leave-from="opacity-100"
+          leave-to="opacity-0"
+        >
+          <div class="bcc-dialog-overlay" />
+        </TransitionChild>
+
+        <TransitionChild
+          as="template"
+          enter="ease-out duration-300"
+          enter-from="opacity-0 translate-y-4 sm:translate-y-0 sm:scale-95"
+          enter-to="opacity-100 translate-y-0 sm:scale-100"
+          leave="ease-in duration-200"
+          leave-from="opacity-100 translate-y-0 sm:scale-100"
+          leave-to="opacity-0 translate-y-4 sm:translate-y-0 sm:scale-95"
+        >
+          <div class="bcc-dialog-wrapper">
+            <DialogPanel :class="['bcc-dialog', variants[variant]]" v-bind="$attrs">
+              <div class="bcc-dialog-header" v-if="$slots.header">
+                <slot name="header" />
+              </div>
+
+              <div class="bcc-dialog-body" v-if="title || showCloseButton || slots.default">
+                <div class="bcc-dialog-title">
+                  <DialogTitle as="h3">{{ title }}</DialogTitle>
+                  <button
+                    v-if="showCloseButton"
+                    @click.prevent="emit('close')"
+                    class="bcc-dialog-close-button"
+                    aria-label="Close modal window"
+                  >
+                    <CloseIcon class="bcc-dialog-close-icon" />
+                  </button>
+                </div>
+                <p v-if="subtitle" class="bcc-dialog-subtitle">{{ subtitle }}</p>
+
+                <div class="bcc-dialog-content">
+                  <slot />
+                </div>
+              </div>
+
+              <hr />
+
+              <div class="bcc-dialog-footer">
+                <div class="bcc-dialog-footer-content" v-if="$slots.footer">
+                  <slot name="footer" />
+                </div>
+
+                <div class="bcc-dialog-actions">
+                  <div class="bcc-dialog-secondary-action" v-if="variant === 'action'">
+                    <slot name="secondaryAction">
+                      <BccButton
+                        variant="secondary"
+                        :context="primaryActionVariant"
+                        @click="emit('close')"
+                      >
+                        Cancel
+                      </BccButton>
+                    </slot>
+                  </div>
+                  <div
+                    class="bcc-dialog-primary-action"
+                    :class="{ 'w-full': variant === 'alert' || !$slots.secondaryAction }"
+                  >
+                    <slot name="primaryAction">
+                      <BccButton :context="primaryActionVariant" @click="emit('close')">
+                        Submit
+                      </BccButton>
+                    </slot>
+                  </div>
+                </div>
+              </div>
+            </DialogPanel>
+          </div>
+        </TransitionChild>
+      </div>
+    </Dialog>
+  </TransitionRoot>
+</template>
diff --git a/design-library/src/css/index.css b/design-library/src/css/index.css
index 429d60eb..3326f699 100644
--- a/design-library/src/css/index.css
+++ b/design-library/src/css/index.css
@@ -34,3 +34,4 @@
 @import "../components/BccTooltip/BccTooltip.css";
 @import "../components/BccAccordion/BccAccordion.css";
 @import "../components/BccPagination/BccPagination.css";
+@import "../components/BccDialog/BccDialog.css";
diff --git a/design-library/src/index.ts b/design-library/src/index.ts
index a7d22e6d..e9bf2260 100644
--- a/design-library/src/index.ts
+++ b/design-library/src/index.ts
@@ -41,3 +41,4 @@ export { default as BccStepper } from "./components/BccStepper/BccStepper.vue";
 export { default as BccTooltip } from "./components/BccTooltip/BccTooltip.vue";
 export { default as BccAccordion } from "./components/BccAccordion/BccAccordion.vue";
 export { default as BccPagination } from "./components/BccPagination/BccPagination.vue";
+export { default as BccDialog } from "./components/BccDialog/BccDialog.vue";