diff --git a/ui/components/component-library/avatar-icon/README.mdx b/ui/components/component-library/avatar-icon/README.mdx
new file mode 100644
index 000000000..0963998e1
--- /dev/null
+++ b/ui/components/component-library/avatar-icon/README.mdx
@@ -0,0 +1,97 @@
+import { Story, Canvas, ArgsTable } from '@storybook/addon-docs';
+
+import { AvatarBase } from '../';
+import { AvatarIcon } from './avatar-icon';
+
+# AvatarIcon
+
+The `AvatarIcon` is an avatar component that renders only an icon inside and is built off the [AvatarBase](/docs/ui-components-component-library-avatar-base-avatar-base-stories-js--default-story#props) component
+
+<Canvas>
+  <Story id="ui-components-component-library-avatar-icon-avatar-icon-stories-js--default-story" />
+</Canvas>
+
+## Props
+
+The `AvatarIcon` accepts all props below as well as all [Box](/docs/ui-components-ui-box-box-stories-js--default-story) component props
+
+<ArgsTable of={AvatarIcon} />
+
+`AvatarIcon` accepts all [AvatarBase](/docs/ui-components-component-library-avatar-base-avatar-base-stories-js--default-story#props)
+component props
+
+<ArgsTable of={AvatarBase} />
+
+### Size
+
+Use the `size` prop and the `SIZES` object from `./ui/helpers/constants/design-system.js` to change the size of `AvatarIcon`
+
+Optional: `AVATAR_ICON_SIZES` from `./ui/components/component-library` object can be used instead of `SIZES`
+
+Possible sizes include:
+
+- `SIZES.XS` 16px
+- `SIZES.SM` 24px
+- `SIZES.MD` 32px
+- `SIZES.LG` 40px
+- `SIZES.XL` 48px
+
+Defaults to `SIZES.MD`
+
+<Canvas>
+  <Story id="ui-components-component-library-avatar-icon-avatar-icon-stories-js--size" />
+</Canvas>
+
+```jsx
+import { SIZES } from '../../../helpers/constants/design-system';
+import { AvatarIcon, ICON_NAMES } from '../ui/component-library';
+
+<AvatarIcon size={SIZES.XS} />
+<AvatarIcon size={SIZES.SM} />
+<AvatarIcon size={SIZES.MD} />
+<AvatarIcon size={SIZES.LG} />
+<AvatarIcon size={SIZES.XL} />
+```
+
+### Icon Name<span style={{ color: 'red' }}>\*</span>
+
+Use the required `iconName` prop with `ICON_NAMES` object from `./ui/components/component-library` to select icon
+
+Use the [IconSearch](/story/ui-components-component-library-icon-icon-stories-js--default-story) story to find the icon you want to use.
+
+<Canvas>
+  <Story id="ui-components-component-library-avatar-icon-avatar-icon-stories-js--icon-name" />
+</Canvas>
+
+```jsx
+import { AvatarIcon, ICON_NAMES } from '../ui/component-library';
+
+<AvatarIcon iconName={ICON_NAMES.SWAP_HORIZONTAL_OUTLINE} />
+<AvatarIcon iconName={ICON_NAMES.CHECK_CIRCLE_ON_FILLED} />
+<AvatarIcon iconName={ICON_NAMES.INFO_FILLED} />
+<AvatarIcon iconName={ICON_NAMES.WARNING_FILLED} />
+<AvatarIcon iconName={ICON_NAMES.DANGER_FILLED} />
+```
+
+### Color and Background Color
+
+Use the `color` and `backgroundColor` props with the `COLORS` object from `./ui/helpers/constants/design-system.js` to change the icon color and background color of `AvatarIcon`
+
+`color` default: `COLORS.COLORS.PRIMARY_DEFAULT`
+`backgroundColor` default: `COLORS.COLORS.PRIMARY_MUTED`
+
+<Canvas>
+  <Story id="ui-components-component-library-avatar-icon-avatar-icon-stories-js--color-and-background-color" />
+</Canvas>
+
+```jsx
+import { COLORS } from '../../../helpers/constants/design-system';
+import { AvatarIcon } from '../ui/component-library';
+
+<AvatarIcon color={COLORS.PRIMARY_DEFAULT} backgroundColor={BACKGROUND_COLORS.PRIMARY_MUTED} />
+<AvatarIcon color={COLORS.PRIMARY_INVERSE} backgroundColor={BACKGROUND_COLORS.PRIMARY_DEFAULT} />
+<AvatarIcon color={COLORS.SUCCESS_DEFAULT} backgroundColor={BACKGROUND_COLORS.SUCCESS_MUTED} />
+<AvatarIcon color={COLORS.INFO_DEFAULT} backgroundColor={BACKGROUND_COLORS.INFO_MUTED} />
+<AvatarIcon color={COLORS.WARNING_DEFAULT} backgroundColor={BACKGROUND_COLORS.WARNING_MUTED} />
+<AvatarIcon color={COLORS.ERROR_DEFAULT} backgroundColor={BACKGROUND_COLORS.ERROR_MUTED} />
+```
diff --git a/ui/components/component-library/avatar-icon/__snapshots__/avatar-icon.test.js.snap b/ui/components/component-library/avatar-icon/__snapshots__/avatar-icon.test.js.snap
new file mode 100644
index 000000000..94ba48ffc
--- /dev/null
+++ b/ui/components/component-library/avatar-icon/__snapshots__/avatar-icon.test.js.snap
@@ -0,0 +1,15 @@
+// Jest Snapshot v1, https://goo.gl/fbAQLP
+
+exports[`AvatarIcon should render correctly 1`] = `
+<div>
+  <div
+    class="box mm-avatar-base mm-avatar-base--size-md mm-avatar-icon box--display-flex box--flex-direction-row box--justify-content-center box--align-items-center box--color-primary-default box--background-color-primary-muted box--border-color-transparent box--border-style-solid box--border-width-1"
+    data-testid="avatar-icon"
+  >
+    <div
+      class="box mm-icon mm-icon--size-md box--flex-direction-row box--color-inherit"
+      style="mask-image: url('./images/icons/icon-swap-horizontal-outline.svg');"
+    />
+  </div>
+</div>
+`;
diff --git a/ui/components/component-library/avatar-icon/avatar-icon.constants.js b/ui/components/component-library/avatar-icon/avatar-icon.constants.js
new file mode 100644
index 000000000..a65ebe01c
--- /dev/null
+++ b/ui/components/component-library/avatar-icon/avatar-icon.constants.js
@@ -0,0 +1,9 @@
+import { SIZES } from '../../../helpers/constants/design-system';
+
+export const AVATAR_ICON_SIZES = {
+  XS: SIZES.XS,
+  SM: SIZES.SM,
+  MD: SIZES.MD,
+  LG: SIZES.LG,
+  XL: SIZES.XL,
+};
diff --git a/ui/components/component-library/avatar-icon/avatar-icon.js b/ui/components/component-library/avatar-icon/avatar-icon.js
new file mode 100644
index 000000000..b362e0174
--- /dev/null
+++ b/ui/components/component-library/avatar-icon/avatar-icon.js
@@ -0,0 +1,81 @@
+import React from 'react';
+import PropTypes from 'prop-types';
+import classnames from 'classnames';
+import {
+  COLORS,
+  BORDER_COLORS,
+  SIZES,
+  DISPLAY,
+  ALIGN_ITEMS,
+  JUSTIFY_CONTENT,
+} from '../../../helpers/constants/design-system';
+
+import Box from '../../ui/box/box';
+
+import { Icon } from '../icon';
+import { AvatarBase } from '../avatar-base';
+
+import { AVATAR_ICON_SIZES } from './avatar-icon.constants';
+
+export const AvatarIcon = ({
+  size = SIZES.MD,
+  color = COLORS.PRIMARY_DEFAULT,
+  backgroundColor = COLORS.PRIMARY_MUTED,
+  className,
+  iconProps,
+  iconName,
+  ...props
+}) => {
+  return (
+    <AvatarBase
+      size={size}
+      display={DISPLAY.FLEX}
+      alignItems={ALIGN_ITEMS.CENTER}
+      justifyContent={JUSTIFY_CONTENT.CENTER}
+      color={color}
+      backgroundColor={backgroundColor}
+      borderColor={BORDER_COLORS.TRANSPARENT}
+      className={classnames('mm-avatar-icon', className)}
+      {...props}
+    >
+      <Icon color={COLORS.INHERIT} name={iconName} size={size} {...iconProps} />
+    </AvatarBase>
+  );
+};
+
+AvatarIcon.propTypes = {
+  /**
+   *
+   * The name of the icon to display. Should be one of ICON_NAMES
+   */
+  iconName: PropTypes.string.isRequired, // Can't set PropTypes.oneOf(ICON_NAMES) because ICON_NAMES is an environment variable
+  /**
+   * Props for the icon inside AvatarIcon. All Icon props can be used
+   */
+  iconProps: PropTypes.shape(Icon.PropTypes),
+  /**
+   * The size of the AvatarIcon
+   * Possible values could be 'SIZES.XS' 16px, 'SIZES.SM' 24px, 'SIZES.MD' 32px, 'SIZES.LG' 40px, 'SIZES.XL' 48px
+   * Defaults to SIZES.MD
+   */
+  size: PropTypes.oneOf(Object.values(AVATAR_ICON_SIZES)),
+  /**
+   * The background color of the AvatarIcon
+   * Defaults to COLORS.PRIMARY_MUTED
+   */
+  backgroundColor: Box.propTypes.backgroundColor,
+  /**
+   * The color of the text inside the AvatarIcon
+   * Defaults to COLORS.PRIMARY_DEFAULT
+   */
+  color: Box.propTypes.color,
+  /**
+   * Additional classNames to be added to the AvatarIcon
+   */
+  className: PropTypes.string,
+  /**
+   * AvatarIcon also accepts all Box props including but not limited to
+   * className, as(change root element of HTML element) and margin props
+   */
+  ...Box.propTypes,
+};
diff --git a/ui/components/component-library/avatar-icon/avatar-icon.stories.js b/ui/components/component-library/avatar-icon/avatar-icon.stories.js
new file mode 100644
index 000000000..399b9d8ff
--- /dev/null
+++ b/ui/components/component-library/avatar-icon/avatar-icon.stories.js
@@ -0,0 +1,185 @@
+import React from 'react';
+import {
+  SIZES,
+  DISPLAY,
+  ALIGN_ITEMS,
+  COLORS,
+  BACKGROUND_COLORS,
+} from '../../../helpers/constants/design-system';
+
+import Box from '../../ui/box/box';
+
+import { ICON_NAMES } from '..';
+
+import README from './README.mdx';
+import { AvatarIcon, AVATAR_ICON_SIZES } from '.';
+
+const marginSizeControlOptions = [
+  undefined,
+  0,
+  1,
+  2,
+  3,
+  4,
+  5,
+  6,
+  7,
+  8,
+  9,
+  10,
+  11,
+  12,
+  'auto',
+];
+
+export default {
+  title: 'Components/ComponentLibrary/AvatarIcon',
+  id: __filename,
+  component: AvatarIcon,
+  parameters: {
+    docs: {
+      page: README,
+    },
+  },
+  argTypes: {
+    iconName: {
+      options: Object.values(ICON_NAMES),
+      control: 'select',
+    },
+    size: {
+      control: 'select',
+      options: Object.values(AVATAR_ICON_SIZES),
+    },
+    backgroundColor: {
+      control: 'select',
+      options: Object.values(BACKGROUND_COLORS),
+    },
+    color: {
+      control: 'select',
+      options: Object.values(COLORS),
+    },
+    className: {
+      control: 'text',
+    },
+    marginTop: {
+      options: marginSizeControlOptions,
+      control: 'select',
+      table: { category: 'box props' },
+    },
+    marginRight: {
+      options: marginSizeControlOptions,
+      control: 'select',
+      table: { category: 'box props' },
+    },
+    marginBottom: {
+      options: marginSizeControlOptions,
+      control: 'select',
+      table: { category: 'box props' },
+    },
+    marginLeft: {
+      options: marginSizeControlOptions,
+      control: 'select',
+      table: { category: 'box props' },
+    },
+  },
+  args: {
+    size: SIZES.MD,
+  },
+};
+
+const Template = (args) => {
+  return <AvatarIcon iconName={ICON_NAMES.SWAP_HORIZONTAL_OUTLINE} {...args} />;
+};
+
+export const DefaultStory = Template.bind({});
+DefaultStory.storyName = 'Default';
+
+export const Size = (args) => (
+  <Box display={DISPLAY.FLEX} alignItems={ALIGN_ITEMS.BASELINE} gap={1}>
+    <AvatarIcon {...args} size={SIZES.XS} />
+    <AvatarIcon {...args} size={SIZES.SM} />
+    <AvatarIcon {...args} size={SIZES.MD} />
+    <AvatarIcon {...args} size={SIZES.LG} />
+    <AvatarIcon {...args} size={SIZES.XL} />
+  </Box>
+);
+
+Size.args = {
+  iconName: ICON_NAMES.CHECK_CIRCLE_ON_FILLED,
+};
+
+export const IconName = (args) => (
+  <Box display={DISPLAY.FLEX} gap={1}>
+    <AvatarIcon
+      color={COLORS.PRIMARY_DEFAULT}
+      backgroundColor={BACKGROUND_COLORS.PRIMARY_MUTED}
+      iconName={ICON_NAMES.SWAP_HORIZONTAL_OUTLINE}
+      {...args}
+    />
+    <AvatarIcon
+      color={COLORS.SUCCESS_DEFAULT}
+      backgroundColor={BACKGROUND_COLORS.SUCCESS_MUTED}
+      iconName={ICON_NAMES.CHECK_CIRCLE_ON_FILLED}
+      {...args}
+    />
+    <AvatarIcon
+      color={COLORS.INFO_DEFAULT}
+      backgroundColor={BACKGROUND_COLORS.INFO_MUTED}
+      iconName={ICON_NAMES.INFO_FILLED}
+      {...args}
+    />
+    <AvatarIcon
+      color={COLORS.WARNING_DEFAULT}
+      backgroundColor={BACKGROUND_COLORS.WARNING_MUTED}
+      iconName={ICON_NAMES.WARNING_FILLED}
+      {...args}
+    />
+    <AvatarIcon
+      color={COLORS.ERROR_DEFAULT}
+      backgroundColor={BACKGROUND_COLORS.ERROR_MUTED}
+      iconName={ICON_NAMES.DANGER_FILLED}
+      {...args}
+    />
+  </Box>
+);
+
+export const ColorAndBackgroundColor = (args) => (
+  <Box display={DISPLAY.FLEX} gap={1}>
+    <AvatarIcon
+      color={COLORS.PRIMARY_DEFAULT}
+      backgroundColor={BACKGROUND_COLORS.PRIMARY_MUTED}
+      iconName={ICON_NAMES.SWAP_HORIZONTAL_OUTLINE}
+      {...args}
+    />
+    <AvatarIcon
+      color={COLORS.PRIMARY_INVERSE}
+      backgroundColor={BACKGROUND_COLORS.PRIMARY_DEFAULT}
+      iconName={ICON_NAMES.SWAP_HORIZONTAL_OUTLINE}
+      {...args}
+    />
+    <AvatarIcon
+      color={COLORS.SUCCESS_DEFAULT}
+      backgroundColor={BACKGROUND_COLORS.SUCCESS_MUTED}
+      iconName={ICON_NAMES.CHECK_CIRCLE_ON_FILLED}
+      {...args}
+    />
+    <AvatarIcon
+      color={COLORS.INFO_DEFAULT}
+      backgroundColor={BACKGROUND_COLORS.INFO_MUTED}
+      iconName={ICON_NAMES.INFO_FILLED}
+      {...args}
+    />
+    <AvatarIcon
+      color={COLORS.WARNING_DEFAULT}
+      backgroundColor={BACKGROUND_COLORS.WARNING_MUTED}
+      iconName={ICON_NAMES.WARNING_FILLED}
+      {...args}
+    />
+    <AvatarIcon
+      color={COLORS.ERROR_DEFAULT}
+      backgroundColor={BACKGROUND_COLORS.ERROR_MUTED}
+      iconName={ICON_NAMES.DANGER_FILLED}
+      {...args}
+    />
+  </Box>
+);
diff --git a/ui/components/component-library/avatar-icon/avatar-icon.test.js b/ui/components/component-library/avatar-icon/avatar-icon.test.js
new file mode 100644
index 000000000..144a31492
--- /dev/null
+++ b/ui/components/component-library/avatar-icon/avatar-icon.test.js
@@ -0,0 +1,105 @@
+/* eslint-disable jest/require-top-level-describe */
+import { render } from '@testing-library/react';
+import React from 'react';
+
+import { ICON_NAMES } from '..';
+import { COLORS } from '../../../helpers/constants/design-system';
+import { AvatarIcon, AVATAR_ICON_SIZES } from '.';
+
+describe('AvatarIcon', () => {
+  it('should render correctly', () => {
+    const { getByTestId, container } = render(
+      <AvatarIcon
+        iconName={ICON_NAMES.SWAP_HORIZONTAL_OUTLINE}
+        data-testid="avatar-icon"
+      />,
+    );
+    expect(getByTestId('avatar-icon')).toBeDefined();
+    expect(container).toMatchSnapshot();
+  });
+
+  it('should render with different size classes', () => {
+    const { getByTestId } = render(
+      <>
+        <AvatarIcon
+          iconName={ICON_NAMES.SWAP_HORIZONTAL_OUTLINE}
+          size={AVATAR_ICON_SIZES.XS}
+          data-testid={AVATAR_ICON_SIZES.XS}
+        />
+        <AvatarIcon
+          iconName={ICON_NAMES.SWAP_HORIZONTAL_OUTLINE}
+          size={AVATAR_ICON_SIZES.SM}
+          data-testid={AVATAR_ICON_SIZES.SM}
+        />
+        <AvatarIcon
+          iconName={ICON_NAMES.SWAP_HORIZONTAL_OUTLINE}
+          size={AVATAR_ICON_SIZES.MD}
+          data-testid={AVATAR_ICON_SIZES.MD}
+        />
+        <AvatarIcon
+          iconName={ICON_NAMES.SWAP_HORIZONTAL_OUTLINE}
+          size={AVATAR_ICON_SIZES.LG}
+          data-testid={AVATAR_ICON_SIZES.LG}
+        />
+        <AvatarIcon
+          iconName={ICON_NAMES.SWAP_HORIZONTAL_OUTLINE}
+          size={AVATAR_ICON_SIZES.XL}
+          data-testid={AVATAR_ICON_SIZES.XL}
+        />
+      </>,
+    );
+    expect(getByTestId(AVATAR_ICON_SIZES.XS)).toHaveClass(
+      `mm-avatar-base--size-${AVATAR_ICON_SIZES.XS}`,
+    );
+    expect(getByTestId(AVATAR_ICON_SIZES.SM)).toHaveClass(
+      `mm-avatar-base--size-${AVATAR_ICON_SIZES.SM}`,
+    );
+    expect(getByTestId(AVATAR_ICON_SIZES.MD)).toHaveClass(
+      `mm-avatar-base--size-${AVATAR_ICON_SIZES.MD}`,
+    );
+    expect(getByTestId(AVATAR_ICON_SIZES.LG)).toHaveClass(
+      `mm-avatar-base--size-${AVATAR_ICON_SIZES.LG}`,
+    );
+    expect(getByTestId(AVATAR_ICON_SIZES.XL)).toHaveClass(
+      `mm-avatar-base--size-${AVATAR_ICON_SIZES.XL}`,
+    );
+  });
+
+  it('should render with added classname', () => {
+    const { getByTestId } = render(
+      <AvatarIcon
+        iconName={ICON_NAMES.SWAP_HORIZONTAL_OUTLINE}
+        className="mm-avatar-icon--test"
+        data-testid="classname"
+      />,
+    );
+    expect(getByTestId('classname')).toHaveClass('mm-avatar-icon--test');
+  });
+
+  it('should render with icon', () => {
+    const { getByTestId } = render(
+      <AvatarIcon
+        iconName={ICON_NAMES.SWAP_HORIZONTAL_OUTLINE}
+        iconProps={{ 'data-testid': 'avatar-icon' }}
+      />,
+    );
+
+    expect(getByTestId('avatar-icon')).toBeDefined();
+  });
+
+  it('should render with success color icon and background color', () => {
+    const { getByTestId } = render(
+      <AvatarIcon
+        iconName={ICON_NAMES.SWAP_HORIZONTAL_OUTLINE}
+        color={COLORS.SUCCESS_DEFAULT}
+        backgroundColor={COLORS.SUCCESS_MUTED}
+        data-testid="success"
+      />,
+    );
+
+    expect(getByTestId('success')).toHaveClass('box--color-success-default');
+    expect(getByTestId('success')).toHaveClass(
+      'box--background-color-success-muted',
+    );
+  });
+});
diff --git a/ui/components/component-library/avatar-icon/index.js b/ui/components/component-library/avatar-icon/index.js
new file mode 100644
index 000000000..22612fd57
--- /dev/null
+++ b/ui/components/component-library/avatar-icon/index.js
@@ -0,0 +1,2 @@
+export { AvatarIcon } from './avatar-icon';
+export { AVATAR_ICON_SIZES } from './avatar-icon.constants';
diff --git a/ui/components/component-library/index.js b/ui/components/component-library/index.js
index 01305770b..547d29f69 100644
--- a/ui/components/component-library/index.js
+++ b/ui/components/component-library/index.js
@@ -1,5 +1,6 @@
 export { AvatarAccount } from './avatar-account';
 export { AvatarFavicon } from './avatar-favicon';
+export { AvatarIcon, AVATAR_ICON_SIZES } from './avatar-icon';
 export { AvatarNetwork } from './avatar-network';
 export { AvatarToken } from './avatar-token';
 export { AvatarWithBadge } from './avatar-with-badge';