diff --git a/packages/gestalt-icons-android/src/vr-theme/compact/ic_vr_compact-sparkle.svg b/packages/gestalt-icons-android/src/vr-theme/compact/ic_vr_compact-sparkle.svg
new file mode 100644
index 0000000000..3a5032798e
--- /dev/null
+++ b/packages/gestalt-icons-android/src/vr-theme/compact/ic_vr_compact-sparkle.svg
@@ -0,0 +1 @@
+<svg xmlns="http://www.w3.org/2000/svg" width="16" height="16"><path d="M15.9 2.8a3.6 3.6 0 0 0-2.43 2.43c-.04.14-.24.14-.28 0a3.6 3.6 0 0 0-2.42-2.42c-.14-.04-.14-.24 0-.28A3.6 3.6 0 0 0 13.2.1a.14.14 0 0 1 .28 0 3.6 3.6 0 0 0 2.42 2.42c.14.04.14.24 0 .28m-2.18 6.57a9.4 9.4 0 0 0-6.35 6.35c-.1.37-.63.37-.74 0A9.4 9.4 0 0 0 .27 9.37c-.36-.1-.36-.63 0-.74a9.4 9.4 0 0 0 6.36-6.36c.1-.36.63-.36.74 0a9.4 9.4 0 0 0 6.36 6.36c.36.1.36.63 0 .74"/></svg>
\ No newline at end of file
diff --git a/packages/gestalt-icons-android/src/vr-theme/compact/index.ts b/packages/gestalt-icons-android/src/vr-theme/compact/index.ts
index af6f23c697..73496a4e97 100644
--- a/packages/gestalt-icons-android/src/vr-theme/compact/index.ts
+++ b/packages/gestalt-icons-android/src/vr-theme/compact/index.ts
@@ -10,6 +10,7 @@ import compactChevronUp from './ic_vr_compact-chevron-up_gestalt.svg';
 import compactDash from './ic_vr_compact-dash_gestalt.svg';
 import compactInfoCircleFill from './ic_vr_compact-info-circle-fill_gestalt.svg';
 import compactLock from './ic_vr_compact-lock_gestalt.svg';
+import compactSparkle from './ic_vr_compact-sparkle.svg';
 import compactWorkflowStatusProblem from './ic_vr_compact-workflow-status-problem_gestalt.svg';
 import compactWorkflowStatusWarning from './ic_vr_compact-workflow-status-warning_gestalt.svg';
 
@@ -28,6 +29,7 @@ const icons = Object.freeze({
   'compact-lock': compactLock,
   'compact-workflow-status-problem': compactWorkflowStatusProblem,
   'compact-workflow-status-warning': compactWorkflowStatusWarning,
+  'compact-sparkle': compactSparkle,
 });
 
 export default icons;
diff --git a/packages/gestalt/src/Accordion/__snapshots__/ExpandableItem.test.tsx.snap b/packages/gestalt/src/Accordion/__snapshots__/ExpandableItem.test.tsx.snap
index 2dbd6e41ab..b83eaea2c7 100644
--- a/packages/gestalt/src/Accordion/__snapshots__/ExpandableItem.test.tsx.snap
+++ b/packages/gestalt/src/Accordion/__snapshots__/ExpandableItem.test.tsx.snap
@@ -155,7 +155,7 @@ exports[`AccordionExpandableItem renders correctly with badge 1`] = `
                     }
                   >
                     <div
-                      className="badge info middle"
+                      className="badge info padding middle"
                     >
                       <div
                         className="Flex rowGap100 columnGap0 xsDirectionRow xsItemsCenter"
diff --git a/packages/gestalt/src/Badge.css b/packages/gestalt/src/Badge.css
index b0a95a5bd0..f4c79c251c 100644
--- a/packages/gestalt/src/Badge.css
+++ b/packages/gestalt/src/Badge.css
@@ -3,10 +3,17 @@
   composes: rounding1 from "./Borders.css";
   align-content: center;
   display: flex;
-  padding: var(--space-0) 6px;
   white-space: nowrap;
 }
 
+.padding {
+  padding: var(--space-0) 6px;
+}
+
+.paddingVR {
+  padding: var(--sema-space-0) var(--sema-space-100);
+}
+
 .focusInnerBorder {
   border: 2px solid var(--color-border-badge-default);
   padding: var(--space-0) var(--space-100);
@@ -25,14 +32,12 @@
 .middle {
   composes: inlineBlock from "./Layout.css";
   height: 20px;
-  min-height: 20px;
   vertical-align: middle;
 }
 
 .top {
   composes: inlineBlock from "./Layout.css";
   height: 20px;
-  min-height: 20px;
   vertical-align: super;
 }
 
diff --git a/packages/gestalt/src/Badge.tsx b/packages/gestalt/src/Badge.tsx
index c88c7470be..79c65988ad 100644
--- a/packages/gestalt/src/Badge.tsx
+++ b/packages/gestalt/src/Badge.tsx
@@ -4,6 +4,7 @@ import styles from './Badge.css';
 import Box from './Box';
 import Flex from './Flex';
 import Icon from './Icon';
+import IconCompact from './IconCompact';
 import TapArea from './TapArea';
 import TextUI from './TextUI';
 import Tooltip from './Tooltip';
@@ -90,16 +91,27 @@ export default function Badge({
 
   const shouldUseTooltip = tooltip?.text;
 
-  const ICON_MAP = Object.freeze({
-    'info': 'info-circle',
-    'error': 'workflow-status-problem',
-    'warning': 'workflow-status-warning',
-    'success': 'check-circle',
-    'neutral': 'lock',
-    'recommendation': 'sparkle',
-    'darkWash': 'info-circle',
-    'lightWash': 'info-circle',
-  });
+  const ICON_MAP = isInVRExperiment
+    ? Object.freeze({
+        'info': 'compact-info-circle-fill',
+        'error': 'compact-workflow-status-problem',
+        'warning': 'compact-workflow-status-warning',
+        'success': 'compact-check-circle-fill',
+        'neutral': 'compact-lock',
+        'recommendation': 'compact-sparkle',
+        'darkWash': 'compact-info-circle-fill',
+        'lightWash': 'compact-info-circle-fill',
+      })
+    : Object.freeze({
+        'info': 'info-circle',
+        'error': 'workflow-status-problem',
+        'warning': 'workflow-status-warning',
+        'success': 'check-circle',
+        'neutral': 'lock',
+        'recommendation': 'sparkle',
+        'darkWash': 'info-circle',
+        'lightWash': 'info-circle',
+      });
 
   const COLOR_ICON_MAP = Object.freeze({
     'info': 'info',
@@ -133,6 +145,8 @@ export default function Badge({
     useInteractiveStates();
 
   const cxStyles = cx(styles.badge, styles[styleType], {
+    [styles.padding]: !isInVRExperiment,
+    [styles.paddingVR]: isInVRExperiment,
     [styles.middle]: !shouldUseTooltip && position === 'middle',
     [styles.top]: !shouldUseTooltip && position === 'top',
     [styles.focusInnerBorder]:
@@ -155,14 +169,25 @@ export default function Badge({
     <Flex alignItems="center" gap={{ row: 1, column: 0 }}>
       {shouldUseTooltip ? (
         <Box alignContent="center" display="flex">
-          <Icon
-            accessibilityLabel=""
-            color={isInVRExperiment || type.endsWith('Wash') ? COLOR_ICON_MAP[type] : 'inverse'}
-            dataTestId={dataTestIdIcon}
-            icon={ICON_MAP[type] as ComponentProps<typeof Icon>['icon']}
-            inline
-            size={isInVRExperiment ? '12' : '14'}
-          />
+          {isInVRExperiment ? (
+            <IconCompact
+              accessibilityLabel=""
+              color={COLOR_ICON_MAP[type]}
+              dataTestId={dataTestIdIcon}
+              icon={ICON_MAP[type] as ComponentProps<typeof IconCompact>['icon']}
+              inline
+              size="12"
+            />
+          ) : (
+            <Icon
+              accessibilityLabel=""
+              color={type.endsWith('Wash') ? COLOR_ICON_MAP[type] : 'inverse'}
+              dataTestId={dataTestIdIcon}
+              icon={ICON_MAP[type] as ComponentProps<typeof Icon>['icon']}
+              inline
+              size="14"
+            />
+          )}
         </Box>
       ) : null}
       <Box alignContent="center" display="flex">
diff --git a/packages/gestalt/src/__snapshots__/Accordion.test.tsx.snap b/packages/gestalt/src/__snapshots__/Accordion.test.tsx.snap
index 2514c33cef..a5b4aff066 100644
--- a/packages/gestalt/src/__snapshots__/Accordion.test.tsx.snap
+++ b/packages/gestalt/src/__snapshots__/Accordion.test.tsx.snap
@@ -51,7 +51,7 @@ exports[`Accordion renders a badge correctly 1`] = `
             }
           >
             <div
-              className="badge info middle"
+              className="badge info padding middle"
             >
               <div
                 className="Flex rowGap100 columnGap0 xsDirectionRow xsItemsCenter"
diff --git a/packages/gestalt/src/__snapshots__/Badge.test.tsx.snap b/packages/gestalt/src/__snapshots__/Badge.test.tsx.snap
index a67caa7b38..a0d12d01e8 100644
--- a/packages/gestalt/src/__snapshots__/Badge.test.tsx.snap
+++ b/packages/gestalt/src/__snapshots__/Badge.test.tsx.snap
@@ -2,7 +2,7 @@
 
 exports[`Badge renders 1`] = `
 <div
-  className="badge info middle"
+  className="badge info padding middle"
 >
   <div
     className="Flex rowGap100 columnGap0 xsDirectionRow xsItemsCenter"
diff --git a/packages/gestalt/src/__snapshots__/Datapoint.test.tsx.snap b/packages/gestalt/src/__snapshots__/Datapoint.test.tsx.snap
index 4a22056e03..d52d7fbc1f 100644
--- a/packages/gestalt/src/__snapshots__/Datapoint.test.tsx.snap
+++ b/packages/gestalt/src/__snapshots__/Datapoint.test.tsx.snap
@@ -150,7 +150,7 @@ exports[`Datapoint renders a badge 1`] = `
         className="FlexItem"
       >
         <div
-          className="badge info middle"
+          className="badge info padding middle"
         >
           <div
             className="Flex rowGap100 columnGap0 xsDirectionRow xsItemsCenter"
diff --git a/packages/gestalt/src/__snapshots__/Dropdown.jsdom.test.tsx.snap b/packages/gestalt/src/__snapshots__/Dropdown.jsdom.test.tsx.snap
index 400566e8d6..bdff729186 100644
--- a/packages/gestalt/src/__snapshots__/Dropdown.jsdom.test.tsx.snap
+++ b/packages/gestalt/src/__snapshots__/Dropdown.jsdom.test.tsx.snap
@@ -778,7 +778,7 @@ exports[`Dropdown renders a menu of 6 items 1`] = `
                             , 
                           </div>
                           <div
-                            class="badge info middle"
+                            class="badge info padding middle"
                           >
                             <div
                               class="Flex rowGap100 columnGap0 xsDirectionRow xsItemsCenter"
@@ -857,7 +857,7 @@ exports[`Dropdown renders a menu of 6 items 1`] = `
                               , 
                             </div>
                             <div
-                              class="badge info middle"
+                              class="badge info padding middle"
                             >
                               <div
                                 class="Flex rowGap100 columnGap0 xsDirectionRow xsItemsCenter"
diff --git a/packages/gestalt/src/__snapshots__/PageHeader.test.tsx.snap b/packages/gestalt/src/__snapshots__/PageHeader.test.tsx.snap
index 9d5b50df06..e9363abb94 100644
--- a/packages/gestalt/src/__snapshots__/PageHeader.test.tsx.snap
+++ b/packages/gestalt/src/__snapshots__/PageHeader.test.tsx.snap
@@ -215,7 +215,7 @@ exports[`PageHeader renders badge with type 1`] = `
                             className="FlexItem"
                           >
                             <div
-                              className="badge warning middle"
+                              className="badge warning padding middle"
                             >
                               <div
                                 className="Flex rowGap100 columnGap0 xsDirectionRow xsItemsCenter"
diff --git a/packages/gestalt/src/__snapshots__/SideNavigation.test.tsx.snap b/packages/gestalt/src/__snapshots__/SideNavigation.test.tsx.snap
index 0574905645..c83611c080 100644
--- a/packages/gestalt/src/__snapshots__/SideNavigation.test.tsx.snap
+++ b/packages/gestalt/src/__snapshots__/SideNavigation.test.tsx.snap
@@ -358,7 +358,7 @@ exports[`SideNavigation renders Icon + Badge/Notification + Counter + Border 1`]
                                     , 
                                   </div>
                                   <div
-                                    className="badge info middle"
+                                    className="badge info padding middle"
                                   >
                                     <div
                                       className="Flex rowGap100 columnGap0 xsDirectionRow xsItemsCenter"
diff --git a/packages/gestalt/src/icons-vr-theme/compact/compact-sparkle.svg b/packages/gestalt/src/icons-vr-theme/compact/compact-sparkle.svg
new file mode 100644
index 0000000000..3a5032798e
--- /dev/null
+++ b/packages/gestalt/src/icons-vr-theme/compact/compact-sparkle.svg
@@ -0,0 +1 @@
+<svg xmlns="http://www.w3.org/2000/svg" width="16" height="16"><path d="M15.9 2.8a3.6 3.6 0 0 0-2.43 2.43c-.04.14-.24.14-.28 0a3.6 3.6 0 0 0-2.42-2.42c-.14-.04-.14-.24 0-.28A3.6 3.6 0 0 0 13.2.1a.14.14 0 0 1 .28 0 3.6 3.6 0 0 0 2.42 2.42c.14.04.14.24 0 .28m-2.18 6.57a9.4 9.4 0 0 0-6.35 6.35c-.1.37-.63.37-.74 0A9.4 9.4 0 0 0 .27 9.37c-.36-.1-.36-.63 0-.74a9.4 9.4 0 0 0 6.36-6.36c.1-.36.63-.36.74 0a9.4 9.4 0 0 0 6.36 6.36c.36.1.36.63 0 .74"/></svg>
\ No newline at end of file
diff --git a/packages/gestalt/src/icons-vr-theme/compact/index.ts b/packages/gestalt/src/icons-vr-theme/compact/index.ts
index f810ee2f4d..cbd516adc4 100644
--- a/packages/gestalt/src/icons-vr-theme/compact/index.ts
+++ b/packages/gestalt/src/icons-vr-theme/compact/index.ts
@@ -10,6 +10,7 @@ import compactChevronUp from './compact-chevron-up.svg';
 import compactDash from './compact-dash.svg';
 import compactInfoCircleFill from './compact-info-circle-fill.svg';
 import compactLock from './compact-lock.svg';
+import compactSparkle from './compact-sparkle.svg';
 import compactWorkflowStatusProblem from './compact-workflow-status-problem.svg';
 import compactWorkflowStatusWarning from './compact-workflow-status-warning.svg';
 
@@ -26,6 +27,7 @@ const icons = Object.freeze({
   'compact-dash': compactDash,
   'compact-info-circle-fill': compactInfoCircleFill,
   'compact-lock': compactLock,
+  'compact-sparkle': compactSparkle,
   'compact-workflow-status-problem': compactWorkflowStatusProblem,
   'compact-workflow-status-warning': compactWorkflowStatusWarning,
 });