diff --git a/apps/web/modules/ui/components/alert/index.test.tsx b/apps/web/modules/ui/components/alert/index.test.tsx
new file mode 100644
index 0000000000..08c218f24b
--- /dev/null
+++ b/apps/web/modules/ui/components/alert/index.test.tsx
@@ -0,0 +1,74 @@
+import { fireEvent, render, screen } from "@testing-library/react";
+import { describe, expect, it, vi } from "vitest";
+import { Alert, AlertButton, AlertDescription, AlertTitle } from "./index";
+
+describe("Alert", () => {
+  it("renders with default variant", () => {
+    render(
+      <Alert>
+        <AlertTitle>Test Title</AlertTitle>
+        <AlertDescription>Test Description</AlertDescription>
+      </Alert>
+    );
+
+    expect(screen.getByRole("alert")).toBeInTheDocument();
+    expect(screen.getByText("Test Title")).toBeInTheDocument();
+    expect(screen.getByText("Test Description")).toBeInTheDocument();
+  });
+
+  it("renders with different variants", () => {
+    const variants = ["default", "error", "warning", "info", "success"] as const;
+
+    variants.forEach((variant) => {
+      const { container } = render(
+        <Alert variant={variant}>
+          <AlertTitle>Test Title</AlertTitle>
+        </Alert>
+      );
+
+      expect(container.firstChild).toHaveClass(
+        variant === "default" ? "text-foreground" : `text-${variant}-foreground`
+      );
+    });
+  });
+
+  it("renders with different sizes", () => {
+    const sizes = ["default", "small"] as const;
+
+    sizes.forEach((size) => {
+      const { container } = render(
+        <Alert size={size}>
+          <AlertTitle>Test Title</AlertTitle>
+        </Alert>
+      );
+
+      expect(container.firstChild).toHaveClass(size === "default" ? "py-3" : "py-2");
+    });
+  });
+
+  it("renders with button and handles click", () => {
+    const handleClick = vi.fn();
+
+    render(
+      <Alert>
+        <AlertTitle>Test Title</AlertTitle>
+        <AlertButton onClick={handleClick}>Click me</AlertButton>
+      </Alert>
+    );
+
+    const button = screen.getByText("Click me");
+    expect(button).toBeInTheDocument();
+    fireEvent.click(button);
+    expect(handleClick).toHaveBeenCalledTimes(1);
+  });
+
+  it("applies custom className", () => {
+    const { container } = render(
+      <Alert className="custom-class">
+        <AlertTitle>Test Title</AlertTitle>
+      </Alert>
+    );
+
+    expect(container.firstChild).toHaveClass("custom-class");
+  });
+});
diff --git a/apps/web/modules/ui/components/alert/index.tsx b/apps/web/modules/ui/components/alert/index.tsx
index d9e3c89c6e..c17f7f4b4e 100644
--- a/apps/web/modules/ui/components/alert/index.tsx
+++ b/apps/web/modules/ui/components/alert/index.tsx
@@ -1,49 +1,141 @@
-import { VariantProps, cva } from "class-variance-authority";
-import * as React from "react";
-import { cn } from "@formbricks/lib/cn";
+"use client";
 
-const alertVariants = cva(
-  "relative w-full rounded-xl border p-3 [&>svg]:absolute [&>svg]:text-foreground [&>svg]:left-3 [&>svg]:top-3 [&>svg+div]:translate-y-[-3px] [&:has(svg)]:pl-9",
-  {
-    variants: {
-      variant: {
-        default: "bg-background text-foreground",
-        destructive:
-          "text-destructive border-destructive/50 dark:border-destructive [&>svg]:text-destructive text-destructive",
-        info: "text-slate-800 bg-brand/5",
-        warning: "text-yellow-700 bg-yellow-50",
-        error: "border-error/50 dark:border-error [&>svg]:text-error text-error",
-      },
+import { VariantProps, cva } from "class-variance-authority";
+import { AlertCircle, AlertTriangle, CheckCircle2Icon, Info } from "lucide-react";
+import * as React from "react";
+import { createContext, useContext } from "react";
+import { cn } from "@formbricks/lib/cn";
+import { Button, ButtonProps } from "../button";
+
+// Create a context to share variant and size with child components
+interface AlertContextValue {
+  variant?: "default" | "error" | "warning" | "info" | "success" | null;
+  size?: "default" | "small" | null;
+}
+
+const AlertContext = createContext<AlertContextValue>({
+  variant: "default",
+  size: "default",
+});
+
+const useAlertContext = () => useContext(AlertContext);
+
+// Define alert styles with variants
+const alertVariants = cva("relative w-full rounded-lg border [&>svg]:size-4 [&>svg]:text-foreground", {
+  variants: {
+    variant: {
+      default: "text-foreground border-border",
+      error:
+        "text-error-foreground border-error/50 [&_button]:bg-error-background [&_button]:text-error-foreground [&_button:hover]:bg-error-background-muted",
+      warning:
+        "text-warning-foreground border-warning/50 [&_button]:bg-warning-background [&_button]:text-warning-foreground [&_button:hover]:bg-warning-background-muted",
+      info: "text-info-foreground border-info/50 [&_button]:bg-info-background [&_button]:text-info-foreground [&_button:hover]:bg-info-background-muted",
+      success:
+        "text-success-foreground border-success/50 [&_button]:bg-success-background [&_button]:text-success-foreground [&_button:hover]:bg-success-background-muted",
     },
-    defaultVariants: {
-      variant: "default",
+    size: {
+      default:
+        "py-3 px-4 text-sm grid grid-cols-[1fr_auto] grid-rows-[auto_auto] gap-x-3 [&>svg]:absolute [&>svg]:left-4 [&>svg]:top-4 [&>svg~*]:pl-7",
+      small:
+        "px-3 py-2 text-xs flex items-center justify-between gap-2 [&>svg]:flex-shrink-0 [&_button]:text-xs [&_button]:bg-transparent [&_button:hover]:bg-transparent [&>svg~*]:pl-0",
     },
-  }
-);
+  },
+  defaultVariants: {
+    variant: "default",
+    size: "default",
+  },
+});
+
+const alertVariantIcons: Record<"default" | "error" | "warning" | "info" | "success", React.ReactNode> = {
+  default: null,
+  error: <AlertCircle className="size-4" />,
+  warning: <AlertTriangle className="size-4" />,
+  info: <Info className="size-4" />,
+  success: <CheckCircle2Icon className="size-4" />,
+};
 
 const Alert = React.forwardRef<
   HTMLDivElement,
-  React.HTMLAttributes<HTMLDivElement> &
-    VariantProps<typeof alertVariants> & { dangerouslySetInnerHTML?: { __html: string } }
->(({ className, variant, ...props }, ref) => (
-  <div ref={ref} role="alert" className={cn(alertVariants({ variant }), className)} {...props} />
-));
+  React.HTMLAttributes<HTMLDivElement> & VariantProps<typeof alertVariants>
+>(({ className, variant, size, ...props }, ref) => {
+  const variantIcon = variant ? (variant !== "default" ? alertVariantIcons[variant] : null) : null;
+
+  return (
+    <AlertContext.Provider value={{ variant, size }}>
+      <div ref={ref} role="alert" className={cn(alertVariants({ variant, size }), className)} {...props}>
+        {variantIcon}
+        {props.children}
+      </div>
+    </AlertContext.Provider>
+  );
+});
 Alert.displayName = "Alert";
 
-const AlertTitle = React.forwardRef<
-  HTMLParagraphElement,
-  React.HTMLAttributes<HTMLHeadingElement> & { dangerouslySetInnerHTML?: { __html: string } }
->(({ className, ...props }, ref) => (
-  <h5 ref={ref} className={cn("mb-1 cursor-default font-medium leading-none", className)} {...props} />
-));
+const AlertTitle = React.forwardRef<HTMLParagraphElement, React.HTMLAttributes<HTMLHeadingElement>>(
+  ({ className, ...props }, ref) => {
+    const { size } = useAlertContext();
+    return (
+      <h5
+        ref={ref}
+        className={cn(
+          "col-start-1 row-start-1 font-medium leading-none tracking-tight",
+          size === "small" ? "min-w-0 flex-shrink truncate" : "col-start-1 row-start-1",
+          className
+        )}
+        {...props}
+      />
+    );
+  }
+);
+
 AlertTitle.displayName = "AlertTitle";
 
-const AlertDescription = React.forwardRef<
-  HTMLParagraphElement,
-  React.HTMLAttributes<HTMLParagraphElement> & { dangerouslySetInnerHTML?: { __html: string } }
->(({ className, ...props }, ref) => (
-  <div ref={ref} className={cn("cursor-default text-sm [&_p]:leading-relaxed", className)} {...props} />
-));
+const AlertDescription = React.forwardRef<HTMLParagraphElement, React.HTMLAttributes<HTMLParagraphElement>>(
+  ({ className, ...props }, ref) => {
+    const { size } = useAlertContext();
+
+    return (
+      <div
+        ref={ref}
+        className={cn(
+          "[&_p]:leading-relaxed",
+          size === "small"
+            ? "hidden min-w-0 flex-shrink flex-grow truncate opacity-80 sm:block" // Hidden on very small screens, limited width
+            : "col-start-1 row-start-2",
+          className
+        )}
+        {...props}
+      />
+    );
+  }
+);
 AlertDescription.displayName = "AlertDescription";
 
-export { Alert, AlertDescription, AlertTitle };
+const AlertButton = React.forwardRef<HTMLButtonElement, ButtonProps>(
+  ({ className, variant, size, children, ...props }, ref) => {
+    const { size: alertSize } = useAlertContext();
+
+    // Determine button styling based on alert context
+    const buttonVariant = variant || (alertSize === "small" ? "link" : "secondary");
+    const buttonSize = size || (alertSize === "small" ? "sm" : "default");
+
+    return (
+      <div
+        className={cn(
+          "self-end",
+          alertSize === "small"
+            ? "-my-2 -mr-3 ml-auto flex-shrink-0"
+            : "col-start-2 row-span-2 row-start-1 flex items-center justify-center"
+        )}>
+        <Button ref={ref} variant={buttonVariant} size={buttonSize} className={className} {...props}>
+          {children}
+        </Button>
+      </div>
+    );
+  }
+);
+
+AlertButton.displayName = "AlertButton";
+
+// Export the new component
+export { Alert, AlertTitle, AlertDescription, AlertButton };
diff --git a/apps/web/modules/ui/components/alert/stories.test.tsx b/apps/web/modules/ui/components/alert/stories.test.tsx
new file mode 100644
index 0000000000..af33eef348
--- /dev/null
+++ b/apps/web/modules/ui/components/alert/stories.test.tsx
@@ -0,0 +1,62 @@
+import { cleanup, render, screen } from "@testing-library/react";
+import { afterEach, describe, expect, it } from "vitest";
+import { Default, Error, Info, Small, Success, Warning, withButtonAndIcon } from "./stories";
+
+describe("Alert Stories", () => {
+  const renderStory = (Story: any) => {
+    return render(Story.render(Story.args));
+  };
+
+  afterEach(() => {
+    cleanup();
+  });
+
+  it("renders Default story", () => {
+    renderStory(Default);
+    expect(screen.getByText("Alert Title")).toBeInTheDocument();
+    expect(screen.getByText("This is an important notification.")).toBeInTheDocument();
+    expect(screen.queryByRole("button")).not.toBeInTheDocument();
+  });
+
+  it("renders Small story", () => {
+    renderStory(Small);
+    expect(screen.getByText("Information Alert")).toBeInTheDocument();
+    expect(screen.getByRole("button")).toBeInTheDocument();
+    expect(screen.getByText("Learn more")).toBeInTheDocument();
+  });
+
+  it("renders withButtonAndIcon story", () => {
+    renderStory(withButtonAndIcon);
+    expect(screen.getByText("Alert Title")).toBeInTheDocument();
+    expect(screen.getByRole("button")).toBeInTheDocument();
+    expect(screen.getByText("Learn more")).toBeInTheDocument();
+  });
+
+  it("renders Error story", () => {
+    renderStory(Error);
+    expect(screen.getByText("Error Alert")).toBeInTheDocument();
+    expect(screen.getByText("Your session has expired. Please log in again.")).toBeInTheDocument();
+    expect(screen.getByText("Log in")).toBeInTheDocument();
+  });
+
+  it("renders Warning story", () => {
+    renderStory(Warning);
+    expect(screen.getByText("Warning Alert")).toBeInTheDocument();
+    expect(screen.getByText("You are editing sensitive data. Be cautious")).toBeInTheDocument();
+    expect(screen.getByText("Proceed")).toBeInTheDocument();
+  });
+
+  it("renders Info story", () => {
+    renderStory(Info);
+    expect(screen.getByText("Info Alert")).toBeInTheDocument();
+    expect(screen.getByText("There was an update to your application.")).toBeInTheDocument();
+    expect(screen.getByText("Refresh")).toBeInTheDocument();
+  });
+
+  it("renders Success story", () => {
+    renderStory(Success);
+    expect(screen.getByText("Success Alert")).toBeInTheDocument();
+    expect(screen.getByText("This worked! Please proceed.")).toBeInTheDocument();
+    expect(screen.getByText("Close")).toBeInTheDocument();
+  });
+});
diff --git a/apps/web/modules/ui/components/alert/stories.tsx b/apps/web/modules/ui/components/alert/stories.tsx
index ff9017829b..4d45ed1edb 100644
--- a/apps/web/modules/ui/components/alert/stories.tsx
+++ b/apps/web/modules/ui/components/alert/stories.tsx
@@ -1,49 +1,252 @@
-import type { Meta, StoryObj } from "@storybook/react";
-import { AlertCircle } from "lucide-react";
-import { Alert, AlertDescription, AlertTitle } from "./index";
+import { Meta, StoryObj } from "@storybook/react";
+import { LightbulbIcon } from "lucide-react";
+import { Alert, AlertButton, AlertDescription, AlertTitle } from "./index";
 
-const meta = {
-  title: "ui/Alert",
+// We'll define the story options separately from the component props
+interface StoryOptions {
+  title: string;
+  description: string;
+  showIcon: boolean;
+  showButton: boolean;
+  actionButtonText: string;
+}
+
+type StoryProps = React.ComponentProps<typeof Alert> & StoryOptions;
+
+const meta: Meta<StoryProps> = {
+  title: "UI/Alert",
   component: Alert,
   tags: ["autodocs"],
-  argTypes: {
-    variant: {
-      control: "radio",
-      options: ["default", "error"],
+  parameters: {
+    controls: {
+      sort: "requiredFirst",
+      exclude: [],
     },
   },
-  args: {
-    variant: "default",
+  // These argTypes are for story controls, not component props
+  argTypes: {
+    variant: {
+      control: "select",
+      options: ["default", "error", "warning", "info", "success"],
+      description: "Style variant of the alert",
+      table: {
+        category: "Appearance",
+        type: { summary: "string" },
+        defaultValue: { summary: "default" },
+      },
+      order: 1,
+    },
+    size: {
+      control: "select",
+      options: ["default", "small"],
+      description: "Size of the alert component",
+      table: {
+        category: "Appearance",
+        type: { summary: "string" },
+        defaultValue: { summary: "default" },
+      },
+      order: 2,
+    },
+    showIcon: {
+      control: "boolean",
+      description: "Whether to show an icon",
+      table: {
+        category: "Appearance",
+        type: { summary: "boolean" },
+      },
+      order: 3,
+    },
+    showButton: {
+      control: "boolean",
+      description: "Whether to show action buttons",
+      table: {
+        category: "Appearance",
+        type: { summary: "boolean" },
+      },
+      order: 4,
+    },
+    title: {
+      control: "text",
+      description: "Alert title text",
+      table: {
+        category: "Content",
+        type: { summary: "string" },
+      },
+      order: 1,
+    },
+    description: {
+      control: "text",
+      description: "Alert description text",
+      table: {
+        category: "Content",
+        type: { summary: "string" },
+      },
+      order: 2,
+    },
+    actionButtonText: {
+      control: "text",
+      description: "Text for the action button",
+      table: {
+        category: "Content",
+        type: { summary: "string" },
+      },
+      order: 2,
+    },
   },
-  render: (args) => (
-    <Alert {...args}>
-      <AlertTitle>This is an alert</AlertTitle>
-      <AlertDescription>This is a description</AlertDescription>
-    </Alert>
-  ),
-} satisfies Meta<typeof Alert>;
+};
 
 export default meta;
 
-type Story = StoryObj<typeof meta>;
+// Our story type just specifies Alert props plus our story options
+type Story = StoryObj<typeof Alert> & { args: StoryOptions };
 
-export const Default: Story = {};
+// Create a common render function to reduce duplication
+const renderAlert = (args: StoryProps) => {
+  // Extract component props
+  const { variant = "default", size = "default", className = "" } = args;
 
-export const Error: Story = {
-  args: {
-    variant: "error",
-  },
-};
+  // Extract story content options
+  const {
+    title = "",
+    description = "",
+    showIcon = false,
+    showButton = false,
+    actionButtonText = "",
+  } = args as StoryOptions;
 
-export const WithIcon: Story = {
-  args: {
-    variant: "error",
-  },
-  render: (args) => (
-    <Alert {...args}>
-      <AlertCircle className="h-4 w-4" />
-      <AlertTitle>This is an alert</AlertTitle>
-      <AlertDescription>This is a description</AlertDescription>
+  return (
+    <Alert variant={variant} size={size} className={className}>
+      {showIcon && <LightbulbIcon />}
+      <AlertTitle className={showIcon ? "pl-7" : ""}>{title}</AlertTitle>
+      {description && <AlertDescription className={showIcon ? "pl-7" : ""}>{description}</AlertDescription>}
+      {showButton && <AlertButton onClick={() => alert("Button clicked")}>{actionButtonText}</AlertButton>}
     </Alert>
-  ),
+  );
+};
+
+// Basic example with direct props
+export const Default: Story = {
+  render: renderAlert,
+  args: {
+    variant: "default",
+    showIcon: false,
+    showButton: false,
+    title: "Alert Title",
+    description: "This is an important notification.",
+    actionButtonText: "Learn more",
+  },
+};
+
+// Small size example
+export const Small: Story = {
+  render: renderAlert,
+  args: {
+    variant: "default",
+    size: "small",
+    title: "Information Alert",
+    description: "This is an important notification.",
+    showIcon: false,
+    showButton: true,
+    actionButtonText: "Learn more",
+  },
+  parameters: {
+    docs: {
+      description: {
+        story: "Use if space is limited or the alert is not the main focus.",
+      },
+    },
+  },
+};
+
+// With custom icon
+export const withButtonAndIcon: Story = {
+  render: renderAlert,
+  args: {
+    variant: "default",
+    title: "Alert Title",
+    description: "This is an important notification.",
+    showIcon: true,
+    showButton: true,
+    actionButtonText: "Learn more",
+  },
+};
+
+// Error variant
+export const Error: Story = {
+  render: renderAlert,
+  args: {
+    variant: "error",
+    title: "Error Alert",
+    description: "Your session has expired. Please log in again.",
+    showIcon: false,
+    showButton: true,
+    actionButtonText: "Log in",
+  },
+  parameters: {
+    docs: {
+      description: {
+        story: "Only use if the user needs to take immediate action or there is a critical error.",
+      },
+    },
+  },
+};
+
+// Warning variant
+export const Warning: Story = {
+  render: renderAlert,
+  args: {
+    variant: "warning",
+    title: "Warning Alert",
+    description: "You are editing sensitive data. Be cautious",
+    showIcon: false,
+    showButton: true,
+    actionButtonText: "Proceed",
+  },
+  parameters: {
+    docs: {
+      description: {
+        story: "Use this to make the user aware of potential issues.",
+      },
+    },
+  },
+};
+
+// Info variant
+export const Info: Story = {
+  render: renderAlert,
+  args: {
+    variant: "info",
+    title: "Info Alert",
+    description: "There was an update to your application.",
+    showIcon: false,
+    showButton: true,
+    actionButtonText: "Refresh",
+  },
+  parameters: {
+    docs: {
+      description: {
+        story: "Use this to give contextual information and support the user.",
+      },
+    },
+  },
+};
+
+// Success variant
+export const Success: Story = {
+  render: renderAlert,
+  args: {
+    variant: "success",
+    title: "Success Alert",
+    description: "This worked! Please proceed.",
+    showIcon: false,
+    showButton: true,
+    actionButtonText: "Close",
+  },
+  parameters: {
+    docs: {
+      description: {
+        story: "Use this to give positive feedback.",
+      },
+    },
+  },
 };
diff --git a/apps/web/tailwind.config.js b/apps/web/tailwind.config.js
index 774c90f9e0..120265f69d 100644
--- a/apps/web/tailwind.config.js
+++ b/apps/web/tailwind.config.js
@@ -1,3 +1,5 @@
+const colors = require("tailwindcss/colors");
+
 module.exports = {
   content: [
     // app content
@@ -39,7 +41,7 @@ module.exports = {
           dark: "#00C4B8",
         },
         focus: "var(--formbricks-focus, #1982fc)",
-        error: "rgb(from var(--formbricks-error) r g b / <alpha-value>)",
+        // error: "rgb(from var(--formbricks-error) r g b / <alpha-value>)",
         brandnew: "var(--formbricks-brand, #038178)",
         primary: {
           DEFAULT: "#0f172a",
@@ -57,6 +59,34 @@ module.exports = {
           DEFAULT: "#f4f6f8", // light gray background
           foreground: "#0f172a", // same as primary default for consistency
         },
+        info: {
+          DEFAULT: colors.blue[600],
+          foreground: colors.blue[900],
+          muted: colors.blue[700],
+          background: colors.blue[50],
+          "background-muted": colors.blue[100],
+        },
+        warning: {
+          DEFAULT: colors.amber[500],
+          foreground: colors.amber[900],
+          muted: colors.amber[700],
+          background: colors.amber[50],
+          "background-muted": colors.amber[100],
+        },
+        success: {
+          DEFAULT: colors.green[600],
+          foreground: colors.green[900],
+          muted: colors.green[700],
+          background: colors.green[50],
+          "background-muted": colors.green[100],
+        },
+        error: {
+          DEFAULT: colors.red[600],
+          foreground: colors.red[900],
+          muted: colors.red[700],
+          background: colors.red[50],
+          "background-muted": colors.red[100],
+        },
       },
       keyframes: {
         fadeIn: {
diff --git a/apps/web/vite.config.mts b/apps/web/vite.config.mts
index cd78a29348..25297608c9 100644
--- a/apps/web/vite.config.mts
+++ b/apps/web/vite.config.mts
@@ -26,6 +26,7 @@ export default defineConfig({
         "modules/email/components/email-template.tsx",
         "modules/email/emails/survey/follow-up.tsx",
         "modules/ui/components/post-hog-client/*.tsx",
+        "modules/ui/components/alert/*.tsx",
         "app/(app)/environments/**/layout.tsx",
         "app/(app)/environments/**/settings/(organization)/general/page.tsx",
         "app/(app)/environments/**/components/PosthogIdentify.tsx",