diff --git a/packages/block-editor/src/components/alignment-control/test/__snapshots__/index.js.snap b/packages/block-editor/src/components/alignment-control/test/__snapshots__/index.js.snap
index f2915ead7417b1..c1383ae8ecc44a 100644
--- a/packages/block-editor/src/components/alignment-control/test/__snapshots__/index.js.snap
+++ b/packages/block-editor/src/components/alignment-control/test/__snapshots__/index.js.snap
@@ -12,7 +12,7 @@ exports[`AlignmentUI should allow custom alignment controls to be specified 1`]
         align="custom-left"
         aria-label="My custom left"
         aria-pressed="false"
-        class="components-button components-toolbar__control has-icon"
+        class="components-button components-toolbar__control is-compact has-icon"
         data-toolbar-item="true"
         type="button"
       >
@@ -35,7 +35,7 @@ exports[`AlignmentUI should allow custom alignment controls to be specified 1`]
         align="custom-right"
         aria-label="My custom right"
         aria-pressed="true"
-        class="components-button components-toolbar__control is-pressed has-icon"
+        class="components-button components-toolbar__control is-compact is-pressed has-icon"
         data-toolbar-item="true"
         type="button"
       >
@@ -100,7 +100,7 @@ exports[`AlignmentUI should match snapshot when controls are visible 1`] = `
         align="left"
         aria-label="Align text left"
         aria-pressed="true"
-        class="components-button components-toolbar__control is-pressed has-icon"
+        class="components-button components-toolbar__control is-compact is-pressed has-icon"
         data-toolbar-item="true"
         type="button"
       >
@@ -123,7 +123,7 @@ exports[`AlignmentUI should match snapshot when controls are visible 1`] = `
         align="center"
         aria-label="Align text center"
         aria-pressed="false"
-        class="components-button components-toolbar__control has-icon"
+        class="components-button components-toolbar__control is-compact has-icon"
         data-toolbar-item="true"
         type="button"
       >
@@ -146,7 +146,7 @@ exports[`AlignmentUI should match snapshot when controls are visible 1`] = `
         align="right"
         aria-label="Align text right"
         aria-pressed="false"
-        class="components-button components-toolbar__control has-icon"
+        class="components-button components-toolbar__control is-compact has-icon"
         data-toolbar-item="true"
         type="button"
       >
diff --git a/packages/block-editor/src/components/block-alignment-control/test/__snapshots__/index.js.snap b/packages/block-editor/src/components/block-alignment-control/test/__snapshots__/index.js.snap
index 246e5dca2ae324..9e7e59c0c31447 100644
--- a/packages/block-editor/src/components/block-alignment-control/test/__snapshots__/index.js.snap
+++ b/packages/block-editor/src/components/block-alignment-control/test/__snapshots__/index.js.snap
@@ -42,7 +42,7 @@ exports[`BlockAlignmentUI should match snapshot when controls are visible 1`] =
       <button
         aria-label="None"
         aria-pressed="false"
-        class="components-button components-toolbar__control has-icon"
+        class="components-button components-toolbar__control is-compact has-icon"
         data-toolbar-item="true"
         type="button"
       >
@@ -64,7 +64,7 @@ exports[`BlockAlignmentUI should match snapshot when controls are visible 1`] =
       <button
         aria-label="Align left"
         aria-pressed="true"
-        class="components-button components-toolbar__control is-pressed has-icon"
+        class="components-button components-toolbar__control is-compact is-pressed has-icon"
         data-toolbar-item="true"
         type="button"
       >
@@ -86,7 +86,7 @@ exports[`BlockAlignmentUI should match snapshot when controls are visible 1`] =
       <button
         aria-label="Align center"
         aria-pressed="false"
-        class="components-button components-toolbar__control has-icon"
+        class="components-button components-toolbar__control is-compact has-icon"
         data-toolbar-item="true"
         type="button"
       >
@@ -108,7 +108,7 @@ exports[`BlockAlignmentUI should match snapshot when controls are visible 1`] =
       <button
         aria-label="Align right"
         aria-pressed="false"
-        class="components-button components-toolbar__control has-icon"
+        class="components-button components-toolbar__control is-compact has-icon"
         data-toolbar-item="true"
         type="button"
       >
diff --git a/packages/block-editor/src/components/block-vertical-alignment-control/test/__snapshots__/index.js.snap b/packages/block-editor/src/components/block-vertical-alignment-control/test/__snapshots__/index.js.snap
index e58d9a264310a7..e8ad6cddbba56e 100644
--- a/packages/block-editor/src/components/block-vertical-alignment-control/test/__snapshots__/index.js.snap
+++ b/packages/block-editor/src/components/block-vertical-alignment-control/test/__snapshots__/index.js.snap
@@ -42,7 +42,7 @@ exports[`BlockVerticalAlignmentUI should match snapshot when controls are visibl
       <button
         aria-label="Align top"
         aria-pressed="true"
-        class="components-button components-toolbar__control is-pressed has-icon"
+        class="components-button components-toolbar__control is-compact is-pressed has-icon"
         data-toolbar-item="true"
         type="button"
       >
@@ -64,7 +64,7 @@ exports[`BlockVerticalAlignmentUI should match snapshot when controls are visibl
       <button
         aria-label="Align middle"
         aria-pressed="false"
-        class="components-button components-toolbar__control has-icon"
+        class="components-button components-toolbar__control is-compact has-icon"
         data-toolbar-item="true"
         type="button"
       >
@@ -86,7 +86,7 @@ exports[`BlockVerticalAlignmentUI should match snapshot when controls are visibl
       <button
         aria-label="Align bottom"
         aria-pressed="false"
-        class="components-button components-toolbar__control has-icon"
+        class="components-button components-toolbar__control is-compact has-icon"
         data-toolbar-item="true"
         type="button"
       >
diff --git a/packages/components/CHANGELOG.md b/packages/components/CHANGELOG.md
index f77065cdf7be23..fa4f83876a884d 100644
--- a/packages/components/CHANGELOG.md
+++ b/packages/components/CHANGELOG.md
@@ -25,6 +25,7 @@
 
 -   Upgraded `@ariakit/react` (v0.4.13) and `@ariakit/test` (v0.4.5) ([#65907](https://github.com/WordPress/gutenberg/pull/65907)).
 -   Upgraded `@ariakit/react` (v0.4.15) and `@ariakit/test` (v0.4.7) ([#67404](https://github.com/WordPress/gutenberg/pull/67404)).
+-   `ToolbarButton`: Set size to "compact" ([#67440](https://github.com/WordPress/gutenberg/pull/67440)).
 -   Exported the `WPCompleter` type as it was being used in block-editor/autocompleters ([#67410](https://github.com/WordPress/gutenberg/pull/67410)).
 -   `SlotFill`: remove manual rerenders from the portal `Fill` component ([#67471](https://github.com/WordPress/gutenberg/pull/67471)).
 
diff --git a/packages/components/src/toolbar/toolbar-button/index.tsx b/packages/components/src/toolbar/toolbar-button/index.tsx
index bb591ff7b521c6..ae1f54acbfc14d 100644
--- a/packages/components/src/toolbar/toolbar-button/index.tsx
+++ b/packages/components/src/toolbar/toolbar-button/index.tsx
@@ -54,6 +54,7 @@ function UnforwardedToolbarButton(
 				<Button
 					ref={ ref }
 					icon={ restProps.icon }
+					size="compact"
 					label={ title }
 					shortcut={ restProps.shortcut }
 					data-subscript={ restProps.subscript }
@@ -97,6 +98,7 @@ function UnforwardedToolbarButton(
 		>
 			{ ( toolbarItemProps ) => (
 				<Button
+					size="compact"
 					label={ title }
 					isPressed={ isActive }
 					{ ...toolbarItemProps }