diff --git a/example/cypress/e2e/overlays/notification.cy.ts b/example/cypress/e2e/overlays/notification.cy.ts
new file mode 100644
index 0000000..88613d7
--- /dev/null
+++ b/example/cypress/e2e/overlays/notification.cy.ts
@@ -0,0 +1,41 @@
+// https://docs.cypress.io/api/introduction/api.html
+
+describe('notification', () => {
+  beforeEach(() => {
+    cy.visit('/notification');
+  });
+
+  it('toggles through button', () => {
+    cy.get('[data-cy="content"]').should('not.exist');
+    cy.get('[data-cy="visibility-toggle"]').click();
+    cy.get('[data-cy="content"]').should('exist');
+    cy.get('[data-cy="content"]').should('contain.text', 'This is a notification');
+    cy.get('[data-cy="visibility-toggle"]').click();
+    cy.get('[data-cy="content"]').should('not.exist');
+  });
+
+  it('dismisses by click', () => {
+    cy.get('[data-cy="content"]').should('not.exist');
+    cy.get('[data-cy="visibility-toggle"]').click();
+    cy.get('[data-cy="content"]').should('exist');
+    cy.get('[data-cy="content"]').click();
+    cy.get('[data-cy="content"]').should('not.exist');
+  });
+
+  it('does not dismisses by click if timeout is negative', () => {
+    cy.get('[data-cy="timeout"]').type('-1');
+    cy.get('[data-cy="content"]').should('not.exist');
+    cy.get('[data-cy="visibility-toggle"]').click();
+    cy.get('[data-cy="content"]').should('exist');
+    cy.get('[data-cy="content"]').click();
+    cy.get('[data-cy="content"]').should('exist');
+  });
+
+  it('auto dismisses on timeout', () => {
+    cy.get('[data-cy="timeout"]').type('100');
+    cy.get('[data-cy="content"]').should('not.exist');
+    cy.get('[data-cy="visibility-toggle"]').click();
+    cy.get('[data-cy="content"]').should('exist');
+    cy.get('[data-cy="content"]').should('not.exist');
+  });
+});
diff --git a/example/src/App.vue b/example/src/App.vue
index aab6121..75273d8 100644
--- a/example/src/App.vue
+++ b/example/src/App.vue
@@ -35,6 +35,7 @@ const navigation = ref([
       { to: { name: 'color-pickers' }, title: 'Color Picker' },
       { to: { name: 'auto-completes' }, title: 'Auto Completes' },
       { to: { name: 'navigation-drawers' }, title: 'Navigation Drawer' },
+      { to: { name: 'notification' }, title: 'Notification' },
     ],
   },
   {
diff --git a/example/src/router/index.ts b/example/src/router/index.ts
index d07f768..161ca70 100644
--- a/example/src/router/index.ts
+++ b/example/src/router/index.ts
@@ -157,6 +157,11 @@ const router = new VueRouter({
       name: 'navigation-drawers',
       component: () => import('@/views/NavigationDrawerView.vue'),
     },
+    {
+      path: '/notification',
+      name: 'notification',
+      component: () => import('@/views/NotificationView.vue'),
+    },
     {
       path: '/breakpoint',
       name: 'breakpoint',
diff --git a/example/src/views/NotificationView.vue b/example/src/views/NotificationView.vue
new file mode 100644
index 0000000..00a21a9
--- /dev/null
+++ b/example/src/views/NotificationView.vue
@@ -0,0 +1,63 @@
+<script setup lang='ts'>
+import {
+  RuiButton,
+  RuiMenuSelect,
+  RuiNotification,
+  RuiTextField,
+} from '@rotki/ui-library-compat';
+import { ref } from 'vue';
+
+const visible = ref(false);
+const timeout = ref(0);
+
+const theme = ref<'light' | 'dark'>();
+const options = ['light', 'dark'];
+</script>
+
+<template>
+  <div>
+    <h2
+      class="text-h4 mb-6"
+      data-cy="notification"
+    >
+      Notification
+    </h2>
+    <div>
+      <RuiButton
+        data-cy="visibility-toggle"
+        @click="visible = !visible"
+      >
+        {{ visible ? 'Hide' : 'Show' }}
+      </RuiButton>
+      <RuiTextField
+        v-model="timeout"
+        type="number"
+        variant="outlined"
+        label="timeout"
+        class="mt-4"
+        data-cy="timeout"
+      />
+      <RuiMenuSelect
+        v-model="theme"
+        :options="options"
+        label="theme"
+        variant="outlined"
+        clearable
+        data-cy="menu"
+      />
+    </div>
+
+    <RuiNotification
+      v-model="visible"
+      :timeout="timeout"
+      :theme="theme"
+    >
+      <div
+        class="m-4"
+        data-cy="content"
+      >
+        This is a notification
+      </div>
+    </RuiNotification>
+  </div>
+</template>
diff --git a/src/components/index.ts b/src/components/index.ts
index 62338fa..237b678 100644
--- a/src/components/index.ts
+++ b/src/components/index.ts
@@ -155,6 +155,7 @@ import {
   type Props as NavigationDrawerProps,
   default as RuiNavigationDrawer,
 } from '@/components/overlays/navigation-drawer/NavigationDrawer.vue';
+import RuiNotification, { type NotificationProps } from '@/components/overlays/notification/Notification.vue';
 import type {
   TableColumn as DataTableColumn,
   SortColumn as DataTableSortColumn,
@@ -202,6 +203,7 @@ export {
   RuiColorPicker,
   RuiAutoComplete,
   RuiNavigationDrawer,
+  RuiNotification,
   ProgressProps,
   ChipProps,
   TextFieldProps,
@@ -245,4 +247,5 @@ export {
   ColorPickerProps,
   AutoCompleteProps,
   NavigationDrawerProps,
+  NotificationProps,
 };
diff --git a/src/components/overlays/notification/Notification.spec.ts b/src/components/overlays/notification/Notification.spec.ts
new file mode 100644
index 0000000..7f7fe94
--- /dev/null
+++ b/src/components/overlays/notification/Notification.spec.ts
@@ -0,0 +1,103 @@
+import Vue from 'vue';
+import { mount } from '@vue/test-utils';
+import { describe, expect, it, vi } from 'vitest';
+import { TeleportPlugin } from '@/components/overlays/teleport-container';
+import Notification from '@/components/overlays/notification/Notification.vue';
+
+Vue.use(TeleportPlugin);
+
+function createWrapper(options?: any) {
+  return mount(Notification, {
+    ...options,
+    scopedSlots: {
+      default: `<div id="content">Notification</div>`,
+    },
+    stubs: {
+      Transition: true,
+    },
+  });
+}
+
+describe('notification', () => {
+  it('renders properly', async () => {
+    const wrapper = createWrapper({
+      propsData: {
+        timeout: 0,
+        value: true,
+      },
+    });
+
+    await nextTick();
+    const notification = document.body.querySelector('#content') as HTMLDivElement;
+    expect(notification).toBeTruthy();
+    wrapper.destroy();
+  });
+
+  it('does not render if value is false', async () => {
+    const wrapper = createWrapper({
+      propsData: {
+        timeout: 0,
+        value: false,
+      },
+    });
+
+    await nextTick();
+    const notification = document.body.querySelector('#content') as HTMLDivElement;
+    expect(notification).toBeFalsy();
+    wrapper.destroy();
+  });
+
+  it('closes on click', async () => {
+    const wrapper = createWrapper({
+      propsData: {
+        timeout: 0,
+        value: true,
+      },
+    });
+
+    await nextTick();
+    const notification = document.body.querySelector('#content') as HTMLDivElement;
+    expect(notification).toBeTruthy();
+    notification.click();
+    await nextTick();
+    expect(wrapper.emitted()).toHaveProperty('input', [[false]]);
+    wrapper.destroy();
+  });
+
+  it('does not close on click if timeout is negative', async () => {
+    const wrapper = createWrapper({
+      propsData: {
+        timeout: -1,
+        value: true,
+      },
+    });
+
+    await nextTick();
+    const notification = document.body.querySelector('#content') as HTMLDivElement;
+    expect(notification).toBeTruthy();
+    notification.click();
+    await nextTick();
+    expect(wrapper.emitted()).toEqual({});
+    wrapper.destroy();
+  });
+
+  it('closes automatically after timeout', async () => {
+    vi.useFakeTimers();
+    const wrapper = createWrapper({
+      propsData: {
+        timeout: 5000,
+        value: true,
+      },
+    });
+
+    await nextTick();
+    vi.advanceTimersByTime(3000);
+    const notification = document.body.querySelector('#content') as HTMLDivElement;
+    expect(notification).toBeTruthy();
+    expect(wrapper.emitted()).toEqual({});
+    vi.advanceTimersByTime(2000);
+    expect(wrapper.emitted()).toHaveProperty('input', [[false]]);
+    wrapper.destroy();
+    vi.useRealTimers();
+  });
+});
diff --git a/src/components/overlays/notification/Notification.stories.ts b/src/components/overlays/notification/Notification.stories.ts
new file mode 100644
index 0000000..97ab2fd
--- /dev/null
+++ b/src/components/overlays/notification/Notification.stories.ts
@@ -0,0 +1,90 @@
+import Button from '@/components/buttons/button/Button.vue';
+import Card from '@/components/cards/Card.vue';
+import Notification, { type NotificationProps } from '@/components/overlays/notification/Notification.vue';
+import type { Meta, StoryFn, StoryObj } from '@storybook/vue';
+
+const render: StoryFn<NotificationProps> = args => ({
+  components: { Button, Card, Notification },
+  setup() {
+    const value = computed({
+      get() {
+        return args.value;
+      },
+      set(val) {
+        args.value = val;
+      },
+    });
+
+    return { args, value };
+  },
+  template: `
+    <div>
+      <Button @click="value = !value"> Click </Button>
+      <Notification v-bind="args" v-model='value'>
+        <Card>I am a notification</Card>
+      </Notification>
+    </div>
+  `,
+});
+
+const meta: Meta<NotificationProps> = {
+  args: {},
+  argTypes: {
+    theme: {
+      control: 'select',
+      options: ['light', 'dark'],
+    },
+    timeout: { control: 'number' },
+    width: { control: 'text' },
+  },
+  component: Notification,
+  parameters: {
+    docs: {
+      controls: { exclude: ['default'] },
+    },
+  },
+  render,
+  tags: ['autodocs'],
+  title: 'Components/Overlays/Notification',
+};
+
+type Story = StoryObj<NotificationProps>;
+
+export const Default: Story = {
+  args: {
+    timeout: 0,
+    value: false,
+  },
+};
+
+export const NonPersistent: Story = {
+  args: {
+    timeout: 0,
+    value: false,
+  },
+};
+
+export const Light: Story = {
+  args: {
+    theme: 'light',
+    timeout: 0,
+    value: false,
+  },
+};
+
+export const Dark: Story = {
+  args: {
+    theme: 'dark',
+    timeout: 0,
+    value: false,
+  },
+};
+
+export const Persistent: Story = {
+  args: {
+    timeout: -1,
+    value: false,
+  },
+};
+
+export default meta;
diff --git a/src/components/overlays/notification/Notification.vue b/src/components/overlays/notification/Notification.vue
new file mode 100644
index 0000000..768c43b
--- /dev/null
+++ b/src/components/overlays/notification/Notification.vue
@@ -0,0 +1,80 @@
+<script lang='ts' setup>
+import RuiTeleport from '@/components/overlays/Teleport';
+
+export interface NotificationProps {
+  value: boolean;
+  timeout: number;
+  width?: number | string;
+  theme?: 'light' | 'dark';
+}
+
+defineOptions({
+  name: 'RuiNotification',
+  inheritAttrs: false,
+});
+
+const props = withDefaults(
+  defineProps<NotificationProps>(),
+  {
+    width: 400,
+    theme: undefined,
+  },
+);
+
+const emit = defineEmits<{
+  (e: 'input', value: boolean): void;
+}>();
+
+const { timeout, value, width } = toRefs(props);
+
+const style = computed(() => ({
+  width: transformPropsUnit(get(width)),
+}));
+
+function dismiss() {
+  if (get(timeout) < 0)
+    return;
+
+  emit('input', false);
+}
+
+watchImmediate(value, (display) => {
+  if (!display)
+    return;
+
+  const duration = get(timeout);
+  if (duration > 0) {
+    setTimeout(() => {
+      emit('input', false);
+    }, duration);
+  }
+});
+</script>
+
+<template>
+  <RuiTeleport immediate>
+    <Transition
+      v-if="value"
+      enter-class="opacity-0"
+      enter-active-class="ease-out duration-150"
+      enter-to-class="opacity-100"
+      leave-class="opacity-100"
+      leave-active-class="ease-in duration-100"
+      leave-to-class="opacity-0"
+    >
+      <div
+        class="top-2 right-2 fixed drop-shadow-lg z-50"
+        :class="{
+          'bg-white dark:bg-[#363636]': !theme,
+          'bg-white text-rui-light-text': theme === 'light',
+          'bg-[#363636] text-rui-dark-text': theme === 'dark',
+        }"
+        :style="style"
+        v-bind="$attrs"
+        @click="dismiss()"
+      >
+        <slot />
+      </div>
+    </Transition>
+  </RuiTeleport>
+</template>