diff --git a/docs/.vitepress/config.ts b/docs/.vitepress/config.ts
index b7d79ae..35faa13 100644
--- a/docs/.vitepress/config.ts
+++ b/docs/.vitepress/config.ts
@@ -47,7 +47,8 @@ export default defineConfig({
           { text: "Single Select", link: "/demo/single-select" },
           { text: "Multiple Select", link: "/demo/multiple-select" },
           { text: "Custom Option Slot", link: "/demo/custom-option-slot" },
-          { text: "Pre-Selected Values (single & multi)", link: "/demo/pre-selected-values" },
+          { text: "Custom Tag Slot", link: "/demo/custom-tag-slot" },
+          { text: "Pre-Selected Values", link: "/demo/pre-selected-values" },
           { text: "Disabled Options", link: "/demo/disabled-options" },
           { text: "With Menu Header", link: "/demo/with-menu-header" },
           { text: "With Complex Menu Filter", link: "/demo/with-complex-menu-filter.md" },
diff --git a/docs/demo/custom-tag-slot.md b/docs/demo/custom-tag-slot.md
new file mode 100644
index 0000000..192cd1c
--- /dev/null
+++ b/docs/demo/custom-tag-slot.md
@@ -0,0 +1,106 @@
+---
+title: 'Custom Tag Slot'
+---
+
+# Custom Tag Slot
+
+The following example demonstrates how to use the `VueSelect` component with a custom slot `#tag` when using the `isMulti` prop.
+
+::: info
+Read more about available [slots here](../slots.md) and the `isMulti` prop [here](../props.md#isMulti).
+:::
+
+<script setup>
+import { ref } from "vue";
+
+import VueSelect from "../../src";
+
+const selected = ref([]);
+</script>
+
+<VueSelect
+  v-model="selected"
+  :is-multi="true"
+  :options="[
+    { label: 'Alice', value: 'alice', username: '@alice_user' },
+    { label: 'John', value: 'john', username: '@john_user' },
+    { label: 'Greg', value: 'greg', username: '@greg_user' },
+  ]"
+>
+  <template #tag="{ option, removeOption }">
+    <div :class="$style['custom-tag']">
+      {{ option.username }} <button type="button" @click="removeOption">&times;</button>
+    </div>
+  </template>
+</VueSelect>
+
+<style module>
+.custom-tag {
+  --vs-multi-value-gap: 4px;
+
+  display: flex;
+  align-items: center;
+  gap: var(--vs-multi-value-gap);
+  border-radius: 4px;
+  border: 1px solid rgba(0, 0, 0, 0.1);
+  padding: var(--vs-multi-value-padding);
+  margin: var(--vs-multi-value-margin);
+  color: var(--vs-multi-value-text-color);
+  line-height: var(--vs-multi-value-line-height);
+  background: var(--vs-multi-value-bg);
+}
+
+.custom-tag button {
+  font-size: 1.25rem;
+  background: none;
+}
+</style>
+
+## Demo source-code
+
+```vue
+<script setup>
+import { ref } from "vue";
+import VueSelect from "vue3-select-component";
+
+const selected = ref([]);
+</script>
+
+<VueSelect
+  v-model="selected"
+  :is-multi="true"
+  :options="[
+    { label: 'Alice', value: 'alice', username: '@alice_user' },
+    { label: 'John', value: 'john', username: '@john_user' },
+    { label: 'Greg', value: 'greg', username: '@greg_user' },
+  ]"
+>
+  <template #tag="{ option, removeOption }">
+    <div class="custom-tag">
+      {{ option.username }} <button type="button" @click="removeOption">&times;</button>
+    </div>
+  </template>
+</VueSelect>
+
+<style lang="css" scoped>
+.custom-tag {
+  --vs-multi-value-gap: 4px;
+
+  display: flex;
+  align-items: center;
+  gap: var(--vs-multi-value-gap);
+  border-radius: 4px;
+  border: 1px solid rgba(0, 0, 0, 0.1);
+  padding: var(--vs-multi-value-padding);
+  margin: var(--vs-multi-value-margin);
+  color: var(--vs-multi-value-text-color);
+  line-height: var(--vs-multi-value-line-height);
+  background: var(--vs-multi-value-bg);
+}
+
+.custom-tag button {
+  font-size: 1.25rem;
+  background: none;
+}
+</style>
+```
diff --git a/docs/slots.md b/docs/slots.md
index f41e841..8093e2b 100644
--- a/docs/slots.md
+++ b/docs/slots.md
@@ -14,7 +14,7 @@ If you are not familiar with Vue's slots, you can read more about them [here](ht
 
 **Type**: `slotProps: { option: Option }`
 
-Customize the rendered HTML of an option inside the menu. You can use the slot props to retrieve the current menu option that will be rendered.
+Customize the rendered template of an option inside the menu. You can use the slot props to retrieve the current menu option that will be rendered.
 
 ```vue
 <template>
@@ -30,7 +30,7 @@ Customize the rendered HTML of an option inside the menu. You can use the slot p
 
 **Type**: `slotProps: { option: Option }`
 
-Customize the rendered HTML if a selected option (inside the select control). You can use the slot props to retrieve the current selected option.
+Customize the rendered template if a selected option (inside the select control). You can use the slot props to retrieve the current selected option.
 
 ```vue
 <template>
@@ -42,11 +42,31 @@ Customize the rendered HTML if a selected option (inside the select control). Yo
 </template>
 ```
 
+## tag
+
+**Type**: `slotProps: { option: Option, removeOption: () => void }`
+
+When using `isMulti` prop, customize the rendered template of a selected option. You can use the slot props to retrieve the current selected option and a function to remove it.
+
+```vue
+<template>
+  <VueSelect
+    v-model="option"
+    :options="options"
+    :is-multi="true"
+  >
+    <template #tag="{ option, removeOption }">
+      <span>{{ option.label }} <button type="button" @click="removeOption">&times;</button></span>
+    </template>
+  </VueSelect>
+</template>
+```
+
 ## menu-header
 
 **Type**: `slotProps: {}`
 
-Customize the rendered HTML for the menu header. This slot is placed **before** the options.
+Customize the rendered template for the menu header. This slot is placed **before** the options.
 
 ```vue
 <template>
@@ -64,7 +84,7 @@ Customize the rendered HTML for the menu header. This slot is placed **before**
 
 **Type**: `slotProps: {}`
 
-Customize the rendered HTML when there are no options matching the search, inside the menu.
+Customize the rendered template when there are no options matching the search, inside the menu.
 
 ```vue
 <template>
@@ -80,7 +100,7 @@ Customize the rendered HTML when there are no options matching the search, insid
 
 **Type**: `slotProps: {}`
 
-Customize the rendered HTML for the dropdown icon. Please note that the slot is placed **inside the button**, so you don't have to deal with attaching event-listeners.
+Customize the rendered template for the dropdown icon. Please note that the slot is placed **inside the button**, so you don't have to deal with attaching event-listeners.
 
 ```vue
 <template>
@@ -96,7 +116,7 @@ Customize the rendered HTML for the dropdown icon. Please note that the slot is
 
 **Type**: `slotProps: {}`
 
-Customize the rendered HTML for the clear icon. Please note that the slot is placed **inside the button**, so you don't have to deal with attaching event-listeners.
+Customize the rendered template for the clear icon. Please note that the slot is placed **inside the button**, so you don't have to deal with attaching event-listeners.
 
 ```vue
 <template>
@@ -112,7 +132,7 @@ Customize the rendered HTML for the clear icon. Please note that the slot is pla
 
 **Type**: `slotProps: {}`
 
-Customize the rendered HTML when the select component is in a loading state. By default, it displays a `<Spinner />` component.
+Customize the rendered template when the select component is in a loading state. By default, it displays a `<Spinner />` component.
 
 ```vue
 <template>
diff --git a/src/Select.vue b/src/Select.vue
index e701d1f..0cf4bbf 100644
--- a/src/Select.vue
+++ b/src/Select.vue
@@ -421,15 +421,24 @@ onBeforeUnmount(() => {
         </div>
 
         <template v-if="props.isMulti && selectedOptions.length">
-          <button
-            v-for="(option, i) in selectedOptions"
-            :key="i"
-            type="button"
-            class="multi-value"
-            @click="removeOption(option)"
+          <template
+            v-for="selectedOption in selectedOptions"
+            :key="selectedOption.value"
           >
-            {{ getMultiValueLabel(option) }}<XMarkIcon />
-          </button>
+            <slot
+              name="tag"
+              :option="selectedOption"
+              :remove-option="() => removeOption(selectedOption)"
+            >
+              <button
+                type="button"
+                class="multi-value"
+                @click="removeOption(selectedOption)"
+              >
+                {{ getMultiValueLabel(selectedOption) }}<XMarkIcon />
+              </button>
+            </slot>
+          </template>
         </template>
 
         <input
@@ -716,7 +725,7 @@ onBeforeUnmount(() => {
   border: 0;
   width: var(--vs-icon-size);
   height: var(--vs-icon-size);
-  fill: var(--vs-icon-color);
+  color: var(--vs-icon-color);
   background: none;
   outline: none;
   cursor: pointer;
@@ -730,7 +739,7 @@ onBeforeUnmount(() => {
   border: 0;
   width: var(--vs-icon-size);
   height: var(--vs-icon-size);
-  fill: var(--vs-icon-color);
+  color: var(--vs-icon-color);
   background: none;
   outline: none;
   cursor: pointer;