diff --git a/lib/java/com/google/android/material/chip/Chip.java b/lib/java/com/google/android/material/chip/Chip.java
index 857230e2ae4..a0aa26c6075 100644
--- a/lib/java/com/google/android/material/chip/Chip.java
+++ b/lib/java/com/google/android/material/chip/Chip.java
@@ -194,7 +194,7 @@ public Chip(Context context, AttributeSet attrs, int defStyleAttr) {
             context, attrs, defStyleAttr, R.style.Widget_MaterialComponents_Chip_Action);
     initMinTouchTarget(context, attrs, defStyleAttr);
     setChipDrawable(drawable);
-
+    drawable.setElevation(ViewCompat.getElevation(this));
     TypedArray a =
         ThemeEnforcement.obtainStyledAttributes(
             context,
@@ -246,6 +246,14 @@ public Chip(Context context, AttributeSet attrs, int defStyleAttr) {
     lastLayoutDirection = ViewCompat.getLayoutDirection(this);
   }
 
+  @Override
+  public void setElevation(float elevation) {
+    super.setElevation(elevation);
+    if (chipDrawable != null) {
+      chipDrawable.setElevation(elevation);
+    }
+  }
+
   @Override
   public void onInitializeAccessibilityNodeInfo(AccessibilityNodeInfo info) {
     super.onInitializeAccessibilityNodeInfo(info);
diff --git a/lib/java/com/google/android/material/chip/ChipDrawable.java b/lib/java/com/google/android/material/chip/ChipDrawable.java
index e509427c663..d065fd22231 100644
--- a/lib/java/com/google/android/material/chip/ChipDrawable.java
+++ b/lib/java/com/google/android/material/chip/ChipDrawable.java
@@ -324,6 +324,8 @@ public static ChipDrawable createFromResource(Context context, @XmlRes int id) {
   private ChipDrawable(
       Context context, AttributeSet attrs, @AttrRes int defStyleAttr, @StyleRes int defStyleRes) {
     super(context, attrs, defStyleAttr, defStyleRes);
+    initializeElevationOverlay(context);
+
     this.context = context;
     textDrawableHelper = new TextDrawableHelper();