diff --git a/.changeset/six-frogs-destroy.md b/.changeset/six-frogs-destroy.md
new file mode 100644
index 0000000000..e20054df85
--- /dev/null
+++ b/.changeset/six-frogs-destroy.md
@@ -0,0 +1,6 @@
+---
+'@twilio-paste/avatar': patch
+'@twilio-paste/core': patch
+---
+
+[Avatar] Prevent underlines from being added to Avatar initials inside of anchors or display pills
diff --git a/packages/paste-core/components/avatar/__tests__/__snapshots__/avatar.test.tsx.snap b/packages/paste-core/components/avatar/__tests__/__snapshots__/avatar.test.tsx.snap
index cfe8b52f05..6021cced12 100644
--- a/packages/paste-core/components/avatar/__tests__/__snapshots__/avatar.test.tsx.snap
+++ b/packages/paste-core/components/avatar/__tests__/__snapshots__/avatar.test.tsx.snap
@@ -5,6 +5,7 @@ exports[`Avatar image should render responsive css with an image 1`] = `
   .emotion-0 {
   box-sizing: border-box;
   overflow: hidden;
+  text-align: center;
   width: sizeIcon30;
   height: sizeIcon30;
   background-color: colorBackgroundUser;
@@ -67,6 +68,7 @@ exports[`Avatar intials should render responsive css 1`] = `
   .emotion-0 {
   box-sizing: border-box;
   overflow: hidden;
+  text-align: center;
   width: sizeIcon10;
   height: sizeIcon10;
   background-color: colorBackgroundUser;
@@ -94,9 +96,9 @@ exports[`Avatar intials should render responsive css 1`] = `
   color: inherit;
   font-size: fontSize10;
   line-height: lineHeight10;
-  display: block;
+  display: inline-block;
   font-weight: fontWeightBold;
-  text-align: center;
+  vertical-align: top;
   -webkit-text-decoration: none;
   text-decoration: none;
 }
diff --git a/packages/paste-core/components/avatar/src/index.tsx b/packages/paste-core/components/avatar/src/index.tsx
index 36095206a0..2779a17d9a 100644
--- a/packages/paste-core/components/avatar/src/index.tsx
+++ b/packages/paste-core/components/avatar/src/index.tsx
@@ -28,11 +28,11 @@ const AvatarContents: React.FC<AvatarContentProps> = ({name, size = DEFAULT_SIZE
   return (
     <Text
       as="abbr"
-      display="block"
+      display="inline-block"
       fontSize={computedTokenNames.fontSize}
       fontWeight="fontWeightBold"
       lineHeight={computedTokenNames.lineHeight}
-      textAlign="center"
+      verticalAlign="top"
       textDecoration="none"
       title={name}
       color="inherit"
@@ -89,6 +89,7 @@ const Avatar = React.forwardRef<HTMLDivElement, AvatarProps>(
         as="div"
         element={element}
         overflow="hidden"
+        textAlign="center"
         ref={ref}
         size={size}
         {...colorVariants[color]}
diff --git a/packages/paste-core/components/display-pill-group/stories/index.stories.tsx b/packages/paste-core/components/display-pill-group/stories/index.stories.tsx
index c48aa5d62a..2ab6af3fec 100644
--- a/packages/paste-core/components/display-pill-group/stories/index.stories.tsx
+++ b/packages/paste-core/components/display-pill-group/stories/index.stories.tsx
@@ -26,6 +26,10 @@ export const Basic: React.FC = () => {
         <Avatar size="sizeIcon10" name="avatar example" src="./avatars/avatar4.png" />
         Baseball
       </DisplayPill>
+      <DisplayPill href="/">
+        <Avatar size="sizeIcon10" name="Avatar Anchor Example" />
+        Bowling
+      </DisplayPill>
       <DisplayPill>Basketball</DisplayPill>
       <DisplayPill>Soccer</DisplayPill>
     </DisplayPillGroup>