diff --git a/common/src/app/common/flags.cljc b/common/src/app/common/flags.cljc
index 37e6268b3d..b0faa1629a 100644
--- a/common/src/app/common/flags.cljc
+++ b/common/src/app/common/flags.cljc
@@ -123,6 +123,7 @@
     :token-color
     :token-typography-types
     :token-typography-composite
+    :token-shadow
     :transit-readable-response
     :user-feedback
     ;; TODO: remove this flag.
diff --git a/common/src/app/common/types/token.cljc b/common/src/app/common/types/token.cljc
index 41b0149e44..59cd4f8bca 100644
--- a/common/src/app/common/types/token.cljc
+++ b/common/src/app/common/types/token.cljc
@@ -54,6 +54,7 @@
 (def token-type->dtcg-token-type
   {:boolean         "boolean"
    :border-radius   "borderRadius"
+   :shadow          "shadow"
    :color           "color"
    :dimensions      "dimension"
    :font-family     "fontFamilies"
@@ -77,7 +78,8 @@
       ;; Allow these properties to be imported with singular key names for backwards compability
       (assoc "fontWeight" :font-weight
              "fontSize" :font-size
-             "fontFamily" :font-family)))
+             "fontFamily" :font-family
+             "boxShadow" :shadow)))
 
 (def composite-token-type->dtcg-token-type
   "Custom set of conversion keys for composite typography token with `:line-height` available.
@@ -115,6 +117,12 @@
 
 (def border-radius-keys (schema-keys schema:border-radius))
 
+(def ^:private schema:shadow
+  [:map {:title "ShadowTokenAttrs"}
+   [:shadow {:optional true} token-name-ref]])
+
+(def shadow-keys (schema-keys schema:shadow))
+
 (def ^:private schema:stroke-width
   [:map
    [:stroke-width {:optional true} token-name-ref]])
@@ -271,6 +279,7 @@
 
 (def all-keys (set/union color-keys
                          border-radius-keys
+                         shadow-keys
                          stroke-width-keys
                          sizing-keys
                          opacity-keys
@@ -289,6 +298,7 @@
   [:merge {:title "AppliedTokens"}
    schema:tokens
    schema:border-radius
+   schema:shadow
    schema:sizing
    schema:spacing
    schema:rotation
@@ -334,6 +344,7 @@
      (font-weight-keys shape-attr)     #{shape-attr :typography}
 
      (border-radius-keys shape-attr) #{shape-attr}
+     (shadow-keys shape-attr) #{shape-attr}
      (sizing-keys shape-attr) #{shape-attr}
      (opacity-keys shape-attr) #{shape-attr}
      (spacing-keys shape-attr) #{shape-attr}
@@ -361,6 +372,7 @@
              rotation-keys
              sizing-keys
              opacity-keys
+             shadow-keys
              position-attributes))
 
 (def rect-attributes
@@ -444,6 +456,30 @@
                                      spacing-margin-keys)]
     (unapply-token-id shape layout-item-attrs)))
 
+(def tokens-by-input
+  "A map from input name to applicable token for that input."
+  {:width #{:sizing :dimensions}
+   :height #{:sizing :dimensions}
+   :max-width #{:sizing :dimensions}
+   :max-height #{:sizing :dimensions}
+   :x #{:spacing :dimensions}
+   :y #{:spacing :dimensions}
+   :rotation #{:number :rotation}
+   :border-radius #{:border-radius :dimensions}
+   :row-gap #{:spacing :dimensions}
+   :column-gap #{:spacing :dimensions}
+   :horizontal-padding #{:spacing :dimensions}
+   :vertical-padding #{:spacing :dimensions}
+   :sided-paddings #{:spacing :dimensions}
+   :horizontal-margin #{:spacing :dimensions}
+   :vertical-margin #{:spacing :dimensions}
+   :sided-margins #{:spacing :dimensions}
+   :line-height #{:line-height :number}
+   :font-size #{:font-size}
+   :letter-spacing #{:letter-spacing}
+   :fill #{:color}
+   :stroke-color #{:color}})
+
 ;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
 ;; TYPOGRAPHY
 ;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
@@ -514,26 +550,11 @@
   [token-value]
   (string? token-value))
 
-(def tokens-by-input
-  "A map from input name to applicable token for that input."
-  {:width #{:sizing :dimensions}
-   :height #{:sizing :dimensions}
-   :max-width #{:sizing :dimensions}
-   :max-height #{:sizing :dimensions}
-   :x #{:spacing :dimensions}
-   :y #{:spacing :dimensions}
-   :rotation #{:number :rotation}
-   :border-radius #{:border-radius :dimensions}
-   :row-gap #{:spacing :dimensions}
-   :column-gap #{:spacing :dimensions}
-   :horizontal-padding #{:spacing :dimensions}
-   :vertical-padding #{:spacing :dimensions}
-   :sided-paddings #{:spacing :dimensions}
-   :horizontal-margin #{:spacing :dimensions}
-   :vertical-margin #{:spacing :dimensions}
-   :sided-margins #{:spacing :dimensions}
-   :line-height #{:line-height :number}
-   :font-size #{:font-size}
-   :letter-spacing #{:letter-spacing}
-   :fill #{:color}
-   :stroke-color #{:color}})
+;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
+;; SHADOW
+;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
+
+(defn shadow-composite-token-reference?
+  "Predicate if a shadow composite token is a reference value - a string pointing to another reference token."
+  [token-value]
+  (string? token-value))
diff --git a/common/src/app/common/types/tokens_lib.cljc b/common/src/app/common/types/tokens_lib.cljc
index df7aa38cf2..4b99b0e1c4 100644
--- a/common/src/app/common/types/tokens_lib.cljc
+++ b/common/src/app/common/types/tokens_lib.cljc
@@ -1552,6 +1552,46 @@ Will return a value that matches this schema:
     ;; Reference value
     value))
 
+(defn- convert-dtcg-shadow-composite
+  "Convert shadow token value from DTCG format to internal format."
+  [value]
+  (let [process-shadow (fn [shadow]
+                         (if (map? shadow)
+                           (let [legacy-shadow-type (get "type" shadow)]
+                             (-> shadow
+                                 (set/rename-keys {"x" :offsetX
+                                                   "offsetX" :offsetX
+                                                   "y" :offsetY
+                                                   "offsetY" :offsetY
+                                                   "blur" :blur
+                                                   "spread" :spread
+                                                   "color" :color
+                                                   "inset" :inset})
+                                 (update :inset #(cond
+                                                   (boolean? %) %
+                                                   (= "true" %) true
+                                                   (= "false" %) false
+                                                   (= legacy-shadow-type "innerShadow") true
+                                                   :else false))
+                                 (select-keys [:offsetX :offsetY :blur :spread :color :inset])))
+                           shadow))]
+    (cond
+      ;; Reference value - keep as string
+      (string? value)
+      value
+
+      ;; Array of shadows - process each
+      (sequential? value)
+      (mapv process-shadow value)
+
+      ;; Single shadow object - wrap in vector
+      (map? value)
+      [(process-shadow value)]
+
+      ;; Fallback - keep as is
+      :else
+      value)))
+
 (defn- flatten-nested-tokens-json
   "Convert a tokens tree in the decoded json fragment into a flat map,
    being the keys the token paths after joining the keys with '.'."
@@ -1574,6 +1614,7 @@ Will return a value that matches this schema:
                                          (case token-type
                                            :font-family (convert-dtcg-font-family token-value)
                                            :typography (convert-dtcg-typography-composite token-value)
+                                           :shadow (convert-dtcg-shadow-composite token-value)
                                            token-value))
                                        :description (get v "$description")))
              ;; Discard unknown type tokens
@@ -1739,11 +1780,32 @@ Will return a value that matches this schema:
      {} value)
     value))
 
+(defn- shadow-token->dtcg-token
+  "Convert shadow token value from internal format to DTCG format."
+  [value]
+  (if (sequential? value)
+    (mapv (fn [shadow]
+            (if (map? shadow)
+              (-> shadow
+                  (set/rename-keys {:offsetX "offsetX"
+                                    :offsetY "offsetY"
+                                    :blur "blur"
+                                    :spread "spread"
+                                    :color "color"
+                                    :inset "inset"})
+                  (select-keys ["offsetX" "offsetY" "blur" "spread" "color" "inset"]))
+              shadow))
+          value)
+    value))
+
 (defn- token->dtcg-token [token]
   (cond-> {"$value" (cond-> (:value token)
                       ;; Transform typography token values
                       (= :typography (:type token))
-                      typography-token->dtcg-token)
+                      typography-token->dtcg-token
+                      ;; Transform shadow token values
+                      (= :shadow (:type token))
+                      shadow-token->dtcg-token)
            "$type" (cto/token-type->dtcg-token-type (:type token))}
     (:description token) (assoc "$description" (:description token))))
 
diff --git a/common/test/common_tests/types/data/tokens-shadow-example.json b/common/test/common_tests/types/data/tokens-shadow-example.json
new file mode 100644
index 0000000000..cd9e6fe240
--- /dev/null
+++ b/common/test/common_tests/types/data/tokens-shadow-example.json
@@ -0,0 +1,60 @@
+{
+  "test": {
+    "shadow-single": {
+      "$value": {
+        "x": "0",
+        "y": "2px",
+        "blur": "4px",
+        "spread": "0",
+        "color": "#000"
+      },
+      "$type": "boxShadow"
+    },
+    "shadow-multiple": {
+      "$value": [
+        {
+          "x": "0",
+          "y": "2px",
+          "blur": "4px",
+          "spread": "0",
+          "color": "#000",
+          "inset": true
+        },
+        {
+          "x": "0",
+          "y": "8px",
+          "blur": "16px",
+          "spread": "0",
+          "color": "#000",
+          "inset": "true"
+        }
+      ],
+      "$type": "boxShadow"
+    },
+    "shadow-ref": {
+      "$value": "{shadow-single}",
+      "$type": "boxShadow"
+    },
+    "shadow-with-type": {
+        "$value": {
+            "x": "0",
+            "y": "4px",
+            "blur": "8px",
+            "spread": "0",
+            "color": "rgba(0,0,0,0.2)",
+            "type": "innerShadow"
+        },
+        "$type": "boxShadow"
+    },
+    "shadow-with-description": {
+        "$value": {
+            "x": "1px",
+            "y": "1px",
+            "blur": "3px",
+            "color": "gray"
+        },
+        "$type": "boxShadow",
+        "$description": "A simple shadow token"
+    }
+  }
+}
diff --git a/common/test/common_tests/types/tokens_lib_test.cljc b/common/test/common_tests/types/tokens_lib_test.cljc
index f036c821df..9bce6cb959 100644
--- a/common/test/common_tests/types/tokens_lib_test.cljc
+++ b/common/test/common_tests/types/tokens_lib_test.cljc
@@ -1362,9 +1362,7 @@
                                    {:name "button.primary.background"
                                     :type :color
                                     :value "{accent.default}"
-                                    :description ""})))
-       (t/testing "invalid tokens got discarded"
-         (t/is (nil? (ctob/get-token-by-name lib "theme" "boxShadow.default")))))))
+                                    :description ""}))))))
 
 #?(:clj
    (t/deftest parse-multi-set-dtcg-json
@@ -1392,9 +1390,7 @@
                                    {:name "button.primary.background"
                                     :type :color
                                     :value "{accent.default}"
-                                    :description ""})))
-       (t/testing "invalid tokens got discarded"
-         (t/is (nil? (ctob/get-token-by-name lib "theme" "boxShadow.default")))))))
+                                    :description ""}))))))
 
 #?(:clj
    (t/deftest parse-multi-set-dtcg-json-default-team
@@ -1893,3 +1889,130 @@
            (t/is (some? imported-single))
            (t/is (= (:type imported-single) (:type original-single)))
            (t/is (= (:value imported-single) (:value original-single))))))))
+
+#?(:clj
+   (t/deftest parse-shadow-tokens
+     (let [json (-> (slurp "test/common_tests/types/data/tokens-shadow-example.json")
+                    (json/decode {:key-fn identity}))
+           lib (ctob/parse-decoded-json json "shadow-test")]
+
+       (t/testing "single shadow token"
+         (let [token (ctob/get-token-by-name lib "shadow-test" "test.shadow-single")]
+           (t/is (some? token))
+           (t/is (= :shadow (:type token)))
+           (t/is (= [{:offsetX "0", :offsetY "2px", :blur "4px", :spread "0", :color "#000", :inset false}]
+                    (:value token)))))
+
+       (t/testing "multiple shadow token"
+         (let [token (ctob/get-token-by-name lib "shadow-test" "test.shadow-multiple")]
+           (t/is (some? token))
+           (t/is (= :shadow (:type token)))
+           (t/is (= [{:offsetX "0", :offsetY "2px", :blur "4px", :spread "0", :color "#000", :inset true}
+                     {:offsetX "0", :offsetY "8px", :blur "16px", :spread "0", :color "#000", :inset true}]
+                    (:value token)))))
+
+       (t/testing "shadow token with reference"
+         (let [token (ctob/get-token-by-name lib "shadow-test" "test.shadow-ref")]
+           (t/is (some? token))
+           (t/is (= :shadow (:type token)))
+           (t/is (= "{shadow-single}" (:value token)))))
+
+       (t/testing "shadow token with type"
+         (let [token (ctob/get-token-by-name lib "shadow-test" "test.shadow-with-type")]
+           (t/is (some? token))
+           (t/is (= :shadow (:type token)))
+           (t/is (= [{:offsetX "0", :offsetY "4px", :blur "8px", :spread "0", :color "rgba(0,0,0,0.2)", :inset false}]
+                    (:value token)))))
+
+       (t/testing "shadow token with description"
+         (let [token (ctob/get-token-by-name lib "shadow-test" "test.shadow-with-description")]
+           (t/is (some? token))
+           (t/is (= :shadow (:type token)))
+           (t/is (= "A simple shadow token" (:description token))))))))
+
+#?(:clj
+   (t/deftest export-shadow-tokens
+     (let [tokens-lib (-> (ctob/make-tokens-lib)
+                          (ctob/add-set
+                           (ctob/make-token-set
+                            :name "shadow-set"
+                            :tokens {"shadow.single"
+                                     (ctob/make-token
+                                      {:name "shadow.single"
+                                       :type :shadow
+                                       :value [{:offsetX "0" :offsetY "2px" :blur "4px" :spread "0" :color "#0000001A"}]
+                                       :description "A single shadow"})
+                                     "shadow.multiple"
+                                     (ctob/make-token
+                                      {:name "shadow.multiple"
+                                       :type :shadow
+                                       :value [{:offsetX "0" :offsetY "2px" :blur "4px" :spread "0" :color "#0000001A"}
+                                               {:offsetX "0" :offsetY "8px" :blur "16px" :spread "0" :color "#0000001A"}]})
+                                     "shadow.ref"
+                                     (ctob/make-token
+                                      {:name "shadow.ref"
+                                       :type :shadow
+                                       :value "{shadow.single}"})
+                                     "shadow.empty"
+                                     (ctob/make-token
+                                      {:name "shadow.empty"
+                                       :type :shadow
+                                       :value {}})})))
+           result (ctob/export-dtcg-json tokens-lib)
+           shadow-set (get result "shadow-set")]
+
+       (t/testing "single shadow token export"
+         (let [single-token (get-in shadow-set ["shadow" "single"])]
+           (t/is (= "shadow" (get single-token "$type")))
+           (t/is (= [{"offsetX" "0" "offsetY" "2px" "blur" "4px" "spread" "0" "color" "#0000001A"}] (get single-token "$value")))
+           (t/is (= "A single shadow" (get single-token "$description")))))
+
+       (t/testing "multiple shadow token export"
+         (let [multiple-token (get-in shadow-set ["shadow" "multiple"])]
+           (t/is (= "shadow" (get multiple-token "$type")))
+           (t/is (= [{"offsetX" "0" "offsetY" "2px" "blur" "4px" "spread" "0" "color" "#0000001A"}
+                     {"offsetX" "0" "offsetY" "8px" "blur" "16px" "spread" "0" "color" "#0000001A"}]
+                    (get multiple-token "$value")))))
+
+       (t/testing "reference shadow token export"
+         (let [ref-token (get-in shadow-set ["shadow" "ref"])]
+           (t/is (= "shadow" (get ref-token "$type")))
+           (t/is (= "{shadow.single}" (get ref-token "$value")))))
+
+       (t/testing "empty shadow token export"
+         (let [empty-token (get-in shadow-set ["shadow" "empty"])]
+           (t/is (= "shadow" (get empty-token "$type")))
+           (t/is (= {} (get empty-token "$value"))))))))
+
+#?(:clj
+   (t/deftest shadow-token-round-trip
+     (let [original-lib (-> (ctob/make-tokens-lib)
+                            (ctob/add-set
+                             (ctob/make-token-set
+                              :name "test-set"
+                              :tokens {"shadow.test"
+                                       (ctob/make-token
+                                        {:name "shadow.test"
+                                         :type :shadow
+                                         :value [{:offsetX "1" :offsetY "1" :blur "1" :spread "1" :color "red" :inset true}]
+                                         :description "Round trip test"})
+                                       "shadow.ref"
+                                       (ctob/make-token
+                                        {:name "shadow.ref"
+                                         :type :shadow
+                                         :value "{shadow.test}"})})))
+           exported (ctob/export-dtcg-json original-lib)
+           imported-lib (ctob/parse-decoded-json exported "")]
+
+       (t/testing "round trip preserves shadow tokens"
+         (let [original-token (ctob/get-token-by-name original-lib "test-set" "shadow.test")
+               imported-token (ctob/get-token-by-name imported-lib "test-set" "shadow.test")]
+           (t/is (some? imported-token))
+           (t/is (= (:type original-token) (:type imported-token)))
+           (t/is (= (:value original-token) (:value imported-token)))
+           (t/is (= (:description original-token) (:description imported-token))))
+         (let [original-ref (ctob/get-token-by-name original-lib "test-set" "shadow.ref")
+               imported-ref (ctob/get-token-by-name imported-lib "test-set" "shadow.ref")]
+           (t/is (some? imported-ref))
+           (t/is (= (:type original-ref) (:type imported-ref)))
+           (t/is (= (:value imported-ref) (:value original-ref))))))))
diff --git a/frontend/playwright/ui/specs/tokens.spec.js b/frontend/playwright/ui/specs/tokens.spec.js
index 077f46b9f0..842b5a5ff1 100644
--- a/frontend/playwright/ui/specs/tokens.spec.js
+++ b/frontend/playwright/ui/specs/tokens.spec.js
@@ -7,8 +7,14 @@ test.beforeEach(async ({ page }) => {
   await BaseWebSocketPage.mockRPC(page, "get-teams", "get-teams-tokens.json");
 });
 
-const setupEmptyTokensFile = async (page) => {
+const setupEmptyTokensFile = async (page, options = {}) => {
+  const { flags = [] } = options;
+
   const workspacePage = new WorkspacePage(page);
+  if (flags.length > 0) {
+    await workspacePage.mockConfigFlags(flags);
+  }
+
   await workspacePage.setupEmptyFile();
   await workspacePage.mockRPC(
     "get-team?id=*",
@@ -1155,6 +1161,228 @@ test.describe("Tokens: Themes modal", () => {
         name: newTokenTitle,
       });
       await expect(newToken).toBeVisible();
+    });
+
+        test("User adds shadow token with multiple shadows and applies it to shape", async ({
+      page,
+    }) => {
+      const { tokensUpdateCreateModal, tokensSidebar, workspacePage, tokenContextMenuForToken } =
+        await setupTokensFile(page, { flags: ["enable-token-shadow"] });
+
+      const tokensTabPanel = page.getByRole("tabpanel", { name: "tokens" });
+
+      await test.step("Stage 1: Basic open", async () => {
+        // User adds shadow via the sidebar
+        await tokensTabPanel
+          .getByRole("button", { name: "Add Token: Shadow" })
+          .click();
+
+        await expect(tokensUpdateCreateModal).toBeVisible();
+
+        const nameField = tokensUpdateCreateModal.getByLabel("Name");
+        await nameField.fill("shadow.primary");
+
+        // User adds first shadow with a color from the color ramp
+        const firstShadowFields = tokensUpdateCreateModal.getByTestId(
+          "shadow-input-fields-0",
+        );
+        await expect(firstShadowFields).toBeVisible();
+
+        // Fill in the shadow values
+        const offsetXInput = firstShadowFields.getByLabel("X");
+        const offsetYInput = firstShadowFields.getByLabel("Y");
+        const blurInput = firstShadowFields.getByLabel("Blur");
+        const spreadInput = firstShadowFields.getByLabel("Spread");
+
+        await offsetXInput.fill("2");
+        await offsetYInput.fill("2");
+        await blurInput.fill("4");
+        await spreadInput.fill("0");
+
+        // Add color using the color picker
+        const colorBullet = firstShadowFields.getByTestId(
+          "token-form-color-bullet",
+        );
+        await colorBullet.click();
+
+        // Click on the color ramp to select a color
+        const valueSaturationSelector = tokensUpdateCreateModal.getByTestId(
+          "value-saturation-selector",
+        );
+        await expect(valueSaturationSelector).toBeVisible();
+        await valueSaturationSelector.click({ position: { x: 50, y: 50 } });
+
+        // Verify that a color value was set
+        const colorInput = firstShadowFields.getByLabel("Color");
+        const firstColorValue = await colorInput.inputValue();
+        await expect(firstColorValue).toMatch(/^rgb(.*)$/);
+
+        // Wait for validation to complete
+        await expect(tokensUpdateCreateModal.getByText(/Resolved value:/).first()).toBeVisible();
+
+        // Save button should be enabled
+        const submitButton = tokensUpdateCreateModal.getByRole("button", {
+          name: "Save",
+        });
+        await expect(submitButton).toBeEnabled();
+      });
+
+      await test.step("Stage 2: Shadow adding/removing works", async () => {
+        const firstShadowFields = tokensUpdateCreateModal.getByTestId(
+          "shadow-input-fields-0",
+        );
+        const colorInput = firstShadowFields.getByLabel("Color");
+        const firstColorValue = await colorInput.inputValue();
+
+        // User adds a second shadow
+        const addButton = firstShadowFields.getByTestId("shadow-add-button-0");
+        await addButton.click();
+
+        const secondShadowFields = tokensUpdateCreateModal.getByTestId(
+          "shadow-input-fields-1",
+        );
+        await expect(secondShadowFields).toBeVisible();
+
+        // User adds a third shadow
+        const addButton2 = secondShadowFields.getByTestId("shadow-add-button-1");
+        await addButton2.click();
+
+        const thirdShadowFields = tokensUpdateCreateModal.getByTestId(
+          "shadow-input-fields-2",
+        );
+        await expect(thirdShadowFields).toBeVisible();
+
+        // User adds values for the third shadow
+        const thirdOffsetXInput = thirdShadowFields.getByLabel("X");
+        const thirdOffsetYInput = thirdShadowFields.getByLabel("Y");
+        const thirdBlurInput = thirdShadowFields.getByLabel("Blur");
+        const thirdSpreadInput = thirdShadowFields.getByLabel("Spread");
+        const thirdColorInput = thirdShadowFields.getByLabel("Color");
+
+        await thirdOffsetXInput.fill("10");
+        await thirdOffsetYInput.fill("10");
+        await thirdBlurInput.fill("20");
+        await thirdSpreadInput.fill("5");
+        await thirdColorInput.fill("#FF0000");
+
+        // User removes the 2nd shadow
+        const removeButton2 = secondShadowFields.getByTestId("shadow-remove-button-1");
+        await removeButton2.click();
+
+        // Verify second shadow is removed
+        await expect(secondShadowFields.getByTestId("shadow-add-button-3")).not.toBeVisible();
+
+        // Verify that the first shadow kept its values
+        const firstOffsetXValue = await firstShadowFields.getByLabel("X").inputValue();
+        const firstOffsetYValue = await firstShadowFields.getByLabel("Y").inputValue();
+        const firstBlurValue = await firstShadowFields.getByLabel("Blur").inputValue();
+        const firstSpreadValue = await firstShadowFields.getByLabel("Spread").inputValue();
+        const firstColorValueAfter = await firstShadowFields.getByLabel("Color").inputValue();
+
+        await expect(firstOffsetXValue).toBe("2");
+        await expect(firstOffsetYValue).toBe("2");
+        await expect(firstBlurValue).toBe("4");
+        await expect(firstSpreadValue).toBe("0");
+        await expect(firstColorValueAfter).toBe(firstColorValue);
+
+        // Verify that the third shadow (now second) kept its values
+        // After removing index 1, the third shadow becomes the second shadow at index 1
+        const newSecondShadowFields = tokensUpdateCreateModal.getByTestId(
+          "shadow-input-fields-1",
+        );
+        await expect(newSecondShadowFields).toBeVisible();
+
+        const secondOffsetXValue = await newSecondShadowFields.getByLabel("X").inputValue();
+        const secondOffsetYValue = await newSecondShadowFields.getByLabel("Y").inputValue();
+        const secondBlurValue = await newSecondShadowFields.getByLabel("Blur").inputValue();
+        const secondSpreadValue = await newSecondShadowFields.getByLabel("Spread").inputValue();
+        const secondColorValue = await newSecondShadowFields.getByLabel("Color").inputValue();
+
+        await expect(secondOffsetXValue).toBe("10");
+        await expect(secondOffsetYValue).toBe("10");
+        await expect(secondBlurValue).toBe("20");
+        await expect(secondSpreadValue).toBe("5");
+        await expect(secondColorValue).toBe("#FF0000");
+      });
+
+      await test.step("Stage 3: Restore when switching tabs works", async () => {
+        const firstShadowFields = tokensUpdateCreateModal.getByTestId(
+          "shadow-input-fields-0",
+        );
+        const newSecondShadowFields = tokensUpdateCreateModal.getByTestId(
+          "shadow-input-fields-1",
+        );
+        const colorInput = firstShadowFields.getByLabel("Color");
+        const firstColorValue = await colorInput.inputValue();
+
+        // Switch to reference tab
+        const referenceTabButton = tokensUpdateCreateModal.getByTestId("reference-opt");
+        await referenceTabButton.click();
+
+        // Verify we're in reference mode - the composite fields should not be visible
+        await expect(firstShadowFields).not.toBeVisible();
+
+        // Switch back to composite tab
+        const compositeTabButton = tokensUpdateCreateModal.getByTestId("composite-opt");
+        await compositeTabButton.click();
+
+        // Verify that shadows are restored
+        await expect(firstShadowFields).toBeVisible();
+        await expect(newSecondShadowFields).toBeVisible();
+
+        // Verify first shadow values are still there
+        const restoredFirstOffsetX = await firstShadowFields.getByLabel("X").inputValue();
+        const restoredFirstOffsetY = await firstShadowFields.getByLabel("Y").inputValue();
+        const restoredFirstBlur = await firstShadowFields.getByLabel("Blur").inputValue();
+        const restoredFirstSpread = await firstShadowFields.getByLabel("Spread").inputValue();
+        const restoredFirstColor = await firstShadowFields.getByLabel("Color").inputValue();
+
+        await expect(restoredFirstOffsetX).toBe("2");
+        await expect(restoredFirstOffsetY).toBe("2");
+        await expect(restoredFirstBlur).toBe("4");
+        await expect(restoredFirstSpread).toBe("0");
+        await expect(restoredFirstColor).toBe(firstColorValue);
+
+        // Verify second shadow values are still there
+        const restoredSecondOffsetX = await newSecondShadowFields.getByLabel("X").inputValue();
+        const restoredSecondOffsetY = await newSecondShadowFields.getByLabel("Y").inputValue();
+        const restoredSecondBlur = await newSecondShadowFields.getByLabel("Blur").inputValue();
+        const restoredSecondSpread = await newSecondShadowFields.getByLabel("Spread").inputValue();
+        const restoredSecondColor = await newSecondShadowFields.getByLabel("Color").inputValue();
+
+        await expect(restoredSecondOffsetX).toBe("10");
+        await expect(restoredSecondOffsetY).toBe("10");
+        await expect(restoredSecondBlur).toBe("20");
+        await expect(restoredSecondSpread).toBe("5");
+        await expect(restoredSecondColor).toBe("#FF0000");
+      });
+
+      await test.step("Stage 4: Layer application works", async () => {
+        // Save the token
+        const submitButton = tokensUpdateCreateModal.getByRole("button", {
+          name: "Save",
+        });
+        await submitButton.click();
+        await expect(tokensUpdateCreateModal).not.toBeVisible();
+
+        // Verify token appears in sidebar
+        const shadowToken = tokensSidebar.getByRole("button", {
+          name: "shadow.primary",
+        });
+        await expect(shadowToken).toBeEnabled();
+
+        // Apply the shadow
+        await workspacePage.clickLayers();
+        await workspacePage.clickLeafLayer("Button");
+
+        const shadowSection = workspacePage.rightSidebar.getByText("Drop shadow");
+        await expect(shadowSection).toHaveCount(0);
+
+        await page.getByRole("tab", { name: "Tokens" }).click();
+        await shadowToken.click();
+
+        await expect(shadowSection).toHaveCount(2);
+      });
     });
   });
 });
diff --git a/frontend/src/app/main/data/style_dictionary.cljs b/frontend/src/app/main/data/style_dictionary.cljs
index 1262b1d134..5005dedeed 100644
--- a/frontend/src/app/main/data/style_dictionary.cljs
+++ b/frontend/src/app/main/data/style_dictionary.cljs
@@ -324,6 +324,106 @@
 (defn collect-typography-errors [token]
   (group-by :typography-key (:errors token)))
 
+(defn- parse-sd-token-shadow-inset
+  [value]
+  (let [references (seq (cto/find-token-value-references value))]
+    (cond
+      (boolean? value)
+      {:value value}
+
+      references
+      {:errors [(wte/error-with-value :error.style-dictionary/missing-reference references)]
+       :references references}
+
+      :else
+      {:errors [(wte/error-with-value :error.style-dictionary/invalid-token-value-shadow-type value)]})))
+
+(defn- parse-sd-token-shadow-blur
+  "Parses shadow blur value (non-negative number)."
+  [value]
+  (let [parsed (parse-sd-token-general-value value)
+        valid? (and (:value parsed) (>= (:value parsed) 0))]
+    (cond
+      valid?
+      parsed
+
+      :else
+      {:errors [(wte/error-with-value :error.style-dictionary/invalid-token-value-shadow-blur value)]})))
+
+(defn- parse-sd-token-shadow-spread
+  "Parses shadow spread value (non-negative number)."
+  [value]
+  (let [parsed (parse-sd-token-general-value value)
+        valid? (and (:value parsed) (>= (:value parsed) 0))]
+    (cond
+      valid?
+      parsed
+
+      :else
+      {:errors [(wte/error-with-value :error.style-dictionary/invalid-token-value-shadow-spread value)]})))
+
+(defn- parse-single-shadow
+  "Parses a single shadow map with properties: x, y, blur, spread, color, type."
+  [shadow-map shadow-index]
+  (let [add-keyed-errors (fn [shadow-result k errors]
+                           (update shadow-result :errors concat
+                                   (map #(assoc % :shadow-key k :shadow-index shadow-index) errors)))
+        parsers {:offsetX parse-sd-token-general-value
+                 :offsetY parse-sd-token-general-value
+                 :blur parse-sd-token-shadow-blur
+                 :spread parse-sd-token-shadow-spread
+                 :color parse-sd-token-color-value
+                 :inset parse-sd-token-shadow-inset}
+        valid-shadow (reduce
+                      (fn [acc [k v]]
+                        (if-let [parser (get parsers k)]
+                          (let [{:keys [errors value]} (parser v)]
+                            (if (seq errors)
+                              (add-keyed-errors acc k errors)
+                              (assoc-in acc [:value k] (or value v))))
+                          acc))
+                      {:value {}}
+                      shadow-map)]
+    valid-shadow))
+
+(defn- parse-sd-token-shadow-value
+  "Parses shadow value and validates it."
+  [value]
+  (cond
+    ;; Reference value (string)
+    (string? value) {:value value}
+
+    ;; Empty value
+    (nil? value) {:errors [(wte/get-error-code :error.token/empty-input)]}
+
+    ;; Invalid value
+    (not (js/Array.isArray value)) {:errors [(wte/error-with-value :error.style-dictionary/invalid-token-value value)]}
+
+    ;; Array of shadows
+    :else
+    (let [converted (js->clj value :keywordize-keys true)
+          ;; Parse each shadow with its index
+          parsed-shadows (map-indexed
+                          (fn [idx shadow-map]
+                            (parse-single-shadow shadow-map idx))
+                          converted)
+
+          ;; Collect all errors from all shadows
+          all-errors (mapcat :errors parsed-shadows)
+
+          ;; Collect all values from shadows that have values
+          all-values (into [] (keep :value parsed-shadows))]
+
+      (if (seq all-errors)
+        {:errors all-errors
+         :value all-values}
+        {:value all-values}))))
+
+(defn collect-shadow-errors [token shadow-index]
+  (group-by :shadow-key
+            (filter #(= (:shadow-index %) shadow-index)
+                    (:errors token))))
+
 (defn process-sd-tokens
   "Converts a StyleDictionary dictionary with resolved tokens (aka `sd-tokens`) back to clojure.
   The `get-origin-token` argument should be a function that takes an
@@ -364,6 +464,7 @@
                                (parse-atomic-typography-value (:type origin-token) value)
                                (case (:type origin-token)
                                  :typography (parse-composite-typography-value value)
+                                 :shadow (parse-sd-token-shadow-value value)
                                  :color (parse-sd-token-color-value value)
                                  :opacity (parse-sd-token-opacity-value value)
                                  :stroke-width (parse-sd-token-stroke-width-value value)
diff --git a/frontend/src/app/main/data/workspace/tokens/application.cljs b/frontend/src/app/main/data/workspace/tokens/application.cljs
index 29113b8f39..c9d75d0957 100644
--- a/frontend/src/app/main/data/workspace/tokens/application.cljs
+++ b/frontend/src/app/main/data/workspace/tokens/application.cljs
@@ -149,6 +149,36 @@
                           :ignore-touched true
                           :changed-sub-attr [:stroke-color]}))))
 
+(defn value->shadow
+  "Transform a token shadow value into penpot shadow data structure"
+  [value]
+  (mapv (fn [{:keys [offsetX offsetY blur spread color inset]}]
+          {:id (random-uuid)
+           :hidden false
+           :offset-x offsetX
+           :offset-y offsetY
+           :blur blur
+           :color (value->color color)
+           :spread spread
+           :style
+           (case inset
+             true :inner-shadow
+             :drop-shadow)})
+        value))
+
+(defn update-shadow
+  ([value shape-ids attributes]
+   (update-shadow value shape-ids attributes nil))
+  ([value shape-ids _attributes page-id]
+   (when (sequential? value)
+     (let [shadows (value->shadow value)]
+       (dwsh/update-shapes shape-ids
+                           #(assoc % :shadow shadows)
+                           {:reg-objects? true
+                            :ignore-touched true
+                            :page-id page-id
+                            :attrs [:shadow]})))))
+
 (defn update-fill-stroke
   ([value shape-ids attributes]
    (update-fill-stroke value shape-ids attributes nil))
@@ -643,6 +673,14 @@
             :fields [{:label "Border Radius"
                       :key :border-radius}]}}
 
+   :shadow
+   {:title "Shadow"
+    :attributes ctt/shadow-keys
+    :on-update-shape update-shadow
+    :modal {:key :tokens/shadow
+            :fields [{:label "Shadow"
+                      :key :shadow}]}}
+
    :color
    {:title "Color"
     :attributes #{:fill}
diff --git a/frontend/src/app/main/data/workspace/tokens/errors.cljs b/frontend/src/app/main/data/workspace/tokens/errors.cljs
index c63c78381a..0be73b58a8 100644
--- a/frontend/src/app/main/data/workspace/tokens/errors.cljs
+++ b/frontend/src/app/main/data/workspace/tokens/errors.cljs
@@ -96,6 +96,18 @@
    {:error/code :error.style-dictionary/composite-line-height-needs-font-size
     :error/fn #(tr "workspace.tokens.composite-line-height-needs-font-size" %)}
 
+   :error.style-dictionary/invalid-token-value-shadow-type
+   {:error/code :error.style-dictionary/invalid-token-value-shadow-type
+    :error/fn #(tr "workspace.tokens.invalid-shadow-type-token-value" %)}
+
+   :error.style-dictionary/invalid-token-value-shadow-blur
+   {:error/code :error.style-dictionary/invalid-token-value-shadow-blur
+    :error/fn #(tr "workspace.tokens.shadow-blur-range")}
+
+   :error.style-dictionary/invalid-token-value-shadow-spread
+   {:error/code :error.style-dictionary/invalid-token-value-shadow-spread
+    :error/fn #(tr "workspace.tokens.shadow-spread-range")}
+
    :error/unknown
    {:error/code :error/unknown
     :error/fn #(tr "labels.unknown-error")}})
diff --git a/frontend/src/app/main/data/workspace/tokens/format.cljs b/frontend/src/app/main/data/workspace/tokens/format.cljs
index e9ce1e84ae..b832ebb365 100644
--- a/frontend/src/app/main/data/workspace/tokens/format.cljs
+++ b/frontend/src/app/main/data/workspace/tokens/format.cljs
@@ -15,7 +15,13 @@
    :line-height "Line Height"
    :letter-spacing "Letter Spacing"
    :text-case "Text Case"
-   :text-decoration "Text Decoration"})
+   :text-decoration "Text Decoration"
+   :offsetX "X"
+   :offsetY "Y"
+   :blur "Blur"
+   :spread "Spread"
+   :color "Color"
+   :inset "Inner Shadow"})
 
 (defn format-token-value
   "Converts token value of any shape to a string."
@@ -26,6 +32,9 @@
          (str/join "\n")
          (str "\n"))
 
+    (and (sequential? token-value) (every? map? token-value))
+    (str/join "\n" (map format-token-value token-value))
+
     (sequential? token-value)
     (str/join ", " token-value)
 
diff --git a/frontend/src/app/main/data/workspace/tokens/propagation.cljs b/frontend/src/app/main/data/workspace/tokens/propagation.cljs
index a21bbd518d..1b7924dbef 100644
--- a/frontend/src/app/main/data/workspace/tokens/propagation.cljs
+++ b/frontend/src/app/main/data/workspace/tokens/propagation.cljs
@@ -63,6 +63,7 @@
    ctt/text-case-keys dwta/update-text-case
    ctt/text-decoration-keys dwta/update-text-decoration
    ctt/typography-token-keys dwta/update-typography
+   ctt/shadow-keys dwta/update-shadow
    #{:line-height} dwta/update-line-height
 
    ;; Layout
diff --git a/frontend/src/app/main/ui/workspace/tokens/management.cljs b/frontend/src/app/main/ui/workspace/tokens/management.cljs
index f844f62c93..91a6bc768b 100644
--- a/frontend/src/app/main/ui/workspace/tokens/management.cljs
+++ b/frontend/src/app/main/ui/workspace/tokens/management.cljs
@@ -34,7 +34,9 @@
   (let [token-units? (contains? cf/flags :token-units)
         token-typography-composite-types? (contains? cf/flags :token-typography-composite)
         token-typography-types? (contains? cf/flags :token-typography-types)
+        token-shadow? (contains? cf/flags :token-shadow)
         all-types (cond-> dwta/token-properties
+                    (not token-shadow?) (dissoc :shadow)
                     (not token-units?) (dissoc :number)
                     (not token-typography-composite-types?) (remove-keys ctt/typography-token-keys)
                     (not token-typography-types?) (remove-keys ctt/ff-typography-keys))
diff --git a/frontend/src/app/main/ui/workspace/tokens/management/context_menu.cljs b/frontend/src/app/main/ui/workspace/tokens/management/context_menu.cljs
index a16617b0fb..1d361f2fd3 100644
--- a/frontend/src/app/main/ui/workspace/tokens/management/context_menu.cljs
+++ b/frontend/src/app/main/ui/workspace/tokens/management/context_menu.cljs
@@ -279,7 +279,8 @@
                                                                            :r3 "Bottom Right"}
                                                         :hint (tr "workspace.tokens.radius")
                                                         :on-update-shape-all dwta/update-shape-radius-all
-                                                        :on-update-shape update-shape-radius-for-corners})]
+                                                        :on-update-shape update-shape-radius-for-corners})
+        shadow (partial generic-attribute-actions #{:shadow} "Shadow")]
     {:border-radius border-radius
      :color (fn [context-data]
               (concat
@@ -303,6 +304,7 @@
      :text-decoration text-decoration
      :font-weight font-weight
      :typography typography
+     :shadow shadow
      :dimensions (fn [context-data]
                    (-> (concat
                         (when (seq (sizing-attribute-actions context-data)) [{:title "Sizing" :submenu :sizing}])
diff --git a/frontend/src/app/main/ui/workspace/tokens/management/create/form.cljs b/frontend/src/app/main/ui/workspace/tokens/management/create/form.cljs
index 75302b50dd..5a351d4d4d 100644
--- a/frontend/src/app/main/ui/workspace/tokens/management/create/form.cljs
+++ b/frontend/src/app/main/ui/workspace/tokens/management/create/form.cljs
@@ -214,6 +214,24 @@
   (when (empty? (:value token))
     (wte/get-error-code :error.token/empty-input)))
 
+(defn check-shadow-token-self-reference
+  "Check token when any of the attributes in a shadow's value have a self-reference."
+  [token]
+  (let [token-name (:name token)
+        shadow-values (:value token)]
+    (some (fn [[shadow-idx shadow-map]]
+            (some (fn [[k v]]
+                    (when-let [err (check-self-reference token-name v)]
+                      (assoc err :shadow-key k :shadow-index shadow-idx)))
+                  shadow-map))
+          (d/enumerate shadow-values))))
+
+(defn check-empty-shadow-token [token]
+  (when (or (empty? (:value token))
+            (some (fn [shadow] (not-every? #(contains? shadow %) [:offsetX :offsetY :blur :spread :color]))
+                  (:value token)))
+    (wte/get-error-code :error.token/empty-input)))
+
 (defn validate-typography-token
   [{:keys [token-value] :as props}]
   (cond
@@ -232,6 +250,27 @@
                             check-typography-token-self-reference])
         (default-validate-token))))
 
+(defn validate-shadow-token
+  [{:keys [token-value] :as props}]
+  (cond
+    ;; Entering form without a value - show no error just resolve nil
+    (nil? token-value) (rx/of nil)
+    ;; Validate refrence string
+    (cto/shadow-composite-token-reference? token-value) (default-validate-token props)
+    ;; Validate composite token
+    :else
+    (-> props
+        (update :token-value (fn [value]
+                               (->> (or value [])
+                                    (mapv (fn [shadow]
+                                            (d/update-when shadow :inset #(cond
+                                                                            (boolean? %) %
+                                                                            (= "true" %) true
+                                                                            :else false)))))))
+        (assoc :validators [check-empty-shadow-token
+                            check-shadow-token-self-reference])
+        (default-validate-token))))
+
 (defn use-debonced-resolve-callback
   "Resolves a token values using `StyleDictionary`.
    This function is debounced as the resolving might be an expensive calculation.
@@ -690,6 +729,13 @@
              (on-external-update-value (get @backup-state-ref next-tab))
              (set-active-tab next-tab))))
 
+        update-composite-value
+        (mf/use-fn
+         (fn [f]
+           (clear-resolve-value)
+           (swap! backup-state-ref f)
+           (on-external-update-value (get @backup-state-ref :composite))))
+
         ;; Store updated value in backup-state-ref
         on-update-value'
         (mf/use-fn
@@ -724,7 +770,8 @@
                                  :is-reference-fn is-reference-fn})]
         [:> composite-tab
          (mf/spread-props props {:default-value default-value
-                                 :on-update-value on-update-value'})])]]))
+                                 :on-update-value on-update-value'
+                                 :update-composite-value update-composite-value})])]]))
 
 (mf/defc composite-form*
   "Wrapper around form* that manages composite/reference tab state.
@@ -828,7 +875,8 @@
          (fn []
            (let [open? (not color-ramp-open?)]
              (reset! color-ramp-open* open?)
-             (on-display-colorpicker open?))))
+             (when on-display-colorpicker
+               (on-display-colorpicker open?)))))
 
         swatch
         (mf/html
@@ -913,6 +961,278 @@
                              :custom-input-token-value color-picker*
                              :custom-input-token-value-props custom-input-token-value-props})]))
 
+(mf/defc shadow-color-picker-wrapper*
+  "Wrapper for color-picker* that passes shadow color state from parent.
+   Similar to color-form* but receives color state from shadow-value-inputs*."
+  [{:keys [placeholder label default-value input-ref on-update-value on-external-update-value token-resolve-result shadow-color]}]
+  (let [;; Use the color state passed from parent (shadow-value-inputs*)
+        resolved-color (get token-resolve-result :resolved-value)
+        color (or shadow-color resolved-color default-value "")
+
+        custom-input-token-value-props
+        (mf/use-memo
+         (mf/deps color)
+         (fn []
+           {:color color}))]
+
+    [:> color-picker*
+     {:placeholder placeholder
+      :label label
+      :default-value default-value
+      :input-ref input-ref
+      :on-update-value on-update-value
+      :on-external-update-value on-external-update-value
+      :custom-input-token-value-props custom-input-token-value-props
+      :token-resolve-result token-resolve-result}]))
+
+(def ^:private shadow-inputs
+  #(d/ordered-map
+    :offsetX
+    {:label (tr "workspace.tokens.shadow-x")
+     :placeholder (tr "workspace.tokens.shadow-x")}
+    :offsetY
+    {:label (tr "workspace.tokens.shadow-y")
+     :placeholder (tr "workspace.tokens.shadow-y")}
+    :blur
+    {:label (tr "workspace.tokens.shadow-blur")
+     :placeholder (tr "workspace.tokens.shadow-blur")}
+    :spread
+    {:label (tr "workspace.tokens.shadow-spread")
+     :placeholder (tr "workspace.tokens.shadow-spread")}
+    :color
+    {:label (tr "workspace.tokens.shadow-color")
+     :placeholder (tr "workspace.tokens.shadow-color")}
+    :inset
+    {:label (tr "workspace.tokens.shadow-inset")
+     :placeholder (tr "workspace.tokens.shadow-inset")}))
+
+(mf/defc inset-type-select*
+  [{:keys [default-value shadow-idx label on-change]}]
+  (let [selected* (mf/use-state (or (str default-value) "false"))
+        selected (deref selected*)
+
+        on-change
+        (mf/use-fn
+         (mf/deps on-change selected shadow-idx)
+         (fn [value e]
+           (obj/set! e "tokenValue" (if (= "true" value) true false))
+           (on-change e)
+           (reset! selected* (str value))))]
+    [:div {:class (stl/css :input-row)}
+     [:div {:class (stl/css :inset-label)} label]
+     [:& radio-buttons {:selected selected
+                        :on-change on-change
+                        :name (str "inset-select-" shadow-idx)}
+      [:& radio-button {:value "false"
+                        :title "false"
+                        :icon "❌"
+                        :id (str "inset-default-" shadow-idx)}]
+      [:& radio-button {:value "true"
+                        :title "true"
+                        :icon "✅"
+                        :id (str "inset-false-" shadow-idx)}]]]))
+
+(mf/defc shadow-input*
+  [{:keys [default-value label placeholder shadow-idx input-type on-update-value on-external-update-value token-resolve-result errors-by-key shadow-color]}]
+  (let [color-input-ref (mf/use-ref)
+
+        on-change
+        (mf/use-fn
+         (mf/deps shadow-idx input-type on-update-value)
+         (fn [e]
+           (-> (obj/set! e "tokenTypeAtIndex" [shadow-idx input-type])
+               (on-update-value))))
+
+        on-external-update-value'
+        (mf/use-fn
+         (mf/deps shadow-idx input-type on-external-update-value)
+         (fn [v]
+           (on-external-update-value [shadow-idx input-type] v)))
+
+        resolved (get-in token-resolve-result [:resolved-value shadow-idx input-type])
+
+        errors (get errors-by-key input-type)
+
+        should-show? (or (some? resolved) (seq errors))
+
+        token-prop (when should-show?
+                     (d/without-nils
+                      {:resolved-value resolved
+                       :errors errors}))]
+    (case input-type
+      :inset
+      [:> inset-type-select*
+       {:default-value default-value
+        :shadow-idx shadow-idx
+        :label label
+        :on-change on-change}]
+      :color
+      [:> shadow-color-picker-wrapper*
+       {:placeholder placeholder
+        :label label
+        :default-value default-value
+        :input-ref color-input-ref
+        :on-update-value on-change
+        :on-external-update-value on-external-update-value'
+        :token-resolve-result token-prop
+        :shadow-color shadow-color
+        :data-testid (str "shadow-color-input-" shadow-idx)}]
+      [:div {:class (stl/css :input-row)
+             :data-testid (str "shadow-" (name input-type) "-input-" shadow-idx)}
+       [:> input-token*
+        {:label label
+         :placeholder placeholder
+         :default-value default-value
+         :on-change on-change
+         :token-resolve-result token-prop}]])))
+
+(mf/defc shadow-input-fields*
+  [{:keys [shadow shadow-idx on-remove-shadow on-add-shadow is-remove-disabled on-update-value token-resolve-result errors-by-key on-external-update-value shadow-color] :as props}]
+  (let [on-remove-shadow
+        (mf/use-fn
+         (mf/deps shadow-idx on-remove-shadow)
+         #(on-remove-shadow shadow-idx))]
+    [:div {:data-testid (str "shadow-input-fields-" shadow-idx)}
+     [:> icon-button* {:icon i/add
+                       :type "button"
+                       :on-click on-add-shadow
+                       :data-testid (str "shadow-add-button-" shadow-idx)
+                       :aria-label (tr "workspace.tokens.shadow-add-shadow")}]
+     [:> icon-button* {:variant "ghost"
+                       :type "button"
+                       :icon i/remove
+                       :on-click on-remove-shadow
+                       :disabled is-remove-disabled
+                       :data-testid (str "shadow-remove-button-" shadow-idx)
+                       :aria-label (tr "workspace.tokens.shadow-remove-shadow")}]
+     (for [[input-type {:keys [label placeholder]}] (shadow-inputs)]
+       [:> shadow-input*
+        {:key (str input-type shadow-idx)
+         :input-type input-type
+         :label label
+         :placeholder placeholder
+         :shadow-idx shadow-idx
+         :default-value (get shadow input-type)
+         :on-update-value on-update-value
+         :token-resolve-result token-resolve-result
+         :errors-by-key errors-by-key
+         :on-external-update-value on-external-update-value
+         :shadow-color shadow-color}])]))
+
+(mf/defc shadow-value-inputs*
+  [{:keys [default-value on-update-value token-resolve-result update-composite-value] :as props}]
+  (let [shadows* (mf/use-state (or default-value [{}]))
+        shadows (deref shadows*)
+        shadows-count (count shadows)
+        composite-token? (not (cto/typography-composite-token-reference? (:value token-resolve-result)))
+
+        ;; Maintain a map of color states for each shadow to prevent reset on add/remove
+        shadow-colors* (mf/use-state {})
+        shadow-colors (deref shadow-colors*)
+
+        ;; Initialize color states for each shadow index
+        _ (mf/use-effect
+           (mf/deps shadows)
+           (fn []
+             (doseq [[idx shadow] (d/enumerate shadows)]
+               (when-not (contains? shadow-colors idx)
+                 (let [resolved-color (get-in token-resolve-result [:resolved-value idx :color])
+                       initial-color (or resolved-color (get shadow :color) "")]
+                   (swap! shadow-colors* assoc idx initial-color))))))
+
+        ;; Define on-external-update-value here where we have access to on-update-value
+        on-external-update-value
+        (mf/use-callback
+         (mf/deps on-update-value shadow-colors*)
+         (fn [token-type-at-index value]
+           (let [[idx token-type] token-type-at-index
+                 e (js-obj)]
+             ;; Update shadow color state if this is a color update
+             (when (= token-type :color)
+               (swap! shadow-colors* assoc idx value))
+             (obj/set! e "tokenTypeAtIndex" token-type-at-index)
+             (obj/set! e "target" #js {:value value})
+             (on-update-value e))))
+
+        on-add-shadow
+        (mf/use-fn
+         (mf/deps shadows update-composite-value)
+         (fn []
+           (update-composite-value
+            (fn [state]
+              (let [new-state (update state :composite (fnil conj []) {})]
+                (reset! shadows* (:composite new-state))
+                new-state)))))
+
+        on-remove-shadow
+        (mf/use-fn
+         (mf/deps shadows update-composite-value)
+         (fn [idx]
+           (update-composite-value
+            (fn [state]
+              (let [new-state (update state :composite d/remove-at-index idx)]
+                (reset! shadows* (:composite new-state))
+                new-state)))))]
+    [:div {:class (stl/css :nested-input-row)}
+     (for [[shadow-idx shadow] (d/enumerate shadows)
+           :let [is-remove-disabled (= shadows-count 1)
+                 key (str shadows-count shadow-idx)
+                 errors-by-key (when composite-token?
+                                 (sd/collect-shadow-errors token-resolve-result shadow-idx))]]
+       [:div {:key key
+              :class (stl/css :nested-input-row)}
+        [:> shadow-input-fields*
+         {:is-remove-disabled is-remove-disabled
+          :shadow-idx shadow-idx
+          :on-add-shadow on-add-shadow
+          :on-remove-shadow on-remove-shadow
+          :shadow shadow
+          :on-update-value on-update-value
+          :token-resolve-result token-resolve-result
+          :errors-by-key errors-by-key
+          :on-external-update-value on-external-update-value
+          :shadow-color (get shadow-colors shadow-idx "")}]])]))
+
+(mf/defc shadow-form*
+  [{:keys [token] :rest props}]
+  (let [on-get-token-value
+        (mf/use-callback
+         (fn [e prev-composite-value]
+           (let [prev-composite-value (or prev-composite-value [])
+                 [idx token-type :as token-type-at-index] (obj/get e "tokenTypeAtIndex")
+                 input-value (case token-type
+                               :inset (obj/get e "tokenValue")
+                               (dom/get-target-val e))
+                 reference-value-input? (not token-type-at-index)]
+             (cond
+               reference-value-input? input-value
+               (and (string? input-value) (empty? input-value)) (update prev-composite-value idx dissoc token-type)
+               :else (assoc-in prev-composite-value token-type-at-index input-value)))))
+
+        update-composite-backup-value
+        (mf/use-callback
+         (fn [prev-composite-value e]
+           (let [[idx token-type :as token-type-at-index] (obj/get e "tokenTypeAtIndex")
+                 token-value (case token-type
+                               :inset (obj/get e "tokenValue")
+                               (dom/get-target-val e))
+                 valid? (case token-type
+                          :inset (boolean? token-value)
+                          (seq token-value))]
+             (if valid?
+               (assoc-in (or prev-composite-value []) token-type-at-index token-value)
+               ;; Remove empty values so they don't retrigger validation when switching tabs
+               (update prev-composite-value idx dissoc token-type)))))]
+    [:> composite-form*
+     (mf/spread-props props {:token token
+                             :composite-tab shadow-value-inputs*
+                             :reference-icon i/text-typography
+                             :is-reference-fn cto/typography-composite-token-reference?
+                             :title (tr "workspace.tokens.shadow-title")
+                             :validate-token validate-shadow-token
+                             :on-get-token-value on-get-token-value
+                             :update-composite-backup-value update-composite-backup-value})]))
+
 (mf/defc font-selector-wrapper*
   [{:keys [font input-ref on-select-font on-close-font-selector]}]
   (let [current-font* (mf/use-state (or font
@@ -1158,8 +1478,9 @@
     (case token-type'
       :color [:> color-form* props]
       :typography [:> typography-form* props]
+      :shadow [:> shadow-form* props]
       :font-family [:> font-family-form* props]
       :text-case [:> text-case-form* props]
       :text-decoration [:> text-decoration-form* props]
       :font-weight [:> font-weight-form* props]
-      [:> form* props])))
\ No newline at end of file
+      [:> form* props])))
diff --git a/frontend/src/app/main/ui/workspace/tokens/management/create/modals.cljs b/frontend/src/app/main/ui/workspace/tokens/management/create/modals.cljs
index 18c5ba0d57..7a706976ed 100644
--- a/frontend/src/app/main/ui/workspace/tokens/management/create/modals.cljs
+++ b/frontend/src/app/main/ui/workspace/tokens/management/create/modals.cljs
@@ -124,7 +124,7 @@
 
 (mf/defc box-shadow-modal
   {::mf/register modal/components
-   ::mf/register-as :tokens/box-shadow}
+   ::mf/register-as :tokens/shadow}
   [properties]
   [:& token-update-create-modal properties])
 
diff --git a/frontend/test/frontend_tests/tokens/logic/token_actions_test.cljs b/frontend/test/frontend_tests/tokens/logic/token_actions_test.cljs
index b30678fd4f..9ef62e7379 100644
--- a/frontend/test/frontend_tests/tokens/logic/token_actions_test.cljs
+++ b/frontend/test/frontend_tests/tokens/logic/token_actions_test.cljs
@@ -469,6 +469,44 @@
                (t/is (= (:stroke-width (:applied-tokens rect-without-stroke')) (:name token-target')))
                (t/is (= (get-in rect-without-stroke' [:strokes 0 :stroke-width]) 10))))))))))
 
+(t/deftest test-apply-shadow
+  (t/testing "applies shadow token and updates the shapes with shadow"
+    (t/async
+      done
+      (let [shadow-token {:name "shadow.sm"
+                          :value [{:offsetX 10
+                                   :offsetY 10
+                                   :blur 10
+                                   :spread 10
+                                   :color "rgba(0,0,0,0.5)"
+                                   :inset false}]
+                          :type :shadow}
+            file (-> (setup-file-with-tokens)
+                     (update-in [:data :tokens-lib]
+                                #(ctob/add-token % (cthi/id :set-a)
+                                                 (ctob/make-token shadow-token))))
+            store (ths/setup-store file)
+            rect-1 (cths/get-shape file :rect-1)
+            events [(dwta/apply-token {:shape-ids [(:id rect-1)]
+                                       :attributes #{:shadow}
+                                       :token (toht/get-token file "shadow.sm")
+                                       :on-update-shape dwta/update-shadow})]]
+        (tohs/run-store-async
+         store done events
+         (fn [new-state]
+           (let [file' (ths/get-file-from-state new-state)
+                 token-target' (toht/get-token file' "shadow.sm")
+                 rect-1' (cths/get-shape file' :rect-1)
+                 shadow (first (:shadow rect-1'))]
+             (t/testing "token got applied to rect with shadow and shape shadow got updated"
+               (t/is (= (:shadow (:applied-tokens rect-1')) (:name token-target')))
+               (t/is (= (:offset-x shadow) 10))
+               (t/is (= (:offset-y shadow) 10))
+               (t/is (= (:blur shadow) 10))
+               (t/is (= (:spread shadow) 10))
+               (t/is (= (get-in shadow [:color :color]) "#000000"))
+               (t/is (= (get-in shadow [:color :opacity]) 0.5))))))))))
+
 (t/deftest test-apply-font-size
   (t/testing "applies font-size token and updates the text font-size"
     (t/async
diff --git a/frontend/translations/en.po b/frontend/translations/en.po
index c6c97f8ca7..7a87ec9aa1 100644
--- a/frontend/translations/en.po
+++ b/frontend/translations/en.po
@@ -1,3 +1,50 @@
+#: src/app/main/ui/workspace/tokens/management/create/form.cljs:1135
+msgid "workspace.tokens.shadow-title"
+msgstr "Shadows"
+
+#: src/app/main/ui/workspace/tokens/management/create/form.cljs:943
+msgid "workspace.tokens.shadow-x"
+msgstr "X"
+
+#: src/app/main/ui/workspace/tokens/management/create/form.cljs:946
+msgid "workspace.tokens.shadow-y"
+msgstr "Y"
+
+#: src/app/main/ui/workspace/tokens/management/create/form.cljs:949
+msgid "workspace.tokens.shadow-blur"
+msgstr "Blur"
+
+#: src/app/main/ui/workspace/tokens/management/create/form.cljs:952
+msgid "workspace.tokens.shadow-spread"
+msgstr "Spread"
+
+#: src/app/main/ui/workspace/tokens/management/create/form.cljs:955
+msgid "workspace.tokens.shadow-color"
+msgstr "Color"
+
+#: src/app/main/ui/workspace/tokens/management/create/form.cljs:958
+msgid "workspace.tokens.shadow-inset"
+msgstr "Inset"
+
+#: src/app/main/data/workspace/tokens/errors.cljs:109
+msgid "workspace.tokens.shadow-spread-range"
+msgstr "Shadow spread must be greater than or equal to 0."
+
+#: src/app/main/data/workspace/tokens/errors.cljs:105
+msgid "workspace.tokens.shadow-blur-range"
+msgstr "Shadow blur must be greater than or equal to 0."
+
+#: src/app/main/data/workspace/tokens/errors.cljs:101
+msgid "workspace.tokens.invalid-shadow-type-token-value"
+msgstr "Invalid shadow type: only 'innerShadow' or 'dropShadow' are accepted"
+
+#: src/app/main/ui/workspace/tokens/management/create/form.cljs:1037
+msgid "workspace.tokens.shadow-add-shadow"
+msgstr "Add Shadow"
+
+#: src/app/main/ui/workspace/tokens/management/create/form.cljs:1044
+msgid "workspace.tokens.shadow-remove-shadow"
+msgstr "Remove Shadow"
 msgid ""
 msgstr ""
 "PO-Revision-Date: 2025-06-09 09:13+0000\n"
diff --git a/frontend/translations/es.po b/frontend/translations/es.po
index a55026d4dd..3d99429851 100644
--- a/frontend/translations/es.po
+++ b/frontend/translations/es.po
@@ -1,3 +1,50 @@
+#: src/app/main/ui/workspace/tokens/management/create/form.cljs:1135
+msgid "workspace.tokens.shadow-title"
+msgstr "Sombras"
+
+#: src/app/main/ui/workspace/tokens/management/create/form.cljs:943
+msgid "workspace.tokens.shadow-x"
+msgstr "X"
+
+#: src/app/main/ui/workspace/tokens/management/create/form.cljs:946
+msgid "workspace.tokens.shadow-y"
+msgstr "Y"
+
+#: src/app/main/ui/workspace/tokens/management/create/form.cljs:949
+msgid "workspace.tokens.shadow-blur"
+msgstr "Blur"
+
+#: src/app/main/ui/workspace/tokens/management/create/form.cljs:952
+msgid "workspace.tokens.shadow-spread"
+msgstr "Spread"
+
+#: src/app/main/ui/workspace/tokens/management/create/form.cljs:955
+msgid "workspace.tokens.shadow-color"
+msgstr "Color"
+
+#: src/app/main/ui/workspace/tokens/management/create/form.cljs:958
+msgid "workspace.tokens.shadow-inset"
+msgstr "Interior"
+
+#: src/app/main/data/workspace/tokens/errors.cljs:109
+msgid "workspace.tokens.shadow-spread-range"
+msgstr "La extensión (spread) de la sombra debe ser mayor o igual a 0."
+
+#: src/app/main/data/workspace/tokens/errors.cljs:105
+msgid "workspace.tokens.shadow-blur-range"
+msgstr "El desenfoque (blur) de la sombra debe ser mayor o igual a 0."
+
+#: src/app/main/data/workspace/tokens/errors.cljs:101
+msgid "workspace.tokens.invalid-shadow-type-token-value"
+msgstr "Tipo de sombra no válida: solo se aceptan 'innerShadow' o 'dropShadow'"
+
+#: src/app/main/ui/workspace/tokens/management/create/form.cljs:1037
+msgid "workspace.tokens.shadow-add-shadow"
+msgstr "Añadir Sombra"
+
+#: src/app/main/ui/workspace/tokens/management/create/form.cljs:1044
+msgid "workspace.tokens.shadow-remove-shadow"
+msgstr "Eliminar Sombra"
 msgid ""
 msgstr ""
 "PO-Revision-Date: 2025-10-07 16:35+0000\n"