diff --git a/.changeset/neat-rats-grab.md b/.changeset/neat-rats-grab.md
new file mode 100644
index 0000000000000..1e78962c1be95
--- /dev/null
+++ b/.changeset/neat-rats-grab.md
@@ -0,0 +1,5 @@
+---
+"@rocket.chat/meteor": patch
+---
+
+Fixes the User Autocomplete's selected option being misaligned
diff --git a/apps/meteor/client/components/UserAutoCompleteMultiple/UserAutoCompleteMultiple.tsx b/apps/meteor/client/components/UserAutoCompleteMultiple/UserAutoCompleteMultiple.tsx
index d2d4a4774785d..7c315bdc1aeda 100644
--- a/apps/meteor/client/components/UserAutoCompleteMultiple/UserAutoCompleteMultiple.tsx
+++ b/apps/meteor/client/components/UserAutoCompleteMultiple/UserAutoCompleteMultiple.tsx
@@ -1,4 +1,4 @@
-import { AutoComplete, Box, OptionAvatar, Option, OptionContent, Chip, OptionDescription } from '@rocket.chat/fuselage';
+import { AutoComplete, OptionAvatar, Option, OptionContent, OptionDescription } from '@rocket.chat/fuselage';
 import { useDebouncedValue } from '@rocket.chat/fuselage-hooks';
 import { UserAvatar } from '@rocket.chat/ui-avatar';
 import { useEndpoint } from '@rocket.chat/ui-contexts';
@@ -6,6 +6,8 @@ import { useQuery } from '@tanstack/react-query';
 import type { ComponentProps, ReactElement } from 'react';
 import { memo, useMemo, useState } from 'react';
 
+import UserAvatarChip from './UserAvatarChip';
+
 const query = (
 	term = '',
 ): {
@@ -33,13 +35,8 @@ const UserAutoCompleteMultiple = ({ onChange, ...props }: UserAutoCompleteMultip
 			setFilter={setFilter}
 			onChange={onChange}
 			multiple
-			renderSelected={({ selected: { value, label }, onRemove, ...props }): ReactElement => (
-				<Chip {...props} height='x20' value={value} onClick={onRemove} mie={4}>
-					<UserAvatar size='x20' username={value} />
-					<Box is='span' margin='none' mis={4}>
-						{label}
-					</Box>
-				</Chip>
+			renderSelected={({ selected: { value: username, label }, onRemove, ...props }): ReactElement => (
+				<UserAvatarChip {...props} username={username} name={label} mie={4} onClick={onRemove} />
 			)}
 			renderItem={({ value, label, ...props }): ReactElement => (
 				<Option data-qa-type='autocomplete-user-option' key={value} {...props}>
diff --git a/apps/meteor/client/components/UserAutoCompleteMultiple/UserAutoCompleteMultipleFederated.tsx b/apps/meteor/client/components/UserAutoCompleteMultiple/UserAutoCompleteMultipleFederated.tsx
index 8729af68a2f75..9c097f5109660 100644
--- a/apps/meteor/client/components/UserAutoCompleteMultiple/UserAutoCompleteMultipleFederated.tsx
+++ b/apps/meteor/client/components/UserAutoCompleteMultiple/UserAutoCompleteMultipleFederated.tsx
@@ -1,13 +1,13 @@
 import type { OptionType } from '@rocket.chat/fuselage';
-import { MultiSelectFiltered, Icon, Box, Chip } from '@rocket.chat/fuselage';
+import { MultiSelectFiltered } from '@rocket.chat/fuselage';
 import { useDebouncedValue } from '@rocket.chat/fuselage-hooks';
-import { UserAvatar } from '@rocket.chat/ui-avatar';
 import { useEndpoint } from '@rocket.chat/ui-contexts';
 import { keepPreviousData, useQuery } from '@tanstack/react-query';
 import type { ReactElement, AllHTMLAttributes } from 'react';
 import { memo, useState, useCallback, useMemo } from 'react';
 
 import AutocompleteOptions, { OptionsContext } from './UserAutoCompleteMultipleOptions';
+import UserAvatarChip from './UserAvatarChip';
 
 type UserAutoCompleteMultipleFederatedProps = {
 	onChange: (value: Array<string>) => void;
@@ -103,16 +103,19 @@ const UserAutoCompleteMultipleFederated = ({
 				onChange={handleOnChange}
 				filter={filter}
 				setFilter={setFilter}
-				renderSelected={({ value, onMouseDown }: { value: string; onMouseDown: () => void }) => {
-					const currentCachedOption = selectedCache[value] || {};
+				renderSelected={({ value: username, onMouseDown }: { value: string; onMouseDown: () => void }) => {
+					const currentCachedOption = selectedCache[username] || {};
 
 					return (
-						<Chip key={value} height='x20' onMouseDown={onMouseDown} mie={4} mb={2}>
-							{currentCachedOption._federated ? <Icon size='x20' name='globe' /> : <UserAvatar size='x20' username={value} />}
-							<Box is='span' margin='none' mis={4}>
-								{currentCachedOption.name || currentCachedOption.username || value}
-							</Box>
-						</Chip>
+						<UserAvatarChip
+							mie={4}
+							mb={2}
+							key={username}
+							federated={currentCachedOption._federated}
+							name={currentCachedOption.name}
+							username={currentCachedOption.username || username}
+							onMouseDown={onMouseDown}
+						/>
 					);
 				}}
 				renderOptions={AutocompleteOptions}
diff --git a/apps/meteor/client/components/UserAutoCompleteMultiple/UserAvatarChip.spec.tsx b/apps/meteor/client/components/UserAutoCompleteMultiple/UserAvatarChip.spec.tsx
new file mode 100644
index 0000000000000..43dc9eb9e7918
--- /dev/null
+++ b/apps/meteor/client/components/UserAutoCompleteMultiple/UserAvatarChip.spec.tsx
@@ -0,0 +1,29 @@
+import { composeStories } from '@storybook/react';
+import { render, screen } from '@testing-library/react';
+import { axe } from 'jest-axe';
+
+import UserAvatarChip from './UserAvatarChip';
+import * as stories from './UserAvatarChip.stories';
+
+describe('UserAvatarChip', () => {
+	const testCases = Object.values(composeStories(stories)).map((Story) => [Story.storyName || 'Story', Story]);
+
+	test.each(testCases)(`renders %s without crashing`, async (_storyname, Story) => {
+		const { baseElement } = render(<Story />);
+		expect(baseElement).toMatchSnapshot();
+	});
+
+	test.each(testCases)('%s should have no a11y violations', async (_storyname, Story) => {
+		const { container } = render(<Story />);
+
+		const results = await axe(container);
+		expect(results).toHaveNoViolations();
+	});
+
+	it('should pass extra props to the Chip component', () => {
+		const handleClick = jest.fn();
+		render(<UserAvatarChip username='testuser' onClick={handleClick} />);
+		screen.getByRole('button').click();
+		expect(handleClick).toHaveBeenCalled();
+	});
+});
diff --git a/apps/meteor/client/components/UserAutoCompleteMultiple/UserAvatarChip.stories.tsx b/apps/meteor/client/components/UserAutoCompleteMultiple/UserAvatarChip.stories.tsx
new file mode 100644
index 0000000000000..381df8031b048
--- /dev/null
+++ b/apps/meteor/client/components/UserAutoCompleteMultiple/UserAvatarChip.stories.tsx
@@ -0,0 +1,43 @@
+import { action } from '@storybook/addon-actions';
+import type { Meta } from '@storybook/react';
+
+import UserAvatarChip from './UserAvatarChip';
+
+const meta = {
+	component: UserAvatarChip,
+	parameters: {
+		layout: 'centered',
+	},
+} satisfies Meta<typeof UserAvatarChip>;
+
+export default meta;
+
+export const Default = {
+	args: {
+		onClick: action('onClick'),
+		name: 'John Doe',
+		username: 'johndoe',
+	},
+};
+
+export const Federated = {
+	args: {
+		onClick: action('onClick'),
+		name: 'John Doe',
+		username: 'johndoe',
+		federated: true,
+	},
+};
+
+export const WithoutName = {
+	args: {
+		onClick: action('onClick'),
+		username: 'johndoe',
+	},
+};
+
+export const WithoutClickEvent = {
+	args: {
+		username: 'johndoe',
+	},
+};
diff --git a/apps/meteor/client/components/UserAutoCompleteMultiple/UserAvatarChip.tsx b/apps/meteor/client/components/UserAutoCompleteMultiple/UserAvatarChip.tsx
new file mode 100644
index 0000000000000..44707ee26171a
--- /dev/null
+++ b/apps/meteor/client/components/UserAutoCompleteMultiple/UserAvatarChip.tsx
@@ -0,0 +1,22 @@
+import { Box, Chip, Icon } from '@rocket.chat/fuselage';
+import { UserAvatar } from '@rocket.chat/ui-avatar';
+import type { ComponentProps } from 'react';
+
+type UserAvatarChipProps = ComponentProps<typeof Chip> & {
+	federated?: boolean;
+	username: string;
+	name?: string;
+};
+
+const UserAvatarChip = ({ federated, username, name, ...props }: UserAvatarChipProps) => {
+	return (
+		<Chip height='x20' {...props}>
+			{federated ? <Icon size='x20' name='globe' verticalAlign='middle' /> : <UserAvatar size='x20' username={username} />}
+			<Box is='span' margin='none' mis={4} verticalAlign='middle'>
+				{name ?? username}
+			</Box>
+		</Chip>
+	);
+};
+
+export default UserAvatarChip;
diff --git a/apps/meteor/client/components/UserAutoCompleteMultiple/__snapshots__/UserAvatarChip.spec.tsx.snap b/apps/meteor/client/components/UserAutoCompleteMultiple/__snapshots__/UserAvatarChip.spec.tsx.snap
new file mode 100644
index 0000000000000..247f5b9739c9d
--- /dev/null
+++ b/apps/meteor/client/components/UserAutoCompleteMultiple/__snapshots__/UserAvatarChip.spec.tsx.snap
@@ -0,0 +1,146 @@
+// Jest Snapshot v1, https://jestjs.io/docs/snapshot-testing
+
+exports[`UserAvatarChip renders Default without crashing 1`] = `
+<body>
+  <div>
+    <button
+      class="rcx-box rcx-chip rcx-css-u2ekhj"
+      type="button"
+    >
+      <span
+        class="rcx-box rcx-chip__text rcx-css-trljwa"
+      >
+        <figure
+          class="rcx-box rcx-box--full rcx-avatar rcx-avatar--x20"
+        >
+          <img
+            alt=""
+            aria-hidden="true"
+            class="rcx-avatar__element rcx-avatar__element--x20"
+            data-username="johndoe"
+            src="data:image/png;base64,iVBORw0KGgoAAAANSUhEUgAAAAEAAAABCAYAAAAfFcSJAAAADUlEQVQYV2Oora39DwAFaQJ3y3rKeAAAAABJRU5ErkJggg=="
+            title="johndoe"
+          />
+        </figure>
+        <span
+          class="rcx-box rcx-box--full rcx-css-1wsppvb"
+        >
+          John Doe
+        </span>
+      </span>
+      <i
+        aria-hidden="true"
+        class="rcx-box rcx-box--full rcx-icon--name-cross rcx-icon rcx-css-trljwa rcx-css-1wv1vf9"
+      >
+        
+      </i>
+    </button>
+  </div>
+</body>
+`;
+
+exports[`UserAvatarChip renders Federated without crashing 1`] = `
+<body>
+  <div>
+    <button
+      class="rcx-box rcx-chip rcx-css-u2ekhj"
+      type="button"
+    >
+      <span
+        class="rcx-box rcx-chip__text rcx-css-trljwa"
+      >
+        <i
+          aria-hidden="true"
+          class="rcx-box rcx-box--full rcx-icon--name-globe rcx-icon rcx-css-s0bbgk"
+        >
+          
+        </i>
+        <span
+          class="rcx-box rcx-box--full rcx-css-1wsppvb"
+        >
+          John Doe
+        </span>
+      </span>
+      <i
+        aria-hidden="true"
+        class="rcx-box rcx-box--full rcx-icon--name-cross rcx-icon rcx-css-trljwa rcx-css-1wv1vf9"
+      >
+        
+      </i>
+    </button>
+  </div>
+</body>
+`;
+
+exports[`UserAvatarChip renders WithoutClickEvent without crashing 1`] = `
+<body>
+  <div>
+    <button
+      class="rcx-box rcx-chip rcx-css-u2ekhj"
+      disabled=""
+      type="button"
+    >
+      <span
+        class="rcx-box rcx-chip__text rcx-css-trljwa"
+      >
+        <figure
+          class="rcx-box rcx-box--full rcx-avatar rcx-avatar--x20"
+        >
+          <img
+            alt=""
+            aria-hidden="true"
+            class="rcx-avatar__element rcx-avatar__element--x20"
+            data-username="johndoe"
+            src="data:image/png;base64,iVBORw0KGgoAAAANSUhEUgAAAAEAAAABCAYAAAAfFcSJAAAADUlEQVQYV2Oora39DwAFaQJ3y3rKeAAAAABJRU5ErkJggg=="
+            title="johndoe"
+          />
+        </figure>
+        <span
+          class="rcx-box rcx-box--full rcx-css-1wsppvb"
+        >
+          johndoe
+        </span>
+      </span>
+    </button>
+  </div>
+</body>
+`;
+
+exports[`UserAvatarChip renders WithoutName without crashing 1`] = `
+<body>
+  <div>
+    <button
+      class="rcx-box rcx-chip rcx-css-u2ekhj"
+      type="button"
+    >
+      <span
+        class="rcx-box rcx-chip__text rcx-css-trljwa"
+      >
+        <figure
+          class="rcx-box rcx-box--full rcx-avatar rcx-avatar--x20"
+        >
+          <img
+            alt=""
+            aria-hidden="true"
+            class="rcx-avatar__element rcx-avatar__element--x20"
+            data-username="johndoe"
+            src="data:image/png;base64,iVBORw0KGgoAAAANSUhEUgAAAAEAAAABCAYAAAAfFcSJAAAADUlEQVQYV2Oora39DwAFaQJ3y3rKeAAAAABJRU5ErkJggg=="
+            title="johndoe"
+          />
+        </figure>
+        <span
+          class="rcx-box rcx-box--full rcx-css-1wsppvb"
+        >
+          johndoe
+        </span>
+      </span>
+      <i
+        aria-hidden="true"
+        class="rcx-box rcx-box--full rcx-icon--name-cross rcx-icon rcx-css-trljwa rcx-css-1wv1vf9"
+      >
+        
+      </i>
+    </button>
+  </div>
+</body>
+`;