diff --git a/src/components/button/bl-button.css b/src/components/button/bl-button.css
index db884f08..d4ebb619 100644
--- a/src/components/button/bl-button.css
+++ b/src/components/button/bl-button.css
@@ -1,3 +1,8 @@
+@keyframes spin {
+  from { transform: rotate(0deg); }
+  to { transform: rotate(359deg); }
+}
+
 :host {
   display: var(--bl-button-display, inline-block);
   max-width: 100%;
@@ -23,7 +28,7 @@
   justify-content: var(--bl-button-justify, center);
   align-items: center;
   box-sizing: border-box;
-  width:100%;
+  width: 100%;
   height: var(--height);
   border: solid 1px var(--border-color);
   border-radius: 6px;
@@ -76,15 +81,24 @@
 .button:focus-visible::after {
   border: 2px solid var(--main-color);
   border-radius: var(--bl-border-radius-l);
-  content: "";
+  content: '';
   position: absolute;
   inset: -4px;
 }
 
+.loading-icon {
+  animation: spin 1s linear infinite;
+  font-size: var(--icon-size);
+}
+
 :host ::slotted(bl-icon) {
   font-size: var(--icon-size);
 }
 
+:host([loading]) ::slotted(bl-icon) {
+  display: none;
+}
+
 :host .has-icon:not(.has-content) {
   --padding-horizontal: var(--padding-vertical);
   --margin-icon: 0;
@@ -120,7 +134,15 @@
   cursor: not-allowed;
 }
 
-:host([disabled]) .button {
+:host([loading]) {
+  cursor: wait;
+}
+
+:host([loading]) bl-icon:not(.loading-icon) {
+  display: none;
+}
+
+:host .button[aria-disabled='true'] {
   --main-color: var(--bl-color-tertiary);
   --main-hover-color: var(--bl-color-tertiary);
   --content-color: var(--bl-color-content-passive);
@@ -130,16 +152,16 @@
   text-decoration: none;
 }
 
-:host([variant='tertiary'][disabled]) .button {
+:host([variant='tertiary']) .button[aria-disabled='true'] {
   --main-color: transparent;
 }
 
-:host([variant='secondary']:hover:not([disabled])) .button {
+:host([variant='secondary']:hover) .button[aria-disabled='false'] {
   --content-color: var(--bl-color-content-primary-contrast);
   --bg-color: var(--main-hover-color);
 }
 
-:host([variant='tertiary']:hover:not([disabled])) .button {
+:host([variant='tertiary']:hover) .button[aria-disabled='false'] {
   --content-color: var(--main-hover-color);
   --bg-color: var(--text-hover-color);
 }
diff --git a/src/components/button/bl-button.stories.mdx b/src/components/button/bl-button.stories.mdx
index 36952c59..23925d56 100644
--- a/src/components/button/bl-button.stories.mdx
+++ b/src/components/button/bl-button.stories.mdx
@@ -23,6 +23,12 @@ import { Meta, Canvas, ArgsTable, Story, Preview, Source } from '@storybook/addo
       default: 'default',
       control: { type: 'select' }
     },
+    loadingLabel: {
+      control: 'text'
+    },
+    loading: {
+      control: 'boolean'
+    },
     disabled: {
       control: 'boolean'
     },
@@ -57,7 +63,9 @@ export const SingleButtonTemplate = (args) => html`<bl-button
     size=${ifDefined(args.size)}
     icon="${ifDefined(args.icon)}"
     label="${ifDefined(args.label)}"
+    loading-label="${ifDefined(args.loadingLabel)}"
     ?disabled=${args.disabled}
+    ?loading=${args.loading}
     style=${ifDefined(args.styles ? styleMap(args.styles) : undefined)}
       >${unsafeHTML(args.content)}</bl-button>`
 
@@ -77,6 +85,13 @@ ${SingleButtonTemplate({size: 'large', ...args})}
 ${SingleButtonTemplate({size: 'medium', ...args})}
 ${SingleButtonTemplate({size: 'small', ...args})}`
 
+export const LoadingStateTemplate = (args) => html`
+${SingleButtonTemplate({ size: 'large', loading: true, icon: "info", ...args})}
+${SingleButtonTemplate({ size: 'large', loading: true, loadingLabel: 'Custom Loading Label...', content: 'Login', icon: 'account', ...args})}
+${SingleButtonTemplate({ loading: true, disabled: true, content: 'Disabled' })}
+${SingleButtonTemplate({ size: 'small', loading: true, content: 'Create' })}
+`
+
 # Button
 
 <bl-badge icon="document">ADR</bl-badge>
@@ -189,6 +204,18 @@ If button has a limited width and a long text that can not fit in a single line,
   </Story>
 </Canvas>
 
+## Loading Buttons
+
+Button can be set in loading state. In this state button becomes disabled with a loading indicator. You can set this state by setting `loading` attribute. Additionally, button icons are overridden by the spinner during the loading state.
+
+A custom loading text can be also set with `loading-label` attribute. It's suggested to use `loading-label` to inform the user about the process.
+
+<Canvas columns={1}>
+  <Story name="Loading State Button">
+    {LoadingStateTemplate.bind({})}
+  </Story>
+</Canvas>
+
 ## Disabled Buttons
 
 We have 2 types of disabled buttons: Disable version of Primary and Secondary buttons is the same.
diff --git a/src/components/button/bl-button.test.ts b/src/components/button/bl-button.test.ts
index 1b0746f1..2aee640a 100644
--- a/src/components/button/bl-button.test.ts
+++ b/src/components/button/bl-button.test.ts
@@ -86,6 +86,23 @@ describe('bl-button', () => {
 
       expect(el.getAttribute('target')).to.eq('_self');
     });
+
+    it('is disabled button during loading state', async () => {
+      const el = await fixture<typeOfBlButton>(
+        html`<bl-button loading>Test</bl-button>`
+      );
+      expect(el.shadowRoot?.querySelector('.loading-icon')).to.exist;
+      expect(el).to.have.attribute('loading');
+      expect(el.shadowRoot?.querySelector('button')).to.have.attribute('disabled');
+
+      el.removeAttribute('loading');
+      await elementUpdated(el);
+
+      expect(el.shadowRoot?.querySelector('.loading-icon')).not.to.exist;
+      expect(el).not.have.attribute('loading');
+      expect(el.shadowRoot?.querySelector('button')).not.have.attribute('disabled');
+
+    });
   });
   describe('Slot', () => {
     it('renders default slot with element', async () => {
@@ -94,6 +111,14 @@ describe('bl-button', () => {
       );
       expect(el.shadowRoot?.querySelector('button')).to.exist;
     });
+
+    it('renders loading label when set and loading', async () => {
+      const el = await fixture<typeOfBlButton>(
+        html`<bl-button loading-label="Loading..." loading>Login</bl-button>`
+      );
+
+      expect(el.shadowRoot?.querySelector('.label')).to.have.text('Loading...');
+    });
   });
   describe('Link button', () => {
     it('renders element with anchor tag', async () => {
diff --git a/src/components/button/bl-button.ts b/src/components/button/bl-button.ts
index 51e5c3cf..e1e5a27f 100644
--- a/src/components/button/bl-button.ts
+++ b/src/components/button/bl-button.ts
@@ -50,6 +50,18 @@ export default class BlButton extends LitElement {
   @property({ type: String })
   label: string;
 
+  /**
+   * Sets the button label for loading status.
+   */
+  @property({ type: String, attribute: 'loading-label' })
+  loadingLabel: string;
+
+  /**
+   * Sets loading state of button
+   */
+  @property({ type: Boolean, reflect: true })
+  loading = false;
+
   /**
    * Sets button as disabled
    */
@@ -151,9 +163,12 @@ export default class BlButton extends LitElement {
   }
 
   render(): TemplateResult {
+    const isDisabled = this.loading || this.disabled;
+    const label = (this.loading && this.loadingLabel) ? this.loadingLabel : html`<slot></slot>`;
     const isAnchor = !!this.href;
     const icon = this.icon ? html`<bl-icon name=${this.icon}></bl-icon>` : '';
-    const slots = html`<slot name="icon">${icon}</slot> <span class="label"><slot></slot></span>`;
+    const loadingIcon = this.loading ? html`<bl-icon class="loading-icon" name="loading"></bl-icon>` : '';
+    const slots = html`<slot name="icon">${icon}</slot> <span class="label">${label}</span>`;
     const caret = this.dropdown ? this.caretTemplate() : '';
     const classes = classMap({
       'button': true,
@@ -165,21 +180,21 @@ export default class BlButton extends LitElement {
     return isAnchor
       ? html`<a
           class=${classes}
-          aria-disabled="${ifDefined(this.disabled)}"
+          aria-disabled="${ifDefined(isDisabled)}"
           aria-label="${ifDefined(this.label)}"
           href=${ifDefined(this.href)}
           target=${ifDefined(this.target)}
           role="button"
-          >${slots}
+          >${loadingIcon} ${slots}
         </a>`
       : html`<button
           class=${classes}
-          aria-disabled="${ifDefined(this.disabled)}"
+          aria-disabled="${ifDefined(isDisabled)}"
           aria-label="${ifDefined(this.label)}"
-          ?disabled=${this.disabled}
+          ?disabled=${isDisabled}
           @click="${this._handleClick}"
         >
-          ${slots} ${caret}
+         ${loadingIcon} ${slots} ${caret}
         </button>`;
   }
 }