diff --git a/src/components/tab-group/bl-tab-group.test.ts b/src/components/tab-group/bl-tab-group.test.ts
index c3e48d59..3f172322 100644
--- a/src/components/tab-group/bl-tab-group.test.ts
+++ b/src/components/tab-group/bl-tab-group.test.ts
@@ -1,4 +1,5 @@
-import { fixture, html, fixtureCleanup, expect, nextFrame } from '@open-wc/testing';
+import { fixture, html, fixtureCleanup, expect, nextFrame, elementUpdated } from '@open-wc/testing';
+import { sendKeys } from '@web/test-runner-commands';
 import BlTabGroup from './bl-tab-group';
 
 const createTab = () => {
@@ -58,7 +59,7 @@ describe('bl-tab-group', function () {
     const selectedPanel = el.panels.find(p => p.tab === 'test-2');
 
     expect(el.selectedTabName).to.be.equal('test-2');
-    expect(selectedPanel?.visible).to.be.true;
+    expect(selectedPanel?.hidden).to.be.false;
   });
 
   it('should handle bl-tab-selected event', async function () {
@@ -73,8 +74,8 @@ describe('bl-tab-group', function () {
     expect(el.selectedTabName).to.be.equal('test-1');
     expect(el.tabs[0].selected).to.be.true;
     expect(el.tabs[1].selected).to.be.false;
-    expect(el.panels.find(p => p.tab === el.tabs[0].name)?.visible).to.be.true;
-    expect(el.panels.find(p => p.tab === el.tabs[1].name)?.visible).to.be.false;
+    expect(el.panels.find(p => p.tab === el.tabs[0].name)?.hidden).to.be.false;
+    expect(el.panels.find(p => p.tab === el.tabs[1].name)?.hidden).to.be.true;
   });
 });
 
@@ -187,3 +188,84 @@ describe('should selected tab functionality works when add or remove tabs ', fun
     expect(el.tabs[1].disabled).to.be.true;
   });
 });
+
+describe('accessibility', () => {
+  it('should change the tab when the right arrow key followed by enter key is used', async() => {
+    const el = await fixture<BlTabGroup>(html` <bl-tab-group>
+      <bl-tab name="test-1" slot="tabs">Test 1 Tab</bl-tab>
+      <bl-tab name="test-2" slot="tabs">Test 2 Tab</bl-tab>
+      <bl-tab name="test-3" slot="tabs" selected>Test 3 Tab</bl-tab>
+      <bl-tab-panel tab="test-1"></bl-tab-panel>
+      <bl-tab-panel tab="test-2"></bl-tab-panel>
+      <bl-tab-panel tab="test-3"></bl-tab-panel>
+    </bl-tab-group>`);
+
+    await elementUpdated(el);
+
+    await sendKeys({
+      press: 'Tab',
+    });
+    await sendKeys({
+      press: 'ArrowRight'
+    });
+    await sendKeys({
+      press: 'Enter'
+    });
+
+    expect(el.tabs[0].selected).to.be.true;
+    expect(el.tabs[2].selected).to.be.false;
+  });
+
+  it('should change the tab when the left arrow key followed by enter key is used', async() => {
+    const el = await fixture<BlTabGroup>(html` <bl-tab-group>
+      <bl-tab name="test-1" slot="tabs" selected>Test 1 Tab</bl-tab>
+      <bl-tab name="test-2" slot="tabs">Test 2 Tab</bl-tab>
+      <bl-tab name="test-3" slot="tabs">Test 3 Tab</bl-tab>
+      <bl-tab-panel tab="test-1"></bl-tab-panel>
+      <bl-tab-panel tab="test-2"></bl-tab-panel>
+      <bl-tab-panel tab="test-3"></bl-tab-panel>
+    </bl-tab-group>`);
+
+    await elementUpdated(el);
+
+    await sendKeys({
+      press: 'Tab',
+    });
+    await sendKeys({
+      press: 'ArrowLeft'
+    });
+    await sendKeys({
+      press: 'Enter'
+    });
+
+    expect(el.tabs[0].selected).to.be.false;
+    expect(el.tabs[2].selected).to.be.true;
+  });
+
+  it('should skip the disabled tabs when the arrow keys are used', async() => {
+    const el = await fixture<BlTabGroup>(html` <bl-tab-group>
+      <bl-tab name="test-1" slot="tabs" selected>Test 1 Tab</bl-tab>
+      <bl-tab name="test-2" slot="tabs" disabled>Test 2 Tab</bl-tab>
+      <bl-tab name="test-3" slot="tabs">Test 3 Tab</bl-tab>
+      <bl-tab-panel tab="test-1"></bl-tab-panel>
+      <bl-tab-panel tab="test-2"></bl-tab-panel>
+      <bl-tab-panel tab="test-3"></bl-tab-panel>
+    </bl-tab-group>`);
+
+    await elementUpdated(el);
+
+    await sendKeys({
+      press: 'Tab',
+    });
+    await sendKeys({
+      press: 'ArrowRight'
+    });
+    await sendKeys({
+      press: 'Enter'
+    });
+
+    expect(el.tabs[0].selected).to.be.false;
+    expect(el.tabs[1].selected).to.be.false;
+    expect(el.tabs[2].selected).to.be.true;
+  });
+});
diff --git a/src/components/tab-group/bl-tab-group.ts b/src/components/tab-group/bl-tab-group.ts
index 12c5d349..33b2e6db 100644
--- a/src/components/tab-group/bl-tab-group.ts
+++ b/src/components/tab-group/bl-tab-group.ts
@@ -18,6 +18,7 @@ export default class BlTabGroup extends LitElement {
 
   private _connectedTabs: BlTab[] = [];
   private _connectedPanels: BlTabPanel[] = [];
+  private _tabFocus = 0;
 
   get tabs() {
     return this._connectedTabs;
@@ -35,9 +36,10 @@ export default class BlTabGroup extends LitElement {
     const isFirstAndNotDisabled =
       this._connectedTabs.filter(t => !t.disabled).length === 0 && !tab.disabled;
     this._connectedTabs.push(tab);
-    
+
     if ((!tab.disabled && tab.selected) || isFirstAndNotDisabled) {
       this.selectedTabName = tab.name;
+      this._tabFocus = this._connectedTabs.length - 1;
     }
   }
 
@@ -57,7 +59,8 @@ export default class BlTabGroup extends LitElement {
    * @param panel BlTabPanel reference to be registered
    */
   registerTabPanel(panel: BlTabPanel) {
-    panel.visible = panel.tab === this.selectedTabName;
+    panel.hidden = panel.tab !== this.selectedTabName;
+    panel.tabIndex = 0;
     this._connectedPanels.push(panel);
   }
 
@@ -81,17 +84,40 @@ export default class BlTabGroup extends LitElement {
       t.selected = name === t.name;
     });
     this._connectedPanels.forEach(p => {
-      p.visible = p.tab === this._selectedTabName;
+      p.hidden = p.tab !== this._selectedTabName;
     });
   }
 
   private _handleTabSelected(e: CustomEvent) {
     this.selectedTabName = e.detail;
+    this._tabFocus = this._connectedTabs.findIndex(t => t.name === e.detail);
+  }
+
+  private _handleTabListKeyDown(e: KeyboardEvent) {
+    if (e.key === "ArrowRight" || e.key === "ArrowLeft") {
+      if (e.key === "ArrowRight") {
+        do {
+          this._tabFocus++;
+          if (this._tabFocus >= this._connectedTabs.length) {
+            this._tabFocus = 0;
+          }
+        } while (this._connectedTabs[this._tabFocus].disabled);
+      } else if (e.key === "ArrowLeft") {
+        do {
+          this._tabFocus--;
+          if (this._tabFocus < 0) {
+            this._tabFocus = this._connectedTabs.length - 1;
+          }
+        } while (this._connectedTabs[this._tabFocus].disabled);
+      }
+
+      this._connectedTabs[this._tabFocus].focus();
+    }
   }
 
   render(): TemplateResult {
     return html` <div class="container" @bl-tab-selected="${this._handleTabSelected}">
-      <div role="tablist" class="tabs-list">
+      <div role="tablist" @keydown=${this._handleTabListKeyDown} class="tabs-list">
         <div class="tabs">
           <slot name="tabs"></slot>
         </div>
diff --git a/src/components/tab-group/tab-panel/bl-tab-panel.css b/src/components/tab-group/tab-panel/bl-tab-panel.css
index 98049bcb..324e1be6 100644
--- a/src/components/tab-group/tab-panel/bl-tab-panel.css
+++ b/src/components/tab-group/tab-panel/bl-tab-panel.css
@@ -1,10 +1,9 @@
-:host {
-  display: none;
+div {
+  padding: var(--bl-size-xl);
+  background-color: var(--bl-color-primary-background);
   border-radius: 0 0 var(--bl-border-radius-m) var(--bl-border-radius-m);
 }
 
-:host([visible]) {
-  display: block;
-  padding: var(--bl-size-xl);
-  background-color: var(--bl-color-primary-background);
+div[hidden] {
+  display: none;
 }
diff --git a/src/components/tab-group/tab-panel/bl-tab-panel.test.ts b/src/components/tab-group/tab-panel/bl-tab-panel.test.ts
index 7b550230..2e95e535 100644
--- a/src/components/tab-group/tab-panel/bl-tab-panel.test.ts
+++ b/src/components/tab-group/tab-panel/bl-tab-panel.test.ts
@@ -10,7 +10,7 @@ describe('bl-tab-panel', function () {
   it('should render with default values', async function () {
     const el = await fixture<BlTabPanel>(html` <bl-tab-panel tab="test-panel"></bl-tab-panel>`);
     const expected = `
-      <slot></slot>
+      <div hidden><slot></slot></div>
     `;
     expect(el).to.be.shadowDom.equal(expected);
   });
diff --git a/src/components/tab-group/tab-panel/bl-tab-panel.ts b/src/components/tab-group/tab-panel/bl-tab-panel.ts
index 511d25d5..ef0ce0b8 100644
--- a/src/components/tab-group/tab-panel/bl-tab-panel.ts
+++ b/src/components/tab-group/tab-panel/bl-tab-panel.ts
@@ -1,5 +1,5 @@
 import { CSSResultGroup, html, LitElement, TemplateResult } from 'lit';
-import { customElement, property } from 'lit/decorators.js';
+import { customElement, property, state } from 'lit/decorators.js';
 import styles from './bl-tab-panel.css';
 import type BlTabGroup from '../bl-tab-group';
 
@@ -31,19 +31,19 @@ export default class BlTabPanel extends LitElement {
   }
 
   /**
-   * Name of the linked tab.
+   * This attribute set by `tab-group` to make panel visible or hidden.
    */
-  @property({ type: String, reflect: true })
-  tab: string;
+  @state()
+  hidden = true;
 
   /**
-   * This attribute set by `tab-group` to make panel visible or hidden.
+   * Name of the linked tab.
    */
-  @property({ type: Boolean, reflect: true })
-  visible = false;
+  @property({ type: String, reflect: true })
+  tab: string;
 
   render(): TemplateResult {
-    return html`<slot></slot>`;
+    return html`<div ?hidden=${this.hidden}><slot></slot></div>`;
   }
 }
 
diff --git a/src/components/tab-group/tab/bl-tab.css b/src/components/tab-group/tab/bl-tab.css
index 41f3d18c..6e6c51b5 100644
--- a/src/components/tab-group/tab/bl-tab.css
+++ b/src/components/tab-group/tab/bl-tab.css
@@ -26,6 +26,7 @@
   width: max-content;
   height: var(--tab-height);
   padding: 0 var(--tab-right-padding);
+  margin-right: 1px;
 }
 
 .container::after {
@@ -41,6 +42,16 @@
   border-right: none;
 }
 
+:host(:focus-visible) {
+  outline: none;
+}
+
+:host(:focus-visible) .container, .container:focus-visible {
+  outline: 2px solid var(--bl-color-primary);
+  outline-offset: calc(-1 * var(--bl-size-3xs));
+  border-radius: var(--bl-border-radius-s);
+}
+
 :host .container::before {
   content: '';
   position: absolute;
diff --git a/src/components/tab-group/tab/bl-tab.stories.mdx b/src/components/tab-group/tab/bl-tab.stories.mdx
index 966d7021..43fc773d 100644
--- a/src/components/tab-group/tab/bl-tab.stories.mdx
+++ b/src/components/tab-group/tab/bl-tab.stories.mdx
@@ -3,6 +3,7 @@ import { ifDefined } from 'lit/directives/if-defined.js';
 import { styleMap } from 'lit/directives/style-map.js';
 import { unsafeHTML } from 'lit/directives/unsafe-html.js';
 import { Meta, Canvas, ArgsTable, Story, Preview, Source } from '@storybook/addon-docs';
+import { userEvent } from '@storybook/testing-library';
 
 <Meta
   title="Components/Tab/Tab"
@@ -55,6 +56,12 @@ export const SelectedDisabledTogetherTemplate = (args) => html`
     </bl-tab-group>
         `
 
+export const focusTab = async ({ }) => {
+  await userEvent.tab();
+  await userEvent.keyboard('{ArrowRight}');
+  await userEvent.keyboard(' ');
+}
+
 # Tab
 Within tab groups, tabs are used to represent and activate tab panels. A tab can be disabled by setting the disabled prop and can be selected by selected prop.
 
@@ -132,6 +139,16 @@ If disabled and selected props are used in same table, disabled prop overrides s
   </Story>
 </Canvas>
 
+### Keyboard navigation
+
+This component can handle keyboard navigation to switch between available tabs using arrow keys. First `Tab` focuses on the selected tab and user can navigate to other tabs with arrow keys, and `Space` or `Enter` key to select the tab.
+
+<Canvas>
+<Story name="Keyboard navigation" play={focusTab}>
+    {TabsTemplate.bind({})}
+  </Story>
+</Canvas>
+
 ## Reference
 
 <ArgsTable of="bl-tab" />
diff --git a/src/components/tab-group/tab/bl-tab.test.ts b/src/components/tab-group/tab/bl-tab.test.ts
index 6f556234..9fbb05a8 100644
--- a/src/components/tab-group/tab/bl-tab.test.ts
+++ b/src/components/tab-group/tab/bl-tab.test.ts
@@ -14,6 +14,7 @@ describe('bl-tab', function () {
       <button
         role="tab"
         class="container"
+        aria-selected="false"
       >
         <div class="title-container">
           <div class="title">
@@ -58,7 +59,7 @@ describe('bl-tab', function () {
   it('should create custom event when change selected attribute', async () => {
     const el = await fixture<BlTab>(html` <bl-tab name="test"></bl-tab>`);
     el.selected=true;
-    
+
     const listener = await oneEvent(el, 'bl-tab-selected');
     const { detail } = await listener;
 
@@ -71,4 +72,12 @@ describe('bl-tab', function () {
 
     expect(caption).is.exist;
   });
+
+  it('should have aria-selected attribute set to true if the tab is selected', async function () {
+    const el = await fixture<BlTab>(html`<bl-tab name="test" selected></bl-tab>`);
+
+    const tabButton = el.shadowRoot?.querySelector<HTMLButtonElement>('.container');
+    expect(el).has.attribute('tabindex', '0');
+    expect(tabButton).has.attribute('aria-selected', 'true');
+  });
 });
diff --git a/src/components/tab-group/tab/bl-tab.ts b/src/components/tab-group/tab/bl-tab.ts
index 9855b498..8cd914d1 100644
--- a/src/components/tab-group/tab/bl-tab.ts
+++ b/src/components/tab-group/tab/bl-tab.ts
@@ -5,7 +5,7 @@ import {
   PropertyValues,
   TemplateResult,
 } from 'lit';
-import { customElement, property } from 'lit/decorators.js';
+import { customElement, property, query } from 'lit/decorators.js';
 import { event, EventDispatcher } from '../../../utilities/event';
 
 import style from './bl-tab.css';
@@ -91,6 +91,9 @@ export default class BlTab extends LitElement {
    */
   @event('bl-tab-selected') private _onSelect: EventDispatcher<string>;
 
+  @query('.container')
+  private tab: HTMLButtonElement;
+
   /**
    * Set tab selected.
    */
@@ -98,7 +101,12 @@ export default class BlTab extends LitElement {
     this.selected = true;
   }
 
-  updated(changedProperties: PropertyValues<this>) {    
+  focus() {
+    this.tab.focus();
+  }
+
+  updated(changedProperties: PropertyValues<this>) {
+    this.tabIndex = this.selected ? 0 : -1;
     if (changedProperties.has('selected') && this.selected) {
       this._onSelect(this.name);
     }
@@ -142,6 +150,7 @@ export default class BlTab extends LitElement {
         role="tab"
         class="container"
         @click="${() => this.select()}"
+        aria-selected="${this.selected}"
       >
         <div class="title-container">
           <div class="title">${icon} ${title} ${badge}</div>