diff --git a/libs/angular-components/src/lib/components/radio-group/radio-group.ts b/libs/angular-components/src/lib/components/radio-group/radio-group.ts
index 87e5b7ab2..b863d4037 100644
--- a/libs/angular-components/src/lib/components/radio-group/radio-group.ts
+++ b/libs/angular-components/src/lib/components/radio-group/radio-group.ts
@@ -1,6 +1,7 @@
 import {
   GoabRadioGroupOnChangeDetail,
   GoabRadioGroupOrientation,
+  GoabRadioGroupSize,
 } from "@abgov/ui-components-common";
 import {
   CUSTOM_ELEMENTS_SCHEMA,
@@ -22,6 +23,7 @@ import { GoabControlValueAccessor } from "../base.component";
       [attr.value]="value"
       [disabled]="disabled"
       [attr.orientation]="orientation"
+      [attr.size]="size"
       [attr.error]="error"
       [attr.arialabel]="ariaLabel"
       [id]="id"
@@ -47,6 +49,7 @@ import { GoabControlValueAccessor } from "../base.component";
 export class GoabRadioGroup extends GoabControlValueAccessor {
   @Input() name?: string;
   @Input() orientation?: GoabRadioGroupOrientation;
+  @Input() size?: GoabRadioGroupSize;
   @Input() ariaLabel?: string;
 
   @Output() onChange = new EventEmitter<GoabRadioGroupOnChangeDetail>();
diff --git a/libs/common/src/lib/common.ts b/libs/common/src/lib/common.ts
index a7f46a113..c60aa2719 100644
--- a/libs/common/src/lib/common.ts
+++ b/libs/common/src/lib/common.ts
@@ -229,12 +229,14 @@ export type GoabSkeletonSize = "1" | "2" | "3" | "4";
 // Radio
 
 export type GoabRadioGroupOrientation = "horizontal" | "vertical";
+export type GoabRadioGroupSize = "normal" | "compact";
 
 export interface GoabRadioGroupProps extends Margins {
   name: string;
   value?: string;
   disabled?: boolean;
   orientation?: GoabRadioGroupOrientation;
+  size?: GoabRadioGroupSize;
   testId?: string;
   error?: boolean;
   ariaLabel?: string;
diff --git a/libs/react-components/src/lib/radio-group/radio-group.tsx b/libs/react-components/src/lib/radio-group/radio-group.tsx
index 3fcdaa63c..12aaeac34 100644
--- a/libs/react-components/src/lib/radio-group/radio-group.tsx
+++ b/libs/react-components/src/lib/radio-group/radio-group.tsx
@@ -2,6 +2,7 @@ import { useEffect, useRef, type JSX } from "react";
 import {
   GoabRadioGroupOnChangeDetail,
   GoabRadioGroupOrientation,
+  GoabRadioGroupSize,
   Margins,
 } from "@abgov/ui-components-common";
 
@@ -13,6 +14,7 @@ interface WCProps extends Margins {
   value?: string;
   id?: string;
   orientation?: GoabRadioGroupOrientation;
+  size?: GoabRadioGroupSize;
   disabled?: string;
   error?: string;
   arialabel?: string;
@@ -34,6 +36,7 @@ export interface GoabRadioGroupProps extends Margins {
   id?: string;
   disabled?: boolean;
   orientation?: GoabRadioGroupOrientation;
+  size?: GoabRadioGroupSize;
   testId?: string;
   error?: boolean;
   ariaLabel?: string;
@@ -46,6 +49,7 @@ export function GoabRadioGroup({
   value,
   children,
   orientation,
+  size,
   disabled,
   error,
   id,
@@ -87,6 +91,7 @@ export function GoabRadioGroup({
       name={name}
       value={value}
       orientation={orientation}
+      size={size}
       disabled={disabled ? "true" : undefined}
       error={error ? "true" : undefined}
       arialabel={ariaLabel}
diff --git a/libs/web-components/src/components/radio-group/RadioGroup.svelte b/libs/web-components/src/components/radio-group/RadioGroup.svelte
index 5e3b8a13b..19965fc62 100644
--- a/libs/web-components/src/components/radio-group/RadioGroup.svelte
+++ b/libs/web-components/src/components/radio-group/RadioGroup.svelte
@@ -25,20 +25,26 @@
     FieldsetErrorRelayDetail, FieldsetResetFieldsMsg,
   } from "../../types/relay-types";
 
-  // Validator
+  // Validators
   const [Orientations, validateOrientation] = typeValidator("Radio group orientation", [
     "vertical",
     "horizontal",
   ]);
+  const [Sizes, validateSize] = typeValidator("Radio group size", [
+    "normal",
+    "compact",
+  ]);
 
-  // Type
+  // Types
   type Orientation = (typeof Orientations)[number];
+  type Size = (typeof Sizes)[number];
 
   // Public
 
   export let name: string;
   export let value: string;
   export let orientation: Orientation = "vertical";
+  export let size: Size = "normal";
   export let disabled: string = "false";
   export let error: string = "false";
   export let testid: string = "";
@@ -87,6 +93,7 @@
 
   onMount(async () => {
     validateOrientation(orientation);
+    validateSize(size);
     await tick(); // for angular to register public form name
     addRelayListener();
     sendMountedMessage();
@@ -165,6 +172,7 @@
             name,
             checked: props.value === value,
             revealAriaLabel: props.revealAriaLabel,
+            size,
           },
         }),
       );
@@ -213,7 +221,7 @@
 <div
   bind:this={_rootEl}
   style={calculateMargin(mt, mr, mb, ml)}
-  class={`goa-radio-group--${orientation}`}
+  class={`goa-radio-group--${orientation} goa-radio-group--${size}`}
   data-testid={testid}
   role="radiogroup"
   aria-label={arialabel}
@@ -227,21 +235,36 @@
 
 :host {
     font-family: var(--goa-font-family-sans);
+    
+    /* TEMP: Issue #2936 design token overrides - remove when tokens published to npm */
+    --goa-radio-group-gap-horizontal: var(--goa-space-xl); /* Updated: 24px → 32px */
+    --goa-radio-group-gap-vertical: var(--goa-space-m); /* Keep existing: 16px */
+    --goa-radio-group-gap-horizontal-compact: var(--goa-space-l); /* New compact: 24px */
+    --goa-radio-group-gap-vertical-compact: var(--goa-space-s); /* New compact: 12px */
   }
 
   .goa-radio-group--horizontal {
     display: flex;
     flex-direction: row;
-    gap: var(--goa-radio-group-gap-horizontal);
+    gap: var(--goa-radio-group-gap-horizontal, 32px);
   }
 
   .goa-radio-group--vertical {
     display: flex;
     flex-direction: column;  /* Vertical stacking */
-    gap: var(--goa-radio-group-gap-vertical);  /* Adds spacing */
+    gap: var(--goa-radio-group-gap-vertical, 16px);  /* Adds spacing */
     width: 100%;
   }
 
+  /* Compact size variant */
+  .goa-radio-group--horizontal.goa-radio-group--compact {
+    gap: var(--goa-radio-group-gap-horizontal-compact, 24px);
+  }
+
+  .goa-radio-group--vertical.goa-radio-group--compact {
+    gap: var(--goa-radio-group-gap-vertical-compact, 12px);
+  }
+
   /* Focus styles */
   .goa-radio-group--horizontal:focus,
   .goa-radio-group--vertical:focus {
diff --git a/libs/web-components/src/components/radio-item/RadioItem.svelte b/libs/web-components/src/components/radio-item/RadioItem.svelte
index 03f54925c..83e03092e 100644
--- a/libs/web-components/src/components/radio-item/RadioItem.svelte
+++ b/libs/web-components/src/components/radio-item/RadioItem.svelte
@@ -25,6 +25,7 @@
     ariaLabel: string;
     maxWidth: string;
     revealAriaLabel?: string;
+    size?: string;
   };
 
   export type RadioItemSelectProps = {
@@ -73,6 +74,7 @@
   let _revealSlotEl: HTMLElement;
   let _formFields: HTMLElement[] = [];
   let _revealSlotHeight: number = 0;
+  let _size: string = "normal";
 
   // Reactive
 
@@ -192,6 +194,7 @@
       description = data.description;
       name = data.name;
       revealarialabel = data.revealAriaLabel;
+      _size = data.size || "normal";
     });
   }
 
@@ -242,7 +245,7 @@
     max-width: ${maxwidth};
   `}
   data-testid="root"
-  class="container"
+  class="container container--{_size}"
 >
   <label
     class="radio"
@@ -286,6 +289,42 @@
 </div>
 
 <style>
+  /* TEMP: Issue #2936 design token overrides - remove when tokens published to npm */
+  :host {
+    /* Border widths: 1px → 1.5px default, 3px → 2px focus */
+    --goa-radio-border: 1.5px solid #797676; /* Updated: 1px → 1.5px, color updated */
+    --goa-radio-border-focus: 2px solid #006dcc; /* Updated: 3px → 2px, focus color updated */
+    --goa-radio-focus-offset: 2px; /* New: 2px gap between border and focus ring */
+    
+    /* Label spacing: 8px → 12px normal, 8px compact */
+    --goa-radio-gap: var(--goa-space-s); /* New: 12px label padding */
+    --goa-radio-gap-compact: var(--goa-space-xs); /* New: 8px compact label padding */
+    
+    /* Updated color palette - Normal states */
+    --goa-radio-border-hover: 1.5px solid #000000; /* Updated hover color, consistent 1.5px border */
+    --goa-radio-border-checked: 1.5px solid #006dcc; /* Updated: thin blue border when checked */
+    --goa-radio-border-checked-hover: 1.5px solid #045092; /* Updated: thin blue border when checked+hover */
+    --goa-radio-border-checked-focus: 2px solid #006dcc; /* New: checked+focus outline */
+    --goa-radio-label-color-disabled: #bab7b7; /* Updated disabled text color */
+    
+    /* Error states - all combinations */
+    --goa-radio-border-error: 1.5px solid #da291c; /* Updated error color, consistent 1.5px border */
+    --goa-radio-border-error-hover: 1.5px solid #a91a10; /* Updated error+hover color, consistent 1.5px border */
+    --goa-radio-border-checked-error: 1.5px solid #da291c; /* Updated: thin red border when checked+error */
+    --goa-radio-border-checked-error-hover: 1.5px solid #a91a10; /* Updated: thin red border when checked+error+hover */
+    --goa-radio-border-error-disabled: 1.5px solid #f58185; /* Error+disabled, consistent 1.5px border */
+    --goa-radio-border-checked-error-disabled: 1.5px solid #f58185; /* Checked+error+disabled, consistent 1.5px border */
+    --goa-radio-color-bg-error: #FDDED9; /* New: error state background color */
+    --goa-radio-color-bg-error-hover: #F4C8C5; /* New: error state background color on hover */
+    
+    /* Disabled states */
+    --goa-radio-border-disabled: 1.5px solid #BAB7B7; /* Updated: disabled border color */
+    --goa-radio-border-checked-disabled: 1.5px solid #BAB7B7; /* Updated: disabled checked border color */
+    --goa-radio-color-bg-disabled: #F2F0F0; /* New: disabled background color */
+    --goa-radio-reveal-border: 1px solid #E1DEDD; /* New: reveal left border color and width */
+    --goa-radio-reveal-padding: var(--goa-space-m) var(--goa-space-m) var(--goa-space-m) 25px; /* New: reveal padding with 25px left spacing */
+  }
+
   .radio {
     display: inline-flex;
   }
@@ -318,10 +357,15 @@
   }
 
   .label {
-    padding: 0 var(--goa-space-xs);
+    padding: 0 var(--goa-radio-gap, 12px);
     font: var(--goa-radio-label);
   }
 
+  /* Compact size variant */
+  .container--compact .label {
+    padding: 0 var(--goa-radio-gap-compact, 8px);
+  }
+
   .description {
     font: var(--goa-radio-description);
     margin-left: var(--goa-space-xl);
@@ -338,13 +382,14 @@
     display: block;
   }
   .reveal.visible.has-content {
-    padding: var(--goa-space-m);
-    margin: var(--goa-space-2xs) 0 0 calc(var(--goa-space-s) - 2px);
-    border-left: 4px solid var(--goa-color-greyscale-200);
+    padding: var(--goa-radio-reveal-padding, var(--goa-space-m) var(--goa-space-m) var(--goa-space-m) 25px);
+    margin: var(--goa-space-2xs) 0 0 calc(var(--goa-space-s) - 1px);
+    border-left: var(--goa-radio-reveal-border, 1px solid #E1DEDD);
   }
 
   .icon {
     display: inline-block;
+    position: relative; /* TEMP: Added for new checked state inner circle */
     height: var(--goa-radio-size);
     width: var(--goa-radio-size);
     border-radius: var(--goa-radio-border-radius);
@@ -368,67 +413,114 @@
 
   /* Unchecked */
   input[type="radio"]:not(:checked) ~ .icon {
-    border: var(--goa-border-width-s) solid var(--goa-color-greyscale-700);
+    border: var(--goa-radio-border, 1.5px solid var(--goa-color-greyscale-700));
     margin-top: 3px;
   }
   /* Unchecked:hover */
   input[type="radio"]:hover ~ .icon {
-    border: var(--goa-radio-border-hover);
+    border: var(--goa-radio-border-hover, 2px solid var(--goa-color-interactive-hover));
   }
   /* Unchecked:focus */
   input[type="radio"]:focus-visible ~ .icon,
   input[type="radio"]:hover:focus-visible ~ .icon {
-    outline: var(--goa-radio-border-focus);
+    outline: var(--goa-radio-border-focus, 2px solid var(--goa-color-interactive-focus));
+    outline-offset: var(--goa-radio-focus-offset, 2px);
   }
   /* Unchecked:hover+focus */
   input[type="radio"]:hover:focus-visible ~ .icon {
-    border: var(--goa-radio-border);
+    border: var(--goa-radio-border, 1.5px solid var(--goa-color-greyscale-700));
   }
 
   /* Checked */
   input[type="radio"]:checked ~ .icon {
-    border: var(--goa-radio-border-checked);
+    border: var(--goa-radio-border-checked, 7px solid var(--goa-color-interactive-default));
     margin-top: 3px;
   }
   /* Checked:hover */
   input[type="radio"]:checked:hover ~ .icon {
-    border: var(--goa-radio-border-checked-hover);
+    border: var(--goa-radio-border-checked-hover, 7px solid var(--goa-color-interactive-hover));
+  }
+  /* Checked:focus */
+  input[type="radio"]:checked:focus-visible ~ .icon {
+    outline: var(--goa-radio-border-focus, 2px solid var(--goa-color-interactive-focus));
+    outline-offset: var(--goa-radio-focus-offset, 2px);
   }
   /* Checked:hover+focus */
   input[type="radio"]:checked:hover:focus-visible ~ .icon {
     border: var(--goa-radio-border-checked);
+    outline: var(--goa-radio-border-focus, 2px solid var(--goa-color-interactive-focus));
+    outline-offset: var(--goa-radio-focus-offset, 2px);
+  }
+
+  /* Inner blue circle for checked state - NEW DESIGN */
+  input[type="radio"]:checked ~ .icon::after {
+    content: '';
+    position: absolute;
+    width: 16px;
+    height: 16px;
+    border-radius: 50%;
+    background-color: #006dcc;
+    top: 50%;
+    left: 50%;
+    transform: translate(-50%, -50%);
+  }
+  
+  /* Inner circle hover state */
+  input[type="radio"]:checked:hover ~ .icon::after {
+    background-color: #045092;
+  }
+
+  /* Inner circle error states */
+  .radio--error input[type="radio"]:checked ~ .icon::after {
+    background-color: #da291c;
+  }
+  
+  .radio--error input[type="radio"]:checked:hover ~ .icon::after {
+    background-color: #a91a10;
+  }
+
+  /* Inner circle disabled state */
+  input[type="radio"]:disabled:checked ~ .icon::after {
+    background-color: #BAB7B7;
   }
 
   /* Disabled */
   input[type="radio"]:disabled ~ .icon,
   input[type="radio"]:disabled:focus-visible ~ .icon {
     border: var(--goa-radio-border-disabled);
+    background-color: var(--goa-radio-color-bg-disabled, #F2F0F0);
   }
   input[type="radio"]:disabled:checked ~ .icon,
   input[type="radio"]:disabled:checked:focus-visible ~ .icon {
     border: var(--goa-radio-border-checked-disabled);
+    background-color: var(--goa-radio-color-bg-disabled, #F2F0F0);
   }
 
   /* Error */
   .radio--error input[type="radio"] ~ .icon {
     border: var(--goa-radio-border-error);
+    background-color: var(--goa-radio-color-bg-error, #FDDED9);
   }
   .radio--error input[type="radio"]:hover ~ .icon {
     border: var(--goa-radio-border-error-hover);
+    background-color: var(--goa-radio-color-bg-error-hover, #F4C8C5);
   }
   .radio--error input[type="radio"]:hover:focus-visible ~ .icon {
     outline: var(--goa-radio-border-focus);
     border: var(--goa-radio-border-error);
+    background-color: var(--goa-radio-color-bg-error-hover, #F4C8C5);
   }
   .radio--error input[type="radio"]:checked ~ .icon {
     border: var(--goa-radio-border-checked-error);
   }
   .radio--error input[type="radio"]:checked:hover ~ .icon {
     border: var(--goa-radio-border-checked-error-hover);
+    background-color: var(--goa-radio-color-bg-error-hover, #F4C8C5);
   }
   .radio--error input[type="radio"]:checked:hover:focus-visible ~ .icon {
     outline: var(--goa-radio-border-focus);
     border: var(--goa-radio-border-checked-error);
+    background-color: var(--goa-radio-color-bg-error-hover, #F4C8C5);
   }
   .radio--error input[type="radio"]:disabled ~ .icon {
     border: var(--goa-radio-border-error-disabled);