diff --git a/workspaces/ballerina/ballerina-side-panel/src/components/editors/MultiModeExpressionEditor/ChipExpressionEditor/CodeUtils.ts b/workspaces/ballerina/ballerina-side-panel/src/components/editors/MultiModeExpressionEditor/ChipExpressionEditor/CodeUtils.ts
index 451fd4e1537..9c6a1a2ad66 100644
--- a/workspaces/ballerina/ballerina-side-panel/src/components/editors/MultiModeExpressionEditor/ChipExpressionEditor/CodeUtils.ts
+++ b/workspaces/ballerina/ballerina-side-panel/src/components/editors/MultiModeExpressionEditor/ChipExpressionEditor/CodeUtils.ts
@@ -93,7 +93,9 @@ export function createChip(text: string, type: TokenType, start: number, end: nu
             Object.assign(span.style, {
                 ...BASE_CHIP_STYLES,
                 background: colors.background,
-                border: `1px solid ${colors.border}`
+                border: `1px solid ${colors.border}`,
+                marginRight: "2px",
+                marginLeft: "2px",
             });
 
             // Create icon element for standard chip