diff --git a/.changeset/plain-code-highlighted.md b/.changeset/plain-code-highlighted.md
new file mode 100644
index 000000000..4ba0e6dc4
--- /dev/null
+++ b/.changeset/plain-code-highlighted.md
@@ -0,0 +1,5 @@
+---
+"@cloudflare/kumo": patch
+---
+
+Add a plain CodeHighlighted variant for frameless, padding-free code blocks with a correctly positioned copy button.
diff --git a/packages/kumo-docs-astro/src/components/demos/CodeHighlightedDemo.tsx b/packages/kumo-docs-astro/src/components/demos/CodeHighlightedDemo.tsx
index 867b2cd68..b4f882b35 100644
--- a/packages/kumo-docs-astro/src/components/demos/CodeHighlightedDemo.tsx
+++ b/packages/kumo-docs-astro/src/components/demos/CodeHighlightedDemo.tsx
@@ -186,6 +186,53 @@ export function CodeHighlightedCopyButtonDemo() {
   );
 }
 
+/** Frameless code block for embedding in another surface */
+export function CodeHighlightedPlainDemo() {
+  return (
+    <DemoProvider>
+      <div className="grid divide-x divide-kumo-line rounded border border-kumo-line md:grid-cols-2">
+        <div className="p-2">
+          <CodeHighlighted
+            showLineNumbers
+            code={`type EmbeddedOptions = {
+  enabled: boolean;
+  target: string;
+};
+
+const options = {
+  enabled: true,
+  target: "#preview",
+} satisfies EmbeddedOptions;
+
+console.log(options);`}
+            lang="typescript"
+            variant="plain"
+          />
+        </div>
+        <div className="p-2">
+          <CodeHighlighted
+            showCopyButton
+            code={`type EmbeddedOptions = {
+  enabled: boolean;
+  target: string;
+};
+
+const options = {
+  enabled: true,
+  target: "#preview",
+} satisfies EmbeddedOptions;
+
+console.log(options);`}
+            lang="typescript"
+            variant="plain"
+            highlightLines={[6, 7, 8, 9]}
+          />
+        </div>
+      </div>
+    </DemoProvider>
+  );
+}
+
 /** Full featured example */
 export function CodeHighlightedFullFeaturedDemo() {
   return (
diff --git a/packages/kumo-docs-astro/src/components/skill/design-tips.tsx b/packages/kumo-docs-astro/src/components/skill/design-tips.tsx
index 11204992a..19a46b2f8 100644
--- a/packages/kumo-docs-astro/src/components/skill/design-tips.tsx
+++ b/packages/kumo-docs-astro/src/components/skill/design-tips.tsx
@@ -24,9 +24,10 @@ interface CodeExampleProps {
 export function CodeExample({ code }: CodeExampleProps) {
   return (
     <CodeHighlighted
-      className="code-block rounded-none border-0 bg-transparent p-2 [&_pre]:text-base!"
+      className="code-block p-2 p-6 [&_pre]:text-base!"
       code={code}
       lang="tsx"
+      variant="plain"
     />
   );
 }
diff --git a/packages/kumo-docs-astro/src/pages/components/code-highlighted.mdx b/packages/kumo-docs-astro/src/pages/components/code-highlighted.mdx
index 2910ecdb8..3df018353 100644
--- a/packages/kumo-docs-astro/src/pages/components/code-highlighted.mdx
+++ b/packages/kumo-docs-astro/src/pages/components/code-highlighted.mdx
@@ -16,6 +16,7 @@ import {
   CodeHighlightedHighlightLinesDemo,
   CodeHighlightedLineNumbersDemo,
   CodeHighlightedCopyButtonDemo,
+  CodeHighlightedPlainDemo,
   CodeHighlightedFullFeaturedDemo,
   CodeHighlightedSharedProviderDemo,
   CodeHighlightedCssDemo,
@@ -173,6 +174,16 @@ export function App() {
   <CodeHighlightedCopyButtonDemo client:visible />
 </ComponentExample>
 
+### Plain
+
+<p>
+  Use `variant="plain"` to remove the outer surface, border, and rounded corners
+  when embedding highlighted code inside another container.
+</p>
+<ComponentExample demo="CodeHighlightedPlainDemo">
+  <CodeHighlightedPlainDemo client:visible />
+</ComponentExample>
+
 ### Full Featured
 
 <p>Combine all features for a complete code display experience.</p>
@@ -568,6 +579,16 @@ import { ShikiProvider, CodeHighlighted } from "@cloudflare/kumo/code";
           Language identifier (must be in provider's languages)
         </td>
       </tr>
+      <tr class="border-b border-kumo-hairline/50">
+        <td class="py-2 pr-4">
+          <code>variant</code>
+        </td>
+        <td class="py-2 pr-4">
+          <code>"default" | "plain"</code>
+        </td>
+        <td class="py-2 pr-4">No</td>
+        <td class="py-2">Visual style of the code block</td>
+      </tr>
       <tr class="border-b border-kumo-hairline/50">
         <td class="py-2 pr-4">
           <code>showLineNumbers</code>
diff --git a/packages/kumo/src/code/code-highlighted.tsx b/packages/kumo/src/code/code-highlighted.tsx
index 05b027816..8939b07d8 100644
--- a/packages/kumo/src/code/code-highlighted.tsx
+++ b/packages/kumo/src/code/code-highlighted.tsx
@@ -34,6 +34,7 @@ import type { CodeHighlightedProps } from "./types";
 export function CodeHighlighted({
   code,
   lang,
+  variant = "default",
   showLineNumbers = false,
   highlightLines,
   showCopyButton = false,
@@ -76,17 +77,45 @@ export function CodeHighlighted({
   // Container styles - use flex layout for single-line with copy button
   // Includes defensive resets (m-0, p-0) to prevent global CSS pollution
   const containerClasses = cn(
-    "group relative m-0 w-full min-w-0 rounded-md border border-kumo-fill bg-kumo-base p-0",
+    "group relative m-0 w-full min-w-0 p-0",
+    variant === "plain"
+      ? "rounded-none border-0 bg-transparent"
+      : "rounded-md border border-kumo-fill bg-kumo-base",
     showCopyButton && isSingleLine && "flex items-center",
     className,
   );
 
+  const fallbackCodeClasses = cn(
+    // Prevent global pre styles from affecting the loading and error states.
+    "!m-0 min-w-0 flex-1 overflow-x-auto",
+    "font-mono text-sm leading-relaxed text-kumo-subtle",
+    variant === "plain" ? "!p-0" : "!p-4",
+  );
+
+  const highlightedCodeClasses = cn(
+    "kumo-shiki",
+    // Reset the code element generated by Shiki.
+    "[&_code]:!m-0 [&_code]:!border-0 [&_code]:!bg-transparent [&_code]:!p-0",
+    // Let the Kumo container provide the frame and background.
+    "[&>pre]:!m-0 [&>pre]:!rounded-none [&>pre]:!border-0 [&>pre]:!bg-transparent",
+    "[&>pre]:font-mono [&>pre]:text-sm [&>pre]:leading-relaxed",
+    variant === "plain" ? "[&>pre]:!p-0" : "[&>pre]:!p-4",
+    // Highlighted lines normally extend into the default padding. A plain
+    // block has no padding, so keep its highlights within the content width.
+    variant === "plain" &&
+      "[&_.line-highlighted]:!m-0 [&_.line-highlighted]:!w-full [&_.line-highlighted]:!px-0",
+  );
+
   // Copy button - inline for single-line, absolute for multi-line
   // Hidden until hover (or when showing "Copied!" feedback)
   const copyButton = showCopyButton ? (
     <div
       className={cn(
-        isSingleLine ? "shrink-0 px-2" : "absolute top-2 right-2",
+        isSingleLine
+          ? "shrink-0 px-2"
+          : variant === "plain"
+            ? "absolute top-0 right-0"
+            : "absolute top-2 right-2",
         !copied && "opacity-0 transition-opacity group-hover:opacity-100",
       )}
     >
@@ -105,7 +134,10 @@ export function CodeHighlighted({
   const lineNumbers =
     showLineNumbers && !isSingleLine ? (
       <div
-        className="kumo-line-numbers shrink-0 py-4 pr-4 text-right font-mono text-sm opacity-40 select-none"
+        className={cn(
+          "kumo-line-numbers shrink-0 pr-4 text-right font-mono text-sm opacity-40 select-none",
+          variant === "plain" ? "py-0" : "py-4",
+        )}
         aria-hidden="true"
       >
         {Array.from({ length: lineCount }, (_, i) => (
@@ -133,13 +165,13 @@ export function CodeHighlighted({
         {lineNumbers && (
           <div className="flex">
             {lineNumbers}
-            <pre className="!m-0 min-w-0 flex-1 overflow-x-auto !p-4 font-mono text-sm leading-relaxed text-kumo-subtle">
+            <pre className={fallbackCodeClasses}>
               <code className="!m-0 !p-0">{code}</code>
             </pre>
           </div>
         )}
         {!lineNumbers && (
-          <pre className="!m-0 min-w-0 flex-1 overflow-x-auto !p-4 font-mono text-sm leading-relaxed text-kumo-subtle">
+          <pre className={fallbackCodeClasses}>
             <code className="!m-0 !p-0">{code}</code>
           </pre>
         )}
@@ -156,7 +188,7 @@ export function CodeHighlighted({
           {lineNumbers}
           <div className="min-w-0 flex-1 overflow-x-auto">
             <div
-              className="kumo-shiki [&_code]:!m-0 [&_code]:!border-0 [&_code]:!bg-transparent [&_code]:!p-0 [&>pre]:!m-0 [&>pre]:!rounded-none [&>pre]:!border-0 [&>pre]:!bg-transparent [&>pre]:!p-4 [&>pre]:font-mono [&>pre]:text-sm [&>pre]:leading-relaxed"
+              className={highlightedCodeClasses}
               dangerouslySetInnerHTML={{
                 __html: processHighlightedHtml(html, highlightLines),
               }}
@@ -167,7 +199,7 @@ export function CodeHighlighted({
       {!lineNumbers && (
         <div className="overflow-x-auto">
           <div
-            className="kumo-shiki [&_code]:!m-0 [&_code]:!border-0 [&_code]:!bg-transparent [&_code]:!p-0 [&>pre]:!m-0 [&>pre]:!rounded-none [&>pre]:!border-0 [&>pre]:!bg-transparent [&>pre]:!p-4 [&>pre]:font-mono [&>pre]:text-sm [&>pre]:leading-relaxed"
+            className={highlightedCodeClasses}
             dangerouslySetInnerHTML={{
               __html: processHighlightedHtml(html, highlightLines),
             }}
diff --git a/packages/kumo/src/code/index.ts b/packages/kumo/src/code/index.ts
index 94b944d99..87c085592 100644
--- a/packages/kumo/src/code/index.ts
+++ b/packages/kumo/src/code/index.ts
@@ -39,6 +39,7 @@ export { LANGUAGE_ALIASES } from "./types";
 export type {
   ShikiProviderProps,
   CodeHighlightedProps,
+  CodeHighlightedVariant,
   UseShikiHighlighterResult,
   ShikiEngine,
   BundledLanguage,
diff --git a/packages/kumo/src/code/provider.test.tsx b/packages/kumo/src/code/provider.test.tsx
index 5c587263a..3b3c971c6 100644
--- a/packages/kumo/src/code/provider.test.tsx
+++ b/packages/kumo/src/code/provider.test.tsx
@@ -401,6 +401,94 @@ describe("ShikiProvider", () => {
     expect(mockHighlighter.codeToHtml).toHaveBeenCalledTimes(1);
   });
 
+  it("renders the plain CodeHighlighted variant without a frame", () => {
+    const { container } = render(
+      <ShikiProvider engine="javascript" languages={["javascript"]}>
+        <CodeHighlighted
+          code={"const x = 1;\nconst y = 2;"}
+          lang="javascript"
+          variant="plain"
+          showCopyButton
+        />
+      </ShikiProvider>,
+    );
+
+    const classList = container.firstElementChild?.classList;
+    expect(classList?.contains("rounded-none")).toBe(true);
+    expect(classList?.contains("border-0")).toBe(true);
+    expect(classList?.contains("bg-transparent")).toBe(true);
+    expect(classList?.contains("rounded-md")).toBe(false);
+    expect(classList?.contains("border-kumo-fill")).toBe(false);
+    expect(classList?.contains("bg-kumo-base")).toBe(false);
+    expect(container.querySelector("pre")?.classList.contains("!p-0")).toBe(
+      true,
+    );
+
+    const copyButtonContainer = screen.getByRole("button", {
+      name: "Copy",
+    }).parentElement;
+    expect(copyButtonContainer?.classList.contains("top-0")).toBe(true);
+    expect(copyButtonContainer?.classList.contains("right-0")).toBe(true);
+    expect(copyButtonContainer?.classList.contains("top-2")).toBe(false);
+    expect(copyButtonContainer?.classList.contains("right-2")).toBe(false);
+  });
+
+  it("removes Shiki pre padding from the plain CodeHighlighted variant", async () => {
+    mockHighlighter.codeToHtml.mockReturnValue(
+      '<pre><code><span class="line">const x = 1;</span>\n<span class="line">const y = 2;</span></code></pre>',
+    );
+
+    const { container } = render(
+      <ShikiProvider engine="javascript" languages={["javascript"]}>
+        <CodeHighlighted
+          code={"const x = 1;\nconst y = 2;"}
+          lang="javascript"
+          variant="plain"
+          showLineNumbers
+        />
+      </ShikiProvider>,
+    );
+
+    await waitFor(() => {
+      expect(container.querySelector(".kumo-shiki")).not.toBeNull();
+    });
+
+    const classList = container.querySelector(".kumo-shiki")?.classList;
+    expect(classList?.contains("[&>pre]:!p-0")).toBe(true);
+    expect(classList?.contains("[&>pre]:!p-4")).toBe(false);
+
+    const lineNumberClasses =
+      container.querySelector(".kumo-line-numbers")?.classList;
+    expect(lineNumberClasses?.contains("py-0")).toBe(true);
+    expect(lineNumberClasses?.contains("py-4")).toBe(false);
+  });
+
+  it("does not extend highlighted lines beyond a plain code block", async () => {
+    mockHighlighter.codeToHtml.mockReturnValue(
+      '<pre><code><span class="line">const x = 1;</span></code></pre>',
+    );
+
+    const { container } = render(
+      <ShikiProvider engine="javascript" languages={["javascript"]}>
+        <CodeHighlighted
+          code="const x = 1;"
+          lang="javascript"
+          variant="plain"
+          highlightLines={[1]}
+        />
+      </ShikiProvider>,
+    );
+
+    await waitFor(() => {
+      expect(container.querySelector(".line-highlighted")).not.toBeNull();
+    });
+
+    const classList = container.querySelector(".kumo-shiki")?.classList;
+    expect(classList?.contains("[&_.line-highlighted]:!m-0")).toBe(true);
+    expect(classList?.contains("[&_.line-highlighted]:!w-full")).toBe(true);
+    expect(classList?.contains("[&_.line-highlighted]:!px-0")).toBe(true);
+  });
+
   it("exposes normalized languages in context so hook alias resolution works end-to-end", async () => {
     // This is the integration test for the bug where the context stores raw
     // aliases (e.g., ["js", "ts"]) but the hook normalizes to canonical names
diff --git a/packages/kumo/src/code/types.ts b/packages/kumo/src/code/types.ts
index 4ae708824..a315c0e5f 100644
--- a/packages/kumo/src/code/types.ts
+++ b/packages/kumo/src/code/types.ts
@@ -135,6 +135,8 @@ export interface UseShikiHighlighterResult {
 /**
  * Props for CodeHighlighted component.
  */
+export type CodeHighlightedVariant = "default" | "plain";
+
 export interface CodeHighlightedProps {
   /** Source code to display */
   code: string;
@@ -155,9 +157,6 @@ export interface CodeHighlightedProps {
    */
   highlightLines?: number[];
 
-  /** Show copy-to-clipboard button */
-  showCopyButton?: boolean;
-
   /**
    * Override provider labels for this instance.
    * @example { copy: "Copy code", copied: "Done!" }
@@ -166,6 +165,12 @@ export interface CodeHighlightedProps {
 
   /** Additional CSS classes */
   className?: string;
+
+  /** Code block appearance. @default "default" */
+  variant?: CodeHighlightedVariant;
+
+  /** Show copy-to-clipboard button */
+  showCopyButton?: boolean;
 }
 
 // Re-export for backwards compatibility (deprecated, use SupportedLanguage instead)