diff --git a/packages/react/__tests__/__snapshots__/PublicAPI-test.js.snap b/packages/react/__tests__/__snapshots__/PublicAPI-test.js.snap
index 60dcf5d7b2a5..d21d5f54c135 100644
--- a/packages/react/__tests__/__snapshots__/PublicAPI-test.js.snap
+++ b/packages/react/__tests__/__snapshots__/PublicAPI-test.js.snap
@@ -1452,6 +1452,9 @@ Map {
       "danger": Object {
         "type": "bool",
       },
+      "decorator": Object {
+        "type": "node",
+      },
       "isFullWidth": Object {
         "type": "bool",
       },
@@ -1510,9 +1513,7 @@ Map {
         ],
         "type": "oneOf",
       },
-      "slug": Object {
-        "type": "node",
-      },
+      "slug": [Function],
     },
     "render": [Function],
   },
diff --git a/packages/react/src/components/ComposedModal/ComposedModal-test.js b/packages/react/src/components/ComposedModal/ComposedModal-test.js
index 52a9550ce027..8a9208e5e4ea 100644
--- a/packages/react/src/components/ComposedModal/ComposedModal-test.js
+++ b/packages/react/src/components/ComposedModal/ComposedModal-test.js
@@ -344,9 +344,9 @@ describe('ComposedModal', () => {
       expect(screen.getByRole('button', { name: 'Cancel' })).toBeDisabled();
     });
 
-    it('should respect slug prop', () => {
+    it('should respect decorator prop', () => {
       const { container } = render(
-        <ComposedModal open slug={<AILabel />}>
+        <ComposedModal open decorator={<AILabel />}>
           <ModalHeader>Modal header</ModalHeader>
           <ModalBody>This is the modal body content</ModalBody>
           <ModalFooter
@@ -357,10 +357,30 @@ describe('ComposedModal', () => {
         </ComposedModal>
       );
 
-      expect(container.firstChild).toHaveClass(`${prefix}--modal--slug`);
+      expect(container.firstChild).toHaveClass(`${prefix}--modal--decorator`);
     });
   });
 
+  it('should respect the deprecated slug prop', () => {
+    const spy = jest.spyOn(console, 'warn').mockImplementation(() => {});
+    render(
+      <ComposedModal open slug={<AILabel />}>
+        <ModalHeader>Modal header</ModalHeader>
+        <ModalBody>This is the modal body content</ModalBody>
+        <ModalFooter
+          primaryButtonText="Add"
+          secondaryButtonText="Cancel"
+          loadingStatus="active"
+          loadingDescription="loading..."></ModalFooter>
+      </ComposedModal>
+    );
+
+    expect(
+      screen.getByRole('button', { name: 'AI - Show information' })
+    ).toBeInTheDocument();
+    spy.mockRestore();
+  });
+
   it('should handle onClick events', async () => {
     const onClick = jest.fn();
     render(
diff --git a/packages/react/src/components/ComposedModal/ComposedModal.stories.js b/packages/react/src/components/ComposedModal/ComposedModal.stories.js
index b0743d05e225..157d8d883ace 100644
--- a/packages/react/src/components/ComposedModal/ComposedModal.stories.js
+++ b/packages/react/src/components/ComposedModal/ComposedModal.stories.js
@@ -16,6 +16,7 @@ import Select from '../Select';
 import SelectItem from '../SelectItem';
 import TextInput from '../TextInput';
 import Button from '../Button';
+import { Information } from '@carbon/icons-react';
 import {
   StructuredListWrapper,
   StructuredListHead,
@@ -391,7 +392,7 @@ export const _withAILabel = {
         <ComposedModal
           open={open}
           onClose={() => setOpen(false)}
-          slug={aiLabel}>
+          decorator={aiLabel}>
           <ModalHeader label="Account resources" title="Add a custom domain" />
           <ModalBody>
             <p style={{ marginBottom: '1rem' }}>
diff --git a/packages/react/src/components/ComposedModal/ComposedModal.tsx b/packages/react/src/components/ComposedModal/ComposedModal.tsx
index b0019f672f82..6195b1c93ae9 100644
--- a/packages/react/src/components/ComposedModal/ComposedModal.tsx
+++ b/packages/react/src/components/ComposedModal/ComposedModal.tsx
@@ -8,6 +8,8 @@ import React, {
   type ReactNode,
   type ReactElement,
   type RefObject,
+  useMemo,
+  isValidElement,
 } from 'react';
 import { isElement } from 'react-is';
 import PropTypes from 'prop-types';
@@ -28,6 +30,7 @@ import { usePrefix } from '../../internal/usePrefix';
 import { keys, match } from '../../internal/keyboard';
 import { useFeatureFlag } from '../FeatureFlags';
 import { composeEventHandlers } from '../../tools/events';
+import deprecate from '../../prop-types/deprecate';
 
 export interface ModalBodyProps extends HTMLAttributes<HTMLDivElement> {
   /** Specify the content to be placed in the ModalBody. */
@@ -172,6 +175,11 @@ export interface ComposedModalProps extends HTMLAttributes<HTMLDivElement> {
    */
   danger?: boolean;
 
+  /**
+   * **Experimental**: Provide a `decorator` component to be rendered inside the `ComposedModal` component
+   */
+  decorator?: ReactNode;
+
   /**
    * Specify whether the Modal content should have any inner padding.
    */
@@ -212,6 +220,7 @@ export interface ComposedModalProps extends HTMLAttributes<HTMLDivElement> {
   size?: 'xs' | 'sm' | 'md' | 'lg';
 
   /**
+   * @deprecated please use `decorator` instead.
    * **Experimental**: Provide a `Slug` component to be rendered inside the `ComposedModal` component
    */
   slug?: ReactNode;
@@ -226,6 +235,7 @@ const ComposedModal = React.forwardRef<HTMLDivElement, ComposedModalProps>(
       className: customClassName,
       containerClassName,
       danger,
+      decorator,
       isFullWidth,
       onClose,
       onKeyDown,
@@ -335,6 +345,7 @@ const ComposedModal = React.forwardRef<HTMLDivElement, ComposedModalProps>(
         'is-visible': isOpen,
         [`${prefix}--modal--danger`]: danger,
         [`${prefix}--modal--slug`]: slug,
+        [`${prefix}--modal--decorator`]: decorator,
       },
       customClassName
     );
@@ -421,12 +432,20 @@ const ComposedModal = React.forwardRef<HTMLDivElement, ComposedModalProps>(
       }
     }, [open, selectorPrimaryFocus, isOpen]);
 
-    // Slug is always size `sm`
-    let normalizedSlug;
-    if (slug && slug['type']?.displayName === 'AILabel') {
-      normalizedSlug = React.cloneElement(slug as React.ReactElement<any>, {
-        size: 'sm',
-      });
+    // AILabel is always size `sm`
+    let normalizedDecorator = React.isValidElement(slug ?? decorator)
+      ? (slug ?? decorator)
+      : null;
+    if (
+      normalizedDecorator &&
+      normalizedDecorator['type']?.displayName === 'AILabel'
+    ) {
+      normalizedDecorator = React.cloneElement(
+        normalizedDecorator as React.ReactElement<any>,
+        {
+          size: 'sm',
+        }
+      );
     }
 
     return (
@@ -456,7 +475,15 @@ const ComposedModal = React.forwardRef<HTMLDivElement, ComposedModalProps>(
             </button>
           )}
           <div ref={innerModal} className={`${prefix}--modal-container-body`}>
-            {normalizedSlug}
+            {slug ? (
+              normalizedDecorator
+            ) : decorator ? (
+              <div className={`${prefix}--modal--inner__decorator`}>
+                {normalizedDecorator}
+              </div>
+            ) : (
+              ''
+            )}
             {childrenWithProps}
           </div>
           {/* Non-translatable: Focus-wrap code makes this `<button>` not actually read by screen readers */}
@@ -506,6 +533,11 @@ ComposedModal.propTypes = {
    */
   danger: PropTypes.bool,
 
+  /**
+   * **Experimental**: Provide a `decorator` component to be rendered inside the `ComposedModal` component
+   */
+  decorator: PropTypes.node,
+
   /**
    * Specify whether the Modal content should have any inner padding.
    */
@@ -557,10 +589,11 @@ ComposedModal.propTypes = {
    */
   size: PropTypes.oneOf(['xs', 'sm', 'md', 'lg']),
 
-  /**
-   * **Experimental**: Provide a `Slug` component to be rendered inside the `ComposedModal` component
-   */
-  slug: PropTypes.node,
+  slug: deprecate(
+    PropTypes.node,
+    'The `slug` prop for `ComposedModal` has ' +
+      'been deprecated in favor of the new `decorator` prop. It will be removed in the next major release.'
+  ),
 };
 
 export default ComposedModal;
diff --git a/packages/styles/scss/components/modal/_modal.scss b/packages/styles/scss/components/modal/_modal.scss
index 8f150c68ca97..422b52a825c6 100644
--- a/packages/styles/scss/components/modal/_modal.scss
+++ b/packages/styles/scss/components/modal/_modal.scss
@@ -365,12 +365,19 @@
     margin: 0;
   }
 
-  // Slug styles
-  .#{$prefix}--modal--slug.#{$prefix}--modal {
+  // AIlabel styles
+  .#{$prefix}--modal--slug.#{$prefix}--modal,
+  .#{$prefix}--modal--decorator.#{$prefix}--modal:has(
+      .#{$prefix}--modal--inner__decorator .#{$prefix}--ai-label
+    ) {
     background-color: $ai-overlay;
   }
 
-  .#{$prefix}--modal--slug .#{$prefix}--modal-container {
+  .#{$prefix}--modal--slug .#{$prefix}--modal-container,
+  .#{$prefix}--modal--decorator:has(
+      .#{$prefix}--modal--inner__decorator .#{$prefix}--ai-label
+    )
+    .#{$prefix}--modal-container {
     @include ai-popover-gradient('default', 0, 'layer');
 
     border: 1px solid transparent;
@@ -381,6 +388,10 @@
   }
 
   .#{$prefix}--modal--slug
+    .#{$prefix}--modal-container:has(.#{$prefix}--modal-footer),
+  .#{$prefix}--modal--decorator:has(
+      .#{$prefix}--modal--inner__decorator .#{$prefix}--ai-label
+    )
     .#{$prefix}--modal-container:has(.#{$prefix}--modal-footer) {
     @include ai-popover-gradient('default', 64px, 'layer');
 
@@ -391,6 +402,8 @@
   }
 
   .#{$prefix}--modal--slug
+    .#{$prefix}--modal-content.#{$prefix}--modal-scroll-content,
+  .#{$prefix}--modal--decorator
     .#{$prefix}--modal-content.#{$prefix}--modal-scroll-content {
     mask-image: linear-gradient(
         to bottom,
@@ -403,6 +416,19 @@
       linear-gradient(to top, $layer 0, 2px, transparent 2px);
   }
 
+  .#{$prefix}--modal-header
+    > .#{$prefix}--modal--inner__decorator:has(
+      + .#{$prefix}--modal-close-button
+    )
+    > *,
+  .#{$prefix}--modal-header
+    > .#{$prefix}--modal-close-button
+    ~ .#{$prefix}--modal--inner__decorator
+    > *,
+  .#{$prefix}--modal--decorator
+    .#{$prefix}--modal-container-body
+    > .#{$prefix}--modal--inner__decorator
+    > *,
   .#{$prefix}--modal-header
     > .#{$prefix}--ai-label:has(+ .#{$prefix}--modal-close-button),
   .#{$prefix}--modal-header
@@ -426,7 +452,10 @@
 
   .#{$prefix}--modal--slug
     .#{$prefix}--modal-content--overflow-indicator::before,
-  .#{$prefix}--modal--slug .#{$prefix}--modal-content--overflow-indicator {
+  .#{$prefix}--modal--slug .#{$prefix}--modal-content--overflow-indicator,
+  .#{$prefix}--modal--decorator
+    .#{$prefix}--modal-content--overflow-indicator::before,
+  .#{$prefix}--modal--decorator .#{$prefix}--modal-content--overflow-indicator {
     display: none;
   }