diff --git a/packages/uui-avatar/lib/uui-avatar.element.ts b/packages/uui-avatar/lib/uui-avatar.element.ts
index 4ebad1b9a..12c6052b4 100644
--- a/packages/uui-avatar/lib/uui-avatar.element.ts
+++ b/packages/uui-avatar/lib/uui-avatar.element.ts
@@ -1,6 +1,6 @@
 import { defineElement } from '@umbraco-ui/uui-base/lib/registration';
 import { css, html, LitElement } from 'lit';
-import { property, state } from 'lit/decorators.js';
+import { property } from 'lit/decorators.js';
 
 /**
  *  Avatar for displaying users
@@ -43,19 +43,20 @@ export class UUIAvatarElement extends LitElement {
    * @default ''
    */
   @property({ type: String, reflect: true })
-  get name() {
-    return this._name;
-  }
-  set name(newVal) {
-    const oldValue = this._name;
-    this._name = newVal;
-    this.initials = this.createInitials(this._name);
-    this.requestUpdate('title', oldValue);
-  }
-  private _name = '';
+  name = '';
 
-  @state()
-  private initials = '';
+  /**
+   * Use this to override the initials generated from the name.
+   * @type {string}
+   * @attr
+   * @default undefined
+   */
+  @property({ type: String })
+  initials?: string;
+
+  private get _initials() {
+    return this.initials?.substring(0, 3) || this.createInitials(this.name);
+  }
 
   connectedCallback() {
     super.connectedCallback();
@@ -71,16 +72,16 @@ export class UUIAvatarElement extends LitElement {
       return initials;
     }
 
-    const words = name.match(/(\w+)/g);
-
+    const matches = [...name.matchAll(/(?:^|\s)(.)/g)];
+    const words = matches.map(m => m[1]).join('');
     if (!words?.length) {
       return initials;
     }
 
-    initials = words[0].substring(0, 1);
+    initials = words[0].charAt(0);
 
     if (words.length > 1) {
-      initials += words[words.length - 1].substring(0, 1);
+      initials += words[words.length - 1].charAt(0);
     }
 
     return initials.toUpperCase();
@@ -90,14 +91,14 @@ export class UUIAvatarElement extends LitElement {
     return html` <img
       src="${this.imgSrc}"
       srcset="${this.imgSrcset}"
-      alt="${this.initials}"
+      alt="${this._initials}"
       title="${this.name}" />`;
   }
 
   render() {
     return html`
       ${this.imgSrc ? this.renderImage() : ''}
-      ${!this.imgSrc ? this.initials : ''}
+      ${!this.imgSrc ? this._initials : ''}
       <slot></slot>
     `;
   }
diff --git a/packages/uui-avatar/lib/uui-avatar.story.ts b/packages/uui-avatar/lib/uui-avatar.story.ts
index 95eb3f866..e70b77e2d 100644
--- a/packages/uui-avatar/lib/uui-avatar.story.ts
+++ b/packages/uui-avatar/lib/uui-avatar.story.ts
@@ -59,6 +59,13 @@ export const Colors: Story = {
   },
 };
 
+export const Initials: Story = {
+  args: {
+    name: 'Umbraco HQ',
+    initials: 'AB',
+  },
+};
+
 /**
  * Slotted content might overflow, use the `overflow` attribute to hide overflow.
  */
diff --git a/packages/uui-avatar/lib/uui-avatar.test.ts b/packages/uui-avatar/lib/uui-avatar.test.ts
index debe99c5b..be47610d1 100644
--- a/packages/uui-avatar/lib/uui-avatar.test.ts
+++ b/packages/uui-avatar/lib/uui-avatar.test.ts
@@ -41,34 +41,77 @@ describe('UuiAvatar', () => {
     });
   });
 
-  it('renders an image when imgSrc is set', async () => {
-    const avatar = await fixture(
-      html`<uui-avatar img-src="${avatarSrc}" name="My Avatar"></uui-avatar>`,
-    );
-    expect(avatar).shadowDom.to.equal(
-      `<img alt="MA" src="${avatarSrc}" srcset="" title="My Avatar" /><slot></<slot>`,
-    );
-  });
+  describe('initials', () => {
+    it('renders an image when imgSrc is set', async () => {
+      const avatar = await fixture(
+        html`<uui-avatar img-src="${avatarSrc}" name="My Avatar"></uui-avatar>`,
+      );
+      expect(avatar).shadowDom.to.equal(
+        `<img alt="MA" src="${avatarSrc}" srcset="" title="My Avatar" /><slot></<slot>`,
+      );
+    });
 
-  it('renders an image with alt text when imgSrc and text is set', async () => {
-    const avatar = await fixture(
-      html`<uui-avatar img-src="${avatarSrc}" name="alt text"></uui-avatar>`,
-    );
-    expect(avatar).shadowDom.to.equal(
-      `<img alt="AT" src="${avatarSrc}" srcset="" title="alt text" /><slot></<slot>`,
-    );
-  });
+    it('renders an image with alt text when imgSrc and text is set', async () => {
+      const avatar = await fixture(
+        html`<uui-avatar img-src="${avatarSrc}" name="alt text"></uui-avatar>`,
+      );
+      expect(avatar).shadowDom.to.equal(
+        `<img alt="AT" src="${avatarSrc}" srcset="" title="alt text" /><slot></<slot>`,
+      );
+    });
 
-  it('shows the first initial when text is used and there is no image', async () => {
-    const avatar = await fixture(html`<uui-avatar name="First"></uui-avatar>`);
-    expect(avatar).shadowDom.to.equal('F<slot></<slot>');
-  });
+    it('shows the first initial when text is used and there is no image', async () => {
+      const avatar = await fixture(
+        html`<uui-avatar name="First"></uui-avatar>`,
+      );
+      expect(avatar).shadowDom.to.equal('F<slot></<slot>');
+    });
+
+    it('shows the first and last initial when text is used and there is no image', async () => {
+      element.name = 'First Second Last';
+      await element.updateComplete;
+      expect(element).shadowDom.to.equal('FL<slot></<slot>');
+    });
 
-  it('shows the first and last initial when text is used and there is no image', async () => {
-    const avatar = await fixture(
-      html`<uui-avatar name="First Second Last"></uui-avatar>`,
-    );
-    expect(avatar).shadowDom.to.equal('FL<slot></<slot>');
+    it('supports unicode characters', async () => {
+      element.name = '👩‍💻';
+      await element.updateComplete;
+      expect(element).shadowDom.to.equal('\ud83d<slot></<slot>');
+
+      element.name = '👩‍💻 👨‍💻';
+      await element.updateComplete;
+      expect(element).shadowDom.to.equal('\ud83d\ud83d<slot></<slot>');
+    });
+
+    it('supports non-latin characters', async () => {
+      element.name = 'Привет Ša';
+      await element.updateComplete;
+      expect(element).shadowDom.to.equal('ПŠ<slot></<slot>');
+
+      element.name = 'Привет';
+      await element.updateComplete;
+      expect(element).shadowDom.to.equal('П<slot></<slot>');
+
+      element.name = 'UlŠa Mya';
+      await element.updateComplete;
+      expect(element).shadowDom.to.equal('UM<slot></<slot>');
+
+      element.name = 'åse hylle';
+      await element.updateComplete;
+      expect(element).shadowDom.to.equal('ÅH<slot></<slot>');
+    });
+
+    it('supports overriding initials', async () => {
+      element.initials = 'AB';
+      await element.updateComplete;
+      expect(element).shadowDom.to.equal('AB<slot></<slot>');
+    });
+
+    it('shows a maximum of 3 characters', async () => {
+      element.initials = '1234';
+      await element.updateComplete;
+      expect(element).shadowDom.to.equal('123<slot></<slot>');
+    });
   });
 
   it('passes the a11y audit', async () => {