diff --git a/packages/terra-framework-docs/CHANGELOG.md b/packages/terra-framework-docs/CHANGELOG.md
index b59ac171a05..7435a7e874b 100644
--- a/packages/terra-framework-docs/CHANGELOG.md
+++ b/packages/terra-framework-docs/CHANGELOG.md
@@ -3,6 +3,7 @@
 ## Unreleased
 
 * Added
+  * Updated customDisplay examples for tabs.
   * Added `aria-label` and `ariaDescribedBy` examples for `terra-collapsible-menu-view`.
   * Added examples and test to `terra-table` for row selection mode.
   * Added initial setup for `terra-compact-interactive-list` documentation.
diff --git a/packages/terra-framework-docs/src/terra-dev-site/test/tabs/Tabs/ClosableTab.test.jsx b/packages/terra-framework-docs/src/terra-dev-site/test/tabs/Tabs/ClosableTab.test.jsx
index 70418471cd4..c05f1897a98 100644
--- a/packages/terra-framework-docs/src/terra-dev-site/test/tabs/Tabs/ClosableTab.test.jsx
+++ b/packages/terra-framework-docs/src/terra-dev-site/test/tabs/Tabs/ClosableTab.test.jsx
@@ -32,7 +32,7 @@ const ClosableTab = () => {
 
   tabsExample.push(
     {
-      label: 'Customized Tab',
+      label: 'Cutomised Test Tab',
       customDisplay: <div className={cx('custom-display')}>Customized Tab</div>,
       key: 'CloseCustomTab',
       content: 'Custom display',
diff --git a/packages/terra-framework-docs/src/terra-dev-site/test/tabs/Tabs/TabsTemplate.module.scss b/packages/terra-framework-docs/src/terra-dev-site/test/tabs/Tabs/TabsTemplate.module.scss
index 290ecc9657e..bbf2ba4ca8f 100644
--- a/packages/terra-framework-docs/src/terra-dev-site/test/tabs/Tabs/TabsTemplate.module.scss
+++ b/packages/terra-framework-docs/src/terra-dev-site/test/tabs/Tabs/TabsTemplate.module.scss
@@ -20,4 +20,8 @@
   .content-container-vertical {
     height: 240px;
   }
+  
+  .custom-display {
+    color: #f00;
+  }
 }
diff --git a/packages/terra-framework-docs/src/terra-dev-site/test/tabs/Tabs/VerticalTab.test.jsx b/packages/terra-framework-docs/src/terra-dev-site/test/tabs/Tabs/VerticalTab.test.jsx
index 197de855a78..021f082ab91 100644
--- a/packages/terra-framework-docs/src/terra-dev-site/test/tabs/Tabs/VerticalTab.test.jsx
+++ b/packages/terra-framework-docs/src/terra-dev-site/test/tabs/Tabs/VerticalTab.test.jsx
@@ -29,9 +29,9 @@ const VerticalTab = () => {
   const customTab = (
     <Tabs.Pane
       customDisplay={(
-        <div className={cx('custom-display')}>
+        <span className={cx('custom-display', 'custom-vertical')}>
           Custom display
-        </div>
+        </span>
       )}
       label="Custom display"
       key="tCustomTab"
diff --git a/packages/terra-tabs/CHANGELOG.md b/packages/terra-tabs/CHANGELOG.md
index e3eaadb54f2..07aac8805e2 100644
--- a/packages/terra-tabs/CHANGELOG.md
+++ b/packages/terra-tabs/CHANGELOG.md
@@ -3,6 +3,7 @@
 ## Unreleased
 
 * Fixed
+  * Fixed issue to prefer `customDisplay` prop over `label` prop.
   * Fixes issue where tab label fails to get updated due to
     having the same key before and after tab label update.
 
diff --git a/packages/terra-tabs/src/Tabs.jsx b/packages/terra-tabs/src/Tabs.jsx
index d671a470b95..285bf9fdea9 100644
--- a/packages/terra-tabs/src/Tabs.jsx
+++ b/packages/terra-tabs/src/Tabs.jsx
@@ -174,6 +174,7 @@ class Tabs extends React.Component {
           isDisabled={child.props.isDisabled}
           isClosable={isClosable}
           variant="framework"
+          customDisplay={child.props.customDisplay}
         />,
       );
     });
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