diff --git a/plugins/woocommerce-blocks/assets/js/base/components/cart-checkout/local-pickup-select/index.tsx b/plugins/woocommerce-blocks/assets/js/base/components/cart-checkout/local-pickup-select/index.tsx
index 696db0fefae..c6e3e35865f 100644
--- a/plugins/woocommerce-blocks/assets/js/base/components/cart-checkout/local-pickup-select/index.tsx
+++ b/plugins/woocommerce-blocks/assets/js/base/components/cart-checkout/local-pickup-select/index.tsx
@@ -6,6 +6,8 @@ import {
 	RadioControlOptionType,
 } from '@woocommerce/blocks-components';
 import { CartShippingPackageShippingRate } from '@woocommerce/types';
+import { CART_STORE_KEY } from '@woocommerce/block-data';
+import { useSelect } from '@wordpress/data';
 
 interface LocalPickupSelectProps {
 	title?: string | undefined;
@@ -31,9 +33,14 @@ export const LocalPickupSelect = ( {
 	renderPickupLocation,
 	packageCount,
 }: LocalPickupSelectProps ) => {
+	const internalPackageCount = useSelect(
+		( select ) =>
+			select( CART_STORE_KEY )?.getCartData()?.shippingRates?.length
+	);
 	// Hacky way to check if there are multiple packages, this way is borrowed from  `assets/js/base/components/cart-checkout/shipping-rates-control-package/index.tsx`
 	// We have no built-in way of checking if other extensions have added packages.
 	const multiplePackages =
+		internalPackageCount > 1 ||
 		document.querySelectorAll(
 			'.wc-block-components-local-pickup-select .wc-block-components-radio-control'
 		).length > 1;
@@ -45,6 +52,7 @@ export const LocalPickupSelect = ( {
 					setSelectedOption( value );
 					onSelectRate( value );
 				} }
+				highlightChecked={ true }
 				selected={ selectedOption }
 				options={ pickupLocations.map( ( location ) =>
 					renderPickupLocation( location, packageCount )
diff --git a/plugins/woocommerce-blocks/assets/js/base/components/cart-checkout/shipping-rates-control-package/index.tsx b/plugins/woocommerce-blocks/assets/js/base/components/cart-checkout/shipping-rates-control-package/index.tsx
index 2da920e68d2..2b60f2ed2c1 100644
--- a/plugins/woocommerce-blocks/assets/js/base/components/cart-checkout/shipping-rates-control-package/index.tsx
+++ b/plugins/woocommerce-blocks/assets/js/base/components/cart-checkout/shipping-rates-control-package/index.tsx
@@ -5,10 +5,12 @@ import classNames from 'classnames';
 import { _n, sprintf } from '@wordpress/i18n';
 import { decodeEntities } from '@wordpress/html-entities';
 import { Label, Panel } from '@woocommerce/blocks-components';
-import { useCallback } from '@wordpress/element';
+import { useCallback, useMemo } from '@wordpress/element';
 import { useShippingData } from '@woocommerce/base-context/hooks';
 import { sanitizeHTML } from '@woocommerce/utils';
 import type { ReactElement } from 'react';
+import { useSelect } from '@wordpress/data';
+import { CART_STORE_KEY } from '@woocommerce/block-data';
 
 /**
  * Internal dependencies
@@ -25,9 +27,18 @@ export const ShippingRatesControlPackage = ( {
 	packageData,
 	collapsible,
 	showItems,
+	highlightChecked = false,
 }: PackageProps ): ReactElement => {
 	const { selectShippingRate, isSelectingRate } = useShippingData();
+
+	const internalPackageCount = useSelect(
+		( select ) =>
+			select( CART_STORE_KEY )?.getCartData()?.shippingRates?.length
+	);
+
+	// We have no built-in way of checking if other extensions have added packages e.g. if subscriptions has added them.
 	const multiplePackages =
+		internalPackageCount > 1 ||
 		document.querySelectorAll(
 			'.wc-block-components-shipping-rates-control__package'
 		).length > 1;
@@ -102,8 +113,15 @@ export const ShippingRatesControlPackage = ( {
 		),
 		renderOption,
 		disabled: isSelectingRate,
+		highlightChecked,
 	};
 
+	const selectedOptionNumber = useMemo( () => {
+		return packageData?.shipping_rates?.findIndex(
+			( rate ) => rate?.selected
+		);
+	}, [ packageData?.shipping_rates ] );
+
 	if ( shouldBeCollapsible ) {
 		return (
 			<Panel
@@ -135,6 +153,12 @@ export const ShippingRatesControlPackage = ( {
 				{
 					'wc-block-components-shipping-rates-control__package--disabled':
 						isSelectingRate,
+					'wc-block-components-shipping-rates-control__package--first-selected':
+						! isSelectingRate && selectedOptionNumber === 0,
+					'wc-block-components-shipping-rates-control__package--last-selected':
+						! isSelectingRate &&
+						selectedOptionNumber ===
+							packageData?.shipping_rates?.length - 1,
 				}
 			) }
 		>
diff --git a/plugins/woocommerce-blocks/assets/js/base/components/cart-checkout/shipping-rates-control-package/package-rates.tsx b/plugins/woocommerce-blocks/assets/js/base/components/cart-checkout/shipping-rates-control-package/package-rates.tsx
index 31778fba701..6d946ee7369 100644
--- a/plugins/woocommerce-blocks/assets/js/base/components/cart-checkout/shipping-rates-control-package/package-rates.tsx
+++ b/plugins/woocommerce-blocks/assets/js/base/components/cart-checkout/shipping-rates-control-package/package-rates.tsx
@@ -13,7 +13,7 @@ import { usePrevious } from '@woocommerce/base-hooks';
  * Internal dependencies
  */
 import { renderPackageRateOption } from './render-package-rate-option';
-import type { PackageRateRenderOption } from '../shipping-rates-control-package';
+import type { PackageRateRenderOption } from '../shipping-rates-control-package/types';
 
 interface PackageRates {
 	onSelectRate: ( selectedRateId: string ) => void;
@@ -23,6 +23,8 @@ interface PackageRates {
 	noResultsMessage: JSX.Element;
 	selectedRate: CartShippingPackageShippingRate | undefined;
 	disabled?: boolean;
+	// Should the selected rate be highlighted.
+	highlightChecked?: boolean;
 }
 
 const PackageRates = ( {
@@ -33,6 +35,7 @@ const PackageRates = ( {
 	renderOption = renderPackageRateOption,
 	selectedRate,
 	disabled = false,
+	highlightChecked = false,
 }: PackageRates ): JSX.Element => {
 	const selectedRateId = selectedRate?.rate_id || '';
 	const previousSelectedRateId = usePrevious( selectedRateId );
@@ -76,6 +79,7 @@ const PackageRates = ( {
 					setSelectedOption( value );
 					onSelectRate( value );
 				} }
+				highlightChecked={ highlightChecked }
 				disabled={ disabled }
 				selected={ selectedOption }
 				options={ rates.map( renderOption ) }
diff --git a/plugins/woocommerce-blocks/assets/js/base/components/cart-checkout/shipping-rates-control-package/style.scss b/plugins/woocommerce-blocks/assets/js/base/components/cart-checkout/shipping-rates-control-package/style.scss
index a376d55c78a..8d13b81d2f5 100644
--- a/plugins/woocommerce-blocks/assets/js/base/components/cart-checkout/shipping-rates-control-package/style.scss
+++ b/plugins/woocommerce-blocks/assets/js/base/components/cart-checkout/shipping-rates-control-package/style.scss
@@ -1,6 +1,5 @@
 .wc-block-components-shipping-rates-control__package {
 	margin: 0;
-	border-bottom: 1px solid $universal-border-light;
 
 	&.wc-block-components-panel {
 		margin-bottom: 0;
@@ -14,8 +13,6 @@
 	}
 
 	&:last-child {
-		border-bottom: 0;
-
 		.wc-block-components-panel__button {
 			padding-bottom: 0;
 		}
@@ -51,7 +48,7 @@
 	@include font-size(small);
 	display: block;
 	list-style: none;
-	margin: 0;
+	margin: 0 0 $gap-small 0;
 	padding: 0;
 }
 
diff --git a/plugins/woocommerce-blocks/assets/js/base/components/cart-checkout/shipping-rates-control-package/types.ts b/plugins/woocommerce-blocks/assets/js/base/components/cart-checkout/shipping-rates-control-package/types.ts
index f64b0dbb392..33aa2f55d13 100644
--- a/plugins/woocommerce-blocks/assets/js/base/components/cart-checkout/shipping-rates-control-package/types.ts
+++ b/plugins/woocommerce-blocks/assets/js/base/components/cart-checkout/shipping-rates-control-package/types.ts
@@ -46,4 +46,6 @@ export interface PackageProps {
 	collapsible?: TernaryFlag;
 	noResultsMessage: ReactElement;
 	showItems?: TernaryFlag;
+	// Should the selected rate be highlighted.
+	highlightChecked?: boolean;
 }
diff --git a/plugins/woocommerce-blocks/assets/js/base/components/cart-checkout/shipping-rates-control/index.tsx b/plugins/woocommerce-blocks/assets/js/base/components/cart-checkout/shipping-rates-control/index.tsx
index 790593236df..067d35e7491 100644
--- a/plugins/woocommerce-blocks/assets/js/base/components/cart-checkout/shipping-rates-control/index.tsx
+++ b/plugins/woocommerce-blocks/assets/js/base/components/cart-checkout/shipping-rates-control/index.tsx
@@ -33,6 +33,7 @@ const Packages = ( {
 	collapsible,
 	noResultsMessage,
 	renderOption,
+	context = '',
 }: PackagesProps ): JSX.Element | null => {
 	// If there are no packages, return nothing.
 	if ( ! packages.length ) {
@@ -42,6 +43,7 @@ const Packages = ( {
 		<>
 			{ packages.map( ( { package_id: packageId, ...packageData } ) => (
 				<ShippingRatesControlPackage
+					highlightChecked={ context !== 'woocommerce/cart' }
 					key={ packageId }
 					packageId={ packageId }
 					packageData={ packageData }
diff --git a/plugins/woocommerce-blocks/assets/js/base/components/cart-checkout/shipping-rates-control/types.ts b/plugins/woocommerce-blocks/assets/js/base/components/cart-checkout/shipping-rates-control/types.ts
index 6d2a052387b..aa877460643 100644
--- a/plugins/woocommerce-blocks/assets/js/base/components/cart-checkout/shipping-rates-control/types.ts
+++ b/plugins/woocommerce-blocks/assets/js/base/components/cart-checkout/shipping-rates-control/types.ts
@@ -27,6 +27,9 @@ export interface PackagesProps {
 
 	// Function to render a shipping rate
 	renderOption: PackageRateRenderOption;
+
+	// The context that this component is rendered in (Cart/Checkout)
+	context?: 'woocommerce/cart' | 'woocommerce/checkout' | '';
 }
 
 export interface ShippingRatesControlProps {
diff --git a/plugins/woocommerce-blocks/assets/js/blocks/cart-checkout-shared/payment-methods/payment-method-options.js b/plugins/woocommerce-blocks/assets/js/blocks/cart-checkout-shared/payment-methods/payment-method-options.js
index fb151538dc4..05930b6a24b 100644
--- a/plugins/woocommerce-blocks/assets/js/blocks/cart-checkout-shared/payment-methods/payment-method-options.js
+++ b/plugins/woocommerce-blocks/assets/js/blocks/cart-checkout-shared/payment-methods/payment-method-options.js
@@ -96,6 +96,7 @@ const PaymentMethodOptions = () => {
 	} );
 	return isExpressPaymentMethodActive ? null : (
 		<RadioControlAccordion
+			highlightChecked={ true }
 			id={ 'wc-payment-method-options' }
 			className={ singleOptionClass }
 			selected={ activeSavedToken ? null : activePaymentMethod }
diff --git a/plugins/woocommerce-blocks/assets/js/blocks/cart-checkout-shared/payment-methods/saved-payment-method-options.tsx b/plugins/woocommerce-blocks/assets/js/blocks/cart-checkout-shared/payment-methods/saved-payment-method-options.tsx
index c7173d8944b..cd19e6cb64e 100644
--- a/plugins/woocommerce-blocks/assets/js/blocks/cart-checkout-shared/payment-methods/saved-payment-method-options.tsx
+++ b/plugins/woocommerce-blocks/assets/js/blocks/cart-checkout-shared/payment-methods/saved-payment-method-options.tsx
@@ -170,6 +170,7 @@ const SavedPaymentMethodOptions = () => {
 	return options.length > 0 ? (
 		<>
 			<RadioControl
+				highlightChecked={ true }
 				id={ 'wc-payment-method-saved-tokens' }
 				selected={ activeSavedToken }
 				options={ options }
diff --git a/plugins/woocommerce-blocks/assets/js/blocks/cart-checkout-shared/payment-methods/style.scss b/plugins/woocommerce-blocks/assets/js/blocks/cart-checkout-shared/payment-methods/style.scss
index 4eda7a0b7f3..c2a5b12cbeb 100644
--- a/plugins/woocommerce-blocks/assets/js/blocks/cart-checkout-shared/payment-methods/style.scss
+++ b/plugins/woocommerce-blocks/assets/js/blocks/cart-checkout-shared/payment-methods/style.scss
@@ -174,6 +174,7 @@
 .wc-block-checkout__payment-method {
 	.wc-block-components-radio-control__option {
 		padding-left: em($gap-huge);
+		padding-right: em($gap-small);
 
 		&::after {
 			content: none;
@@ -197,17 +198,6 @@
 		font-weight: bold;
 	}
 
-	.wc-block-components-radio-control {
-		border: 1px solid $universal-border-light;
-		border-radius: $universal-border-radius;
-	}
-	.wc-block-components-radio-control-accordion-option,
-	.wc-block-components-radio-control__option {
-		border-top: 1px solid $universal-border-light;
-		&:first-child {
-			border-top: 0;
-		}
-	}
 	.wc-block-components-radio-control-accordion-option
 	.wc-block-components-radio-control__option {
 		border-width: 0;
diff --git a/plugins/woocommerce-blocks/assets/js/blocks/checkout/inner-blocks/checkout-pickup-options-block/style.scss b/plugins/woocommerce-blocks/assets/js/blocks/checkout/inner-blocks/checkout-pickup-options-block/style.scss
index 94acf281920..bbe093d7468 100644
--- a/plugins/woocommerce-blocks/assets/js/blocks/checkout/inner-blocks/checkout-pickup-options-block/style.scss
+++ b/plugins/woocommerce-blocks/assets/js/blocks/checkout/inner-blocks/checkout-pickup-options-block/style.scss
@@ -2,9 +2,8 @@
 .wp-block-woocommerce-checkout-pickup-options-block {
 	.wc-block-components-local-pickup-rates-control {
 		.wc-block-components-radio-control__option {
-			border-bottom: 1px solid $universal-border-light;
 			margin: 0;
-			padding: em($gap-small) 0 em($gap-small) em($gap-huge);
+			padding: em($gap-small) em($gap-small) em($gap-small) em($gap-huge);
 		}
 		.wc-block-components-shipping-rates-control__no-results-notice {
 			margin: em($gap-small) 0;
diff --git a/plugins/woocommerce-blocks/assets/js/blocks/checkout/inner-blocks/checkout-shipping-methods-block/style.scss b/plugins/woocommerce-blocks/assets/js/blocks/checkout/inner-blocks/checkout-shipping-methods-block/style.scss
index 7a259c35556..04ea8833dbc 100644
--- a/plugins/woocommerce-blocks/assets/js/blocks/checkout/inner-blocks/checkout-shipping-methods-block/style.scss
+++ b/plugins/woocommerce-blocks/assets/js/blocks/checkout/inner-blocks/checkout-shipping-methods-block/style.scss
@@ -1,8 +1,7 @@
 .wc-block-checkout__shipping-option {
 	.wc-block-components-radio-control__option {
-		border-bottom: 1px solid $universal-border-light;
 		margin: 0;
-		padding: em($gap-small) 0 em($gap-small) em($gap-huge);
+		padding: em($gap-small) em($gap-small) em($gap-small) em($gap-huge);
 	}
 
 	.wc-block-components-shipping-rates-control__no-results-notice {
diff --git a/plugins/woocommerce-blocks/packages/components/radio-control-accordion/index.tsx b/plugins/woocommerce-blocks/packages/components/radio-control-accordion/index.tsx
index 97f32c1b99b..a8b2ac050e6 100644
--- a/plugins/woocommerce-blocks/packages/components/radio-control-accordion/index.tsx
+++ b/plugins/woocommerce-blocks/packages/components/radio-control-accordion/index.tsx
@@ -3,6 +3,7 @@
  */
 import classnames from 'classnames';
 import { withInstanceId } from '@wordpress/compose';
+import { useMemo } from '@wordpress/element';
 
 /**
  * Internal dependencies
@@ -22,6 +23,8 @@ export interface RadioControlAccordionProps {
 		content: JSX.Element;
 	} >;
 	selected: string | null;
+	// Should the selected option be highlighted with a border?
+	highlightChecked?: boolean;
 }
 
 const RadioControlAccordion = ( {
@@ -31,9 +34,14 @@ const RadioControlAccordion = ( {
 	selected,
 	onChange,
 	options = [],
+	highlightChecked = false,
 }: RadioControlAccordionProps ): JSX.Element | null => {
 	const radioControlId = id || instanceId;
 
+	const selectedOptionNumber = useMemo( () => {
+		return options.findIndex( ( option ) => option.value === selected );
+	}, [ options, selected ] );
+
 	if ( ! options.length ) {
 		return null;
 	}
@@ -41,6 +49,15 @@ const RadioControlAccordion = ( {
 		<div
 			className={ classnames(
 				'wc-block-components-radio-control',
+				{
+					'wc-block-components-radio-control--highlight-checked':
+						highlightChecked,
+					'wc-block-components-radio-control--highlight-checked--first-selected':
+						highlightChecked && selectedOptionNumber === 0,
+					'wc-block-components-radio-control--highlight-checked--last-selected':
+						highlightChecked &&
+						selectedOptionNumber === options.length - 1,
+				},
 				className
 			) }
 		>
@@ -50,7 +67,13 @@ const RadioControlAccordion = ( {
 				const checked = option.value === selected;
 				return (
 					<div
-						className="wc-block-components-radio-control-accordion-option"
+						className={ classnames(
+							'wc-block-components-radio-control-accordion-option',
+							{
+								'wc-block-components-radio-control-accordion-option--checked-option-highlighted':
+									checked && highlightChecked,
+							}
+						) }
 						key={ option.value }
 					>
 						<RadioControlOption
diff --git a/plugins/woocommerce-blocks/packages/components/radio-control/index.tsx b/plugins/woocommerce-blocks/packages/components/radio-control/index.tsx
index 1b0f18952d0..f5c7a27f7d0 100644
--- a/plugins/woocommerce-blocks/packages/components/radio-control/index.tsx
+++ b/plugins/woocommerce-blocks/packages/components/radio-control/index.tsx
@@ -3,6 +3,8 @@
  */
 import classnames from 'classnames';
 import { useInstanceId } from '@wordpress/compose';
+import { useMemo } from '@wordpress/element';
+
 /**
  * Internal dependencies
  */
@@ -17,10 +19,15 @@ const RadioControl = ( {
 	onChange,
 	options = [],
 	disabled = false,
+	highlightChecked = false,
 }: RadioControlProps ): JSX.Element | null => {
 	const instanceId = useInstanceId( RadioControl );
 	const radioControlId = id || instanceId;
 
+	const selectedOptionNumber = useMemo( () => {
+		return options.findIndex( ( option ) => option.value === selected );
+	}, [ options, selected ] );
+
 	if ( ! options.length ) {
 		return null;
 	}
@@ -29,11 +36,21 @@ const RadioControl = ( {
 		<div
 			className={ classnames(
 				'wc-block-components-radio-control',
+				{
+					'wc-block-components-radio-control--highlight-checked--first-selected':
+						highlightChecked && selectedOptionNumber === 0,
+					'wc-block-components-radio-control--highlight-checked--last-selected':
+						highlightChecked &&
+						selectedOptionNumber === options.length - 1,
+					'wc-block-components-radio-control--highlight-checked':
+						highlightChecked,
+				},
 				className
 			) }
 		>
 			{ options.map( ( option ) => (
 				<RadioControlOption
+					highlightChecked={ highlightChecked }
 					key={ `${ radioControlId }-${ option.value }` }
 					name={ `radio-control-${ radioControlId }` }
 					checked={ option.value === selected }
diff --git a/plugins/woocommerce-blocks/packages/components/radio-control/option.tsx b/plugins/woocommerce-blocks/packages/components/radio-control/option.tsx
index 85f668a7c97..93ec32ffc6f 100644
--- a/plugins/woocommerce-blocks/packages/components/radio-control/option.tsx
+++ b/plugins/woocommerce-blocks/packages/components/radio-control/option.tsx
@@ -15,6 +15,7 @@ const Option = ( {
 	onChange,
 	option,
 	disabled = false,
+	highlightChecked = false,
 }: RadioControlOptionProps ): JSX.Element => {
 	const { value, label, description, secondaryLabel, secondaryDescription } =
 		option;
@@ -29,6 +30,8 @@ const Option = ( {
 				{
 					'wc-block-components-radio-control__option-checked':
 						checked,
+					'wc-block-components-radio-control__option--checked-option-highlighted':
+						checked && highlightChecked,
 				}
 			) }
 			htmlFor={ `${ name }-${ value }` }
diff --git a/plugins/woocommerce-blocks/packages/components/radio-control/style.scss b/plugins/woocommerce-blocks/packages/components/radio-control/style.scss
index e18e2377954..6900bef4284 100644
--- a/plugins/woocommerce-blocks/packages/components/radio-control/style.scss
+++ b/plugins/woocommerce-blocks/packages/components/radio-control/style.scss
@@ -1,3 +1,103 @@
+.wc-block-components-radio-control--highlight-checked {
+	position: relative;
+
+	div.wc-block-components-radio-control-accordion-option {
+		position: relative;
+
+		// This ::after element is to fake a transparent border-top on each option.
+		// We can't just use border-top on the option itself because of the border around the entire accordion.
+		// Both borders have transparency so there's an overlap where the border is darker (due to adding two
+		// transparent colours together). Doing it with an ::after lets us bring the "border" in by one pixel on each
+		// side to avoid the overlap.
+		&::after {
+			content: "";
+			background: $universal-border-light;
+			height: 1px;
+			right: 1px;
+			left: 1px;
+			top: 0;
+			position: absolute;
+		}
+
+		// The first child doesn't need a fake border-top because it's handled by its parent's border-top. This stops
+		// a double border.
+		&:first-child::after {
+			display: none;
+		}
+
+		// This rule removes the fake border-top from the selected element to prevent a double border.
+		&.wc-block-components-radio-control-accordion-option--checked-option-highlighted + div.wc-block-components-radio-control-accordion-option::after {
+			display: none;
+		}
+	}
+
+	// Adds a "border" around the selected option. This is done with a box-shadow to prevent a double border on the left
+	// and right of the selected element, and top and bottom of the first/last elements.
+	label.wc-block-components-radio-control__option--checked-option-highlighted,
+	.wc-block-components-radio-control-accordion-option--checked-option-highlighted {
+		box-shadow: 0 0 0 1.5px currentColor inset;
+		border-radius: 4px;
+	}
+
+	// Defines a border around the radio control. Cannot be done with normal CSS borders or outlines because when
+	// selecting an item we get a double border on the left and right. It's not possible to remove the outer border just
+	// for the selected element, but using a pseudo element gives us more control.
+	&::after {
+		content: "";
+		top: 0;
+		right: 0;
+		bottom: 0;
+		left: 0;
+		pointer-events: none;
+		position: absolute;
+		border: 1px solid $universal-border-light;
+		border-radius: 4px;
+		width: 100%;
+		box-sizing: border-box;
+	}
+
+	// Remove the top border when the first element is selected, this is so we don't get a double border with the
+	// box-shadow.
+	&.wc-block-components-radio-control--highlight-checked--first-selected::after {
+		border-top: 0;
+		margin-top: 2px;
+	}
+
+	// Remove the bottom border when the last element is selected, this is so we don't get a double border with the
+	// box-shadow.
+	&.wc-block-components-radio-control--highlight-checked--last-selected::after {
+		margin-bottom: 2px;
+		border-bottom: 0;
+	}
+
+	// Remove the fake border-top from the item after the selected element, this is to prevent a double border with the
+	// selected element's box-shadow.
+	.wc-block-components-radio-control__option--checked-option-highlighted + .wc-block-components-radio-control__option::after {
+		display: none;
+	}
+
+	.wc-block-components-radio-control__option {
+
+		// Add a fake border to the top of each radio option. This is because using CSS borders would result in an
+		// overlap and two transparent borders combining to make a darker pixel. This fake border allows us to bring the
+		// border in by one pixel on each side to avoid the overlap.
+		&::after {
+			content: "";
+			background: $universal-border-light;
+			height: 1px;
+			right: 1px;
+			left: 1px;
+			top: 0;
+			position: absolute;
+		}
+
+		// The first child doesn't need a fake border-top because it's handled by its parent's border-top.
+		&:first-child::after {
+			display: none;
+		}
+	}
+}
+
 .wc-block-components-radio-control__option {
 	@include reset-color();
 	@include reset-typography();
@@ -5,7 +105,6 @@
 	margin: em($gap) 0;
 	margin-top: 0;
 	padding: 0 0 0 em($gap-larger);
-
 	position: relative;
 	cursor: pointer;
 
diff --git a/plugins/woocommerce-blocks/packages/components/radio-control/types.ts b/plugins/woocommerce-blocks/packages/components/radio-control/types.ts
index af736c5a50b..e30af174b92 100644
--- a/plugins/woocommerce-blocks/packages/components/radio-control/types.ts
+++ b/plugins/woocommerce-blocks/packages/components/radio-control/types.ts
@@ -16,6 +16,8 @@ export interface RadioControlProps {
 	options: RadioControlOption[];
 	// Is the control disabled.
 	disabled?: boolean;
+	// Should the selected option be highlighted with a border?
+	highlightChecked?: boolean;
 }
 
 export interface RadioControlOptionProps {
@@ -24,6 +26,8 @@ export interface RadioControlOptionProps {
 	onChange: ( value: string ) => void;
 	option: RadioControlOption;
 	disabled?: boolean;
+	// Should the selected option be highlighted with a border?
+	highlightChecked?: boolean;
 }
 
 interface RadioControlOptionContent {
diff --git a/plugins/woocommerce/changelog/update-shipping-borders b/plugins/woocommerce/changelog/update-shipping-borders
new file mode 100644
index 00000000000..4de16f3808c
--- /dev/null
+++ b/plugins/woocommerce/changelog/update-shipping-borders
@@ -0,0 +1,4 @@
+Significance: minor
+Type: update
+
+Change styling for shipping, payment, and local pickup radio buttons in the Checkout block