diff --git a/packages/js/product-editor/changelog/update-product-editor-handle-shipping-classes-slug b/packages/js/product-editor/changelog/update-product-editor-handle-shipping-classes-slug
new file mode 100644
index 00000000000..e643e4fd648
--- /dev/null
+++ b/packages/js/product-editor/changelog/update-product-editor-handle-shipping-classes-slug
@@ -0,0 +1,4 @@
+Significance: patch
+Type: add
+
+Product Block Editor: populate shipping class slug automatically
diff --git a/packages/js/product-editor/src/components/add-new-shipping-class-modal/add-new-shipping-class-modal.tsx b/packages/js/product-editor/src/components/add-new-shipping-class-modal/add-new-shipping-class-modal.tsx
index caac352bf60..98ab1a788c3 100644
--- a/packages/js/product-editor/src/components/add-new-shipping-class-modal/add-new-shipping-class-modal.tsx
+++ b/packages/js/product-editor/src/components/add-new-shipping-class-modal/add-new-shipping-class-modal.tsx
@@ -1,7 +1,6 @@
 /**
  * External dependencies
  */
-import { Button, Modal, TextControl } from '@wordpress/components';
 import {
 	useState,
 	createElement,
@@ -10,6 +9,19 @@ import {
 import { __ } from '@wordpress/i18n';
 import { Form, FormErrors, useFormContext } from '@woocommerce/components';
 import { ProductShippingClass } from '@woocommerce/data';
+import { addQueryArgs } from '@wordpress/url';
+import apiFetch from '@wordpress/api-fetch';
+import {
+	Button,
+	Modal,
+	TextControl,
+	// eslint-disable-next-line @typescript-eslint/ban-ts-comment
+	// @ts-ignore We need this to import the block modules for registration.
+	__experimentalInputControl as InputControl,
+	// eslint-disable-next-line @typescript-eslint/ban-ts-comment
+	// @ts-ignore We need this to import the block modules for registration.
+	__experimentalInputControlPrefixWrapper as InputControlPrefixWrapper,
+} from '@wordpress/components';
 
 export type ShippingClassFormProps = {
 	onAdd: () => Promise< ProductShippingClass >;
@@ -33,6 +45,58 @@ function ShippingClassForm( { onAdd, onCancel }: ShippingClassFormProps ) {
 			} );
 	}
 
+	// State to control the automatic slug generation.
+	const [ isRequestingSlug, setIsRequestingSlug ] = useState( false );
+
+	// Get the shipping class name value.
+	const shippingNameInputValue = String( getInputProps( 'name' ).value );
+
+	const [ prevNameValue, setPrevNameValue ] = useState(
+		shippingNameInputValue
+	);
+
+	/**
+	 * Pull the slug suggestion from the server,
+	 * and update the slug input field.
+	 */
+	async function pullAndUpdateSlugInputField() {
+		setIsRequestingSlug( true );
+
+		// Avoid making the request if the name has not changed.
+		if ( prevNameValue === shippingNameInputValue ) {
+			return;
+		}
+
+		setPrevNameValue( shippingNameInputValue );
+
+		const url = `/wc/v3/products/shipping_classes/slug-suggestion`;
+		const slug: string = await apiFetch( {
+			path: addQueryArgs( url, { name: shippingNameInputValue } ),
+			method: 'GET',
+		} );
+
+		setIsRequestingSlug( false );
+
+		getInputProps( 'slug' ).onChange( slug );
+	}
+
+	const isGenerateButtonDisabled =
+		isRequestingSlug ||
+		! shippingNameInputValue?.length ||
+		prevNameValue === shippingNameInputValue;
+
+	/**
+	 * Get a slug suggestion based on the shipping class name.
+	 * This function is called when the name field is blurred.
+	 */
+	function getSlugSuggestion() {
+		if ( ! isRequestingSlug ) {
+			return;
+		}
+
+		pullAndUpdateSlugInputField();
+	}
+
 	return (
 		<div className="woocommerce-add-new-shipping-class-modal__wrapper">
 			<TextControl
@@ -48,11 +112,36 @@ function ShippingClassForm( { onAdd, onCancel }: ShippingClassFormProps ) {
 						),
 					}
 				) }
+				onBlur={ getSlugSuggestion }
 			/>
-			<TextControl
+
+			<InputControl
 				{ ...getInputProps( 'slug' ) }
 				label={ __( 'Slug', 'woocommerce' ) }
+				onChange={ ( value: string ) => {
+					setPrevNameValue( '' ); // clean the previous name value.
+					getInputProps( 'slug' ).onChange( value );
+				} }
+				disabled={ isRequestingSlug }
+				help={ __(
+					'Set a custom slug or generate it by clicking the button.',
+					'woocommerce'
+				) }
+				prefix={
+					<InputControlPrefixWrapper>
+						<Button
+							disabled={ isGenerateButtonDisabled }
+							variant="secondary"
+							onClick={ pullAndUpdateSlugInputField }
+							isBusy={ isRequestingSlug }
+							isSmall
+						>
+							{ __( 'Generate', 'woocommerce' ) }
+						</Button>
+					</InputControlPrefixWrapper>
+				}
 			/>
+
 			<TextControl
 				{ ...getInputProps( 'description' ) }
 				label={ __( 'Description', 'woocommerce' ) }
@@ -64,12 +153,13 @@ function ShippingClassForm( { onAdd, onCancel }: ShippingClassFormProps ) {
 					)
 				}
 			/>
+
 			<div className="woocommerce-add-new-shipping-class-modal__buttons">
 				<Button isSecondary onClick={ onCancel }>
 					{ __( 'Cancel', 'woocommerce' ) }
 				</Button>
 				<Button
-					isPrimary
+					variant="primary"
 					isBusy={ isLoading }
 					disabled={ ! isValidForm || isLoading }
 					onClick={ handleAdd }
diff --git a/packages/js/product-editor/src/components/add-new-shipping-class-modal/style.scss b/packages/js/product-editor/src/components/add-new-shipping-class-modal/style.scss
index 03b4be4beb0..ced0dcfaf0e 100644
--- a/packages/js/product-editor/src/components/add-new-shipping-class-modal/style.scss
+++ b/packages/js/product-editor/src/components/add-new-shipping-class-modal/style.scss
@@ -10,9 +10,14 @@
 		gap: 8px;
 		justify-content: flex-end;
 	}
+
 	.has-error {
 		.components-base-control__help {
 			color: $studio-red-50;
 		}
 	}
+
+	.components-input-control__container {
+		min-height: 36px;
+	}
 }
diff --git a/plugins/woocommerce/changelog/update-product-editor-handle-shipping-classes-slug b/plugins/woocommerce/changelog/update-product-editor-handle-shipping-classes-slug
new file mode 100644
index 00000000000..0fca79ed553
--- /dev/null
+++ b/plugins/woocommerce/changelog/update-product-editor-handle-shipping-classes-slug
@@ -0,0 +1,4 @@
+Significance: patch
+Type: add
+
+REST API: extened shipping_classes namespace with the /suggest-slug endpoint
diff --git a/plugins/woocommerce/includes/rest-api/Controllers/Version3/class-wc-rest-product-shipping-classes-controller.php b/plugins/woocommerce/includes/rest-api/Controllers/Version3/class-wc-rest-product-shipping-classes-controller.php
index 5d3a31b2988..a8d37886478 100644
--- a/plugins/woocommerce/includes/rest-api/Controllers/Version3/class-wc-rest-product-shipping-classes-controller.php
+++ b/plugins/woocommerce/includes/rest-api/Controllers/Version3/class-wc-rest-product-shipping-classes-controller.php
@@ -24,4 +24,61 @@ class WC_REST_Product_Shipping_Classes_Controller extends WC_REST_Product_Shippi
 	 * @var string
 	 */
 	protected $namespace = 'wc/v3';
+
+	/**
+	 * Register the routes for product reviews.
+	 */
+	public function register_routes() {
+		parent::register_routes();
+
+		register_rest_route(
+			$this->namespace,
+			'/' . $this->rest_base . '/slug-suggestion',
+			array(
+				'args'   => array(
+					'name' => array(
+						'description' => __( 'Suggest a slug for the term.', 'woocommerce' ),
+						'type'        => 'string',
+					),
+				),
+				array(
+					'methods'             => WP_REST_Server::READABLE,
+					'callback'            => array( $this, 'suggest_slug' ),
+					'permission_callback' => array( $this, 'get_item_permissions_check' ),
+					'args'                => $this->get_endpoint_args_for_item_schema( WP_REST_Server::EDITABLE ),
+				),
+				'schema' => array( $this, 'get_public_item_schema' ),
+			)
+		);
+	}
+
+	/**
+	 * Callback fuction for the slug-suggestion endpoint.
+	 *
+	 * @param  WP_REST_Request $request Full details about the request.
+	 * @return string          The suggested slug.
+	 */
+	public function suggest_slug( $request ) {
+		$name = $request['name'];
+		$slug = sanitize_title( $name ); // potential slug.
+		$term = get_term_by( 'slug', $slug, $this->taxonomy );
+
+		/*
+		 * If the term exists, creates a unique slug
+		 * based on the name provided.
+		 * Otherwise, returns the sanitized name.
+		 */
+		if ( isset( $term->slug ) ) {
+			/*
+			 * Pass a Term object that has only the taxonomy property,
+			 * to induce the wp_unique_term_slug() function to generate a unique slug.
+			 * Otherwise, the function will return the same slug.
+			 * @see https://core.trac.wordpress.org/browser/tags/6.5/src/wp-includes/taxonomy.php#L3130
+			 * @see https://github.com/WordPress/wordpress-develop/blob/a1b1e0339eb6dfa72a30933cac2a1c6ad2bbfe96/src/wp-includes/taxonomy.php#L3078-L3156
+			 */
+			$slug = wp_unique_term_slug( $slug, (object) array( 'taxonomy' => $this->taxonomy ) );
+		}
+
+		return rest_ensure_response( $slug );
+	}
 }