diff --git a/src/components/Button/index.stories.tsx b/src/components/Button/index.stories.tsx
index a871c0fd..0e40a22b 100644
--- a/src/components/Button/index.stories.tsx
+++ b/src/components/Button/index.stories.tsx
@@ -411,3 +411,200 @@ export const WithStates: Story = {
     </div>
   ),
 }
+
+export const RainbowButtonZIndexFix: Story = {
+  render: () => (
+    <div className="relative z-50 space-y-4">
+      <Button variant="brand">Normal</Button>
+    </div>
+  ),
+}
+
+export const BrandButtonInStackingContexts: Story = {
+  name: 'Brand Button in Various Stacking Contexts',
+  render: () => (
+    <div className="space-y-8 p-4">
+      <div>
+        <h3 className="mb-4 text-sm font-medium">
+          ✅ Brand Button Working in All Contexts
+        </h3>
+        <p className="text-muted mb-6 text-sm">
+          The brand button now works correctly in all stacking contexts thanks
+          to built-in fixes.
+        </p>
+      </div>
+
+      <div className="space-y-6">
+        <div>
+          <h4 className="mb-3 text-sm font-medium">Flex Containers</h4>
+          <div className="space-y-3">
+            <div className="flex items-center gap-3 rounded border bg-white p-3">
+              <span>Navigation:</span>
+              <Button variant="brand" size="sm">
+                <Button.LeftIcon>
+                  <PlusIcon />
+                </Button.LeftIcon>
+                <Button.Text>Add</Button.Text>
+              </Button>
+            </div>
+
+            <div className="flex min-h-8 max-w-full items-center gap-1.5 truncate rounded border bg-white p-2">
+              <a className="text-muted-foreground hover:text-foreground cursor-pointer rounded px-1.5">
+                Home
+              </a>
+              <span className="text-muted-foreground">/</span>
+              <a className="text-muted-foreground hover:text-foreground cursor-pointer rounded px-1.5">
+                Projects
+              </a>
+              <div className="ml-auto">
+                <Button variant="brand" size="sm">
+                  <Button.LeftIcon>
+                    <svg
+                      xmlns="http://www.w3.org/2000/svg"
+                      width="16"
+                      height="16"
+                      viewBox="0 0 24 24"
+                      fill="none"
+                      stroke="currentColor"
+                      strokeWidth="2"
+                      strokeLinecap="round"
+                      strokeLinejoin="round"
+                    >
+                      <polyline points="4,17 10,11 4,5"></polyline>
+                      <line x1="12" x2="20" y1="19" y2="19"></line>
+                    </svg>
+                  </Button.LeftIcon>
+                  <Button.Text>Generate</Button.Text>
+                </Button>
+              </div>
+            </div>
+          </div>
+        </div>
+
+        <div>
+          <h4 className="mb-3 text-sm font-medium">Grid Layouts</h4>
+          <div className="grid grid-cols-[1fr_auto] items-center gap-4 rounded border bg-white p-3">
+            <div>
+              <h5 className="font-medium">Project Settings</h5>
+              <p className="text-muted text-sm">Configure your project</p>
+            </div>
+            <Button variant="brand">
+              <Button.Text>Save Changes</Button.Text>
+            </Button>
+          </div>
+        </div>
+
+        <div>
+          <h4 className="mb-3 text-sm font-medium">High Z-Index Contexts</h4>
+          <div className="relative z-[9999] rounded border bg-white p-3">
+            <div className="flex items-center justify-between">
+              <span>Modal Header</span>
+              <Button variant="brand" size="sm">
+                <Button.Text>Action</Button.Text>
+              </Button>
+            </div>
+          </div>
+        </div>
+
+        <div>
+          <h4 className="mb-3 text-sm font-medium">Transform Contexts</h4>
+          <div className="scale-100 transform rounded border bg-white p-3">
+            <div className="flex items-center gap-3">
+              <span>Transformed container:</span>
+              <Button variant="brand" size="sm">
+                <Button.Text>Works!</Button.Text>
+              </Button>
+            </div>
+          </div>
+        </div>
+
+        <div>
+          <h4 className="mb-3 text-sm font-medium">
+            Overflow Hidden Containers
+          </h4>
+          <div className="overflow-hidden rounded border bg-white p-3">
+            <div className="flex items-center gap-3">
+              <span>Clipped container:</span>
+              <Button variant="brand" size="sm">
+                <Button.Text>Still works!</Button.Text>
+              </Button>
+            </div>
+          </div>
+        </div>
+
+        <div>
+          <h4 className="mb-3 text-sm font-medium">Complex Nested Layouts</h4>
+          <div className="bg-surface-secondary rounded-lg p-4">
+            <div className="bg-surface-primary rounded border">
+              <div className="flex items-center justify-between border-b p-4">
+                <div className="flex items-center gap-2">
+                  <span className="font-medium">Complex Layout</span>
+                </div>
+                <Button variant="brand" size="sm">
+                  <Button.LeftIcon>
+                    <PlusIcon />
+                  </Button.LeftIcon>
+                  <Button.Text>Create</Button.Text>
+                </Button>
+              </div>
+              <div className="p-4 pb-6">
+                <div className="flex min-h-8 max-w-full items-center gap-1.5">
+                  <a className="text-muted-foreground hover:text-foreground cursor-pointer rounded px-1.5">
+                    Workspace
+                  </a>
+                  <span className="text-muted-foreground">/</span>
+                  <a className="text-muted-foreground hover:text-foreground cursor-pointer rounded px-1.5">
+                    Project
+                  </a>
+                  <span className="text-muted-foreground">/</span>
+                  <span className="text-foreground">Current</span>
+                  <div className="ml-auto">
+                    <Button variant="brand" size="sm">
+                      <Button.LeftIcon>
+                        <svg
+                          xmlns="http://www.w3.org/2000/svg"
+                          width="16"
+                          height="16"
+                          viewBox="0 0 24 24"
+                          fill="none"
+                          stroke="currentColor"
+                          strokeWidth="2"
+                          strokeLinecap="round"
+                          strokeLinejoin="round"
+                        >
+                          <polyline points="4,17 10,11 4,5"></polyline>
+                          <line x1="12" x2="20" y1="19" y2="19"></line>
+                        </svg>
+                      </Button.LeftIcon>
+                      <Button.Text>Generate</Button.Text>
+                    </Button>
+                  </div>
+                </div>
+              </div>
+            </div>
+          </div>
+        </div>
+      </div>
+    </div>
+  ),
+  parameters: {
+    docs: {
+      description: {
+        story: `
+This story demonstrates the brand button working correctly in various stacking contexts that previously caused issues with the rainbow outline.
+
+**Fixed Issues:**
+- ✅ Flex containers with \`items-center\`
+- ✅ Containers with \`overflow: hidden\`
+- ✅ High z-index contexts
+- ✅ Transform contexts
+- ✅ Complex nested layouts
+- ✅ Grid layouts
+
+**Technical Solution:**
+The component now uses \`transform: translateZ(0)\` to create an isolated stacking context and a separate background span element to ensure proper layering of the rainbow outline pseudo-elements.
+        `,
+      },
+    },
+  },
+}
diff --git a/src/components/Button/index.tsx b/src/components/Button/index.tsx
index 65323684..977965f8 100644
--- a/src/components/Button/index.tsx
+++ b/src/components/Button/index.tsx
@@ -107,7 +107,7 @@ const buttonVariants = cva(
       },
       variant: {
         brand:
-          'relative bg-btn-brand hover:bg-btn-brand-hover text-btn-brand hover:text-btn-brand-hover disabled:bg-btn-brand-disabled disabled:text-btn-brand-disabled before:absolute before:content-[""] before:-z-10 before:pointer-events-none [--gradient-rotation:220deg] before:bg-[conic-gradient(from_var(--gradient-rotation),hsl(334,54%,13%),hsl(4,67%,47%),hsl(23,96%,62%),hsl(68,52%,72%),hsl(108,24%,41%),hsl(154,100%,7%),hsl(220,100%,12%),hsl(214,69%,50%),hsl(216,100%,80%),hsl(334,54%,13%))] after:absolute after:content-[""] after:-z-20 after:pointer-events-none after:opacity-0 after:transition-opacity after:duration-300 hover:after:opacity-100 after:bg-[conic-gradient(from_var(--gradient-rotation),hsl(334,54%,13%),hsl(4,67%,47%),hsl(23,96%,62%),hsl(68,52%,72%),hsl(108,24%,41%),hsl(154,100%,7%),hsl(220,100%,12%),hsl(214,69%,50%),hsl(216,100%,80%),hsl(334,54%,13%))] after:blur-[2px] focus-visible:ring-2 focus-visible:ring-offset-3 focus-visible:ring-[var(--border-focus)] focus-visible:ring-offset-[var(--bg-surface-primary-default)]',
+          'relative text-btn-brand hover:text-btn-brand-hover disabled:text-btn-brand-disabled [transform:translateZ(0)] before:absolute before:content-[""] before:-z-10 before:pointer-events-none [--gradient-rotation:220deg] before:bg-[conic-gradient(from_var(--gradient-rotation),hsl(334,54%,13%),hsl(4,67%,47%),hsl(23,96%,62%),hsl(68,52%,72%),hsl(108,24%,41%),hsl(154,100%,7%),hsl(220,100%,12%),hsl(214,69%,50%),hsl(216,100%,80%),hsl(334,54%,13%))] after:absolute after:content-[""] after:-z-20 after:pointer-events-none after:opacity-0 after:transition-opacity after:duration-300 hover:after:opacity-100 after:bg-[conic-gradient(from_var(--gradient-rotation),hsl(334,54%,13%),hsl(4,67%,47%),hsl(23,96%,62%),hsl(68,52%,72%),hsl(108,24%,41%),hsl(154,100%,7%),hsl(220,100%,12%),hsl(214,69%,50%),hsl(216,100%,80%),hsl(334,54%,13%))] after:blur-[2px] focus-visible:ring-2 focus-visible:ring-offset-3 focus-visible:ring-[var(--border-focus)] focus-visible:ring-offset-[var(--bg-surface-primary-default)]',
         primary:
           'bg-btn-primary text-btn-primary shadow-[0px_2px_1px_0px_rgba(255,255,255,0.1)_inset,0px_-2px_1px_0px_rgba(0,0,0,0.2)_inset] hover:bg-btn-primary-hover hover:text-btn-primary-hover hover:shadow-[0px_2px_1px_0px_rgba(255,255,255,0.08)_inset,0px_-2px_1px_0px_rgba(0,0,0,0.25)_inset] active:bg-btn-primary-active active:text-btn-primary-active active:shadow-none disabled:bg-btn-primary-disabled disabled:text-btn-primary-disabled',
         secondary:
@@ -249,6 +249,22 @@ const Button = React.forwardRef<HTMLButtonElement, ButtonProps>(
 
     const isBrandVariant = variant === 'brand'
 
+    // Get gap class for the current size
+    const getGapClass = (size: ButtonSize) => {
+      switch (size) {
+        case 'xs':
+          return 'gap-1'
+        case 'sm':
+          return 'gap-1.5'
+        case 'md':
+          return 'gap-2'
+        case 'lg':
+          return 'gap-2.5'
+        default:
+          return 'gap-2'
+      }
+    }
+
     // Only run animation frame when brand variant is active
     useAnimationFrame(
       React.useCallback(
@@ -430,7 +446,24 @@ const Button = React.forwardRef<HTMLButtonElement, ButtonProps>(
         onMouseUp={handleMouseUp}
         {...props}
       >
-        {processedChildren}
+        {asChild ? (
+          props.children
+        ) : (
+          <>
+            {isBrandVariant && (
+              <span className="bg-btn-brand hover:bg-btn-brand-hover disabled:bg-btn-brand-disabled pointer-events-none absolute inset-0 z-10 rounded-[inherit]" />
+            )}
+            <span
+              className={cn(
+                'relative flex items-center justify-center',
+                getGapClass(size),
+                isBrandVariant ? `z-20` : ''
+              )}
+            >
+              {processedChildren}
+            </span>
+          </>
+        )}
       </Comp>
     )
   }