diff --git a/cspell.json b/cspell.json
index 01539647..06f7af6f 100644
--- a/cspell.json
+++ b/cspell.json
@@ -38,6 +38,7 @@
     "FOUC",
     "FOUCE",
     "fullscreen",
+    "giga",
     "globby",
     "Grayscale",
     "haspopup",
@@ -69,6 +70,8 @@
     "novalidate",
     "outdir",
     "ParamagicDev",
+    "peta",
+    "petabit",
     "popperjs",
     "progressbar",
     "radiogroup",
@@ -92,6 +95,7 @@
     "tablist",
     "tabpanel",
     "templating",
+    "tera",
     "textareas",
     "transitionend",
     "Triaging",
@@ -107,7 +111,15 @@
     "Webpacker",
     "wordmark"
   ],
-  "ignorePaths": ["package.json", "package-lock.json", ".vscode/**", "src/translations/!(en).ts", "**/*.min.js"],
-  "ignoreRegExpList": ["(^|[^a-z])sl[a-z]*(^|[^a-z])"],
+  "ignorePaths": [
+    "package.json",
+    "package-lock.json",
+    ".vscode/**",
+    "src/translations/!(en).ts",
+    "**/*.min.js"
+  ],
+  "ignoreRegExpList": [
+    "(^|[^a-z])sl[a-z]*(^|[^a-z])"
+  ],
   "useGitignore": true
 }
diff --git a/docs/components/format-bytes.md b/docs/components/format-bytes.md
index 8eda45bf..eeab55dd 100644
--- a/docs/components/format-bytes.md
+++ b/docs/components/format-bytes.md
@@ -77,13 +77,13 @@ const App = () => (
 
 ### Formatting Bits
 
-To get the value in bits, set the `unit` attribute to `bits`.
+To get the value in bits, set the `unit` attribute to `bit`.
 
 ```html preview
-<sl-format-bytes value="12" unit="bits"></sl-format-bytes><br>
-<sl-format-bytes value="1200" unit="bits"></sl-format-bytes><br>
-<sl-format-bytes value="1200000" unit="bits"></sl-format-bytes><br>
-<sl-format-bytes value="1200000000" unit="bits"></sl-format-bytes>
+<sl-format-bytes value="12" unit="bit"></sl-format-bytes><br>
+<sl-format-bytes value="1200" unit="bit"></sl-format-bytes><br>
+<sl-format-bytes value="1200000" unit="bit"></sl-format-bytes><br>
+<sl-format-bytes value="1200000000" unit="bit"></sl-format-bytes>
 ```
 
 ```jsx react
@@ -91,10 +91,10 @@ import { SlFormatBytes } from '@shoelace-style/shoelace/dist/react';
 
 const App = () => (
   <>
-    <SlFormatBytes value="12" unit="bits" /><br />
-    <SlFormatBytes value="1200" unit="bits" /><br />
-    <SlFormatBytes value="1200000" unit="bits" /><br />
-    <SlFormatBytes value="1200000000" unit="bits" />
+    <SlFormatBytes value="12" unit="bit" /><br />
+    <SlFormatBytes value="1200" unit="bit" /><br />
+    <SlFormatBytes value="1200000" unit="bit" /><br />
+    <SlFormatBytes value="1200000000" unit="bit" />
   </>
 );
 ```
diff --git a/docs/resources/changelog.md b/docs/resources/changelog.md
index b37adb38..45958da6 100644
--- a/docs/resources/changelog.md
+++ b/docs/resources/changelog.md
@@ -8,9 +8,11 @@ _During the beta period, these restrictions may be relaxed in the event of a mis
 
 ## Next
 
+- 🚨 BREAKING: the `unit` property of `<sl-format-bytes>` has changed to `byte | bit` instead of `bytes | bits`
 - Fixed a bug that caused `<sl-progress-ring>` to render the wrong size when `--track-width` was increased [#656](https://github.com/shoelace-style/shoelace/issues/656)
 - Implemented stricter linting to improve consistency and reduce errors, which resulted in many small refactors throughout the codebase [#647](https://github.com/shoelace-style/shoelace/pull/647)
 - Improved accessibility of `<sl-dialog>` and `<sl-drawer>` by making the title an `<h2>` and adding a label to the close button
+- Refactored `<sl-format-byte>` to use `Intl.NumberFormat` so it supports localization
 - Refactored themes so utility styles are no longer injected as `<style>` elements to support stricter CSP rules [#571](https://github.com/shoelace-style/shoelace/issues/571)
 - Restored the nicer animation on `<sl-spinner>` and verified it works in Safari
 - Updated minimum Node version to 14.17
diff --git a/src/components/format-bytes/format-bytes.ts b/src/components/format-bytes/format-bytes.ts
index 510d0347..9bdbb649 100644
--- a/src/components/format-bytes/format-bytes.ts
+++ b/src/components/format-bytes/format-bytes.ts
@@ -1,9 +1,9 @@
 import { LitElement } from 'lit';
 import { customElement, property } from 'lit/decorators.js';
-import { formatBytes } from '~/internal/number';
 import { LocalizeController } from '~/utilities/localize';
 
 /**
+
  * @since 2.0
  * @status stable
  */
@@ -15,15 +15,30 @@ export default class SlFormatBytes extends LitElement {
   @property({ type: Number }) value = 0;
 
   /** The unit to display. */
-  @property() unit: 'bytes' | 'bits' = 'bytes';
+  @property() unit: 'byte' | 'bit' = 'byte';
+
+  /** Determines how to display the result, e.g. "100 bytes", "100 b", or "100b". */
+  @property() display: 'long' | 'short' | 'narrow' = 'short';
 
   /** The locale to use when formatting the number. */
   @property() lang: string;
 
   render() {
-    return formatBytes(this.value, {
-      unit: this.unit,
-      formatter: num => this.localize.number(num)
+    if (isNaN(this.value)) {
+      return '';
+    }
+
+    const bitPrefixes = ['', 'kilo', 'mega', 'giga', 'tera']; // petabit isn't a supported unit
+    const bytePrefixes = ['', 'kilo', 'mega', 'giga', 'tera', 'peta'];
+    const prefix = this.unit === 'bit' ? bitPrefixes : bytePrefixes;
+    const index = Math.max(0, Math.min(Math.floor(Math.log10(this.value) / 3), prefix.length - 1));
+    const unit = prefix[index] + this.unit;
+    const valueToFormat = parseFloat((this.value / Math.pow(1000, index)).toPrecision(3));
+
+    return this.localize.number(valueToFormat, {
+      style: 'unit',
+      unit,
+      unitDisplay: this.display
     });
   }
 }
diff --git a/src/internal/number.ts b/src/internal/number.ts
deleted file mode 100644
index 1b574547..00000000
--- a/src/internal/number.ts
+++ /dev/null
@@ -1,34 +0,0 @@
-const numberFormatter = new Intl.NumberFormat();
-
-/**
- * Formats a number to a human-readable string of bytes or bits such as "100 MB"
- */
-export function formatBytes(bytes: number, options: FormatBytesOptions) {
-  options = {
-    unit: 'bytes',
-    formatter: (num: number) => numberFormatter.format(num),
-    ...options
-  };
-
-  const byteUnits = ['B', 'kB', 'MB', 'GB', 'TB', 'PB', 'EB', 'ZB', 'YB'];
-  const bitUnits = ['b', 'kbit', 'Mbit', 'Gbit', 'Tbit', 'Pbit', 'Ebit', 'Zbit', 'Ybit']; // cspell:disable-line
-  const units = options.unit === 'bytes' ? byteUnits : bitUnits;
-  const isNegative = bytes < 0;
-
-  bytes = Math.abs(bytes);
-  if (bytes === 0) {
-    return '0 B';
-  }
-
-  const i = Math.min(Math.floor(Math.log10(bytes) / 3), units.length - 1);
-  const num = parseFloat((bytes / Math.pow(1000, i)).toPrecision(3));
-  const numString = options.formatter?.(num) ?? num;
-  const prefix = isNegative ? '-' : '';
-
-  return `${prefix}${numString} ${units[i]}`;
-}
-
-interface FormatBytesOptions {
-  unit?: 'bytes' | 'bits';
-  formatter?: (number: number) => string;
-}