diff --git a/src/runtime/components/SelectMenu.vue b/src/runtime/components/SelectMenu.vue
index bc6080877e..e93ffe7461 100644
--- a/src/runtime/components/SelectMenu.vue
+++ b/src/runtime/components/SelectMenu.vue
@@ -151,7 +151,8 @@ import UInput from './Input.vue'
 const props = withDefaults(defineProps<SelectMenuProps<T, I, V, M>>(), {
   portal: true,
   searchInput: true,
-  labelKey: 'label' as never
+  labelKey: 'label' as never,
+  resetSearchTermOnBlur: true
 })
 const emits = defineEmits<SelectMenuEmits<T, V, M>>()
 const slots = defineSlots<SelectMenuSlots<T, M>>()
@@ -251,13 +252,27 @@ function onUpdate(value: any) {
 }
 
 function onUpdateOpen(value: boolean) {
+  let timeoutId
+
   if (!value) {
     const event = new FocusEvent('blur')
+
     emits('blur', event)
     emitFormBlur()
+
+    // Since we use `displayValue` prop inside ComboboxInput we should reset searchTerm manually
+    // https://reka-ui.com/docs/components/combobox#api-reference
+    if (props.resetSearchTermOnBlur) {
+      const STATE_ANIMATION_DELAY_MS = 100
+
+      timeoutId = setTimeout(() => {
+        searchTerm.value = ''
+      }, STATE_ANIMATION_DELAY_MS)
+    }
   } else {
     const event = new FocusEvent('focus')
     emits('focus', event)
+    clearTimeout(timeoutId)
   }
 }
 </script>