diff --git a/packages/components/autocomplete/__tests__/autocomplete.test.tsx b/packages/components/autocomplete/__tests__/autocomplete.test.tsx
index b61c57ed8b..73ffcb3b5b 100644
--- a/packages/components/autocomplete/__tests__/autocomplete.test.tsx
+++ b/packages/components/autocomplete/__tests__/autocomplete.test.tsx
@@ -235,6 +235,50 @@ describe("Autocomplete", () => {
     expect(autocomplete).toHaveFocus();
   });
 
+  it("should clear value after clicking clear button (controlled)", async () => {
+    const wrapper = render(
+      <ControlledAutocomplete data-testid="autocomplete" items={itemsData}>
+        {(item) => <AutocompleteItem key={item.value}>{item.value}</AutocompleteItem>}
+      </ControlledAutocomplete>,
+    );
+
+    const autocomplete = wrapper.getByTestId("autocomplete");
+
+    // open the select listbox
+    await act(async () => {
+      await userEvent.click(autocomplete);
+    });
+
+    // assert that the autocomplete listbox is open
+    expect(autocomplete).toHaveAttribute("aria-expanded", "true");
+
+    let options = wrapper.getAllByRole("option");
+
+    // select the target item
+    await act(async () => {
+      await userEvent.click(options[0]);
+    });
+
+    const {container} = wrapper;
+
+    const clearButton = container.querySelector(
+      "[data-slot='inner-wrapper'] button:nth-of-type(1)",
+    )!;
+
+    expect(clearButton).not.toBeNull();
+
+    // select the target item
+    await act(async () => {
+      await userEvent.click(clearButton);
+    });
+
+    // assert that the input has empty value
+    expect(autocomplete).toHaveValue("");
+
+    // assert that input is focused
+    expect(autocomplete).toHaveFocus();
+  });
+
   it("should open and close listbox by clicking selector button", async () => {
     const wrapper = render(
       <Autocomplete aria-label="Favorite Animal" data-testid="autocomplete" label="Favorite Animal">
diff --git a/packages/components/autocomplete/src/use-autocomplete.ts b/packages/components/autocomplete/src/use-autocomplete.ts
index b3c9890764..f70f631881 100644
--- a/packages/components/autocomplete/src/use-autocomplete.ts
+++ b/packages/components/autocomplete/src/use-autocomplete.ts
@@ -364,7 +364,6 @@ export function useAutocomplete<T extends object>(originalProps: UseAutocomplete
   const onClear = useCallback(() => {
     state.setInputValue("");
     state.setSelectedKey(null);
-    state.close();
   }, [state]);
 
   const onFocus = useCallback(
diff --git a/packages/components/autocomplete/stories/autocomplete.stories.tsx b/packages/components/autocomplete/stories/autocomplete.stories.tsx
index e5758cf07e..ca4db45df2 100644
--- a/packages/components/autocomplete/stories/autocomplete.stories.tsx
+++ b/packages/components/autocomplete/stories/autocomplete.stories.tsx
@@ -3,6 +3,7 @@ import type {ValidationResult} from "@react-types/shared";
 import React, {Key} from "react";
 import {Meta} from "@storybook/react";
 import {useForm} from "react-hook-form";
+import {useFilter} from "@react-aria/i18n";
 import {autocomplete, input, button} from "@nextui-org/theme";
 import {
   Pokemon,
@@ -161,6 +162,76 @@ const FormTemplate = ({color, variant, ...args}: AutocompleteProps) => {
   );
 };
 
+const FullyControlledTemplate = () => {
+  // Store Autocomplete input value, selected option, open state, and items
+  // in a state tracker
+  const [fieldState, setFieldState] = React.useState({
+    selectedKey: "",
+    inputValue: "",
+    items: animalsData,
+  });
+
+  // Implement custom filtering logic and control what items are
+  // available to the Autocomplete.
+  const {startsWith} = useFilter({sensitivity: "base"});
+
+  // Specify how each of the Autocomplete values should change when an
+  // option is selected from the list box
+  const onSelectionChange = (key) => {
+    // eslint-disable-next-line no-console
+    console.log(`onSelectionChange ${key}`);
+    setFieldState((prevState) => {
+      let selectedItem = prevState.items.find((option) => option.value === key);
+
+      return {
+        inputValue: selectedItem?.label || "",
+        selectedKey: key,
+        items: animalsData.filter((item) => startsWith(item.label, selectedItem?.label || "")),
+      };
+    });
+  };
+
+  // Specify how each of the Autocomplete values should change when the input
+  // field is altered by the user
+  const onInputChange = (value) => {
+    // eslint-disable-next-line no-console
+    console.log(`onInputChange ${value}`);
+    setFieldState((prevState: any) => ({
+      inputValue: value,
+      selectedKey: value === "" ? null : prevState.selectedKey,
+      items: animalsData.filter((item) => startsWith(item.label, value)),
+    }));
+  };
+
+  // Show entire list if user opens the menu manually
+  const onOpenChange = (isOpen, menuTrigger) => {
+    if (menuTrigger === "manual" && isOpen) {
+      setFieldState((prevState) => ({
+        inputValue: prevState.inputValue,
+        selectedKey: prevState.selectedKey,
+        items: animalsData,
+      }));
+    }
+  };
+
+  return (
+    <Autocomplete
+      className="max-w-xs"
+      inputValue={fieldState.inputValue}
+      items={fieldState.items}
+      label="Favorite Animal"
+      placeholder="Search an animal"
+      selectedKey={fieldState.selectedKey}
+      variant="bordered"
+      onInputChange={onInputChange}
+      onOpenChange={onOpenChange}
+      onSelectionChange={onSelectionChange}
+    >
+      {(item) => <AutocompleteItem key={item.value}>{item.label}</AutocompleteItem>}
+    </Autocomplete>
+  );
+};
+
 const MirrorTemplate = ({color, variant, ...args}: AutocompleteProps) => (
   <div className="w-full max-w-xl flex flex-row gap-4">
     <Autocomplete
@@ -983,3 +1054,10 @@ export const CustomStylesWithCustomItems = {
     ...defaultProps,
   },
 };
+
+export const FullyControlled = {
+  render: FullyControlledTemplate,
+  args: {
+    ...defaultProps,
+  },
+};