diff --git a/src/composables/useOptions.js b/src/composables/useOptions.js
index 8757392..769065b 100644
--- a/src/composables/useOptions.js
+++ b/src/composables/useOptions.js
@@ -24,6 +24,7 @@ export default function useOptions (props, context, dep)
   const clearSearch = dep.clearSearch
   const update = dep.update
   const pointer = dep.pointer
+  const setPointer = dep.setPointer
   const clearPointer = dep.clearPointer
   const focus = dep.focus
   const deactivate = dep.deactivate
@@ -496,6 +497,11 @@ export default function useOptions (props, context, dep)
             .filter((o, k) => iv.value.length + 1 + k <= max.value || max.value === -1)
           )
         }
+
+        if (hideSelected.value && pointer.value) {
+          // Refresh pointer because pointer.__VISIBLE__ are not reactive #354
+          setPointer(fg.value.filter(g => !g[disabledProp.value])[pointer.value.index])
+        }
         break
     }
 
diff --git a/tests/unit/composables/usePointerAction.spec.js b/tests/unit/composables/usePointerAction.spec.js
index bf4217d..253c6ea 100644
--- a/tests/unit/composables/usePointerAction.spec.js
+++ b/tests/unit/composables/usePointerAction.spec.js
@@ -639,6 +639,35 @@ describe('usePointer Action', () => {
 
       expect(select.vm.pointer.label).toBe('11')
     })
+
+    it('should point at next group after full group is selected when hideSelected=true', async () => {
+      let select = createSelect({
+        mode: 'multiple',
+        value: [],
+        hideSelected: true,
+        closeOnSelect: false,
+        options: [
+          {
+            label: 'First',
+            options: [1,2,3],
+          },
+          {
+            label: 'Second',
+            options: [4,5,6],
+          },
+        ],
+        groups: true
+      })
+
+      select.vm.pointer = select.vm.fg[0]
+      select.vm.selectPointer()
+
+      await nextTick()
+
+      select.vm.forwardPointer()
+
+      expect(select.vm.pointer.label).toBe('Second')
+    })
   })
 
   describe('backwardPointer', () => {