diff --git a/.changeset/clean-seahorses-cheat.md b/.changeset/clean-seahorses-cheat.md
new file mode 100644
index 0000000000..01c5ac2f1a
--- /dev/null
+++ b/.changeset/clean-seahorses-cheat.md
@@ -0,0 +1,5 @@
+---
+"@heroui/autocomplete": patch
+---
+
+ensure focused item matches selected item after filter, selection (#5277)
diff --git a/packages/components/autocomplete/__tests__/autocomplete.test.tsx b/packages/components/autocomplete/__tests__/autocomplete.test.tsx
index 79c09386c0..c8a8f418da 100644
--- a/packages/components/autocomplete/__tests__/autocomplete.test.tsx
+++ b/packages/components/autocomplete/__tests__/autocomplete.test.tsx
@@ -940,3 +940,129 @@ describe("Autocomplete with React Hook Form", () => {
     expect(onSubmit).toHaveBeenCalledTimes(1);
   });
 });
+
+describe("focusedKey management with selected key", () => {
+  let user: UserEvent;
+
+  beforeEach(() => {
+    user = userEvent.setup();
+  });
+
+  it("should set focusedKey to the first non-disabled item when selectedKey is null", async () => {
+    const wrapper = render(
+      <Autocomplete
+        aria-label="Favorite Animal"
+        data-testid="autocomplete"
+        disabledKeys={["penguin"]}
+        label="Favorite Animal"
+      >
+        <AutocompleteItem key="penguin" isDisabled>
+          Penguin
+        </AutocompleteItem>
+        <AutocompleteItem key="zebra">Zebra</AutocompleteItem>
+        <AutocompleteItem key="shark">Shark</AutocompleteItem>
+      </Autocomplete>,
+    );
+
+    const autocomplete = wrapper.getByTestId("autocomplete");
+
+    // open the select listbox
+    await user.click(autocomplete);
+
+    const options = wrapper.getAllByRole("option");
+
+    // first non-disabled item is zebra
+    const optionItem = options[1];
+
+    expect(optionItem).toHaveAttribute("data-focus", "true");
+  });
+
+  it("should set focusedKey to the item's key when an item is selected", async () => {
+    const wrapper = render(
+      <Autocomplete aria-label="Favorite Animal" data-testid="autocomplete" label="Favorite Animal">
+        <AutocompleteItem key="penguin">Penguin</AutocompleteItem>
+        <AutocompleteItem key="zebra">Zebra</AutocompleteItem>
+        <AutocompleteItem key="shark">Shark</AutocompleteItem>
+      </Autocomplete>,
+    );
+
+    const autocomplete = wrapper.getByTestId("autocomplete");
+
+    // open the select listbox
+    await user.click(autocomplete);
+
+    // select the target item using keyboard
+    await user.keyboard("penguin");
+    await user.keyboard("{Enter}");
+    await user.click(autocomplete);
+
+    const options = wrapper.getAllByRole("option");
+    const optionItem = options[0];
+
+    expect(optionItem).toHaveAttribute("data-focus", "true");
+  });
+
+  it("should set focusedKey to the item's key when selectedKey prop is passed", async () => {
+    const wrapper = render(
+      <Autocomplete
+        aria-label="Favorite Animal"
+        data-testid="autocomplete"
+        label="Favorite Animal"
+        selectedKey="penguin"
+      >
+        <AutocompleteItem key="penguin">Penguin</AutocompleteItem>
+        <AutocompleteItem key="zebra">Zebra</AutocompleteItem>
+        <AutocompleteItem key="shark">Shark</AutocompleteItem>
+      </Autocomplete>,
+    );
+
+    const autocomplete = wrapper.getByTestId("autocomplete");
+
+    // open the select listbox
+    await user.click(autocomplete);
+
+    const options = wrapper.getAllByRole("option");
+    const optionItem = options[0];
+
+    expect(optionItem).toHaveAttribute("data-focus", "true");
+  });
+
+  it("should set focusedKey to the default item's key when using react-hook-form defaultValues", async () => {
+    const {result} = renderHook(() =>
+      useForm({
+        defaultValues: {
+          withDefaultValue: "zebra",
+          withoutDefaultValue: "",
+          requiredField: "",
+        },
+      }),
+    );
+
+    const {register} = result.current;
+
+    const wrapper = render(
+      <form>
+        <Autocomplete
+          {...register("withDefaultValue")}
+          aria-label="Favorite Animal"
+          data-testid="autocomplete"
+          label="Favorite Animal"
+        >
+          <AutocompleteItem key="penguin">Penguin</AutocompleteItem>
+          <AutocompleteItem key="zebra">Zebra</AutocompleteItem>
+          <AutocompleteItem key="shark">Shark</AutocompleteItem>
+        </Autocomplete>
+      </form>,
+    );
+
+    const autocomplete = wrapper.getByTestId("autocomplete");
+
+    // open the select listbox
+    await user.click(autocomplete);
+
+    const options = wrapper.getAllByRole("option");
+    const optionItem = options[1];
+
+    expect(optionItem).toHaveAttribute("data-focus", "true");
+  });
+});
diff --git a/packages/components/autocomplete/src/use-autocomplete.ts b/packages/components/autocomplete/src/use-autocomplete.ts
index 38eef998e1..eecdd519e6 100644
--- a/packages/components/autocomplete/src/use-autocomplete.ts
+++ b/packages/components/autocomplete/src/use-autocomplete.ts
@@ -339,15 +339,27 @@ export function useAutocomplete<T extends object>(originalProps: UseAutocomplete
     }
   }, [inputRef.current]);
 
-  // focus first non-disabled item
+  // Ensure the focused item in the dropdown correctly reflects the
+  // selected key when the component mounts or relevant state changes.
   useEffect(() => {
-    let key = state.collection.getFirstKey();
-
-    while (key && state.disabledKeys.has(key)) {
-      key = state.collection.getKeyAfter(key);
+    let keyToFocus: React.Key | null;
+
+    if (
+      state.selectedKey !== null &&
+      state.collection.getItem(state.selectedKey) &&
+      !state.disabledKeys.has(state.selectedKey)
+    ) {
+      keyToFocus = state.selectedKey;
+    } else {
+      let firstAvailableKey = state.collection.getFirstKey();
+
+      while (firstAvailableKey && state.disabledKeys.has(firstAvailableKey)) {
+        firstAvailableKey = state.collection.getKeyAfter(firstAvailableKey);
+      }
+      keyToFocus = firstAvailableKey;
     }
-    state.selectionManager.setFocusedKey(key);
-  }, [state.collection, state.disabledKeys]);
+    state.selectionManager.setFocusedKey(keyToFocus);
+  }, [state.collection, state.disabledKeys, state.selectedKey]);
 
   useEffect(() => {
     if (isOpen) {