diff --git a/packages/main/cypress/specs/ComboBox.cy.tsx b/packages/main/cypress/specs/ComboBox.cy.tsx
index d133e54b2f72..1c1e51f81098 100644
--- a/packages/main/cypress/specs/ComboBox.cy.tsx
+++ b/packages/main/cypress/specs/ComboBox.cy.tsx
@@ -85,6 +85,77 @@ describe("Keyboard interaction", () => {
 		cy.get("@combobox")
 			.find("[ui5-cb-item]").eq(2).should("have.prop", "selected", true);
 	});
+	it("tests navigating with arrow down and up when item text is the same as in the previous selected item", () => {
+		cy.mount(
+			<ComboBox>
+				<ComboBoxItem text="Bulgaria"></ComboBoxItem>
+				<ComboBoxItem text="Bulgaria"></ComboBoxItem>
+				<ComboBoxItem text="Bulgaria"></ComboBoxItem>
+			</ComboBox>
+		);
+
+		cy.get("[ui5-combobox]").as("combobox");
+
+		cy.get<ComboBox>("@combobox")
+			.shadow()
+			.find("input")
+			.as("inner");
+
+		cy.get("@inner").focus();
+
+		cy.get("@inner").realPress("F4");
+		cy.get("@combobox")
+			.find("[ui5-cb-item]").eq(0).should("have.prop", "selected", true);
+
+		cy.get("@inner").realPress("ArrowDown");
+		cy.get("@combobox")
+			.find("[ui5-cb-item]").eq(1).should("have.prop", "selected", true);
+
+		cy.get("@inner").realPress("ArrowDown");
+		cy.get("@combobox")
+			.find("[ui5-cb-item]").eq(2).should("have.prop", "selected", true);
+
+		cy.get("@inner").realPress("ArrowUp");
+		cy.get("@combobox")
+			.find("[ui5-cb-item]").eq(1).should("have.prop", "selected", true);
+	});
+
+	it("tests navigating with arrow down and up when item text is the same as in the previous selected item (with grouping)", () => {
+		cy.mount(
+			<ComboBox>
+				<ComboBoxItemGroup header-text="Bulgaria">
+					<ComboBoxItem text="Bulgaria"></ComboBoxItem>
+					<ComboBoxItem text="Bulgaria"></ComboBoxItem>
+					<ComboBoxItem text="Bulgaria"></ComboBoxItem>
+				</ComboBoxItemGroup>
+			</ComboBox>
+		);
+
+		cy.get("[ui5-combobox]").as("combobox");
+
+		cy.get<ComboBox>("@combobox")
+			.shadow()
+			.find("input")
+			.as("inner");
+
+		cy.get("@inner").focus();
+
+		cy.get("@inner").realPress("F4");
+		cy.get("@combobox")
+			.find("[ui5-cb-item]").eq(0).should("have.prop", "selected", true);
+
+		cy.get("@inner").realPress("ArrowDown");
+		cy.get("@combobox")
+			.find("[ui5-cb-item]").eq(1).should("have.prop", "selected", true);
+
+		cy.get("@inner").realPress("ArrowDown");
+		cy.get("@combobox")
+			.find("[ui5-cb-item]").eq(2).should("have.prop", "selected", true);
+
+		cy.get("@inner").realPress("ArrowUp");
+		cy.get("@combobox")
+			.find("[ui5-cb-item]").eq(1).should("have.prop", "selected", true);
+	});
 });
 
 describe("Event firing", () => {
diff --git a/packages/main/src/ComboBox.ts b/packages/main/src/ComboBox.ts
index d9564c7a8d28..38bb32e03986 100644
--- a/packages/main/src/ComboBox.ts
+++ b/packages/main/src/ComboBox.ts
@@ -808,13 +808,13 @@ class ComboBox extends UI5Element implements IFormInputElement {
 			return;
 		}
 		// autocomplete
-		this._handleTypeAhead(this.value, this.open ? this._userTypedValue : "", false);
+		this._handleTypeAhead(this.value, this.open ? this._userTypedValue : "", false, nextItem);
 
 		this.fireDecoratorEvent("input");
 	}
 
-	_handleTypeAhead(value: string, filterValue: string, checkForGroupItem: boolean) {
-		const item = this._getFirstMatchingItem(value);
+	_handleTypeAhead(value: string, filterValue: string, checkForGroupItem: boolean, nextItem?: IComboBoxItem) {
+		const item = this._getMatchingItem(value, nextItem || {} as IComboBoxItem);
 
 		if (!item) {
 			return;
@@ -1069,7 +1069,7 @@ class ComboBox extends UI5Element implements IFormInputElement {
 		return [...filteredItemGroups, ...filteredItems];
 	}
 
-	_getFirstMatchingItem(current: string): IComboBoxItem | void {
+	_getMatchingItem(current: string, nextItem: IComboBoxItem): IComboBoxItem | void {
 		const allItems = this._getItems();
 		const currentlyFocusedItem = allItems.find(item => item.focused === true);
 
@@ -1081,8 +1081,19 @@ class ComboBox extends UI5Element implements IFormInputElement {
 		const matchingItems: Array<IComboBoxItem> = this._startsWithMatchingItems(current);
 
 		if (matchingItems.length) {
-			const exactMatch = matchingItems.find(item => item.text === current);
-			return exactMatch ?? matchingItems[0];
+			let exactMatch: IComboBoxItem | undefined;
+
+			if (this.open) {
+				exactMatch = matchingItems.find(item => item.text === current && item.focused);
+			} else {
+				const currentIndex = allItems.indexOf(nextItem);
+				const previousItem = allItems[currentIndex - 1];
+				const nextItemInList = allItems[currentIndex + 1];
+
+				exactMatch = matchingItems.find(item => item.text === current && (item === previousItem || item === nextItemInList));
+			}
+
+			return (exactMatch ?? matchingItems.find(item => item === currentlyFocusedItem) ?? matchingItems[0]);
 		}
 	}
 
@@ -1095,13 +1106,22 @@ class ComboBox extends UI5Element implements IFormInputElement {
 	}
 
 	_selectMatchingItem() {
-		const currentlyFocusedItem = this.items.find(item => item.focused);
+		 const allItems = this.items;
+		const currentlyFocusedItem = allItems.find(item => item.focused);
+		const currentlySelectedItem = allItems.find(item => (!isInstanceOfComboBoxItemGroup(item) ? item.selected : item.items?.some(i => i.selected)));
 		const shouldSelectionBeCleared = currentlyFocusedItem && currentlyFocusedItem.isGroupItem;
 		let itemToBeSelected: IComboBoxItem | undefined;
 
 		this._filteredItems.forEach(item => {
 			if (!shouldSelectionBeCleared && !itemToBeSelected) {
-				itemToBeSelected = ((!item.isGroupItem && (item.text === this.value)) ? item : item?.items?.find(i => i.text === this.value));
+				if (currentlySelectedItem) {
+					const currentIndex = allItems.indexOf(currentlySelectedItem);
+					const previousItem = allItems[currentIndex - 1];
+					const nextItemInList = allItems[currentIndex + 1];
+					itemToBeSelected = ((!item.isGroupItem && (item.text === this.value) && (item === previousItem || item === nextItemInList)) ? item : item?.items?.find(i => i.text === this.value && (i === previousItem || i === nextItemInList)));
+				} else {
+					itemToBeSelected = ((!item.isGroupItem && (item.text === this.value)) ? item : item?.items?.find(i => i.text === this.value));
+				}
 			}
 		});