diff --git a/src/components/combo/combo.spec.ts b/src/components/combo/combo.spec.ts
index c22932bbf..03ded9857 100644
--- a/src/components/combo/combo.spec.ts
+++ b/src/components/combo/combo.spec.ts
@@ -17,6 +17,7 @@ import { first } from '../common/util.js';
 import {
   createFormAssociatedTestBed,
   isFocused,
+  simulateBlur,
   simulateClick,
   simulateKeyboard,
   simulatePointerDown,
@@ -1417,6 +1418,89 @@ describe('Combo', () => {
       // The dropdown should remain open
       expect(combo.open).to.be.true;
     });
+
+    it('issue 2221 - invalid state when tabbing out of a single select combo', async () => {
+      combo.singleSelect = true;
+      await combo.show();
+      await list.layoutComplete;
+
+      // Has matches, selects first on tab out
+      await filterCombo('sof');
+      expect(items(combo)).lengthOf(1);
+
+      simulateKeyboard(input, tabKey);
+      await elementUpdated(combo);
+
+      expect(combo.open).to.be.false;
+      expect(combo.value).to.eql(['BG01']);
+
+      combo.deselect();
+      await combo.show();
+      await list.layoutComplete;
+
+      // No matches, should clear value on tab out
+      await filterCombo('xxx');
+      expect(items(combo)).to.be.empty;
+
+      simulateKeyboard(input, tabKey);
+      await elementUpdated(combo);
+
+      expect(combo.open).to.be.false;
+      expect(combo.value).to.be.empty;
+    });
+
+    it('issue 2221 - tabbing out with an existing selection preserves the selection', async () => {
+      combo.singleSelect = true;
+      combo.select('BG01');
+      await elementUpdated(combo);
+
+      expect(input.value).to.equal('Sofia');
+
+      await combo.show();
+      await list.layoutComplete;
+
+      simulateKeyboard(input, tabKey);
+      await elementUpdated(combo);
+
+      expect(combo.open).to.be.false;
+      expect(combo.value).to.eql(['BG01']);
+      expect(input.value).to.equal('Sofia');
+    });
+
+    it('issue 2221 - clicking outside with partial text and no selection clears the input', async () => {
+      combo.singleSelect = true;
+      await combo.show();
+      await list.layoutComplete;
+
+      await filterCombo('sof');
+      expect(items(combo)).lengthOf(1);
+
+      // Simulate click outside by dispatching blur without confirming a selection
+      simulateBlur(combo);
+      await elementUpdated(combo);
+
+      expect(combo.value).to.be.empty;
+      expect(input.value).to.equal('');
+    });
+
+    it('issue 2221 - clicking outside after partial search over existing selection clears the input', async () => {
+      combo.singleSelect = true;
+      combo.select('BG01');
+      await elementUpdated(combo);
+
+      expect(input.value).to.equal('Sofia');
+
+      // Typing clears the existing selection immediately
+      await filterCombo('sof');
+      expect(combo.value).to.be.empty;
+
+      // Clicking outside (blur) should clear the partial text
+      simulateBlur(combo);
+      await elementUpdated(combo);
+
+      expect(combo.value).to.be.empty;
+      expect(input.value).to.equal('');
+    });
   });
 
   describe('Form integration', () => {
diff --git a/src/components/combo/combo.ts b/src/components/combo/combo.ts
index 0b0e08409..0b2c54dc1 100644
--- a/src/components/combo/combo.ts
+++ b/src/components/combo/combo.ts
@@ -643,6 +643,12 @@ export default class IgcComboComponent<
     return canClose;
   }
 
+  private _setSingleSelectionDisplayValue(value: string): void {
+    if (this.singleSelect && this._inputRef.value) {
+      this._inputRef.value.value = value;
+    }
+  }
+
   //#endregion
 
   // #region Selection helpers
@@ -817,10 +823,10 @@ export default class IgcComboComponent<
     this._displayValue = this._getValues(this._selected, this.displayKey).join(
       ', '
     );
-
     this._formValue.setValueAndFormState(values);
 
     if (!initial) {
+      this._setSingleSelectionDisplayValue(this._displayValue);
       this._validate();
       this._listRef.value?.requestUpdate();
     }
@@ -891,6 +897,7 @@ export default class IgcComboComponent<
   protected override _handleBlur(): void {
     if (isEmpty(this._selected)) {
       this._searchTerm = '';
+      this._setSingleSelectionDisplayValue('');
     }
     super._handleBlur();
   }
diff --git a/src/components/combo/controllers/navigation.ts b/src/components/combo/controllers/navigation.ts
index 85f1f02b2..d602e3076 100644
--- a/src/components/combo/controllers/navigation.ts
+++ b/src/components/combo/controllers/navigation.ts
@@ -151,6 +151,11 @@ export class ComboNavigationController<T extends object> {
         // before the Shift+Tab behavior kicks in.
         this._host.focus();
       }
+
+      if (this._host.singleSelect && this.active > -1) {
+        this._config.interactions.select(this.active);
+      }
+
       await this._config.interactions.hide();
     }
   };