diff --git a/projects/igniteui-angular/src/lib/simple-combo/simple-combo.component.spec.ts b/projects/igniteui-angular/src/lib/simple-combo/simple-combo.component.spec.ts
index 52d95c46529..8182464321b 100644
--- a/projects/igniteui-angular/src/lib/simple-combo/simple-combo.component.spec.ts
+++ b/projects/igniteui-angular/src/lib/simple-combo/simple-combo.component.spec.ts
@@ -928,6 +928,21 @@ describe('IgxSimpleCombo', () => {
             expect(combo.close).toHaveBeenCalledTimes(1);
         });
 
+        it('should retain selection after blurring', () => {
+            combo.open();
+            fixture.detectChanges();
+            const item1 = fixture.debugElement.query(By.css(`.${CSS_CLASS_DROPDOWNLISTITEM}`));
+            expect(item1).toBeDefined();
+
+            item1.triggerEventHandler('click', UIInteractions.getMouseEvent('click'));
+            fixture.detectChanges();
+
+            UIInteractions.triggerEventHandlerKeyDown('Tab', input);
+            fixture.detectChanges();
+
+            expect(combo.selection.length).toBe(1);
+        });
+
         it('should scroll to top when opened and there is no selection', () => {
             combo.deselect();
             fixture.detectChanges();
diff --git a/projects/igniteui-angular/src/lib/simple-combo/simple-combo.component.ts b/projects/igniteui-angular/src/lib/simple-combo/simple-combo.component.ts
index d61b8b993d8..00b8f2aac0a 100644
--- a/projects/igniteui-angular/src/lib/simple-combo/simple-combo.component.ts
+++ b/projects/igniteui-angular/src/lib/simple-combo/simple-combo.component.ts
@@ -88,6 +88,7 @@ export class IgxSimpleComboComponent extends IgxComboBaseDirective implements Co
     public composing = false;
 
     private _updateInput = true;
+
     // stores the last filtered value - move to common?
     private _internalFilter = '';
 
@@ -109,7 +110,7 @@ export class IgxSimpleComboComponent extends IgxComboBaseDirective implements Co
         this._searchValue = val;
     }
 
-    private get selectedItem() {
+    private get selectedItem(): any {
         return this.selectionService.get(this.id).values().next().value;
     }
 
@@ -130,7 +131,7 @@ export class IgxSimpleComboComponent extends IgxComboBaseDirective implements Co
     /** @hidden @internal */
     @HostListener('keydown.ArrowDown', ['$event'])
     @HostListener('keydown.Alt.ArrowDown', ['$event'])
-    public onArrowDown(event: Event) {
+    public onArrowDown(event: Event): void {
         if (this.collapsed) {
             event.preventDefault();
             event.stopPropagation();
@@ -173,7 +174,7 @@ export class IgxSimpleComboComponent extends IgxComboBaseDirective implements Co
     }
 
     /** @hidden @internal */
-    public writeValue(value: any) {
+    public writeValue(value: any): void {
         const oldSelection = this.selection;
         this.selectionService.select_items(this.id, value ? [value] : [], true);
         this.cdr.markForCheck();
@@ -181,7 +182,7 @@ export class IgxSimpleComboComponent extends IgxComboBaseDirective implements Co
     }
 
     /** @hidden @internal */
-    public ngAfterViewInit() {
+    public ngAfterViewInit(): void {
         this.virtDir.contentSizeChange.pipe(takeUntil(this.destroy$)).subscribe(() => {
             if (this.selection.length > 0) {
                 const index = this.virtDir.igxForOf.findIndex(e => {
@@ -200,13 +201,13 @@ export class IgxSimpleComboComponent extends IgxComboBaseDirective implements Co
                 this.filterValue = this.searchValue = this.comboInput.value;
                 return;
             }
-            this._internalFilter = this.filterValue;
             this.filterValue = this.searchValue = '';
         });
         this.dropdown.opened.pipe(takeUntil(this.destroy$)).subscribe(() => {
             if (this.composing) {
                 this.comboInput.focus();
             }
+            this._internalFilter = this.comboInput.value;
         });
         this.dropdown.closing.pipe(takeUntil(this.destroy$)).subscribe((args) => {
             if (this.getEditElement() && !args.event) {
@@ -224,7 +225,7 @@ export class IgxSimpleComboComponent extends IgxComboBaseDirective implements Co
     }
 
     /** @hidden @internal */
-    public handleInputChange(event?: any) {
+    public handleInputChange(event?: any): void {
         if (event !== undefined) {
             this.filterValue = this._internalFilter = this.searchValue = typeof event === 'string' ? event : event.target.value;
         }
@@ -246,7 +247,7 @@ export class IgxSimpleComboComponent extends IgxComboBaseDirective implements Co
     }
 
     /** @hidden @internal */
-    public handleKeyDown(event: KeyboardEvent) {
+    public handleKeyDown(event: KeyboardEvent): void {
         if (event.key === this.platformUtil.KEYMAP.ENTER) {
             const filtered = this.filteredData.find(this.findMatch);
             if (filtered === null || filtered === undefined) {
@@ -274,7 +275,7 @@ export class IgxSimpleComboComponent extends IgxComboBaseDirective implements Co
     }
 
     /** @hidden @internal */
-    public handleKeyUp(event: KeyboardEvent) {
+    public handleKeyUp(event: KeyboardEvent): void {
         if (event.key === this.platformUtil.KEYMAP.ARROW_DOWN) {
             const firstItem = this.selectionService.first_item(this.id);
             this.dropdown.focusedItem = firstItem && this.filteredData.length > 0
@@ -285,7 +286,7 @@ export class IgxSimpleComboComponent extends IgxComboBaseDirective implements Co
     }
 
     /** @hidden @internal */
-    public handleItemKeyDown(event: KeyboardEvent) {
+    public handleItemKeyDown(event: KeyboardEvent): void {
         if (event.key === this.platformUtil.KEYMAP.ARROW_UP && event.altKey) {
             this.close();
             this.comboInput.focus();
@@ -297,13 +298,13 @@ export class IgxSimpleComboComponent extends IgxComboBaseDirective implements Co
     }
 
     /** @hidden @internal */
-    public handleItemClick() {
+    public handleItemClick(): void {
         this.close();
         this.comboInput.focus();
     }
 
     /** @hidden @internal */
-    public onBlur() {
+    public onBlur(): void {
         if (this.collapsed) {
             this.clearOnBlur();
         }
@@ -316,7 +317,7 @@ export class IgxSimpleComboComponent extends IgxComboBaseDirective implements Co
     }
 
     /** @hidden @internal */
-    public handleClear(event: Event) {
+    public handleClear(event: Event): void {
         if (this.disabled) {
             return;
         }
@@ -336,14 +337,14 @@ export class IgxSimpleComboComponent extends IgxComboBaseDirective implements Co
     }
 
     /** @hidden @internal */
-    public handleOpened() {
+    public handleOpened(): void {
         this.triggerCheck();
         this.dropdownContainer.nativeElement.focus();
         this.opened.emit({ owner: this });
     }
 
     /** @hidden @internal */
-    public handleClosing(e: IBaseCancelableBrowserEventArgs) {
+    public handleClosing(e: IBaseCancelableBrowserEventArgs): void {
         const args: IBaseCancelableBrowserEventArgs = { owner: this, event: e.event, cancel: e.cancel };
         this.closing.emit(args);
         e.cancel = args.cancel;
@@ -368,7 +369,7 @@ export class IgxSimpleComboComponent extends IgxComboBaseDirective implements Co
     }
 
     /** @hidden @internal */
-    public onClick(event: Event) {
+    public onClick(event: Event): void {
         super.onClick(event);
         if (this.comboInput.value.length === 0) {
             this.virtDir.scrollTo(0);
@@ -401,7 +402,7 @@ export class IgxSimpleComboComponent extends IgxComboBaseDirective implements Co
             argsSelection = Array.isArray(argsSelection) ? argsSelection : [argsSelection];
             this.selectionService.select_items(this.id, argsSelection, true);
             if (this._updateInput) {
-                this.comboInput.value = this._value = displayText !== args.displayText
+                this.comboInput.value = this._internalFilter = this._value = displayText !== args.displayText
                     ? args.displayText
                     : this.createDisplayText(argsSelection, [args.oldSelection]);
             }
@@ -410,7 +411,7 @@ export class IgxSimpleComboComponent extends IgxComboBaseDirective implements Co
         }
     }
 
-    protected createDisplayText(newSelection: any[], oldSelection: any[]) {
+    protected createDisplayText(newSelection: any[], oldSelection: any[]): any {
         if (this.isRemote) {
             return this.getRemoteSelection(newSelection, oldSelection);
         }
@@ -431,13 +432,13 @@ export class IgxSimpleComboComponent extends IgxComboBaseDirective implements Co
         this.setSelection(newSelection);
     }
 
-    private clearOnBlur() {
+    private clearOnBlur(): void {
         const filtered = this.filteredData.find(this.findMatch);
         if (filtered === undefined || filtered === null || !this.selectedItem) {
             this.clearAndClose();
             return;
         }
-        if (this.isPartialMatch(filtered) || this.selectedItem !== this._internalFilter) {
+        if (this.isPartialMatch(filtered) || this.getElementVal(filtered) !== this._internalFilter) {
             this.clearAndClose();
         }
     }
@@ -446,11 +447,15 @@ export class IgxSimpleComboComponent extends IgxComboBaseDirective implements Co
         return !!this._internalFilter && this._internalFilter.length !== this.getElementVal(filtered).length;
     }
 
-    private getElementVal(element: any) {
+    private getElementVal(element: any): any | null {
+        if (!element) {
+            return null;
+        }
+
         return this.displayKey ? element[this.displayKey] : element;
     }
 
-    private clearAndClose() {
+    private clearAndClose(): void {
         this.clearSelection(true);
         this._internalFilter = '';
         this.searchValue = '';