diff --git a/RELEASE-NOTES.md b/RELEASE-NOTES.md
index 7e6be9b242..087597a876 100644
--- a/RELEASE-NOTES.md
+++ b/RELEASE-NOTES.md
@@ -7,6 +7,7 @@
 
 **Bugs**
 - **Menu** - Fixed issue where `dropdown` in `vertical menu` would not correctly open `upward` when no space below **Thanks @gdaunton** #4150 #4156
+- **Dropdown** - Fixed issue where dropdown `clear` would not remove active state when `useLabels: true` and multiple dropdown #4275 #4366 **Thanks vinh123456789**
 - **Dropdown** - `dropdown icon` no longer relies on stopping event propagation. This means using the dropdown icon will now cause other dropdowns to correctly hide. #3998
 - **Dropdown** - Fixes `action: select` not working correctly since `2.2` due to incorrect use of new function signature. #4183
 - **Dropdown** - Fixed typo causing selectObserver mutation observer not to disconnect **Thanks @Paklausk** #4311
diff --git a/src/definitions/modules/dropdown.js b/src/definitions/modules/dropdown.js
index 448a12409a..4eb3ddb13f 100644
--- a/src/definitions/modules/dropdown.js
+++ b/src/definitions/modules/dropdown.js
@@ -2082,7 +2082,7 @@ $.fn.dropdown = function(parameters) {
         },
 
         clear: function() {
-          if(module.is.multiple()) {
+          if(module.is.multiple() && settings.useLabels) {
             module.remove.labels();
           }
           else {