diff --git a/e2e/components/DatePicker/DatePicker-test.avt.e2e.js b/e2e/components/DatePicker/DatePicker-test.avt.e2e.js
index 94f9afde1c41..9c1e4f2f911b 100644
--- a/e2e/components/DatePicker/DatePicker-test.avt.e2e.js
+++ b/e2e/components/DatePicker/DatePicker-test.avt.e2e.js
@@ -125,7 +125,7 @@ test.describe('@avt DatePicker', () => {
     await page.keyboard.press('Enter');
     await page.keyboard.press('Enter');
     await expect(
-      page.locator('input#date-picker-input-id-finish')
+      page.locator('input#date-picker-input-id-start')
     ).toBeFocused();
     await expect(page.locator('div.flatpickr-calendar')).not.toHaveClass(
       /open/
diff --git a/e2e/components/FluidDatePicker/FluidDatePicker-test.avt.e2e.js b/e2e/components/FluidDatePicker/FluidDatePicker-test.avt.e2e.js
index 386c95ed1ad1..47a1bdc67042 100644
--- a/e2e/components/FluidDatePicker/FluidDatePicker-test.avt.e2e.js
+++ b/e2e/components/FluidDatePicker/FluidDatePicker-test.avt.e2e.js
@@ -98,7 +98,7 @@ test.describe('@avt FluidDatePicker', () => {
     await page.keyboard.press('ArrowDown');
     await page.keyboard.press('Enter');
     await expect(
-      page.locator('input#date-picker-input-id-finish')
+      page.locator('input#date-picker-input-id-start')
     ).toBeFocused();
     await expect(page.locator('div.flatpickr-calendar')).not.toHaveClass(
       /open/
diff --git a/packages/react/src/components/DatePicker/DatePicker.tsx b/packages/react/src/components/DatePicker/DatePicker.tsx
index a07ffe2d9f0a..e228653ac4c7 100644
--- a/packages/react/src/components/DatePicker/DatePicker.tsx
+++ b/packages/react/src/components/DatePicker/DatePicker.tsx
@@ -443,11 +443,17 @@ const DatePicker = React.forwardRef(function DatePicker(
 
   const lastStartValue = useRef('');
 
+  interface CalendarCloseEvent {
+    selectedDates: Date[];
+    dateStr: string;
+    instance: object; //This is `Intance` of flatpicker
+  }
+  const [calendarCloseEvent, setCalendarCloseEvent] =
+    useState<CalendarCloseEvent | null>(null);
+
   // fix datepicker deleting the selectedDate when the calendar closes
-  const onCalendarClose = (selectedDates, dateStr) => {
-    endInputField?.current?.focus();
-    calendarRef?.current?.calendarContainer?.classList.remove('open');
-    setTimeout(() => {
+  const handleCalendarClose = useCallback(
+    (selectedDates, dateStr, instance) => {
       if (
         lastStartValue.current &&
         selectedDates[0] &&
@@ -461,21 +467,29 @@ const DatePicker = React.forwardRef(function DatePicker(
         );
       }
       if (onClose) {
-        onClose(
-          calendarRef.current.selectedDates,
-          dateStr,
-          calendarRef.current
-        );
+        onClose(selectedDates, dateStr, instance);
       }
-    });
+    },
+    [onClose]
+  );
+  const onCalendarClose = (selectedDates, dateStr, instance, e) => {
+    if (e && e.type === 'clickOutside') {
+      return;
+    }
+    setCalendarCloseEvent({ selectedDates, dateStr, instance });
   };
+  useEffect(() => {
+    if (calendarCloseEvent) {
+      const { selectedDates, dateStr, instance } = calendarCloseEvent;
+      handleCalendarClose(selectedDates, dateStr, instance);
+      setCalendarCloseEvent(null);
+    }
+  }, [calendarCloseEvent, handleCalendarClose]);
 
   const endInputField = useRef<HTMLTextAreaElement>(null);
   const calendarRef: any | undefined = useRef(null);
   const savedOnChange = useSavedCallback(onChange);
-  const savedOnClose = useSavedCallback(
-    datePickerType === 'range' ? onCalendarClose : onClose
-  );
+
   const savedOnOpen = useSavedCallback(onOpen);
 
   const datePickerClasses = cx(`${prefix}--date-picker`, {
@@ -610,6 +624,7 @@ const DatePicker = React.forwardRef(function DatePicker(
     const { current: end } = endInputField;
     const flatpickerconfig: any = {
       inline: inline ?? false,
+      onClose: onCalendarClose,
       disableMobile: true,
       defaultDate: value,
       closeOnSelect: closeOnSelect,
@@ -653,7 +668,7 @@ const DatePicker = React.forwardRef(function DatePicker(
           savedOnChange(...args);
         }
       },
-      onClose: savedOnClose,
+
       onReady: onHook,
       onMonthChange: onHook,
       onYearChange: onHook,
@@ -772,14 +787,7 @@ const DatePicker = React.forwardRef(function DatePicker(
       }
     };
     // eslint-disable-next-line react-hooks/exhaustive-deps
-  }, [
-    savedOnChange,
-    savedOnClose,
-    savedOnOpen,
-    readOnly,
-    closeOnSelect,
-    hasInput,
-  ]);
+  }, [savedOnChange, savedOnOpen, readOnly, closeOnSelect, hasInput]);
 
   // this hook allows consumers to access the flatpickr calendar
   // instance for cases where functions like open() or close()
@@ -831,6 +839,56 @@ const DatePicker = React.forwardRef(function DatePicker(
       calendarRef.current.set('inline', inline);
     }
   }, [inline]);
+  useEffect(() => {
+    //when value prop is set to empty, this clears the faltpicker's calendar instance and text input
+    if (value === '') {
+      calendarRef.current?.clear();
+      if (startInputField.current) {
+        startInputField.current.value = '';
+      }
+
+      if (endInputField.current) {
+        endInputField.current.value = '';
+      }
+    }
+  }, [value]);
+
+  useEffect(() => {
+    let isMouseDown = false;
+
+    const handleMouseDown = (event) => {
+      if (
+        calendarRef.current &&
+        calendarRef.current.isOpen &&
+        !calendarRef.current.calendarContainer.contains(event.target) &&
+        !startInputField.current.contains(event.target) &&
+        !endInputField.current?.contains(event.target)
+      ) {
+        isMouseDown = true;
+        // Close the calendar immediately on mousedown
+        closeCalendar(event);
+      }
+    };
+
+    const closeCalendar = (event) => {
+      calendarRef.current.close();
+      // Remove focus from endDate calendar input
+      if (document.activeElement instanceof HTMLElement) {
+        document.activeElement.blur();
+      }
+      onCalendarClose(
+        calendarRef.current.selectedDates,
+        '',
+        calendarRef.current,
+        { type: 'clickOutside' }
+      );
+    };
+    document.addEventListener('mousedown', handleMouseDown, true);
+
+    return () => {
+      document.removeEventListener('mousedown', handleMouseDown, true);
+    };
+  }, [calendarRef, startInputField, endInputField, onCalendarClose]);
 
   useEffect(() => {
     if (calendarRef?.current?.set) {
diff --git a/packages/react/src/components/DatePicker/plugins/fixEventsPlugin.js b/packages/react/src/components/DatePicker/plugins/fixEventsPlugin.js
index 8595c9cd6a77..e779049b72a5 100644
--- a/packages/react/src/components/DatePicker/plugins/fixEventsPlugin.js
+++ b/packages/react/src/components/DatePicker/plugins/fixEventsPlugin.js
@@ -13,6 +13,20 @@ import { match, keys } from '../../../internal/keyboard';
  */
 export default (config) => (fp) => {
   const { inputFrom, inputTo, lastStartValue } = config;
+  /**
+   * Handles `click` outside to close calendar
+   */
+  const handleClickOutside = (event) => {
+    if (
+      !fp.isOpen ||
+      fp.calendarContainer.contains(event.target) ||
+      event.target === inputFrom ||
+      event.target === inputTo
+    ) {
+      return;
+    }
+    fp.close();
+  };
   /**
    * Handles `keydown` event.
    */
@@ -127,6 +141,7 @@ export default (config) => (fp) => {
       inputTo.removeEventListener('blur', handleBlur, true);
     }
     inputFrom.removeEventListener('keydown', handleKeydown, true);
+    document.removeEventListener('click', handleClickOutside, true);
   };
 
   /**
@@ -140,6 +155,7 @@ export default (config) => (fp) => {
       inputTo.addEventListener('keydown', handleKeydown, true);
       inputTo.addEventListener('blur', handleBlur, true);
     }
+    document.addEventListener('click', handleClickOutside, true);
   };
 
   /**