diff --git a/packages/components/CHANGELOG.md b/packages/components/CHANGELOG.md
index 9f3731a282d262..6ac86a4e483bc9 100644
--- a/packages/components/CHANGELOG.md
+++ b/packages/components/CHANGELOG.md
@@ -4,6 +4,7 @@
 
 ### Bug Fixes
 
+-   `ComboboxControl`: Fix ComboboxControl reset button when using the keyboard. ([#63410](https://github.com/WordPress/gutenberg/pull/63410))
 -   `Button`: Never apply `aria-disabled` to anchor ([#63376](https://github.com/WordPress/gutenberg/pull/63376)).
 
 ### Internal
diff --git a/packages/components/src/combobox-control/index.tsx b/packages/components/src/combobox-control/index.tsx
index d22bbba2a9d24a..a39a5dc1fc541a 100644
--- a/packages/components/src/combobox-control/index.tsx
+++ b/packages/components/src/combobox-control/index.tsx
@@ -267,6 +267,15 @@ function ComboboxControl( props: ComboboxControlProps ) {
 		inputContainer.current?.focus();
 	};
 
+	// Stop propagation of the keydown event when pressing Enter on the Reset
+	// button to prevent calling the onKeydown callback on the container div
+	// element which actually sets the selected suggestion.
+	const handleResetStopPropagation: React.KeyboardEventHandler<
+		HTMLButtonElement
+	> = ( event ) => {
+		event.stopPropagation();
+	};
+
 	// Update current selections when the filter input changes.
 	useEffect( () => {
 		const hasMatchingSuggestions = matchingSuggestions.length > 0;
@@ -350,6 +359,7 @@ function ComboboxControl( props: ComboboxControlProps ) {
 									// eslint-disable-next-line no-restricted-syntax
 									disabled={ ! value }
 									onClick={ handleOnReset }
+									onKeyDown={ handleResetStopPropagation }
 									label={ __( 'Reset' ) }
 								/>
 							</FlexItem>
diff --git a/packages/components/src/combobox-control/test/index.tsx b/packages/components/src/combobox-control/test/index.tsx
index 37802e4669c244..76ce9cc4724c54 100644
--- a/packages/components/src/combobox-control/test/index.tsx
+++ b/packages/components/src/combobox-control/test/index.tsx
@@ -89,7 +89,6 @@ describe.each( [
 			<Component options={ timezones } label={ defaultLabelText } />
 		);
 		const label = getLabel( defaultLabelText );
-		expect( label ).toBeInTheDocument();
 		expect( label ).toBeVisible();
 	} );
 
@@ -306,4 +305,131 @@ describe.each( [
 		expect( onChangeSpy ).toHaveBeenCalledWith( targetOption.value );
 		expect( input ).toHaveValue( targetOption.label );
 	} );
+
+	it( 'should render with Reset button disabled', () => {
+		render(
+			<Component
+				options={ timezones }
+				label={ defaultLabelText }
+				allowReset
+			/>
+		);
+
+		const resetButton = screen.getByRole( 'button', { name: 'Reset' } );
+
+		expect( resetButton ).toBeVisible();
+		expect( resetButton ).toBeDisabled();
+	} );
+
+	it( 'should reset input when clicking the Reset button', async () => {
+		const user = await userEvent.setup();
+		const targetOption = timezones[ 13 ];
+
+		render(
+			<Component
+				options={ timezones }
+				label={ defaultLabelText }
+				allowReset
+			/>
+		);
+
+		// Pressing tab selects the input and shows the options.
+		await user.tab();
+		// Type enough characters to ensure a predictable search result.
+		await user.keyboard( getOptionSearchString( targetOption ) );
+		// Pressing Enter/Return selects the currently focused option.
+		await user.keyboard( '{Enter}' );
+
+		const input = getInput( defaultLabelText );
+
+		expect( input ).toHaveValue( targetOption.label );
+
+		const resetButton = screen.getByRole( 'button', { name: 'Reset' } );
+
+		expect( resetButton ).toBeEnabled();
+
+		await user.click( resetButton );
+
+		expect( input ).toHaveValue( '' );
+		expect( resetButton ).toBeDisabled();
+		expect( input ).toHaveFocus();
+	} );
+
+	it( 'should reset input when pressing the Reset button with the Enter key', async () => {
+		const user = await userEvent.setup();
+		const targetOption = timezones[ 13 ];
+
+		render(
+			<Component
+				options={ timezones }
+				label={ defaultLabelText }
+				allowReset
+			/>
+		);
+
+		// Pressing tab selects the input and shows the options.
+		await user.tab();
+		// Type enough characters to ensure a predictable search result.
+		await user.keyboard( getOptionSearchString( targetOption ) );
+		// Pressing Enter/Return selects the currently focused option.
+		await user.keyboard( '{Enter}' );
+
+		const input = getInput( defaultLabelText );
+
+		expect( input ).toHaveValue( targetOption.label );
+
+		// Pressing tab moves focus to the Reset buttons
+		await user.tab();
+
+		const resetButton = screen.getByRole( 'button', { name: 'Reset' } );
+
+		// If the button has focus that implies it is enabled.
+		expect( resetButton ).toHaveFocus();
+
+		// Pressing Enter/Return resets the input.
+		await user.keyboard( '{Enter}' );
+
+		expect( input ).toHaveValue( '' );
+		expect( resetButton ).toBeDisabled();
+		expect( input ).toHaveFocus();
+	} );
+
+	it( 'should reset input when pressing the Reset button with the Spacebar key', async () => {
+		const user = await userEvent.setup();
+		const targetOption = timezones[ 13 ];
+
+		render(
+			<Component
+				options={ timezones }
+				label={ defaultLabelText }
+				allowReset
+			/>
+		);
+
+		// Pressing tab selects the input and shows the options.
+		await user.tab();
+		// Type enough characters to ensure a predictable search result.
+		await user.keyboard( getOptionSearchString( targetOption ) );
+		// Pressing Enter/Return selects the currently focused option.
+		await user.keyboard( '{Enter}' );
+
+		const input = getInput( defaultLabelText );
+
+		expect( input ).toHaveValue( targetOption.label );
+
+		// Pressing tab moves focus to the Reset buttons.
+		await user.tab();
+
+		const resetButton = screen.getByRole( 'button', { name: 'Reset' } );
+
+		// If the button has focus that implies it is enabled.
+		expect( resetButton ).toHaveFocus();
+
+		// Pressing Spacebar resets the input.
+		await user.keyboard( '[Space]' );
+
+		expect( input ).toHaveValue( '' );
+		expect( resetButton ).toBeDisabled();
+		expect( input ).toHaveFocus();
+	} );
 } );