diff --git a/packages/react-examples/src/react/ContextualMenu/ContextualMenu.CustomMenuList.Example.tsx b/packages/react-examples/src/react/ContextualMenu/ContextualMenu.CustomMenuList.Example.tsx
index 68962c4e631ddf..cfa12b450dd7b7 100644
--- a/packages/react-examples/src/react/ContextualMenu/ContextualMenu.CustomMenuList.Example.tsx
+++ b/packages/react-examples/src/react/ContextualMenu/ContextualMenu.CustomMenuList.Example.tsx
@@ -4,6 +4,7 @@ import { ISearchBoxStyles, SearchBox } from '@fluentui/react/lib/SearchBox';
 import { Icon } from '@fluentui/react/lib/Icon';
 import { IContextualMenuListProps, IContextualMenuItem } from '@fluentui/react/lib/ContextualMenu';
 import { IRenderFunction } from '@fluentui/react/lib/Utilities';
+import { KeyCodes } from '@fluentui/react';
 
 export const ContextualMenuWithCustomMenuListExample: React.FunctionComponent = () => {
   const [items, setItems] = React.useState(menuItems);
@@ -32,6 +33,21 @@ export const ContextualMenuWithCustomMenuListExample: React.FunctionComponent =
     setItems(filteredItems);
   }, []);
 
+  const onKeyDown = React.useCallback((e, ...args) => {
+    /* Key Up, but we are not at the beginning of the text: stop event propagation to prevent ContextualMenu to focus */
+    if (e.target.selectionStart > 0 && e.which === KeyCodes.up) {
+      e.stopPropagation();
+    }
+    /* Key Down, but we are not at the end of the text: stop event propagation to prevent ContextualMenu to focus */
+    if (e.target.selectionStart !== e.target.value.length && e.which === KeyCodes.down) {
+      e.stopPropagation();
+    }
+  }, []);
+
+  const onDismiss = React.useCallback(() => {
+    setItems(menuItems);
+  }, []);
+
   const renderMenuList = React.useCallback(
     (menuListProps: IContextualMenuListProps, defaultRender: IRenderFunction<IContextualMenuListProps>) => {
       return (
@@ -42,6 +58,7 @@ export const ContextualMenuWithCustomMenuListExample: React.FunctionComponent =
               placeholder="Filter actions"
               onAbort={onAbort}
               onChange={onChange}
+              onKeyDown={onKeyDown}
               styles={searchBoxStyles}
             />
           </div>
@@ -49,7 +66,7 @@ export const ContextualMenuWithCustomMenuListExample: React.FunctionComponent =
         </div>
       );
     },
-    [onAbort, onChange],
+    [onAbort, onChange, onKeyDown],
   );
 
   const menuProps = React.useMemo(
@@ -58,8 +75,12 @@ export const ContextualMenuWithCustomMenuListExample: React.FunctionComponent =
       title: 'Actions',
       shouldFocusOnMount: true,
       items,
+      focusZoneProps: {
+        shouldInputLoseFocusOnArrowKey: () => true /* Allow up and down arrows to move focus out of the SearchBox */,
+      },
+      onDismiss,
     }),
-    [items, renderMenuList],
+    [items, renderMenuList, onDismiss],
   );
 
   return <DefaultButton text="Click for ContextualMenu" menuProps={menuProps} />;