diff --git a/packages/combo-box/src/vaadin-combo-box-mixin.js b/packages/combo-box/src/vaadin-combo-box-mixin.js
index dcda823a80..d64075919f 100644
--- a/packages/combo-box/src/vaadin-combo-box-mixin.js
+++ b/packages/combo-box/src/vaadin-combo-box-mixin.js
@@ -569,11 +569,14 @@ export const ComboBoxMixin = (subclass) =>
     _onEscape(e) {
       if (this.autoOpenDisabled) {
         // Auto-open is disabled
-        if (this.value !== this._inputElementValue) {
+        if (this.opened || (this.value !== this._inputElementValue && this._inputElementValue.length > 0)) {
+          // The overlay is open or
           // The input value has changed but the change hasn't been committed, so cancel it.
+          e.stopPropagation();
           this._focusedIndex = -1;
           this.cancel();
-        } else if (this.clearButtonVisible && !this.opened) {
+        } else if (this.clearButtonVisible && !this.opened && !!this.value) {
+          e.stopPropagation();
           // The clear button is visible and the overlay is closed, so clear the value.
           this._clear();
         }
@@ -591,7 +594,8 @@ export const ComboBoxMixin = (subclass) =>
             // No item is focused, cancel the change and close the overlay
             this.cancel();
           }
-        } else if (this.clearButtonVisible) {
+        } else if (this.clearButtonVisible && !!this.value) {
+          e.stopPropagation();
           // The clear button is visible and the overlay is closed, so clear the value.
           this._clear();
         }
diff --git a/packages/combo-box/test/keyboard.test.js b/packages/combo-box/test/keyboard.test.js
index 33ec09e46a..08d28f7b0d 100644
--- a/packages/combo-box/test/keyboard.test.js
+++ b/packages/combo-box/test/keyboard.test.js
@@ -8,6 +8,7 @@ import {
   fire,
   fixtureSync,
   focusout,
+  keyboardEventFor,
   keyDownOn,
   nextFrame
 } from '@vaadin/testing-helpers';
@@ -69,6 +70,23 @@ describe('keyboard', () => {
 
       expect(getFocusedIndex()).to.equal(0);
     });
+
+    it('should propagate escape key event if dropdown is closed', () => {
+      const event = keyboardEventFor('keydown', 27, [], 'Escape');
+      const keyDownSpy = sinon.spy(event, 'stopPropagation');
+      input.dispatchEvent(event);
+      expect(keyDownSpy.called).to.be.false;
+    });
+
+    it('should not propagate esc keydown event when overlay is closed, clear button is visible and value is not empty', () => {
+      comboBox.value = 'bar';
+      comboBox.clearButtonVisible = true;
+
+      const event = keyboardEventFor('keydown', 27, [], 'Escape');
+      const keyDownSpy = sinon.spy(event, 'stopPropagation');
+      input.dispatchEvent(event);
+      expect(keyDownSpy.called).to.be.true;
+    });
   });
 
   describe('navigating after overlay opened', () => {
@@ -231,7 +249,7 @@ describe('keyboard', () => {
       expect(input.value).to.equal('foobar');
     });
 
-    it('should revert to the custom value after keyboar navigation', () => {
+    it('should revert to the custom value after keyboard navigation', () => {
       comboBox.allowCustomValue = true;
       comboBox.value = 'foobar';
       arrowDownKeyDown(input);
@@ -557,5 +575,14 @@ describe('keyboard', () => {
       escKeyDown(input);
       expect(comboBox.value).to.equal('bar');
     });
+
+    it('should not propagate when input value is not empty', () => {
+      inputText('foo');
+
+      const event = keyboardEventFor('keydown', 27, [], 'Escape');
+      const keyDownSpy = sinon.spy(event, 'stopPropagation');
+      input.dispatchEvent(event);
+      expect(keyDownSpy.called).to.be.true;
+    });
   });
 });