diff --git a/frontend/__tests__/components/ui/dropdown.test.tsx b/frontend/__tests__/components/ui/dropdown.test.tsx
index 883cc1abec..9d3bbc81db 100644
--- a/frontend/__tests__/components/ui/dropdown.test.tsx
+++ b/frontend/__tests__/components/ui/dropdown.test.tsx
@@ -154,6 +154,30 @@ describe("Dropdown", () => {
       const selectedOption = screen.getByRole("option", { name: "Option 1" });
       expect(selectedOption).toHaveAttribute("aria-selected", "true");
     });
+
+    it("should preserve selected value in input and show all options when reopening dropdown", async () => {
+      const user = userEvent.setup();
+      render(<Dropdown options={mockOptions} />);
+
+      const trigger = screen.getByTestId("dropdown-trigger");
+      await user.click(trigger);
+      await user.click(screen.getByRole("option", { name: "Option 1" }));
+
+      // Reopen the dropdown
+      await user.click(trigger);
+
+      const input = screen.getByRole("combobox");
+      expect(input).toHaveValue("Option 1");
+      expect(
+        screen.getByRole("option", { name: "Option 1" }),
+      ).toBeInTheDocument();
+      expect(
+        screen.getByRole("option", { name: "Option 2" }),
+      ).toBeInTheDocument();
+      expect(
+        screen.getByRole("option", { name: "Option 3" }),
+      ).toBeInTheDocument();
+    });
   });
 
   describe("Clear button", () => {
diff --git a/frontend/src/ui/dropdown/dropdown.tsx b/frontend/src/ui/dropdown/dropdown.tsx
index 854095a1f6..103de4bcb2 100644
--- a/frontend/src/ui/dropdown/dropdown.tsx
+++ b/frontend/src/ui/dropdown/dropdown.tsx
@@ -32,9 +32,10 @@ export function Dropdown({
   testId,
 }: DropdownProps) {
   const [inputValue, setInputValue] = useState(defaultValue?.label ?? "");
+  const [searchTerm, setSearchTerm] = useState("");
 
   const filteredOptions = options.filter((option) =>
-    option.label.toLowerCase().includes(inputValue.toLowerCase()),
+    option.label.toLowerCase().includes(searchTerm.toLowerCase()),
   );
 
   const {
@@ -51,6 +52,7 @@ export function Dropdown({
     inputValue,
     onInputValueChange: ({ inputValue: newValue }) => {
       setInputValue(newValue ?? "");
+      setSearchTerm(newValue ?? "");
     },
     defaultSelectedItem: defaultValue,
     onSelectedItemChange: ({ selectedItem: newSelectedItem }) => {
@@ -61,9 +63,10 @@ export function Dropdown({
       selectedItem: currentSelectedItem,
     }) => {
       if (newIsOpen) {
-        setInputValue("");
+        setSearchTerm("");
       } else {
         setInputValue(currentSelectedItem?.label ?? "");
+        setSearchTerm("");
       }
     },
   });