diff --git a/resources/js/components/field-validation/Builder.vue b/resources/js/components/field-validation/Builder.vue
index 384f30c8f72..f04f80aff51 100644
--- a/resources/js/components/field-validation/Builder.vue
+++ b/resources/js/components/field-validation/Builder.vue
@@ -256,8 +256,9 @@ export default {
 
         ifSearchNotFoundAddCustom() {
             let rulesSelect = this.$refs.rulesSelect;
-            let rule = rulesSelect.searchQuery.value;
+            let rule = rulesSelect?.searchQuery;
 
+            if (!rule) return;
             if (this.searchNotFound(rulesSelect) || this.hasUnfinishedParameters(rule)) return;
 
             this.add(rule);
@@ -272,7 +273,7 @@ export default {
         },
 
         searchNotFound(rulesSelect) {
-            return rulesSelect.searchQuery.value?.length === 0 || rulesSelect?.filteredOptions.length === 0;
+            return rulesSelect.filteredOptions.length === 0;
         },
 
         updated(rules) {
diff --git a/resources/js/components/fieldtypes/FormattingLocalesFieldtype.vue b/resources/js/components/fieldtypes/FormattingLocalesFieldtype.vue
index d2b77f2f279..ef038c9b35b 100644
--- a/resources/js/components/fieldtypes/FormattingLocalesFieldtype.vue
+++ b/resources/js/components/fieldtypes/FormattingLocalesFieldtype.vue
@@ -18,8 +18,9 @@
                 <span class="text-gray-500 dark:text-gray-400" v-text="getSample(value)" />
             </div>
         </template>
-        <template #option="{ value, label, sample }">
-            <template v-if="value === 'language'">{{ label }}</template>
+        <template #option="{ value, label, sample, create }">
+            <template v-if="create">{{ __('Add ":value"', { value }) }}</template>
+            <template v-else-if="value === 'language'">{{ label }}</template>
             <div v-else class="w-full flex justify-between">
                 <div class="text-start flex-1">
                     {{ label }}
diff --git a/resources/js/components/inputs/relationship/SelectField.vue b/resources/js/components/inputs/relationship/SelectField.vue
index 628d716ae12..0d383f608c9 100644
--- a/resources/js/components/inputs/relationship/SelectField.vue
+++ b/resources/js/components/inputs/relationship/SelectField.vue
@@ -18,10 +18,11 @@
             @update:modelValue="itemsSelected"
             @search="search"
         >
-            <template #option="{ title, hint, status }">
+            <template #option="{ title, hint, status, create }">
                 <div class="flex w-full text-left items-center gap-2">
                     <StatusIndicator v-if="status" :status="status" />
-                    <div v-text="title" class="truncate grow" />
+                    <div v-if="create" class="truncate grow">{{ __('Add ":value"', { value: title }) }}</div>
+                    <div v-else v-text="title" class="truncate grow" />
                     <ui-badge v-if="hint" size="sm" v-text="hint" />
                 </div>
             </template>
@@ -191,11 +192,6 @@ export default {
 
             this.$emit('input', items);
         },
-
-        createOption(value) {
-            const existing = this.options.find((option) => option.title === value);
-            return existing || { id: value, title: value };
-        },
     },
 };
 </script>
diff --git a/resources/js/components/ui/Combobox/Combobox.vue b/resources/js/components/ui/Combobox/Combobox.vue
index 67684f59fd9..67cea7d79ce 100644
--- a/resources/js/components/ui/Combobox/Combobox.vue
+++ b/resources/js/components/ui/Combobox/Combobox.vue
@@ -142,12 +142,17 @@ const itemClasses = cva({
 
 const searchQuery = ref('');
 const dropdownOpen = ref(false);
+const focusedByPointer = ref(false);
 const rootRef = useTemplateRef('root');
+const wrapperRef = useTemplateRef('wrapper');
 const triggerRef = useTemplateRef('trigger');
 const searchInputRef = useTemplateRef('search');
 
 watch(searchQuery, (value) => emit('search', value, () => {}));
-watch(dropdownOpen, () => searchQuery.value = '');
+
+watch(dropdownOpen, (open) => {
+    if (!open) searchQuery.value = '';
+});
 
 const getOptionLabel = (option) => {
     const label = option?.[props.optionLabel];
@@ -232,37 +237,49 @@ const placeholder = computed(() => {
 });
 
 const filteredOptions = computed(() => {
-    if (!props.searchable || props.ignoreFilter) {
-        return props.options;
+    let results = [...props.options];
+
+    if (props.searchable && !props.ignoreFilter) {
+        const matches = new Set(
+            fuzzysort
+                .go(searchQuery.value, props.options, {
+                    all: true,
+                    ...(props.searchKeys?.length ? { keys: props.searchKeys } : { key: props.optionLabel }),
+                })
+                .map((result) => result.obj)
+        );
+
+        results = props.options.filter((option) => matches.has(option));
     }
 
-    const matches = new Set(
-        fuzzysort
-            .go(searchQuery.value, props.options, {
-                all: true,
-                ...(props.searchKeys?.length ? { keys: props.searchKeys } : { key: props.optionLabel }),
-            })
-            .map((result) => result.obj)
-    );
-
-    const results = props.options.filter((option) => matches.has(option));
-
-    if (props.taggable && searchQuery.value && results.length === 0) {
-        results.push({
+    if (shouldShowCreateOption.value) {
+        results.unshift({
             [props.optionLabel]: searchQuery.value,
             [props.optionValue]: searchQuery.value,
+            create: true,
         });
     }
 
     return results;
 });
 
+const shouldShowCreateOption = computed(() => {
+    if (!props.taggable || !searchQuery.value) return false;
+
+    const matchesSearchQuery = (option) =>
+        getOptionLabel(option) === searchQuery.value || String(getOptionValue(option)) === searchQuery.value;
+
+    return !props.options.some(matchesSearchQuery) && !selectedOptions.value.some(matchesSearchQuery);
+});
+
 function clear() {
     searchQuery.value = '';
     emit('update:modelValue', null);
 }
 
-function select() {
+function select(option) {
+    if (option.create) emit('added', getOptionValue(option));
+
     dropdownOpen.value = !shouldCloseOnSelect.value;
     if (shouldCloseOnSelect.value) triggerRef.value?.$el?.focus();
 }
@@ -305,6 +322,23 @@ function openDropdown(e) {
     updateDropdownOpen(true);
 }
 
+function onFocus(e) {
+    const byPointer = focusedByPointer.value;
+    focusedByPointer.value = false;
+
+    if (!props.taggable || byPointer || dropdownOpen.value) return;
+    if (!focusCameFromOutside(e)) return;
+
+    updateDropdownOpen(true);
+}
+
+function focusCameFromOutside(e) {
+    if (!e.relatedTarget) return false;
+    if ('rekaCollectionItem' in e.relatedTarget.dataset) return false;
+
+    return !wrapperRef.value?.contains(e.relatedTarget);
+}
+
 function onBlur(e) {
     if (!props.taggable) return;
 
@@ -331,6 +365,7 @@ function onPaste(e) {
 
 function pushTaggableOption(e) {
     if (!props.taggable) return;
+    if (e.defaultPrevented) return; // Reka prevents the event's default when it selects a highlighted option.
     if (e.target.value === '') return;
 
     e.preventDefault();
@@ -369,7 +404,13 @@ defineExpose({
 </script>
 
 <template>
-    <div :class="wrapperClasses" v-bind="wrapperAttrs">
+    <div
+        ref="wrapper"
+        :class="wrapperClasses"
+        v-bind="wrapperAttrs"
+        @pointerdown="focusedByPointer = true"
+        @click="focusedByPointer = false"
+    >
         <div class="flex w-full min-w-0">
             <ComboboxRoot
                 ref="root"
@@ -390,7 +431,7 @@ defineExpose({
                     <ComboboxTrigger
                         as="div"
                         ref="trigger"
-                        :tabindex="disabled || readOnly ? -1 : 0"
+                        :tabindex="disabled || readOnly || shouldShowInput ? -1 : 0"
                         :class="triggerClasses"
                         data-ui-combobox-trigger
                         @keydown.enter="openDropdown"
@@ -409,6 +450,7 @@ defineExpose({
                                 type="search"
                                 autocomplete="off"
                                 v-model="searchQuery"
+                                @focus="onFocus"
                                 @blur="onBlur"
                                 @paste="onPaste"
                                 @keydown.enter="pushTaggableOption"
@@ -507,12 +549,15 @@ defineExpose({
                                             :class="itemClasses({ size: size, selected: isSelected(option) })"
                                             :data-ui-combobox-item="getOptionValue(option)"
                                             :title="getOptionLabel(option)"
-                                            @select="select"
+                                            @select="select(option)"
                                         >
                                             <slot name="option" v-bind="option">
-                                                <img v-if="option.image" :src="option.image" class="size-5 rounded-full" :alt="getOptionLabel(option)">
-                                                <span v-if="labelHtml" class="truncate" v-html="getOptionLabel(option)" />
-                                                <span class="truncate" v-else>{{ __(getOptionLabel(option)) }}</span>
+                                                <span v-if="option.create" class="truncate">{{ __('Add ":value"', { value: getOptionLabel(option) }) }}</span>
+                                                <template v-else>
+                                                    <img v-if="option.image" :src="option.image" class="size-5 rounded-full" :alt="getOptionLabel(option)">
+                                                    <span v-if="labelHtml" class="truncate" v-html="getOptionLabel(option)" />
+                                                    <span class="truncate" v-else>{{ __(getOptionLabel(option)) }}</span>
+                                                </template>
                                             </slot>
                                         </ComboboxItem>
                                     </div>
diff --git a/resources/js/stories/Combobox.stories.ts b/resources/js/stories/Combobox.stories.ts
index 11d1b945793..0e983dcf6e8 100644
--- a/resources/js/stories/Combobox.stories.ts
+++ b/resources/js/stories/Combobox.stories.ts
@@ -1076,6 +1076,121 @@ export const TestTaggableSinglePasteDoesNotCommitTags: Story = {
     },
 };
 
+export const TestTaggableShowsAddOptionAlongsideMatches: Story = {
+    tags: ['!dev', 'test'],
+    render: () => ({
+        components: { Combobox },
+        setup() {
+            const value = ref<string[]>([]);
+            return { value, options: defaultOptions };
+        },
+        template: `<Combobox v-model="value" :options="options" multiple taggable placeholder="Add tags..." />`,
+    }),
+    play: async ({ canvasElement }) => {
+        const canvas = within(canvasElement);
+        const trigger = canvas.getByRole('combobox');
+
+        await userEvent.click(trigger);
+
+        const input = document.querySelector('input[type="search"]') as HTMLInputElement;
+        await userEvent.type(input, 'the');
+
+        await new Promise((r) => setTimeout(r, 100));
+
+        const options = document.querySelectorAll('[data-ui-combobox-item]');
+        expect(options.length).toBe(3);
+        expect(options[0].getAttribute('data-ui-combobox-item')).toBe('the');
+        expect(options[0].textContent).toContain('Add "the"');
+    },
+};
+
+export const TestTaggableHidesAddOptionWhenQueryMatchesExistingOption: Story = {
+    tags: ['!dev', 'test'],
+    render: () => ({
+        components: { Combobox },
+        setup() {
+            const value = ref<string[]>([]);
+            return { value, options: defaultOptions };
+        },
+        template: `<Combobox v-model="value" :options="options" multiple taggable placeholder="Add tags..." />`,
+    }),
+    play: async ({ canvasElement }) => {
+        const canvas = within(canvasElement);
+        const trigger = canvas.getByRole('combobox');
+
+        await userEvent.click(trigger);
+
+        const input = document.querySelector('input[type="search"]') as HTMLInputElement;
+        await userEvent.type(input, 'The Midnight');
+
+        await new Promise((r) => setTimeout(r, 100));
+
+        const options = document.querySelectorAll('[data-ui-combobox-item]');
+        expect(options.length).toBe(1);
+        expect(options[0].getAttribute('data-ui-combobox-item')).toBe('the_midnight');
+    },
+};
+
+export const TestTaggableEnterSelectsHighlightedOption: Story = {
+    tags: ['!dev', 'test'],
+    args: {
+        'onUpdate:modelValue': fn(),
+        onAdded: fn(),
+    },
+    render: (args) => ({
+        components: { Combobox },
+        setup() {
+            const value = ref<string[]>([]);
+            return { value, options: defaultOptions, onUpdate: args['onUpdate:modelValue'], onAdded: args.onAdded };
+        },
+        template: `<Combobox v-model="value" :options="options" multiple taggable placeholder="Add tags..." @update:modelValue="onUpdate" @added="onAdded" />`,
+    }),
+    play: async ({ canvasElement, args }) => {
+        const canvas = within(canvasElement);
+        const trigger = canvas.getByRole('combobox');
+
+        await userEvent.click(trigger);
+
+        const input = document.querySelector('input[type="search"]') as HTMLInputElement;
+        await userEvent.type(input, 'the');
+
+        await new Promise((r) => setTimeout(r, 100));
+
+        await userEvent.keyboard('{ArrowDown}');
+        await userEvent.keyboard('{Enter}');
+
+        await expect(args['onUpdate:modelValue']).toHaveBeenCalledWith(['the_midnight']);
+        expect(args.onAdded).not.toHaveBeenCalled();
+    },
+};
+
+export const TestTaggableDropdownOpensOnTabFocus: Story = {
+    tags: ['!dev', 'test'],
+    render: () => ({
+        components: { Combobox },
+        setup() {
+            const value = ref<string[]>([]);
+            return { value, options: defaultOptions };
+        },
+        template: `
+            <input data-testid="before" />
+            <Combobox v-model="value" :options="options" multiple taggable placeholder="Add tags..." />
+        `,
+    }),
+    play: async ({ canvasElement }) => {
+        const canvas = within(canvasElement);
+
+        canvas.getByTestId('before').focus();
+        await userEvent.tab();
+
+        await new Promise((r) => setTimeout(r, 100));
+
+        const input = document.querySelector('input[type="search"]') as HTMLInputElement;
+        expect(document.activeElement).toBe(input);
+        await expect(document.querySelector('[data-ui-combobox-content]')).toBeTruthy();
+    },
+};
+
 export const TestDropdownOpensOnSpace: Story = {
     tags: ['!dev', 'test'],
     render: () => ({