diff --git a/docs/src/COMPONENT_API.json b/docs/src/COMPONENT_API.json
index bded7736..dec083b9 100644
--- a/docs/src/COMPONENT_API.json
+++ b/docs/src/COMPONENT_API.json
@@ -1505,6 +1505,18 @@
           "constant": false,
           "reactive": true
         },
+        {
+          "name": "allowArbitraryValues",
+          "kind": "let",
+          "description": "Set to `true` to allow values that aren't included in `items`",
+          "type": "boolean",
+          "value": "false",
+          "isFunction": false,
+          "isFunctionDeclaration": false,
+          "isRequired": false,
+          "constant": false,
+          "reactive": false
+        },
         {
           "name": "direction",
           "kind": "let",
diff --git a/docs/src/pages/components/ComboBox.svx b/docs/src/pages/components/ComboBox.svx
index 559b4127..4552cd15 100644
--- a/docs/src/pages/components/ComboBox.svx
+++ b/docs/src/pages/components/ComboBox.svx
@@ -34,6 +34,19 @@ items={[
   {id: "2", text: "Fax"}
   ]}  />
 
+## Arbitrary Values
+
+Set `allowArbitraryValues` to `true` to allow the user to type in whatever value they want, even if it's not present in `items`.
+`selectedId` will be set to `undefined` when the value is arbitrary.
+
+<ComboBox allowArbitraryValues titleText="Contact" placeholder="Select contact method"
+selectedId="1"
+items={[
+  {id: "0", text: "Slack"},
+  {id: "1", text: "Email"},
+  {id: "2", text: "Fax"}
+  ]}  />
+
 ## Reactive example
 
 <FileSource src="/framed/ComboBox/ReactiveComboBox" />
diff --git a/docs/yarn.lock b/docs/yarn.lock
index d2561d54..f08d35f9 100644
--- a/docs/yarn.lock
+++ b/docs/yarn.lock
@@ -120,6 +120,11 @@
   resolved "https://registry.yarnpkg.com/@esbuild/win32-x64/-/win32-x64-0.19.9.tgz#b2da6219b603e3fa371a78f53f5361260d0c5585"
   integrity sha512-oxoQgglOP7RH6iasDrhY+R/3cHrfwIDvRlT4CGChflq6twk8iENeVvMJjmvBb94Ik1Z+93iGO27err7w6l54GQ==
 
+"@ibm/telemetry-js@^1.2.1":
+  version "1.3.0"
+  resolved "https://registry.yarnpkg.com/@ibm/telemetry-js/-/telemetry-js-1.3.0.tgz#321f2ed4bbbc78d69dc1ee9cb6f83d2d2af9baef"
+  integrity sha512-9gIkyF2B9RizWN6rsdQN76DN6D+/Xbr4HGTwm6EUujfXvEVtWbf4jzxDFwKvZkeTC2tjHpkUNJQKdivbMKt8yg==
+
 "@jridgewell/gen-mapping@^0.3.0":
   version "0.3.3"
   resolved "https://registry.yarnpkg.com/@jridgewell/gen-mapping/-/gen-mapping-0.3.3.tgz#7e02e6eb5df901aaedb08514203b096614024098"
@@ -399,8 +404,9 @@ bufferutil@^4.0.1:
     node-gyp-build "~3.7.0"
 
 carbon-components-svelte@../:
-  version "0.82.5"
+  version "0.84.1"
   dependencies:
+    "@ibm/telemetry-js" "^1.2.1"
     flatpickr "4.6.9"
 
 carbon-icons-svelte@^12.4.1:
diff --git a/src/ComboBox/ComboBox.svelte b/src/ComboBox/ComboBox.svelte
index 0aee1350..1d4464d2 100644
--- a/src/ComboBox/ComboBox.svelte
+++ b/src/ComboBox/ComboBox.svelte
@@ -27,6 +27,12 @@
   /** Specify the selected combobox value */
   export let value = "";
 
+  /**
+   * Allow values that aren't in `items`.
+   * @type {boolean}
+   */
+  export let allowArbitraryValues = false
+
   /**
    * Specify the direction of the combobox dropdown menu
    * @type {"bottom" | "top"}
@@ -107,7 +113,7 @@
    */
   export let listRef = null;
 
-  import { createEventDispatcher, afterUpdate, tick } from "svelte";
+  import { createEventDispatcher, afterUpdate, tick, onMount } from "svelte";
   import Checkmark from "../icons/Checkmark.svelte";
   import WarningFilled from "../icons/WarningFilled.svelte";
   import WarningAltFilled from "../icons/WarningAltFilled.svelte";
@@ -165,6 +171,12 @@
     if (options?.focus !== false) ref?.focus();
   }
 
+  onMount(() => {
+    if (selectedItem) {
+      value = itemToString(selectedItem)
+    }
+  })
+
   afterUpdate(() => {
     if (open) {
       ref.focus();
@@ -172,14 +184,16 @@
     } else {
       highlightedIndex = -1;
       filteredItems = [];
-      if (!selectedItem) {
-        selectedId = undefined;
-        value = "";
-        highlightedIndex = -1;
-        highlightedId = undefined;
-      } else {
-        // programmatically set value
-        value = itemToString(selectedItem);
+      if (!allowArbitraryValues) {
+        if (!selectedItem) {
+          selectedId = undefined;
+          value = "";
+          highlightedIndex = -1;
+          highlightedId = undefined;
+        } else {
+          // programmatically set value
+          value = itemToString(selectedItem);
+        }
       }
     }
   });
@@ -202,6 +216,39 @@
     selectedItem = undefined;
   }
 
+  function searchForMatchingValue() {
+    // searching typed value in text list with lowercase
+    let matchedItem =
+      filteredItems.find(
+        (e) =>
+          e.text.toLowerCase() === value?.toLowerCase() && !e.disabled
+      );
+
+    if (!allowArbitraryValues) {
+      // typed value has matched or fallback to first enabled item
+      matchedItem = matchedItem ?? filteredItems.find((e) => !e.disabled);
+      if (matchedItem) setMatchedItem(matchedItem)
+    } else {
+      // When allowing arbitrary values, we still want to select a value if the user types in one that exists.
+      // But if it doesn't exist, we don't try to fallback to another value.
+      if (matchedItem) {
+        setMatchedItem(matchedItem)
+      } else {
+        open = false;
+        selectedItem = undefined;
+        selectedId = undefined;
+      }
+    }
+  }
+
+  /** @param item {ComboBoxItem}*/
+  function setMatchedItem(item) {
+    open = false;
+    selectedItem = item;
+    value = itemToString(selectedItem);
+    selectedId = selectedItem.id;
+  }
+
   $: ariaLabel = $$props["aria-label"] || "Choose an item";
   $: menuId = `menu-${id}`;
   $: comboId = `combo-${id}`;
@@ -305,19 +352,7 @@
                 selectedId = filteredItems[highlightedIndex].id;
               }
             } else {
-              // searching typed value in text list with lowercase
-              const matchedItem =
-                filteredItems.find(
-                  (e) =>
-                    e.text.toLowerCase() === value?.toLowerCase() && !e.disabled
-                ) ?? filteredItems.find((e) => !e.disabled);
-              if (matchedItem) {
-                // typed value has matched or fallback to first enabled item
-                open = false;
-                selectedItem = matchedItem;
-                value = itemToString(selectedItem);
-                selectedId = selectedItem.id;
-              }
+              searchForMatchingValue()
             }
             highlightedIndex = -1;
           } else if (key === 'Tab') {