diff --git a/projects/igniteui-angular/drop-down/src/drop-down/autocomplete/autocomplete.directive.spec.ts b/projects/igniteui-angular/drop-down/src/drop-down/autocomplete/autocomplete.directive.spec.ts
index 5d61ef65741..f0b3bc4642f 100644
--- a/projects/igniteui-angular/drop-down/src/drop-down/autocomplete/autocomplete.directive.spec.ts
+++ b/projects/igniteui-angular/drop-down/src/drop-down/autocomplete/autocomplete.directive.spec.ts
@@ -73,6 +73,23 @@ describe('IgxAutocomplete', () => {
             fixture.detectChanges();
             expect(dropDown.collapsed).toBeTruthy();
         }));
+        it('Should close dropdown on Tab without calling super.handleKeyDown', fakeAsync(() => {
+            spyOn(autocomplete, 'handleKeyDown').and.callThrough();
+            spyOn(IgxDropDownItemNavigationDirective.prototype, 'handleKeyDown').and.callThrough();
+
+            input.nativeElement.focus();
+            UIInteractions.setInputElementValue(input, 's', fixture);
+            tick();
+            expect(dropDown.collapsed).toBeFalsy();
+
+            // IgxDropDownItemNavigationDirective handleKeyDown is not called when dropdown is closed on Tab
+            UIInteractions.triggerKeyDownEvtUponElem('Tab', input.nativeElement, true);
+            fixture.detectChanges();
+            tick();
+            expect(dropDown.collapsed).toBeTruthy();
+            expect(autocomplete.handleKeyDown).toHaveBeenCalledTimes(1);
+            expect(IgxDropDownItemNavigationDirective.prototype.handleKeyDown).toHaveBeenCalledTimes(0);
+        }));
         it('Should open drop down on (Alt+)ArrowUp/ArrowDown', fakeAsync(() => {
             UIInteractions.triggerKeyDownEvtUponElem('ArrowDown', input.nativeElement, true);
             tick();
diff --git a/projects/igniteui-angular/drop-down/src/drop-down/autocomplete/autocomplete.directive.ts b/projects/igniteui-angular/drop-down/src/drop-down/autocomplete/autocomplete.directive.ts
index 4388c106310..00f8ba12d21 100644
--- a/projects/igniteui-angular/drop-down/src/drop-down/autocomplete/autocomplete.directive.ts
+++ b/projects/igniteui-angular/drop-down/src/drop-down/autocomplete/autocomplete.directive.ts
@@ -252,6 +252,7 @@ export class IgxAutocompleteDirective extends IgxDropDownItemNavigationDirective
                 case ' ':
                 case 'home':
                 case 'end':
+                case 'tab':
                     return;
                 default:
                     super.handleKeyDown(event);