diff --git a/packages/grafana-ui/src/components/Combobox/Combobox.internal.story.tsx b/packages/grafana-ui/src/components/Combobox/Combobox.internal.story.tsx
index e93dcdf4128..a0bbf86f2ff 100644
--- a/packages/grafana-ui/src/components/Combobox/Combobox.internal.story.tsx
+++ b/packages/grafana-ui/src/components/Combobox/Combobox.internal.story.tsx
@@ -97,9 +97,9 @@ const ManyOptionsStory: StoryFn<PropsAndCustomArgs> = ({ numberOfOptions, ...arg
       loading={isLoading}
       options={options}
       value={value}
-      onChange={(val) => {
-        setValue(val?.value || null);
-        action('onChange')(val);
+      onChange={(opt) => {
+        setValue(opt?.value || null);
+        action('onChange')(opt);
       }}
     />
   );
diff --git a/packages/grafana-ui/src/components/Combobox/Combobox.test.tsx b/packages/grafana-ui/src/components/Combobox/Combobox.test.tsx
index 761adc97c13..b91cde4a618 100644
--- a/packages/grafana-ui/src/components/Combobox/Combobox.test.tsx
+++ b/packages/grafana-ui/src/components/Combobox/Combobox.test.tsx
@@ -79,7 +79,7 @@ describe('Combobox', () => {
   });
 
   it('clears selected value', async () => {
-    render(<Combobox options={options} value={options[1].value} onChange={onChangeHandler} />);
+    render(<Combobox options={options} value={options[1].value} onChange={onChangeHandler} isClearable />);
 
     expect(screen.queryByDisplayValue('Option 2')).toBeInTheDocument();
     const input = screen.getByRole('combobox');
diff --git a/packages/grafana-ui/src/components/Combobox/Combobox.tsx b/packages/grafana-ui/src/components/Combobox/Combobox.tsx
index f3739086a24..3fe19ab9ac7 100644
--- a/packages/grafana-ui/src/components/Combobox/Combobox.tsx
+++ b/packages/grafana-ui/src/components/Combobox/Combobox.tsx
@@ -23,10 +23,12 @@ interface ComboboxProps
   onChange: (val: Option | null) => void;
   value: Value | null;
   options: Option[];
+  isClearable?: boolean;
+  createCustomValue?: boolean;
 }
 
 function itemToString(item: Option | null) {
-  return item?.label ?? '';
+  return item?.label ?? item?.value?.toString() ?? '';
 }
 
 function itemFilter(inputValue: string) {
@@ -51,13 +53,44 @@ const INDEX_WIDTH_CALCULATION = 100;
 // A multiplier guesstimate times the amount of characters. If any padding or image support etc. is added this will need to be updated.
 const WIDTH_MULTIPLIER = 7.3;
 
-export const Combobox = ({ options, onChange, value, id, ...restProps }: ComboboxProps) => {
+export const Combobox = ({
+  options,
+  onChange,
+  value,
+  isClearable = false,
+  createCustomValue = false,
+  id,
+  ...restProps
+}: ComboboxProps) => {
   const [items, setItems] = useState(options);
-  const selectedItemIndex = useMemo(
-    () => options.findIndex((option) => option.value === value) || null,
-    [options, value]
-  );
-  const selectedItem = selectedItemIndex ? options[selectedItemIndex] : null;
+
+  const selectedItemIndex = useMemo(() => {
+    if (value === null) {
+      return null;
+    }
+
+    const index = options.findIndex((option) => option.value === value);
+    if (index === -1) {
+      return null;
+    }
+
+    return index;
+  }, [options, value]);
+
+  const selectedItem = useMemo(() => {
+    if (selectedItemIndex) {
+      return options[selectedItemIndex];
+    }
+
+    // Custom value
+    if (value !== null) {
+      return {
+        label: value.toString(),
+        value,
+      };
+    }
+    return null;
+  }, [selectedItemIndex, options, value]);
 
   const inputRef = useRef<HTMLInputElement>(null);
   const floatingRef = useRef<HTMLDivElement>(null);
@@ -82,18 +115,34 @@ export const Combobox = ({ options, onChange, value, id, ...restProps }: Combobo
     isOpen,
     highlightedIndex,
     setInputValue,
-    selectItem,
     openMenu,
     closeMenu,
+    selectItem,
   } = useCombobox({
     inputId: id,
     items,
     itemToString,
     selectedItem,
+    onSelectedItemChange: ({ selectedItem, inputValue }) => {
+      onChange(selectedItem);
+    },
     defaultHighlightedIndex: selectedItemIndex ?? undefined,
     scrollIntoView: () => {},
     onInputValueChange: ({ inputValue }) => {
-      setItems(options.filter(itemFilter(inputValue)));
+      const filteredItems = options.filter(itemFilter(inputValue));
+      if (createCustomValue && inputValue && filteredItems.findIndex((opt) => opt.label === inputValue) === -1) {
+        setItems([
+          ...filteredItems,
+          {
+            label: inputValue,
+            value: inputValue,
+            description: t('combobox.custom-value.create', 'Create custom value'),
+          },
+        ]);
+        return;
+      } else {
+        setItems(filteredItems);
+      }
     },
     onIsOpenChange: ({ isOpen }) => {
       // Default to displaying all values when opening
@@ -102,9 +151,6 @@ export const Combobox = ({ options, onChange, value, id, ...restProps }: Combobo
         return;
       }
     },
-    onSelectedItemChange: ({ selectedItem }) => {
-      onChange(selectedItem);
-    },
     onHighlightedIndexChange: ({ highlightedIndex, type }) => {
       if (type !== useCombobox.stateChangeTypes.MenuMouseLeave) {
         rowVirtualizer.scrollToIndex(highlightedIndex);
@@ -113,8 +159,8 @@ export const Combobox = ({ options, onChange, value, id, ...restProps }: Combobo
   });
 
   const onBlur = useCallback(() => {
-    setInputValue(selectedItem?.label ?? '');
-  }, [selectedItem, setInputValue]);
+    setInputValue(selectedItem?.label ?? value?.toString() ?? '');
+  }, [selectedItem, setInputValue, value]);
 
   // the order of middleware is important!
   const middleware = [
@@ -147,7 +193,7 @@ export const Combobox = ({ options, onChange, value, id, ...restProps }: Combobo
       <Input
         suffix={
           <>
-            {!!value && value === selectedItem?.value && (
+            {!!value && value === selectedItem?.value && isClearable && (
               <Icon
                 name="times"
                 className={styles.clear}
@@ -202,7 +248,7 @@ export const Combobox = ({ options, onChange, value, id, ...restProps }: Combobo
             {rowVirtualizer.getVirtualItems().map((virtualRow) => {
               return (
                 <li
-                  key={items[virtualRow.index].value}
+                  key={items[virtualRow.index].value + items[virtualRow.index].label}
                   data-index={virtualRow.index}
                   className={cx(
                     styles.option,
diff --git a/public/locales/en-US/grafana.json b/public/locales/en-US/grafana.json
index ddb0abacdda..8cbbe18cd25 100644
--- a/public/locales/en-US/grafana.json
+++ b/public/locales/en-US/grafana.json
@@ -333,6 +333,9 @@
   "combobox": {
     "clear": {
       "title": "Clear value"
+    },
+    "custom-value": {
+      "create": "Create custom value"
     }
   },
   "command-palette": {
diff --git a/public/locales/pseudo-LOCALE/grafana.json b/public/locales/pseudo-LOCALE/grafana.json
index bc7da0abbdb..f6aee62fb9c 100644
--- a/public/locales/pseudo-LOCALE/grafana.json
+++ b/public/locales/pseudo-LOCALE/grafana.json
@@ -333,6 +333,9 @@
   "combobox": {
     "clear": {
       "title": "Cľęäř väľūę"
+    },
+    "custom-value": {
+      "create": "Cřęäŧę čūşŧőm väľūę"
     }
   },
   "command-palette": {