diff --git a/packages/grafana-ui/src/components/Combobox/MultiCombobox.test.tsx b/packages/grafana-ui/src/components/Combobox/MultiCombobox.test.tsx
index 8ed509b26db..fa1274b5666 100644
--- a/packages/grafana-ui/src/components/Combobox/MultiCombobox.test.tsx
+++ b/packages/grafana-ui/src/components/Combobox/MultiCombobox.test.tsx
@@ -128,6 +128,32 @@ describe('MultiCombobox', () => {
     expect(await screen.findByText('d')).toBeInTheDocument();
   });
 
+  it('should remove value when clicking on the close icon of the pill', async () => {
+    const options = [
+      { label: 'A', value: 'a' },
+      { label: 'B', value: 'b' },
+      { label: 'C', value: 'c' },
+    ];
+    const onChange = jest.fn();
+    render(<MultiCombobox width={200} options={options} value={['a', 'b', 'c']} onChange={onChange} />);
+    const fistPillRemoveButton = await screen.findByRole('button', { name: 'Remove A' });
+    await user.click(fistPillRemoveButton);
+    expect(onChange).toHaveBeenCalledWith(options.filter((o) => o.value !== 'a'));
+  });
+
+  it('should remove all selected items when clicking on clear all button', async () => {
+    const options = [
+      { label: 'A', value: 'a' },
+      { label: 'B', value: 'b' },
+      { label: 'C', value: 'c' },
+    ];
+    const onChange = jest.fn();
+    render(<MultiCombobox width={200} options={options} value={['a', 'b', 'c']} onChange={onChange} isClearable />);
+    const clearAllButton = await screen.findByTitle('Clear all');
+    await user.click(clearAllButton);
+    expect(onChange).toHaveBeenCalledWith([]);
+  });
+
   describe('all option', () => {
     it('should render all option', async () => {
       const options = [
diff --git a/packages/grafana-ui/src/components/Combobox/MultiCombobox.tsx b/packages/grafana-ui/src/components/Combobox/MultiCombobox.tsx
index 1d5ab5bd6d8..a2d5063b096 100644
--- a/packages/grafana-ui/src/components/Combobox/MultiCombobox.tsx
+++ b/packages/grafana-ui/src/components/Combobox/MultiCombobox.tsx
@@ -6,6 +6,7 @@ import { useCallback, useMemo, useState } from 'react';
 import { useStyles2 } from '../../themes';
 import { t } from '../../utils/i18n';
 import { Checkbox } from '../Forms/Checkbox';
+import { Icon } from '../Icon/Icon';
 import { Box } from '../Layout/Box/Box';
 import { Stack } from '../Layout/Stack/Stack';
 import { Portal } from '../Portal/Portal';
@@ -36,7 +37,8 @@ interface MultiComboboxBaseProps<T extends string | number> extends Omit<Combobo
 export type MultiComboboxProps<T extends string | number> = MultiComboboxBaseProps<T> & AutoSizeConditionals;
 
 export const MultiCombobox = <T extends string | number>(props: MultiComboboxProps<T>) => {
-  const { placeholder, onChange, value, width, enableAllOption, invalid, disabled, minWidth, maxWidth } = props;
+  const { placeholder, onChange, value, width, enableAllOption, invalid, disabled, minWidth, maxWidth, isClearable } =
+    props;
 
   const styles = useStyles2(getComboboxStyles);
   const [inputValue, setInputValue] = useState('');
@@ -80,7 +82,7 @@ export const MultiCombobox = <T extends string | number>(props: MultiComboboxPro
     [selectedItems]
   );
 
-  const { getSelectedItemProps, getDropdownProps, setSelectedItems, addSelectedItem, removeSelectedItem } =
+  const { getSelectedItemProps, getDropdownProps, setSelectedItems, addSelectedItem, removeSelectedItem, reset } =
     useMultipleSelection({
       selectedItems, // initally selected items,
       onStateChange: ({ type, selectedItems: newSelectedItems }) => {
@@ -91,6 +93,7 @@ export const MultiCombobox = <T extends string | number>(props: MultiComboboxPro
           case useMultipleSelection.stateChangeTypes.FunctionRemoveSelectedItem:
           case useMultipleSelection.stateChangeTypes.FunctionAddSelectedItem:
           case useMultipleSelection.stateChangeTypes.FunctionSetSelectedItems:
+          case useMultipleSelection.stateChangeTypes.FunctionReset:
             // Unclear why newSelectedItems would be undefined, but this seems logical
             onChange(newSelectedItems ?? []);
             break;
@@ -220,7 +223,16 @@ export const MultiCombobox = <T extends string | number>(props: MultiComboboxPro
   });
 
   const { inputRef: containerRef, floatingRef, floatStyles, scrollRef } = useComboboxFloat(options, isOpen);
-  const multiStyles = useStyles2(getMultiComboboxStyles, isOpen, invalid, disabled, width, minWidth, maxWidth);
+  const multiStyles = useStyles2(
+    getMultiComboboxStyles,
+    isOpen,
+    invalid,
+    disabled,
+    width,
+    minWidth,
+    maxWidth,
+    isClearable
+  );
 
   const virtualizerOptions = {
     count: options.length,
@@ -284,6 +296,24 @@ export const MultiCombobox = <T extends string | number>(props: MultiComboboxPro
           />
 
           <div className={multiStyles.suffix} ref={suffixMeasureRef} {...getToggleButtonProps()}>
+            {isClearable && selectedItems.length > 0 && (
+              <Icon
+                name="times"
+                className={styles.clear}
+                title={t('multicombobox.clear.title', 'Clear all')}
+                tabIndex={0}
+                role="button"
+                onClick={(e) => {
+                  e.stopPropagation();
+                  reset();
+                }}
+                onKeyDown={(e) => {
+                  if (e.key === 'Enter' || e.key === ' ') {
+                    reset();
+                  }
+                }}
+              />
+            )}
             <SuffixIcon isLoading={loading || false} isOpen={isOpen} />
           </div>
         </span>
diff --git a/packages/grafana-ui/src/components/Combobox/getMultiComboboxStyles.ts b/packages/grafana-ui/src/components/Combobox/getMultiComboboxStyles.ts
index 06bd2dd2a22..3b330240995 100644
--- a/packages/grafana-ui/src/components/Combobox/getMultiComboboxStyles.ts
+++ b/packages/grafana-ui/src/components/Combobox/getMultiComboboxStyles.ts
@@ -12,7 +12,8 @@ export const getMultiComboboxStyles = (
   disabled?: boolean,
   width?: number | 'auto',
   minWidth?: number,
-  maxWidth?: number
+  maxWidth?: number,
+  isClearable?: boolean
 ) => {
   const inputStyles = getInputStyles({ theme, invalid });
   const focusStyles = getFocusStyles(theme);
@@ -35,7 +36,7 @@ export const getMultiComboboxStyles = (
         width: '100%',
         gap: theme.spacing(0.5),
         padding: theme.spacing(0.5),
-        paddingRight: 28, // Account for suffix
+        paddingRight: isClearable ? theme.spacing(5) : 28, // Account for suffix
         '&:focus-within': {
           ...focusStyles,
         },
diff --git a/public/locales/en-US/grafana.json b/public/locales/en-US/grafana.json
index 3b6111cb266..6f9cda10abe 100644
--- a/public/locales/en-US/grafana.json
+++ b/public/locales/en-US/grafana.json
@@ -2072,6 +2072,9 @@
     "all": {
       "title": "All",
       "title-filtered": "All (filtered)"
+    },
+    "clear": {
+      "title": "Clear all"
     }
   },
   "nav": {
diff --git a/public/locales/pseudo-LOCALE/grafana.json b/public/locales/pseudo-LOCALE/grafana.json
index f04a543f927..6b3f2d081a7 100644
--- a/public/locales/pseudo-LOCALE/grafana.json
+++ b/public/locales/pseudo-LOCALE/grafana.json
@@ -2072,6 +2072,9 @@
     "all": {
       "title": "Åľľ",
       "title-filtered": "Åľľ (ƒįľŧęřęđ)"
+    },
+    "clear": {
+      "title": "Cľęäř äľľ"
     }
   },
   "nav": {