diff --git a/packages/grafana-ui/src/components/Combobox/Combobox.test.tsx b/packages/grafana-ui/src/components/Combobox/Combobox.test.tsx
index e99a2568faa..6127c007e56 100644
--- a/packages/grafana-ui/src/components/Combobox/Combobox.test.tsx
+++ b/packages/grafana-ui/src/components/Combobox/Combobox.test.tsx
@@ -243,7 +243,19 @@ describe('Combobox', () => {
       await userEvent.keyboard('{Enter}');
 
       expect(screen.getByDisplayValue('Use custom value')).toBeInTheDocument();
-      expect(onChangeHandler).toHaveBeenCalledWith(expect.objectContaining({ value: 'Use custom value' }));
+      expect(onChangeHandler).toHaveBeenCalledWith(expect.objectContaining({ description: 'Use custom value' }));
+    });
+
+    it('should not allow creating a custom value when it is an existing value', async () => {
+      const onChangeHandler = jest.fn();
+      render(<Combobox options={options} value={null} onChange={onChangeHandler} createCustomValue />);
+      const input = screen.getByRole('combobox');
+      await userEvent.type(input, '4');
+      await userEvent.keyboard('{Enter}');
+      expect(screen.queryByDisplayValue('Use custom value')).not.toBeInTheDocument();
+      expect(screen.getByDisplayValue('Option 4')).toBeInTheDocument();
+      expect(onChangeHandler).toHaveBeenCalledWith(expect.objectContaining({ value: '4' }));
+      expect(onChangeHandler).not.toHaveBeenCalledWith(expect.objectContaining({ description: 'Use custom value' }));
     });
 
     it('should provide custom string when all options are numbers', async () => {
diff --git a/packages/grafana-ui/src/components/Combobox/Combobox.tsx b/packages/grafana-ui/src/components/Combobox/Combobox.tsx
index 4c2f6a97b63..471bb22fe5d 100644
--- a/packages/grafana-ui/src/components/Combobox/Combobox.tsx
+++ b/packages/grafana-ui/src/components/Combobox/Combobox.tsx
@@ -129,9 +129,9 @@ export const Combobox = <T extends string | number>(props: ComboboxProps<T>) =>
       let itemsToSet = items;
       logOptions(itemsToSet.length, RECOMMENDED_ITEMS_AMOUNT, id, ariaLabelledBy);
       if (inputValue && createCustomValue) {
-        const optionMatchingInput = items.find(
-          (opt) => opt.label === 'Custom value: ' + inputValue || opt.value === inputValue
-        );
+        //Since the label of a normal option does not have to match its value and a custom option has the same value and label,
+        //we just focus on the value to check if the option already exists
+        const optionMatchingInput = items.find((opt) => opt.value === inputValue);
 
         if (!optionMatchingInput) {
           const customValueOption = {
diff --git a/packages/grafana-ui/src/components/Combobox/useOptions.ts b/packages/grafana-ui/src/components/Combobox/useOptions.ts
index a66e60a2747..b76339cf54e 100644
--- a/packages/grafana-ui/src/components/Combobox/useOptions.ts
+++ b/packages/grafana-ui/src/components/Combobox/useOptions.ts
@@ -62,6 +62,8 @@ export function useOptions<T extends string | number>(rawOptions: AsyncOptions<T
     (opts: Array<ComboboxOption<T>>) => {
       let currentOptions: Array<ComboboxOption<T>> = opts;
       if (createCustomValue && userTypedSearch) {
+        //Since the label of a normal option does not have to match its value and a custom option has the same value and label,
+        //we just focus on the value to check if the option already exists
         const customValueExists = opts.some((opt) => opt.value === userTypedSearch);
         if (!customValueExists) {
           currentOptions = [