diff --git a/packages/calcite-components/src/components/combobox/combobox.tsx b/packages/calcite-components/src/components/combobox/combobox.tsx
index be4f5a0cb5d..7ed26bc55bd 100644
--- a/packages/calcite-components/src/components/combobox/combobox.tsx
+++ b/packages/calcite-components/src/components/combobox/combobox.tsx
@@ -761,19 +761,19 @@ export class Combobox
     this.updateActiveItemIndex(targetIndex);
   }
 
-  setInactiveIfNotContained = (event: Event): void => {
+  private setInactiveIfNotContained = (event: Event): void => {
     const composedPath = event.composedPath();
 
+    if (!this.open || composedPath.includes(this.el) || composedPath.includes(this.referenceEl)) {
+      return;
+    }
+
     if (!this.allowCustomValues && this.textInput.value) {
       this.clearInputValue();
       this.filterItems("");
       this.updateActiveItemIndex(-1);
     }
 
-    if (!this.open || composedPath.includes(this.el) || composedPath.includes(this.referenceEl)) {
-      return;
-    }
-
     if (this.allowCustomValues && this.text.trim().length) {
       this.addCustomChip(this.text);
     }