diff --git a/packages/react/src/components/ExpandableSearch/ExpandableSearch.tsx b/packages/react/src/components/ExpandableSearch/ExpandableSearch.tsx
index 412451f747b6..444935bd87f3 100644
--- a/packages/react/src/components/ExpandableSearch/ExpandableSearch.tsx
+++ b/packages/react/src/components/ExpandableSearch/ExpandableSearch.tsx
@@ -5,7 +5,7 @@
  * LICENSE file in the root directory of this source tree.
  */
 
-import React, { useState, useRef } from 'react';
+import React, { useState, useRef, useEffect } from 'react';
 import classnames from 'classnames';
 import Search, { type SearchProps } from '../Search';
 import { usePrefix } from '../../internal/usePrefix';
@@ -31,11 +31,15 @@ function ExpandableSearch({
       evt.relatedTarget &&
       evt.relatedTarget.classList.contains(`${prefix}--search-close`);
 
-    if (expanded && !relatedTargetIsAllowed && !hasContent) {
+    if (expanded && !relatedTargetIsAllowed && !hasContent && !isExpanded) {
       setExpanded(false);
     }
   }
 
+  useEffect(() => {
+    setExpanded(!!isExpanded);
+  }, [isExpanded]);
+
   function handleChange(evt) {
     setHasContent(evt.target.value !== '');
   }
@@ -50,7 +54,7 @@ function ExpandableSearch({
       evt.stopPropagation();
 
       // escape key only clears if the input is empty, otherwise it clears the input
-      if (!evt.target?.value) {
+      if (!evt.target?.value && !isExpanded) {
         setExpanded(false);
       }
     }
diff --git a/packages/react/src/components/Search/Search.stories.js b/packages/react/src/components/Search/Search.stories.js
index ff8d62f7b17b..8f8d0182f7b8 100644
--- a/packages/react/src/components/Search/Search.stories.js
+++ b/packages/react/src/components/Search/Search.stories.js
@@ -5,12 +5,13 @@
  * LICENSE file in the root directory of this source tree.
  */
 
-import React from 'react';
+import React, { useState, useCallback } from 'react';
 
 import { WithLayer } from '../../../.storybook/templates/WithLayer';
 
 import ExpandableSearch from '../ExpandableSearch';
 import Search from '.';
+import Button from '../Button';
 
 export default {
   title: 'Components/Search',
@@ -27,6 +28,22 @@ export default {
   },
 };
 
+export const Test = () => {
+  const [isExpanded, setExpanded] = useState(false);
+
+  const handleToggleExpandClick = useCallback(() => {
+    setExpanded(!isExpanded);
+  }, [isExpanded]);
+
+  return (
+    <>
+      <div>isExpanded = {isExpanded.toString()}</div>
+      <ExpandableSearch isExpanded={isExpanded} />
+      <Button onClick={handleToggleExpandClick}>Toggle Expand</Button>
+    </>
+  );
+};
+
 export const Default = () => (
   <Search
     size="lg"