diff --git a/packages/@react-aria/autocomplete/src/useAutocomplete.ts b/packages/@react-aria/autocomplete/src/useAutocomplete.ts
index e826dac7dcc..9ff0d4fd2b0 100644
--- a/packages/@react-aria/autocomplete/src/useAutocomplete.ts
+++ b/packages/@react-aria/autocomplete/src/useAutocomplete.ts
@@ -231,6 +231,14 @@ export function useAutocomplete<T>(props: AriaAutocompleteOptions<T>, state: Aut
     }
 
     let focusedNodeId = queuedActiveDescendant.current;
+    if (focusedNodeId !== null && getOwnerDocument(inputRef.current).getElementById(focusedNodeId) == null) {
+      // if the focused id doesn't exist in document, then we need to clear the tracked focused node, otherwise
+      // we will be attempting to fire key events on a non-existing node instead of trying to focus the newly swapped wrapped collection.
+      // This can happen if you are swapping out the Autocomplete wrapped collection component like in the docs search.
+      queuedActiveDescendant.current = null;
+      focusedNodeId = null;
+    }
+
     switch (e.key) {
       case 'a':
         if (isCtrlKeyPressed(e)) {
@@ -260,11 +268,28 @@ export function useAutocomplete<T>(props: AriaAutocompleteOptions<T>, state: Aut
       case 'PageDown':
       case 'PageUp':
       case 'ArrowUp':
-      case 'ArrowDown': {
+      case 'ArrowDown':
+      case 'ArrowRight':
+      case 'ArrowLeft': {
         if ((e.key === 'Home' || e.key === 'End') && focusedNodeId == null && e.shiftKey) {
           return;
         }
 
+        // If there is text within the input field, we'll want continue propagating events down
+        // to the wrapped collection if there is a focused node so that a user can continue moving the
+        // virtual focus. However, if the user doesn't have a focus in the collection, just move the text
+        // cursor instead. They can move focus down into the collection via down/up arrow if need be
+        if ((e.key === 'ArrowRight' || e.key === 'ArrowLeft') && state.inputValue.length > 0) {
+          if (focusedNodeId == null) {
+            if (!e.isPropagationStopped()) {
+              e.stopPropagation();
+            }
+            return;
+          }
+
+          break;
+        }
+
         // Prevent these keys from moving the text cursor in the input
         e.preventDefault();
         // Move virtual focus into the wrapped collection
diff --git a/packages/@react-aria/selection/src/useSelectableCollection.ts b/packages/@react-aria/selection/src/useSelectableCollection.ts
index 796d7dcaa60..8646efb427c 100644
--- a/packages/@react-aria/selection/src/useSelectableCollection.ts
+++ b/packages/@react-aria/selection/src/useSelectableCollection.ts
@@ -201,7 +201,7 @@ export function useSelectableCollection(options: AriaSelectableCollectionOptions
       }
       case 'ArrowLeft': {
         if (delegate.getKeyLeftOf) {
-          let nextKey: Key | undefined | null = manager.focusedKey != null ? delegate.getKeyLeftOf?.(manager.focusedKey) : null;
+          let nextKey: Key | undefined | null = manager.focusedKey != null ? delegate.getKeyLeftOf?.(manager.focusedKey) : delegate.getFirstKey?.();
           if (nextKey == null && shouldFocusWrap) {
             nextKey = direction === 'rtl' ? delegate.getFirstKey?.(manager.focusedKey) : delegate.getLastKey?.(manager.focusedKey);
           }
@@ -214,7 +214,7 @@ export function useSelectableCollection(options: AriaSelectableCollectionOptions
       }
       case 'ArrowRight': {
         if (delegate.getKeyRightOf) {
-          let nextKey: Key | undefined | null = manager.focusedKey != null ? delegate.getKeyRightOf?.(manager.focusedKey) : null;
+          let nextKey: Key | undefined | null = manager.focusedKey != null ? delegate.getKeyRightOf?.(manager.focusedKey) : delegate.getFirstKey?.();
           if (nextKey == null && shouldFocusWrap) {
             nextKey = direction === 'rtl' ? delegate.getLastKey?.(manager.focusedKey) : delegate.getFirstKey?.(manager.focusedKey);
           }
diff --git a/packages/@react-aria/tag/src/useTag.ts b/packages/@react-aria/tag/src/useTag.ts
index 7fddd3a956c..266e0d95128 100644
--- a/packages/@react-aria/tag/src/useTag.ts
+++ b/packages/@react-aria/tag/src/useTag.ts
@@ -24,7 +24,7 @@ import {useGridListItem} from '@react-aria/gridlist';
 import {useLocalizedStringFormatter} from '@react-aria/i18n';
 
 
-export interface TagAria extends Omit<SelectableItemStates, 'hasAction'> {
+export interface TagAria extends SelectableItemStates {
   /** Props for the tag row element. */
   rowProps: DOMAttributes,
   /** Props for the tag cell element. */
diff --git a/packages/react-aria-components/src/TagGroup.tsx b/packages/react-aria-components/src/TagGroup.tsx
index 7df9f7b338e..7aad63d886d 100644
--- a/packages/react-aria-components/src/TagGroup.tsx
+++ b/packages/react-aria-components/src/TagGroup.tsx
@@ -249,7 +249,7 @@ export const Tag = /*#__PURE__*/ createLeafComponent(ItemNode, (props: TagProps,
   let {rowProps, gridCellProps, removeButtonProps, ...states} = useTag({item}, state, ref);
 
   let {hoverProps, isHovered} = useHover({
-    isDisabled: !states.allowsSelection,
+    isDisabled: !states.allowsSelection && !states.hasAction,
     onHoverStart: item.props.onHoverStart,
     onHoverChange: item.props.onHoverChange,
     onHoverEnd: item.props.onHoverEnd
diff --git a/packages/react-aria-components/stories/Autocomplete.stories.tsx b/packages/react-aria-components/stories/Autocomplete.stories.tsx
index bab3529f813..5bc6de445fe 100644
--- a/packages/react-aria-components/stories/Autocomplete.stories.tsx
+++ b/packages/react-aria-components/stories/Autocomplete.stories.tsx
@@ -1208,3 +1208,39 @@ export const AutocompleteUserCustomFiltering: AutocompleteStory = {
     }
   }
 };
+
+export function AutocompleteGrid() {
+  return (
+    <AutocompleteWrapper>
+      <div>
+        <TextField autoFocus data-testid="autocomplete-example">
+          <Label style={{display: 'block'}}>Test</Label>
+          <Input />
+          <Text style={{display: 'block'}} slot="description">Please select an option below.</Text>
+        </TextField>
+        <ListBox
+          className={styles.menu}
+          aria-label="test listbox"
+          layout="grid"
+          orientation="vertical"
+          style={{
+            width: 300,
+            height: 300,
+            display: 'grid',
+            gridTemplate: 'repeat(3, 1fr) / repeat(3, 1fr)',
+            gridAutoFlow: 'row'
+          }}>
+          <MyListBoxItem style={{display: 'flex', alignItems: 'center', justifyContent: 'center'}}>1,1</MyListBoxItem>
+          <MyListBoxItem style={{display: 'flex', alignItems: 'center', justifyContent: 'center'}}>1,2</MyListBoxItem>
+          <MyListBoxItem style={{display: 'flex', alignItems: 'center', justifyContent: 'center'}}>1,3</MyListBoxItem>
+          <MyListBoxItem style={{display: 'flex', alignItems: 'center', justifyContent: 'center'}}>2,1</MyListBoxItem>
+          <MyListBoxItem style={{display: 'flex', alignItems: 'center', justifyContent: 'center'}}>2,2</MyListBoxItem>
+          <MyListBoxItem style={{display: 'flex', alignItems: 'center', justifyContent: 'center'}}>2,3</MyListBoxItem>
+          <MyListBoxItem style={{display: 'flex', alignItems: 'center', justifyContent: 'center'}}>3,1</MyListBoxItem>
+          <MyListBoxItem style={{display: 'flex', alignItems: 'center', justifyContent: 'center'}}>3,2</MyListBoxItem>
+          <MyListBoxItem style={{display: 'flex', alignItems: 'center', justifyContent: 'center'}}>3,3</MyListBoxItem>
+        </ListBox>
+      </div>
+    </AutocompleteWrapper>
+  );
+};
diff --git a/packages/react-aria-components/test/TagGroup.test.js b/packages/react-aria-components/test/TagGroup.test.js
index fad4a3aad13..37201eb6bf2 100644
--- a/packages/react-aria-components/test/TagGroup.test.js
+++ b/packages/react-aria-components/test/TagGroup.test.js
@@ -176,6 +176,29 @@ describe('TagGroup', () => {
     expect(onHoverEnd).not.toHaveBeenCalled();
   });
 
+  it('should show hover state when tag has an href even without selectionMode', async () => {
+    let onHoverStart = jest.fn();
+    let onHoverChange = jest.fn();
+    let onHoverEnd = jest.fn();
+    let {getAllByRole} = renderTagGroup({}, {}, {href: '/', className: ({isHovered}) => isHovered ? 'hover' : '', onHoverStart, onHoverChange, onHoverEnd});
+    let row = getAllByRole('row')[0];
+
+    expect(row).not.toHaveAttribute('data-hovered');
+    expect(row).not.toHaveClass('hover');
+
+    await user.hover(row);
+    expect(row).toHaveAttribute('data-hovered', 'true');
+    expect(row).toHaveClass('hover');
+    expect(onHoverStart).toHaveBeenCalledTimes(1);
+    expect(onHoverChange).toHaveBeenCalledTimes(1);
+
+    await user.unhover(row);
+    expect(row).not.toHaveAttribute('data-hovered');
+    expect(row).not.toHaveClass('hover');
+    expect(onHoverEnd).toHaveBeenCalledTimes(1);
+    expect(onHoverChange).toHaveBeenCalledTimes(2);
+  });
+
   it('should support focus ring', async () => {
     let onFocus = jest.fn();
     let onFocusChange = jest.fn();
@@ -588,7 +611,7 @@ describe('TagGroup', () => {
   });
 
   describe('press events', () => {
-    it.only.each`
+    it.each`
       interactionType
       ${'mouse'}
       ${'keyboard'}