diff --git a/src/hooks/utils/__tests__/getHighlightedIndexOnOpen.test.ts b/src/hooks/utils/__tests__/getHighlightedIndexOnOpen.test.ts
index 0ace08b5..664588f7 100644
--- a/src/hooks/utils/__tests__/getHighlightedIndexOnOpen.test.ts
+++ b/src/hooks/utils/__tests__/getHighlightedIndexOnOpen.test.ts
@@ -8,181 +8,421 @@ const isLastItemDisabled = (_item: string, index: number) =>
 const itemToKey = (item: string | null) => item
 
 test('returns -1 when items is empty', () => {
+  const initialHighlightedIndex = undefined
+  const defaultHighlightedIndex = undefined
+  const selectedItem = null
+  const highlightedIndex = -1
+  const offset = 0
+
   expect(
     getHighlightedIndexOnOpen(
       [],
-      undefined,
-      undefined,
+      initialHighlightedIndex,
+      defaultHighlightedIndex,
       isItemDisabled,
       itemToKey,
-      null,
-      -1,
-      0,
+      selectedItem,
+      highlightedIndex,
+      offset,
     ),
   ).toBe(-1)
 })
 
 test('returns initialHighlightedIndex when it matches state highlightedIndex and is not disabled', () => {
+  const initialHighlightedIndex = 1
+  const defaultHighlightedIndex = undefined
+  const selectedItem = null
+  const highlightedIndex = 1
+  const offset = 0
+
   expect(
     getHighlightedIndexOnOpen(
       items,
-      1,
-      undefined,
+      initialHighlightedIndex,
+      defaultHighlightedIndex,
       isItemDisabled,
       itemToKey,
-      null,
-      1,
-      0,
+      selectedItem,
+      highlightedIndex,
+      offset,
     ),
   ).toBe(1)
 })
 
 test('skips initialHighlightedIndex when state highlightedIndex does not match', () => {
+  const initialHighlightedIndex = 1
+  const defaultHighlightedIndex = undefined
+  const selectedItem = null
+  const highlightedIndex = 0
+  const offset = 0
+
   expect(
     getHighlightedIndexOnOpen(
       items,
-      1,
-      undefined,
+      initialHighlightedIndex,
+      defaultHighlightedIndex,
       isItemDisabled,
       itemToKey,
-      null,
-      0,
-      0,
+      selectedItem,
+      highlightedIndex,
+      offset,
     ),
   ).toBe(-1)
 })
 
 test('skips initialHighlightedIndex when that item is disabled', () => {
+  const initialHighlightedIndex = 0
+  const defaultHighlightedIndex = undefined
+  const selectedItem = null
+  const highlightedIndex = 0
+  const offset = 1
+
   expect(
     getHighlightedIndexOnOpen(
       items,
-      0,
-      undefined,
+      initialHighlightedIndex,
+      defaultHighlightedIndex,
       isFirstItemDisabled,
       itemToKey,
-      null,
-      0,
-      1,
+      selectedItem,
+      highlightedIndex,
+      offset,
     ),
   ).toBe(-1)
 })
 
 test('returns defaultHighlightedIndex when it is not disabled', () => {
+  const initialHighlightedIndex = undefined
+  const defaultHighlightedIndex = 2
+  const selectedItem = null
+  const highlightedIndex = -1
+  const offset = 0
+
   expect(
     getHighlightedIndexOnOpen(
       items,
-      undefined,
-      2,
+      initialHighlightedIndex,
+      defaultHighlightedIndex,
       isItemDisabled,
       itemToKey,
-      null,
-      -1,
-      0,
+      selectedItem,
+      highlightedIndex,
+      offset,
     ),
   ).toBe(2)
 })
 
 test('skips defaultHighlightedIndex when that item is disabled', () => {
+  const initialHighlightedIndex = undefined
+  const defaultHighlightedIndex = 0
+  const selectedItem = null
+  const highlightedIndex = -1
+  const offset = 1
+
   expect(
     getHighlightedIndexOnOpen(
       items,
-      undefined,
-      0,
+      initialHighlightedIndex,
+      defaultHighlightedIndex,
       isFirstItemDisabled,
       itemToKey,
-      null,
-      -1,
-      1,
+      selectedItem,
+      highlightedIndex,
+      offset,
     ),
   ).toBe(-1)
 })
 
 test('returns index of selectedItem when selectedItem is set', () => {
+  const initialHighlightedIndex = undefined
+  const defaultHighlightedIndex = undefined
+  const selectedItem = 'b'
+  const highlightedIndex = -1
+  const offset = 0
+
   expect(
     getHighlightedIndexOnOpen(
       items,
-      undefined,
-      undefined,
+      initialHighlightedIndex,
+      defaultHighlightedIndex,
       isItemDisabled,
       itemToKey,
-      'b',
-      -1,
-      0,
+      selectedItem,
+      highlightedIndex,
+      offset,
     ),
   ).toBe(1)
 })
 
 test('returns last index when offset is negative and last item is not disabled', () => {
+  const initialHighlightedIndex = undefined
+  const defaultHighlightedIndex = undefined
+  const selectedItem = null
+  const highlightedIndex = -1
+  const offset = -1
+
   expect(
     getHighlightedIndexOnOpen(
       items,
-      undefined,
-      undefined,
+      initialHighlightedIndex,
+      defaultHighlightedIndex,
       isItemDisabled,
       itemToKey,
-      null,
-      -1,
-      -1,
+      selectedItem,
+      highlightedIndex,
+      offset,
     ),
   ).toBe(2)
 })
 
 test('skips last index when offset is negative and last item is disabled', () => {
+  const initialHighlightedIndex = undefined
+  const defaultHighlightedIndex = undefined
+  const selectedItem = null
+  const highlightedIndex = -1
+  const offset = -1
+
   expect(
     getHighlightedIndexOnOpen(
       items,
-      undefined,
-      undefined,
+      initialHighlightedIndex,
+      defaultHighlightedIndex,
       isLastItemDisabled,
       itemToKey,
-      null,
-      -1,
-      -1,
+      selectedItem,
+      highlightedIndex,
+      offset,
     ),
   ).toBe(-1)
 })
 
 test('returns 0 when offset is positive and first item is not disabled', () => {
+  const initialHighlightedIndex = undefined
+  const defaultHighlightedIndex = undefined
+  const selectedItem = null
+  const highlightedIndex = -1
+  const offset = 1
+
   expect(
     getHighlightedIndexOnOpen(
       items,
-      undefined,
-      undefined,
+      initialHighlightedIndex,
+      defaultHighlightedIndex,
       isItemDisabled,
       itemToKey,
-      null,
-      -1,
-      1,
+      selectedItem,
+      highlightedIndex,
+      offset,
     ),
   ).toBe(0)
 })
 
 test('skips 0 when offset is positive and first item is disabled', () => {
+  const initialHighlightedIndex = undefined
+  const defaultHighlightedIndex = undefined
+  const selectedItem = null
+  const highlightedIndex = -1
+  const offset = 1
+
   expect(
     getHighlightedIndexOnOpen(
       items,
-      undefined,
-      undefined,
+      initialHighlightedIndex,
+      defaultHighlightedIndex,
       isFirstItemDisabled,
       itemToKey,
-      null,
-      -1,
-      1,
+      selectedItem,
+      highlightedIndex,
+      offset,
     ),
   ).toBe(-1)
 })
 
 test('returns -1 when no conditions match', () => {
+  const initialHighlightedIndex = undefined
+  const defaultHighlightedIndex = undefined
+  const selectedItem = null
+  const highlightedIndex = -1
+  const offset = 0
+
+  expect(
+    getHighlightedIndexOnOpen(
+      items,
+      initialHighlightedIndex,
+      defaultHighlightedIndex,
+      isItemDisabled,
+      itemToKey,
+      selectedItem,
+      highlightedIndex,
+      offset,
+    ),
+  ).toBe(-1)
+})
+
+test('returns -1 when defaultHighlightedIndex is -1, even when selectedItem is set', () => {
+  const initialHighlightedIndex = undefined
+  const defaultHighlightedIndex = -1
+  const selectedItem = 'b'
+  const highlightedIndex = -1
+  const offset = 1
+
+  expect(
+    getHighlightedIndexOnOpen(
+      items,
+      initialHighlightedIndex,
+      defaultHighlightedIndex,
+      isItemDisabled,
+      itemToKey,
+      selectedItem,
+      highlightedIndex,
+      offset,
+    ),
+  ).toBe(-1)
+})
+
+test('returns -1 when initialHighlightedIndex is -1 and highlightedIndex matches', () => {
+  const initialHighlightedIndex = -1
+  const defaultHighlightedIndex = undefined
+  const selectedItem = 'b'
+  const highlightedIndex = -1
+  const offset = 1
+
+  expect(
+    getHighlightedIndexOnOpen(
+      items,
+      initialHighlightedIndex,
+      defaultHighlightedIndex,
+      isItemDisabled,
+      itemToKey,
+      selectedItem,
+      highlightedIndex,
+      offset,
+    ),
+  ).toBe(-1)
+})
+
+test('skips initialHighlightedIndex when it is out of bounds', () => {
+  const initialHighlightedIndex = 10
+  const defaultHighlightedIndex = undefined
+  const selectedItem = null
+  const highlightedIndex = 10
+  const offset = 1
+
+  expect(
+    getHighlightedIndexOnOpen(
+      items,
+      initialHighlightedIndex,
+      defaultHighlightedIndex,
+      isItemDisabled,
+      itemToKey,
+      selectedItem,
+      highlightedIndex,
+      offset,
+    ),
+  ).toBe(0)
+})
+
+test('skips defaultHighlightedIndex when it is out of bounds', () => {
+  const initialHighlightedIndex = undefined
+  const defaultHighlightedIndex = 10
+  const selectedItem = null
+  const highlightedIndex = -1
+  const offset = 1
+
+  expect(
+    getHighlightedIndexOnOpen(
+      items,
+      initialHighlightedIndex,
+      defaultHighlightedIndex,
+      isItemDisabled,
+      itemToKey,
+      selectedItem,
+      highlightedIndex,
+      offset,
+    ),
+  ).toBe(0)
+})
+
+test('skips initialHighlightedIndex when it is a large negative', () => {
+  const initialHighlightedIndex = -5
+  const defaultHighlightedIndex = undefined
+  const selectedItem = null
+  const highlightedIndex = -5
+  const offset = 1
+
+  expect(
+    getHighlightedIndexOnOpen(
+      items,
+      initialHighlightedIndex,
+      defaultHighlightedIndex,
+      isItemDisabled,
+      itemToKey,
+      selectedItem,
+      highlightedIndex,
+      offset,
+    ),
+  ).toBe(0)
+})
+
+test('skips defaultHighlightedIndex when it is a large negative', () => {
+  const initialHighlightedIndex = undefined
+  const defaultHighlightedIndex = -5
+  const selectedItem = null
+  const highlightedIndex = -1
+  const offset = 1
+
   expect(
     getHighlightedIndexOnOpen(
       items,
-      undefined,
-      undefined,
+      initialHighlightedIndex,
+      defaultHighlightedIndex,
       isItemDisabled,
       itemToKey,
-      null,
-      -1,
-      0,
+      selectedItem,
+      highlightedIndex,
+      offset,
+    ),
+  ).toBe(0)
+})
+
+test('returns -1 when selectedItem is not found in items', () => {
+  const initialHighlightedIndex = undefined
+  const defaultHighlightedIndex = undefined
+  const selectedItem = 'z'
+  const highlightedIndex = -1
+  const offset = 0
+
+  expect(
+    getHighlightedIndexOnOpen(
+      items,
+      initialHighlightedIndex,
+      defaultHighlightedIndex,
+      isItemDisabled,
+      itemToKey,
+      selectedItem,
+      highlightedIndex,
+      offset,
     ),
   ).toBe(-1)
 })
+
+test('initialHighlightedIndex takes priority over defaultHighlightedIndex when it matches highlightedIndex', () => {
+  const initialHighlightedIndex = 0
+  const defaultHighlightedIndex = 2
+  const selectedItem = null
+  const highlightedIndex = 0
+  const offset = 0
+
+  expect(
+    getHighlightedIndexOnOpen(
+      items,
+      initialHighlightedIndex,
+      defaultHighlightedIndex,
+      isItemDisabled,
+      itemToKey,
+      selectedItem,
+      highlightedIndex,
+      offset,
+    ),
+  ).toBe(0)
+})
diff --git a/src/hooks/utils/getHighlightedIndexOnOpen.ts b/src/hooks/utils/getHighlightedIndexOnOpen.ts
index b5035bd0..08a19616 100644
--- a/src/hooks/utils/getHighlightedIndexOnOpen.ts
+++ b/src/hooks/utils/getHighlightedIndexOnOpen.ts
@@ -32,16 +32,24 @@ export function getHighlightedIndexOnOpen<Item>(
   if (
     initialHighlightedIndex !== undefined &&
     highlightedIndex === initialHighlightedIndex &&
-    items[initialHighlightedIndex] &&
-    !isItemDisabled(items[initialHighlightedIndex], initialHighlightedIndex)
+    (initialHighlightedIndex === -1 ||
+      (items[initialHighlightedIndex] !== undefined &&
+        !isItemDisabled(
+          items[initialHighlightedIndex],
+          initialHighlightedIndex,
+        )))
   ) {
     return initialHighlightedIndex
   }
 
   if (
     defaultHighlightedIndex !== undefined &&
-    items[defaultHighlightedIndex] &&
-    !isItemDisabled(items[defaultHighlightedIndex], defaultHighlightedIndex)
+    (defaultHighlightedIndex === -1 ||
+      (items[defaultHighlightedIndex] !== undefined &&
+        !isItemDisabled(
+          items[defaultHighlightedIndex],
+          defaultHighlightedIndex,
+        )))
   ) {
     return defaultHighlightedIndex
   }