diff --git a/packages/ui/src/components/SearchField/SearchField.stories.tsx b/packages/ui/src/components/SearchField/SearchField.stories.tsx
index 203e11c73c..96f0310e73 100644
--- a/packages/ui/src/components/SearchField/SearchField.stories.tsx
+++ b/packages/ui/src/components/SearchField/SearchField.stories.tsx
@@ -307,7 +307,7 @@ export const StartCollapsedWithOnChange: Story = {
   },
 };
 
-export const StartCollapsedControlled: Story = {
+export const StartCollapsedControlledEmpty: Story = {
   args: {
     ...StartCollapsed.args,
   },
@@ -325,3 +325,22 @@ export const StartCollapsedControlled: Story = {
     );
   },
 };
+
+export const StartCollapsedControlledWithValue: Story = {
+  args: {
+    ...StartCollapsed.args,
+  },
+  render: function Render(args) {
+    const [value, setValue] = useState('Component');
+
+    return (
+      <Flex
+        direction="row"
+        gap="2"
+        style={{ width: '100%', maxWidth: '600px' }}
+      >
+        <SearchField {...args} size="small" value={value} onChange={setValue} />
+      </Flex>
+    );
+  },
+};
diff --git a/packages/ui/src/components/SearchField/SearchField.tsx b/packages/ui/src/components/SearchField/SearchField.tsx
index aa5e22d900..2dffd12a93 100644
--- a/packages/ui/src/components/SearchField/SearchField.tsx
+++ b/packages/ui/src/components/SearchField/SearchField.tsx
@@ -68,25 +68,8 @@ export const SearchField = forwardRef<HTMLDivElement, SearchFieldProps>(
       ...rest
     } = cleanedProps;
 
-    const hasProvidedValue = props.value || props.defaultValue;
-    const initialCollapsed = !!startCollapsed && !hasProvidedValue;
+    const [isFocused, setIsFocused] = useState(false);
     const inputRef = useRef<HTMLInputElement>(null);
-    const [isCollapsed, setIsCollapsed] = useState(initialCollapsed);
-    const [shouldCollapse, setShouldCollapse] = useState(!hasProvidedValue);
-
-    // If a value becomes available (controlled or defaultValue), force expand so the user can see it.
-    // If it becomes empty again and startCollapsed is enabled, allow collapse behavior again.
-    useEffect(() => {
-      if (hasProvidedValue) {
-        setShouldCollapse(false);
-        setIsCollapsed(false);
-      } else {
-        setShouldCollapse(true);
-        if (startCollapsed) {
-          setIsCollapsed(true);
-        }
-      }
-    }, [hasProvidedValue, startCollapsed]);
 
     // If a secondary label is provided, use it. Otherwise, use 'Required' if the field is required.
     const secondaryLabelText =
@@ -94,35 +77,24 @@ export const SearchField = forwardRef<HTMLDivElement, SearchFieldProps>(
 
     const handleFocusChange = (isFocused: boolean) => {
       props.onFocusChange?.(isFocused);
-      if (shouldCollapse) {
-        if (isFocused) {
-          // When focusing, expand the field (unless startCollapsed + a value/defaultValue is provided)
-          setIsCollapsed(false);
-        } else {
-          // When blurring, collapse the field
-          setIsCollapsed(true);
-        }
-      }
+      setIsFocused(isFocused);
     };
 
     const handleContainerClick = () => {
-      if (startCollapsed && isCollapsed) {
-        // Focus the input after state update
-        setTimeout(() => {
-          inputRef.current?.focus();
-        }, 0);
-      }
+      inputRef.current?.focus();
     };
 
     const handleChange = (value: string) => {
       props.onChange?.(value);
-      if (value.length > 0) {
-        setShouldCollapse(false);
-      } else {
-        setShouldCollapse(true);
-      }
     };
 
+    const hasInputRef = !!inputRef.current;
+    const hasValue = !!inputRef.current?.value;
+
+    const isCollapsed = hasInputRef
+      ? startCollapsed && !hasValue && !isFocused
+      : startCollapsed && !rest.value && !rest.defaultValue && !isFocused;
+
     return (
       <AriaSearchField
         className={clsx(classNames.root, styles[classNames.root], className)}