diff --git a/.changeset/whole-eels-poke.md b/.changeset/whole-eels-poke.md
new file mode 100644
index 0000000000..64f6a98969
--- /dev/null
+++ b/.changeset/whole-eels-poke.md
@@ -0,0 +1,6 @@
+---
+"@gradio/dropdown": patch
+"gradio": patch
+---
+
+fix:Update the selected indices in `Dropdown` when value changes programmatically
diff --git a/js/dropdown/dropdown.test.ts b/js/dropdown/dropdown.test.ts
index ddf4167f47..c5cebcc69e 100644
--- a/js/dropdown/dropdown.test.ts
+++ b/js/dropdown/dropdown.test.ts
@@ -326,4 +326,43 @@ describe("Dropdown", () => {
 		await item.blur();
 		expect(item.value).toBe("applepie");
 	});
+
+	test("setting a value should update the displayed value and selected indices", async () => {
+		const { getByLabelText, getAllByTestId, component } = await render(
+			Dropdown,
+			{
+				show_label: true,
+				loading_status,
+				value: "",
+				allow_custom_value: false,
+				label: "Dropdown",
+				choices: [
+					["apple", "apple"],
+					["zebra", "zebra"],
+					["pony", "pony"]
+				],
+				filterable: true,
+				interactive: true
+			}
+		);
+
+		const item: HTMLInputElement = getByLabelText(
+			"Dropdown"
+		) as HTMLInputElement;
+
+		expect(item.value).toBe("apple");
+		await item.focus();
+		let options = getAllByTestId("dropdown-option");
+		expect(options[0]).toHaveClass("selected");
+
+		await component.$set({ value: "zebra" });
+		expect(item.value).toBe("zebra");
+		options = getAllByTestId("dropdown-option");
+		expect(options[0]).toHaveClass("selected");
+
+		await component.$set({ value: undefined });
+		expect(item.value).toBe("");
+		options = getAllByTestId("dropdown-option");
+		expect(options[0]).not.toHaveClass("selected");
+	});
 });
diff --git a/js/dropdown/shared/Dropdown.svelte b/js/dropdown/shared/Dropdown.svelte
index e917b670e6..0dd7df6c14 100644
--- a/js/dropdown/shared/Dropdown.svelte
+++ b/js/dropdown/shared/Dropdown.svelte
@@ -105,12 +105,16 @@
 	function set_input_text(): void {
 		if (value === undefined) {
 			input_text = "";
+			selected_index = null;
 		} else if (choices_values.includes(value as string)) {
 			input_text = choices_names[choices_values.indexOf(value as string)];
+			selected_index = choices_values.indexOf(value as string);
 		} else if (allow_custom_value) {
 			input_text = value as string;
+			selected_index = null;
 		} else {
 			input_text = "";
+			selected_index = null;
 		}
 	}
 
diff --git a/pnpm-lock.yaml b/pnpm-lock.yaml
index 8306033573..f38a285edb 100644
--- a/pnpm-lock.yaml
+++ b/pnpm-lock.yaml
@@ -1,4 +1,4 @@
-lockfileVersion: '6.0'
+lockfileVersion: '6.1'
 
 settings:
   autoInstallPeers: true