diff --git a/packages/material-ui-lab/src/Autocomplete/Autocomplete.test.js b/packages/material-ui-lab/src/Autocomplete/Autocomplete.test.js
index b1bb46ccc4586a..4e1ec7fc71282f 100644
--- a/packages/material-ui-lab/src/Autocomplete/Autocomplete.test.js
+++ b/packages/material-ui-lab/src/Autocomplete/Autocomplete.test.js
@@ -456,6 +456,29 @@ describe('<Autocomplete />', () => {
     });
   });
 
+  describe('prop: clearOnEscape', () => {
+    it('should clear on escape', () => {
+      const handleChange = spy();
+      render(
+        <Autocomplete
+          {...defaultProps}
+          onChange={handleChange}
+          clearOnEscape
+          multiple
+          value={['one']}
+          options={['one', 'two']}
+          renderInput={params => <TextField {...params} autoFocus />}
+        />,
+      );
+
+      fireEvent.keyDown(document.activeElement, { key: 'Escape' });
+      fireEvent.keyDown(document.activeElement, { key: 'Escape' });
+
+      expect(handleChange.callCount).to.equal(1);
+      expect(handleChange.args[0][1]).to.deep.equal([]);
+    });
+  });
+
   describe('when popup open', () => {
     it('closes the popup if Escape is pressed ', () => {
       const handleClose = spy();
diff --git a/packages/material-ui-lab/src/useAutocomplete/useAutocomplete.js b/packages/material-ui-lab/src/useAutocomplete/useAutocomplete.js
index d98d1650945ef9..f5ece946397df5 100644
--- a/packages/material-ui-lab/src/useAutocomplete/useAutocomplete.js
+++ b/packages/material-ui-lab/src/useAutocomplete/useAutocomplete.js
@@ -649,7 +649,7 @@ export default function useAutocomplete(props) {
           // Avoid the Modal to handle the event.
           event.stopPropagation();
           handleClose(event);
-        } else if (clearOnEscape && inputValue !== '') {
+        } else if (clearOnEscape && (inputValue !== '' || (multiple && value.length > 0))) {
           // Avoid Opera to exit fullscreen mode.
           event.preventDefault();
           // Avoid the Modal to handle the event.