diff --git a/public/demo/data/products-small.json b/public/demo/data/products-small.json
index 0daf2ccf2..89d0f3c90 100644
--- a/public/demo/data/products-small.json
+++ b/public/demo/data/products-small.json
@@ -2,15 +2,15 @@
 	"data": [
 		{
 			"id": "1000",
-			"code": "f230fh0g3",
-			"name": "Bamboo Watch",
+			"code": "vbb124btr",
+			"name": "Game Controller",
 			"description": "Product Description",
-			"image": "bamboo-watch.jpg",
-			"price": 65,
-			"category": "Accessories",
-			"quantity": 24,
-			"inventoryStatus": "INSTOCK",
-			"rating": 5
+			"image": "game-controller.jpg",
+			"price": 99,
+			"category": "Electronics",
+			"quantity": 2,
+			"inventoryStatus": "LOWSTOCK",
+			"rating": 4
 		},
 		{
 			"id": "1001",
@@ -62,15 +62,15 @@
 		},
 		{
 			"id": "1005",
-			"code": "av2231fwg",
-			"name": "Brown Purse",
+			"code": "cm230f032",
+			"name": "Gaming Set",
 			"description": "Product Description",
-			"image": "brown-purse.jpg",
-			"price": 120,
-			"category": "Accessories",
-			"quantity": 0,
-			"inventoryStatus": "OUTOFSTOCK",
-			"rating": 4
+			"image": "gaming-set.jpg",
+			"price": 299,
+			"category": "Electronics",
+			"quantity": 63,
+			"inventoryStatus": "INSTOCK",
+			"rating": 3
 		},
 		{
 			"id": "1006",
@@ -98,27 +98,27 @@
 		},
 		{
 			"id": "1008",
-			"code": "vbb124btr",
-			"name": "Game Controller",
+			"code": "f230fh0g3",
+			"name": "Bamboo Watch",
 			"description": "Product Description",
-			"image": "game-controller.jpg",
-			"price": 99,
-			"category": "Electronics",
-			"quantity": 2,
-			"inventoryStatus": "LOWSTOCK",
-			"rating": 4
+			"image": "bamboo-watch.jpg",
+			"price": 65,
+			"category": "Accessories",
+			"quantity": 24,
+			"inventoryStatus": "INSTOCK",
+			"rating": 5
 		},
 		{
 			"id": "1009",
-			"code": "cm230f032",
-			"name": "Gaming Set",
+			"code": "av2231fwg",
+			"name": "Brown Purse",
 			"description": "Product Description",
-			"image": "gaming-set.jpg",
-			"price": 299,
-			"category": "Electronics",
-			"quantity": 63,
-			"inventoryStatus": "INSTOCK",
-			"rating": 3
+			"image": "brown-purse.jpg",
+			"price": 120,
+			"category": "Accessories",
+			"quantity": 0,
+			"inventoryStatus": "OUTOFSTOCK",
+			"rating": 4
 		}
 	]
 }
\ No newline at end of file
diff --git a/src/components/autocomplete/AutoComplete.vue b/src/components/autocomplete/AutoComplete.vue
index bf1363812..9a35b2616 100755
--- a/src/components/autocomplete/AutoComplete.vue
+++ b/src/components/autocomplete/AutoComplete.vue
@@ -25,11 +25,11 @@
                     </template>
                     <template v-else>
                          <template v-for="(optionGroup, i) of suggestions" :key="getOptionGroupRenderKey(optionGroup)">
-                            <li  class="p-autocomplete-item-group" >
+                            <li  class="p-autocomplete-item-group">
                                 <slot name="optiongroup" :item="optionGroup" :index="i">{{getOptionGroupLabel(optionGroup)}}</slot>
                             </li>
-                            <li v-for="(item, i) of getOptionGroupChildren(optionGroup)" class="p-autocomplete-item" :key="i" @click="selectItem($event, item)" role="option" v-ripple>
-                                <slot name="item" :item="item" :index="i">{{getItemContent(item)}}</slot>
+                            <li v-for="(item, j) of getOptionGroupChildren(optionGroup)" class="p-autocomplete-item" :key="j" @click="selectItem($event, item)" role="option" v-ripple :data-group="i" :data-index="j">
+                                <slot name="item" :item="item" :index="j">{{getItemContent(item)}}</slot>
                             </li>
                         </template>
                     </template>
@@ -110,7 +110,8 @@ export default {
             searching: false,
             focused: false,
             overlayVisible: false,
-            inputTextValue: null
+            inputTextValue: null,
+            highlightItem: null
         };
     },
     watch: {
@@ -385,10 +386,10 @@ export default {
                         event.preventDefault();
                     break;
 
-                    //enter,tab
+                    //enter
                     case 13:
                         if (highlightItem) {
-                            this.selectItem(event, this.suggestions[DomHandler.index(highlightItem)]);
+                            this.selectHighlightItem(event, highlightItem);
                             this.hideOverlay();
                         }
 
@@ -404,7 +405,7 @@ export default {
                     //tab
                     case 9:
                         if (highlightItem) {
-                            this.selectItem(event, this.suggestions[DomHandler.index(highlightItem)]);
+                            this.selectHighlightItem(event, highlightItem);
                         }
 
                         this.hideOverlay();
@@ -436,6 +437,15 @@ export default {
                 }
             }
         },
+        selectHighlightItem(event, item) {
+            if (this.optionGroupLabel) {
+                let optionGroup = this.suggestions[item.dataset.group];
+                this.selectItem(event, this.getOptionGroupChildren(optionGroup)[item.dataset.index]);
+            }
+            else {
+                this.selectItem(event, this.suggestions[DomHandler.indexOfType(item)]);
+            }
+        },
         findNextItem(item) {
             let nextItem = item.nextElementSibling;