diff --git a/cypress/component/TimeSelect.cy.tsx b/cypress/component/TimeSelect.cy.tsx
index dc2b28a1ff..2ed54c22be 100644
--- a/cypress/component/TimeSelect.cy.tsx
+++ b/cypress/component/TimeSelect.cy.tsx
@@ -26,8 +26,8 @@ import moment from 'moment-timezone'
 import 'cypress-real-events'
 
 import '../support/component'
-import { TimeSelect } from '../../packages/ui'
-import { DateTime } from '../../packages/ui-i18n'
+import { TimeSelect } from '@instructure/ui'
+import { DateTime } from '@instructure/ui-i18n'
 
 describe('<TimeSelect/>', () => {
   it('should render an input and list', async () => {
@@ -70,6 +70,34 @@ describe('<TimeSelect/>', () => {
       })
   })
 
+  it('should fire onChange when input field is cleared and blurred and allowClearingSelection is true', async () => {
+    const onChange = cy.spy()
+    cy.mount(
+      <TimeSelect
+        renderLabel="Choose a time"
+        timezone="US/Eastern"
+        onChange={onChange}
+        allowClearingSelection={true}
+      />
+    )
+    cy.get('input[id^="Select_"]').as('input')
+
+    cy.get('@input').click()
+
+    cy.get('li[class$="-optionItem"]').eq(0).click()
+
+    cy.get('@input').click()
+    cy.get('@input').clear()
+    cy.get('@input').blur()
+
+    cy.wrap(onChange)
+      .should('have.been.called')
+      .then((spy) => {
+        expect(spy.lastCall.args[1]).to.have.property('value', '')
+        expect(spy.lastCall.args[1]).to.have.property('inputText', '')
+      })
+  })
+
   it('should behave uncontrolled', async () => {
     const onChange = cy.spy()
     cy.mount(<TimeSelect renderLabel="Choose a time" onChange={onChange} />)
diff --git a/docs/contributor-docs/v11-upgrade-guide.md b/docs/contributor-docs/v11-upgrade-guide.md
index e2659b5552..fa856849db 100644
--- a/docs/contributor-docs/v11-upgrade-guide.md
+++ b/docs/contributor-docs/v11-upgrade-guide.md
@@ -31,3 +31,4 @@ isWIP: true
 ## Changes
 
 - `ui-dom-utils`/`getComputedStyle` can now return `undefined`: In previous versions sometimes returned an empty object which could lead to runtime exceptions when one tried to call methods of `CSSStyleDeclaration` on it.
+- TO-DO: [TimeSelect](/#TimeSelect) as a controlled component can now return an '' instead of a valid date when its input field is cleared. In previous versions it always reverted to the last selected value when the input field was cleared and lost focus.
diff --git a/packages/ui-time-select/src/TimeSelect/index.tsx b/packages/ui-time-select/src/TimeSelect/index.tsx
index fdea8d2e7a..59350dba1d 100644
--- a/packages/ui-time-select/src/TimeSelect/index.tsx
+++ b/packages/ui-time-select/src/TimeSelect/index.tsx
@@ -74,7 +74,8 @@ class TimeSelect extends Component<TimeSelectProps, TimeSelectState> {
     placement: 'bottom stretch',
     constrain: 'window',
     renderEmptyOption: '---',
-    allowNonStepInput: false
+    allowNonStepInput: false,
+    allowClearingSelection: false
   }
   static contextType = ApplyLocaleContext
 
@@ -220,7 +221,8 @@ class TimeSelect extends Component<TimeSelectProps, TimeSelectState> {
           : initialOptions,
       isShowingOptions: false,
       highlightedOptionId: initialSelection ? initialSelection.id : undefined,
-      selectedOptionId: initialSelection ? initialSelection.id : undefined
+      selectedOptionId: initialSelection ? initialSelection.id : undefined,
+      isInputCleared: false
     }
   }
 
@@ -338,7 +340,8 @@ class TimeSelect extends Component<TimeSelectProps, TimeSelectState> {
         selectedOptionId: this.isControlled
           ? this.state.selectedOptionId
           : undefined,
-        fireChangeOnBlur: undefined
+        fireChangeOnBlur: undefined,
+        isInputCleared: this.props.allowClearingSelection && value === ''
       })
     }
     this.setState({
@@ -386,7 +389,7 @@ class TimeSelect extends Component<TimeSelectProps, TimeSelectState> {
   // when pressing ESC. NOT called when an item is selected via Enter/click,
   // (but in this case it will be called later when the input is blurred.)
   handleBlurOrEsc: SelectProps['onRequestHideOptions'] = (event) => {
-    const { selectedOptionId, inputValue } = this.state
+    const { selectedOptionId, inputValue, isInputCleared } = this.state
     let defaultValue = ''
     if (this.props.defaultValue) {
       const date = DateTime.parse(
@@ -400,14 +403,23 @@ class TimeSelect extends Component<TimeSelectProps, TimeSelectState> {
     }
     const selectedOption = this.getOption('id', selectedOptionId)
     let newInputValue = defaultValue
-    if (selectedOption) {
-      // If there is a selected option use its value in the input field.
-      newInputValue = selectedOption.label
-    }
     // if input was completely cleared, ensure it stays clear
     // e.g. defaultValue defined, but no selection yet made
-    else if (inputValue === '') {
+    if (inputValue === '' && this.props.allowClearingSelection) {
       newInputValue = ''
+    } else if (selectedOption) {
+      // If there is a selected option use its value in the input field.
+      newInputValue = selectedOption.label
+    } else if (this.props.value) {
+      // If controlled and input is cleared and blurred after the first render, it should revert to value
+      const date = DateTime.parse(
+        this.props.value,
+        this.locale(),
+        this.timezone()
+      )
+      newInputValue = this.props.format
+        ? date.format(this.props.format)
+        : date.toISOString()
     }
     this.setState(() => ({
       isShowingOptions: false,
@@ -421,6 +433,16 @@ class TimeSelect extends Component<TimeSelectProps, TimeSelectState> {
         value: this.state.fireChangeOnBlur.value.toISOString(),
         inputText: this.state.fireChangeOnBlur.label
       })
+    } else if (
+      isInputCleared &&
+      (event as any).key !== 'Escape' &&
+      this.props.allowClearingSelection
+    ) {
+      this.setState(() => ({ isInputCleared: false }))
+      this.props.onChange?.(event, {
+        value: '',
+        inputText: ''
+      })
     }
     // TODO only fire this if handleSelectOption was not called before.
     this.props.onHideOptions?.(event)
diff --git a/packages/ui-time-select/src/TimeSelect/props.ts b/packages/ui-time-select/src/TimeSelect/props.ts
index 7c69668f3c..b0fd16c0b0 100644
--- a/packages/ui-time-select/src/TimeSelect/props.ts
+++ b/packages/ui-time-select/src/TimeSelect/props.ts
@@ -244,6 +244,11 @@ type TimeSelectOwnProps = {
      */
     valueAsISOString?: string
   ) => void
+  /**
+   * Whether to allow for the user to clear the selected option in the input field.
+   * If `false`, the input field will return the last selected option after the input is cleared and loses focus.
+   */
+  allowClearingSelection: boolean
 }
 
 const propTypes: PropValidators<PropKeys> = {
@@ -278,7 +283,8 @@ const propTypes: PropValidators<PropKeys> = {
   locale: PropTypes.string,
   timezone: PropTypes.string,
   allowNonStepInput: PropTypes.bool,
-  onInputChange: PropTypes.func
+  onInputChange: PropTypes.func,
+  allowClearingSelection: PropTypes.bool
 }
 
 const allowedProps: AllowedPropKeys = [
@@ -313,7 +319,8 @@ const allowedProps: AllowedPropKeys = [
   'locale',
   'timezone',
   'allowNonStepInput',
-  'onInputChange'
+  'onInputChange',
+  'allowClearingSelection'
 ]
 
 type TimeSelectOptions = {
@@ -356,6 +363,10 @@ type TimeSelectState = {
    * fire onChange event when the popup closes?
    */
   fireChangeOnBlur?: TimeSelectOptions
+  /**
+   * Whether to selected option is cleared
+   */
+  isInputCleared: boolean
 }
 
 export type { TimeSelectProps, TimeSelectState, TimeSelectOptions }