diff --git a/packages/main/cypress/specs/Input.cy.tsx b/packages/main/cypress/specs/Input.cy.tsx
index ee14e9829d84..2e0fe702a76c 100644
--- a/packages/main/cypress/specs/Input.cy.tsx
+++ b/packages/main/cypress/specs/Input.cy.tsx
@@ -1964,7 +1964,7 @@ describe("Input general interaction", () => {
 			.should("be.focused");
 
 		cy.get("@inputEl")
-			.realType("a");
+			.realType("A");
 
 		cy.get("@inputEl")
 			.should("have.value", "Adam D");
@@ -1985,7 +1985,7 @@ describe("Input general interaction", () => {
 		);
 
 		cy.get("#input-custom-flat").shadow().find("input").as("input");
-		cy.get("@input").click().realType("a");
+		cy.get("@input").click().realType("A");
 
 		cy.get("@input").should("have.value", "Albania");
 		cy.get("@input").then($input => {
@@ -3227,4 +3227,203 @@ describe("Input built-in filtering", () => {
 			.eq(1)
 			.should("have.attr", "hidden");
 	});
+
+	describe("Typeahead capitalization handling", () => {
+		it("should preserve user's typed capitalization during typeahead and use original suggestion capitalization when accepted", () => {
+			cy.mount(
+				<Input id="capitalization-test" showSuggestions>
+					<SuggestionItem text="Apple" />
+					<SuggestionItem text="Apricot" />
+					<SuggestionItem text="Avocado" />
+				</Input>
+			);
+
+			cy.get("#capitalization-test")
+				.shadow()
+				.find("input")
+				.as("input");
+
+			// Type lowercase 'a' - should show 'apple' with user's lowercase 'a'
+			cy.get("@input")
+				.realClick()
+				.realType("a");
+
+			cy.get("@input")
+				.should("have.value", "apple");
+
+			// Verify text selection (typeahead highlighting)
+			cy.get("@input")
+				.then($input => {
+					const input = $input[0] as HTMLInputElement;
+					expect(input.selectionStart).to.equal(1);
+					expect(input.selectionEnd).to.equal(5);
+				});
+
+			// Press Enter to accept - should use original suggestion capitalization "Apple"
+			cy.realPress("Enter");
+
+			cy.get("@input")
+				.should("have.value", "Apple");
+		});
+
+		it("should preserve uppercase typed letters during typeahead", () => {
+			cy.mount(
+				<Input id="capitalization-test-upper" showSuggestions>
+					<SuggestionItem text="apple" />
+					<SuggestionItem text="apricot" />
+				</Input>
+			);
+
+			cy.get("#capitalization-test-upper")
+				.shadow()
+				.find("input")
+				.as("input");
+
+			// Type uppercase 'A' - should show 'Apple' with user's uppercase 'A'
+			cy.get("@input")
+				.realClick()
+				.realType("A");
+
+			cy.get("@input")
+				.should("have.value", "Apple");
+
+			// Press Enter to accept - should use original suggestion capitalization "apple"
+			cy.realPress("Enter");
+
+			cy.get("@input")
+				.should("have.value", "apple");
+		});
+
+		it("should match suggestions regardless of capitalization and use original on Enter", () => {
+			cy.mount(
+				<Input id="exact-match-test" showSuggestions>
+					<SuggestionItem text="ap" />
+					<SuggestionItem text="Apple" />
+				</Input>
+			);
+
+			cy.get("#exact-match-test")
+				.shadow()
+				.find("input")
+				.as("input");
+
+			// Type "Ap" matching suggestion "ap"
+			cy.get("@input")
+				.realClick()
+				.realType("Ap");
+
+			// During typing, user's capitalization is preserved
+			cy.get("@input")
+				.should("have.value", "Ap");
+
+			// Press Enter - should use original suggestion capitalization "ap"
+			cy.realPress("Enter");
+
+			cy.get("@input")
+				.should("have.value", "ap");
+		});
+
+		it("should preserve user's typed capitalization through multiple characters", () => {
+			cy.mount(
+				<Input id="multi-char-test" showSuggestions>
+					<SuggestionItem text="BANANA" />
+					<SuggestionItem text="BERRY" />
+				</Input>
+			);
+
+			cy.get("#multi-char-test")
+				.shadow()
+				.find("input")
+				.as("input");
+
+			// Type "bAn" with mixed capitalization
+			cy.get("@input")
+				.realClick()
+				.realType("bAn");
+
+			// Should show suggestion with user's typed capitalization
+			cy.get("@input")
+				.should("have.value", "bAnANA");
+
+			// Press Enter - should use original suggestion capitalization "BANANA"
+			cy.realPress("Enter");
+
+			cy.get("@input")
+				.should("have.value", "BANANA");
+		});
+
+		it("should work with selection-change event and preserve original capitalization", () => {
+			const onChangeSpy = cy.spy().as("onChange");
+			const onSelectionChangeSpy = cy.spy().as("onSelectionChange");
+
+			cy.mount(
+				<Input
+					id="selection-change-test"
+					showSuggestions
+					onChange={onChangeSpy}
+					onSelectionChange={onSelectionChangeSpy}
+				>
+					<SuggestionItem text="Orange" />
+					<SuggestionItem text="Olive" />
+				</Input>
+			);
+
+			cy.get("#selection-change-test")
+				.shadow()
+				.find("input")
+				.as("input");
+
+			// Type lowercase 'o'
+			cy.get("@input")
+				.realClick()
+				.realType("o");
+
+			cy.get("@input")
+				.should("have.value", "orange");
+
+			// Press Enter to trigger selection-change
+			cy.realPress("Enter");
+
+			// Value should be original suggestion capitalization
+			cy.get("@input")
+				.should("have.value", "Orange");
+
+			// Verify both events were called
+			cy.get("@onChange").should("have.been.calledOnce");
+			cy.get("@onSelectionChange").should("have.been.calledOnce");
+		});
+
+		it("should clear matched item on Escape and restore typed value", () => {
+			cy.mount(
+				<Input id="escape-test" showSuggestions>
+					<SuggestionItem text="Apple" />
+				</Input>
+			);
+
+			cy.get("#escape-test")
+				.shadow()
+				.find("input")
+				.as("input");
+
+			// Type 'a' to trigger typeahead
+			cy.get("@input")
+				.realClick()
+				.realType("a");
+
+			cy.get("@input")
+				.should("have.value", "apple");
+
+			// Press Escape to cancel autocomplete
+			cy.realPress("Escape");
+
+			cy.get("@input")
+				.should("have.value", "a");
+
+			// Now press Enter - should not select anything
+			cy.realPress("Enter");
+
+			cy.get("@input")
+				.should("have.value", "a");
+		});
+	});
 });
diff --git a/packages/main/cypress/specs/Input.mobile.cy.tsx b/packages/main/cypress/specs/Input.mobile.cy.tsx
index 60c97f9e96da..31be35f278d8 100644
--- a/packages/main/cypress/specs/Input.mobile.cy.tsx
+++ b/packages/main/cypress/specs/Input.mobile.cy.tsx
@@ -272,7 +272,7 @@ describe("Typeahead", () => {
 		.ui5ResponsivePopoverOpened();
 
 		cy.get("#myInput2").shadow().find(".ui5-input-inner-phone").should("be.focused");
-		cy.get("#myInput2").shadow().find(".ui5-input-inner-phone").realType("c");
+		cy.get("#myInput2").shadow().find(".ui5-input-inner-phone").realType("C");
 		cy.get("#myInput2").shadow().find(".ui5-input-inner-phone").should("have.value", "Cozy");
 	});
 
@@ -313,7 +313,7 @@ describe("Typeahead", () => {
 		.ui5ResponsivePopoverOpened();
 
 		cy.get("#input-custom-flat").shadow().find(".ui5-input-inner-phone").should("be.focused");
-		cy.get("#input-custom-flat").shadow().find(".ui5-input-inner-phone").realType("a");
+		cy.get("#input-custom-flat").shadow().find(".ui5-input-inner-phone").realType("A");
 		cy.get("#input-custom-flat").shadow().find(".ui5-input-inner-phone").should("have.value", "Albania");
 	});
 });
diff --git a/packages/main/cypress/specs/MultiComboBox.mobile.cy.tsx b/packages/main/cypress/specs/MultiComboBox.mobile.cy.tsx
index 67726bb4707d..e6503a754606 100644
--- a/packages/main/cypress/specs/MultiComboBox.mobile.cy.tsx
+++ b/packages/main/cypress/specs/MultiComboBox.mobile.cy.tsx
@@ -197,7 +197,7 @@ describe("Typeahead", () => {
             .find("[ui5-input]")
             .as("respPopoverInput")
             .realClick()
-            .realType("c");
+            .realType("C");
 
         cy.get("@respPopoverInput")
             .should("have.value", "Cosy");
diff --git a/packages/main/cypress/specs/MultiInput.cy.tsx b/packages/main/cypress/specs/MultiInput.cy.tsx
index 277705c8672e..1d2304846cc4 100644
--- a/packages/main/cypress/specs/MultiInput.cy.tsx
+++ b/packages/main/cypress/specs/MultiInput.cy.tsx
@@ -575,11 +575,78 @@ describe("MultiInput tokens", () => {
 			.realClick();
 
 		cy.get("@input")
-			.type("b");
+			.type("B");
 
 		cy.get("[ui5-multi-input]")
 			.should("have.attr", "value", "Bulgaria");
 	});
+
+	it("should not select multiple suggestions when switching between typed values", () => {
+		cy.mount(
+			<MultiInput
+				id="multi-selection-test"
+				showSuggestions
+				placeholder="Type country name..."
+			>
+				<SuggestionItemCustom text="Bulgaria">
+					<span>Bulgaria</span>
+				</SuggestionItemCustom>
+				<SuggestionItemCustom text="Canada">
+					<span>Canada</span>
+				</SuggestionItemCustom>
+				<SuggestionItemCustom text="Germany">
+					<span>Germany</span>
+				</SuggestionItemCustom>
+				<SuggestionItemCustom text="Austria">
+					<span>Austria</span>
+				</SuggestionItemCustom>
+			</MultiInput>
+		);
+
+		cy.get("[ui5-multi-input]")
+			.shadow()
+			.find("input")
+			.as("input");
+
+		cy.get("@input")
+			.realClick()
+			.realType("Bul");
+
+		// Wait for popover to open
+		cy.get("[ui5-multi-input]")
+			.shadow()
+			.find<ResponsivePopover>("[ui5-responsive-popover]")
+			.ui5ResponsivePopoverOpened();
+
+		// Bulgaria is first item (index 0), check it's selected
+		cy.get("[ui5-multi-input]")
+			.find("[ui5-suggestion-item-custom]")
+			.eq(0)
+			.should("have.prop", "selected", true);
+
+		// Other items should not be selected
+		cy.get("[ui5-multi-input]")
+			.find("[ui5-suggestion-item-custom]")
+			.eq(1)
+			.should("have.prop", "selected", false);
+
+		// Clear and type "Cana"
+		cy.get("@input")
+			.clear()
+			.realType("Cana");
+
+		// Canada is second item (index 1), check it's selected
+		cy.get("[ui5-multi-input]")
+			.find("[ui5-suggestion-item-custom]")
+			.eq(1)
+			.should("have.prop", "selected", true);
+
+		// Bulgaria (index 0) should NOT be selected anymore
+		cy.get("[ui5-multi-input]")
+			.find("[ui5-suggestion-item-custom]")
+			.eq(0)
+			.should("have.prop", "selected", false);
+	});
 });
 
 describe("MultiInput Truncated Token", () => {
diff --git a/packages/main/src/Input.ts b/packages/main/src/Input.ts
index 335175c39cba..115142055ac7 100644
--- a/packages/main/src/Input.ts
+++ b/packages/main/src/Input.ts
@@ -637,6 +637,7 @@ class Input extends UI5Element implements SuggestionComponent, IFormInputElement
 	_clearIconClicked?: boolean;
 	_focusedAfterClear: boolean;
 	_changeToBeFired?: boolean; // used to wait change event firing after suggestion item selection
+	_matchedSuggestionItem?: IInputSuggestionItemSelectable; // stores the original matched suggestion for preserving case
 	_performTextSelection?: boolean;
 	_isLatestValueFromSuggestions: boolean;
 	_isChangeTriggeredBySuggestion: boolean;
@@ -801,6 +802,8 @@ class Input extends UI5Element implements SuggestionComponent, IFormInputElement
 					this._handleTypeAhead(item);
 				}
 				this._selectMatchingItem(item);
+			} else {
+				this._matchedSuggestionItem = undefined;
 			}
 		}
 	}
@@ -1027,9 +1030,13 @@ class Input extends UI5Element implements SuggestionComponent, IFormInputElement
 		// if a group item is focused, this is false
 		const suggestionItemPressed = !!(this.Suggestions?.onEnter(e));
 		const innerInput = this.getInputDOMRefSync()!;
-		const matchingItem = this._selectableItems.find(item => {
-			return item.text === this.value;
-		});
+
+		let matchingItem = this._matchedSuggestionItem;
+		if (!matchingItem) {
+			matchingItem = this._selectableItems.find(item => {
+				return item.text?.toLowerCase() === this.value.toLowerCase();
+			});
+		}
 
 		if (matchingItem) {
 			const itemText = matchingItem.text || "";
@@ -1090,6 +1097,7 @@ class Input extends UI5Element implements SuggestionComponent, IFormInputElement
 		const isAutoCompleted = innerInput.selectionEnd! - innerInput.selectionStart! > 0;
 
 		this.isTyping = false;
+		this._matchedSuggestionItem = undefined;
 
 		if (this.value !== this.previousValue && this.value !== this.lastConfirmedValue && !this.open) {
 			this.value = this.lastConfirmedValue ? this.lastConfirmedValue : this.previousValue;
@@ -1325,6 +1333,7 @@ class Input extends UI5Element implements SuggestionComponent, IFormInputElement
 
 	_selectMatchingItem(item: IInputSuggestionItemSelectable) {
 		item.selected = true;
+		this._matchedSuggestionItem = item;
 	}
 
 	_filterItems(value: string) {
@@ -1374,11 +1383,15 @@ class Input extends UI5Element implements SuggestionComponent, IFormInputElement
 	}
 
 	_handleTypeAhead(item: IInputSuggestionItemSelectable) {
-		const value = item.text ? item.text : "";
+		const suggestionText = item.text ? item.text : "";
+		const typedValue = this.typedInValue;
 
-		this.value = value;
-		this._performTextSelection = true;
+		// Preserve the user's typed input case during typing
+		if (suggestionText.toLowerCase().startsWith(typedValue.toLowerCase())) {
+			this.value = typedValue + suggestionText.substring(typedValue.length);
+		}
 
+		this._performTextSelection = true;
 		this._shouldAutocomplete = false;
 	}
 
@@ -1527,7 +1540,17 @@ class Input extends UI5Element implements SuggestionComponent, IFormInputElement
 			return;
 		}
 
-		const itemText = item.text || "";
+		let originalItem = item;
+		if (this._matchedSuggestionItem) {
+			const matchedText = this._matchedSuggestionItem.text?.toLowerCase() || "";
+			const itemText = item.text?.toLowerCase() || "";
+			// Only use matched item if keyboard navigation or if it's the same item (case-insensitive)
+			if (keyboardUsed || matchedText === itemText) {
+				originalItem = this._matchedSuggestionItem;
+			}
+		}
+
+		const itemText = originalItem.text || "";
 		const fireChange = keyboardUsed
 			? this.valueBeforeItemSelection !== itemText : this.previousValue !== itemText;
 
@@ -1549,6 +1572,7 @@ class Input extends UI5Element implements SuggestionComponent, IFormInputElement
 		}
 
 		this.valueBeforeSelectionStart = "";
+		this._matchedSuggestionItem = undefined;
 
 		this.isTyping = false;
 		this.open = false;
@@ -1563,6 +1587,11 @@ class Input extends UI5Element implements SuggestionComponent, IFormInputElement
 
 		this.value = itemValue || "";
 		this._performTextSelection = true;
+
+		// Update the matched item when navigating with arrows to preserve correct case on Enter
+		if (!this._isGroupItem(item)) {
+			this._matchedSuggestionItem = item as IInputSuggestionItemSelectable;
+		}
 	}
 
 	fireEventByAction(action: INPUT_ACTIONS, e: InputEvent) {
diff --git a/packages/main/src/Token.ts b/packages/main/src/Token.ts
index 352119238981..fca069913e6d 100644
--- a/packages/main/src/Token.ts
+++ b/packages/main/src/Token.ts
@@ -13,7 +13,7 @@ import {
 } from "@ui5/webcomponents-base/dist/Keys.js";
 import type I18nBundle from "@ui5/webcomponents-base/dist/i18nBundle.js";
 import i18n from "@ui5/webcomponents-base/dist/decorators/i18n.js";
-import { TOKEN_ARIA_DELETABLE, TOKEN_ARIA_LABEL, TOKEN_ARIA_REMOVE } from "./generated/i18n/i18n-defaults.js";
+import { TOKEN_ARIA_DELETE, TOKEN_ARIA_DELETABLE, TOKEN_ARIA_LABEL } from "./generated/i18n/i18n-defaults.js";
 
 import type { IIcon } from "./Icon.js";
 import type { IToken } from "./MultiInput.js";
@@ -195,7 +195,7 @@ class Token extends UI5Element implements IToken {
 	}
 
 	get tokenDeletableText() {
-		return Token.i18nBundle.getText(TOKEN_ARIA_REMOVE);
+		return Token.i18nBundle.getText(TOKEN_ARIA_DELETE);
 	}
 
 	get textDom() {
diff --git a/packages/main/src/features/InputSuggestions.ts b/packages/main/src/features/InputSuggestions.ts
index d15b871f92c1..ad625d42c8c8 100644
--- a/packages/main/src/features/InputSuggestions.ts
+++ b/packages/main/src/features/InputSuggestions.ts
@@ -387,7 +387,7 @@ class Suggestions {
 	_deselectItems() {
 		const items = this._getItems();
 		items.forEach(item => {
-			if (item.hasAttribute("ui5-suggestion-item")) {
+			if (item.hasAttribute("ui5-suggestion-item") || item.hasAttribute("ui5-suggestion-item-custom")) {
 				(item as SuggestionItem).selected = false;
 			}
 
diff --git a/packages/main/src/i18n/messagebundle.properties b/packages/main/src/i18n/messagebundle.properties
index dabc09a707dd..7ec2adfba0a5 100644
--- a/packages/main/src/i18n/messagebundle.properties
+++ b/packages/main/src/i18n/messagebundle.properties
@@ -617,7 +617,7 @@ DATETIME_PICKER_TIME_BUTTON=Time
 TOKEN_ARIA_DELETABLE=Deletable
 
 #XACT: ARIA announcement for token removal
-TOKEN_ARIA_REMOVE=Remove
+TOKEN_ARIA_DELETE=Delete
 
 #XACT: ARIA announcement for token label
 TOKEN_ARIA_LABEL=Token
diff --git a/packages/main/test/pages/Input.html b/packages/main/test/pages/Input.html
index 12b97241c8c0..e0c9cca883a2 100644
--- a/packages/main/test/pages/Input.html
+++ b/packages/main/test/pages/Input.html
@@ -609,8 +609,17 @@ <h3>Input Composition</h3>
 		</ui5-input>
 		<ui5-button id="btnCheckFormValidity">Check Validity</ui5-button>
 	</form>
-	<br><br>
 
+	<h3>Capitalization suggestions</h3>
+	<ui5-input id="capitalization-suggestions" show-suggestions>
+		<ui5-suggestion-item text="Apple"></ui5-suggestion-item>
+		<ui5-suggestion-item text="apple"></ui5-suggestion-item>
+		<ui5-suggestion-item text="aPPle"></ui5-suggestion-item>
+		<ui5-suggestion-item text="Apples"></ui5-suggestion-item>
+		<ui5-suggestion-item text="apples"></ui5-suggestion-item>
+	</ui5-input>
+	<br><br>
+	
 	<script>
 		const btnCheckFormValidity = document.getElementById('btnCheckFormValidity');
 		const formValidationMessage = document.getElementById('formValidationMessage');
diff --git a/packages/main/test/pages/MultiInput.html b/packages/main/test/pages/MultiInput.html
index 80bcff883259..004498d10008 100644
--- a/packages/main/test/pages/MultiInput.html
+++ b/packages/main/test/pages/MultiInput.html
@@ -333,7 +333,7 @@ <h1>Composition</h1>
 	<div class="sample-container">
 		<h1>Suggestions + showing wrapping</h1>
 
-		<ui5-multi-input show-suggestions show-value-help-icon id="suggestion-wrapping">
+		<ui5-multi-input show-suggestions show-value-help-icon id="suggestion-wrapping" filter="Contains">
 			<ui5-suggestion-item text="Lorem ipsum Text"></ui5-suggestion-item>
 			<ui5-suggestion-item text="Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nullam id justo sed nisl consequat tincidunt. Vivamus tincidunt, sapien a tincidunt consequat, leo libero lacinia justo, a lacinia orci enim vel justo. Integer ultricies ex eu eros luctus, eu cursus nisl volutpat."></ui5-suggestion-item>
 			<ui5-suggestion-item text="Enim do esse anim magna enim fugiat Lorem enim nostrud sit laborum ea."></ui5-suggestion-item>
@@ -440,6 +440,15 @@ <h1 class="sample-container-title">Token delete</h1>
 		</ui5-multi-input>
 		<ui5-button id="btnCheckFormValidity">Check Validity</ui5-button>
 	</form>
+
+	<h3>Capitalization suggestions</h3>
+	<ui5-multi-input id="capitalization-suggestions" show-suggestions>
+		<ui5-suggestion-item text="Apple"></ui5-suggestion-item>
+		<ui5-suggestion-item text="apple"></ui5-suggestion-item>
+		<ui5-suggestion-item text="ApplY"></ui5-suggestion-item>
+		<ui5-suggestion-item text="Apples"></ui5-suggestion-item>
+		<ui5-suggestion-item text="application"></ui5-suggestion-item>
+	</ui5-multi-input>
 	<br><br>
 
 	<script>