diff --git a/README.md b/README.md
index b8897503d..399be8f75 100644
--- a/README.md
+++ b/README.md
@@ -15,10 +15,11 @@ that will suggest people matching an entered text.
 - when the selected person is displayed in the title, but the value in the input changes, the selected person should be cleared and `No selected person` should be shown.
 
 ## Instructions
+
 - Install Prettier Extention and use this [VSCode settings](https://mate-academy.github.io/fe-program/tools/vscode/settings.json) to enable format on save.
 - Implement a solution following the [React task guideline](https://github.com/mate-academy/react_task-guideline#react-tasks-guideline).
 - Use the [React TypeScript cheat sheet](https://mate-academy.github.io/fe-program/js/extra/react-typescript).
-- Replace `<your_account>` with your Github username in the [DEMO LINK](https://<your_account>.github.io/react_autocomplete/) and add it to the PR description.
+- Replace `<your_account>` with your Github username in the [DEMO LINK](https://protocolo23.github.io/react_autocomplete/) and add it to the PR description.
 - Don't remove the `data-qa` attributes. It is required for tests.
 
 ## Troubleshooting
diff --git a/package-lock.json b/package-lock.json
index a57a24cb7..cceb15e29 100644
--- a/package-lock.json
+++ b/package-lock.json
@@ -20,7 +20,7 @@
       "devDependencies": {
         "@cypress/react18": "^2.0.1",
         "@faker-js/faker": "^8.4.1",
-        "@mate-academy/scripts": "^1.8.5",
+        "@mate-academy/scripts": "^2.1.3",
         "@mate-academy/students-ts-config": "*",
         "@mate-academy/stylelint-config": "*",
         "@types/lodash.debounce": "^4.0.9",
@@ -1189,10 +1189,11 @@
       }
     },
     "node_modules/@mate-academy/scripts": {
-      "version": "1.8.5",
-      "resolved": "https://registry.npmjs.org/@mate-academy/scripts/-/scripts-1.8.5.tgz",
-      "integrity": "sha512-mHRY2FkuoYCf5U0ahIukkaRo5LSZsxrTSgMJheFoyf3VXsTvfM9OfWcZIDIDB521kdPrScHHnRp+JRNjCfUO5A==",
+      "version": "2.1.3",
+      "resolved": "https://registry.npmjs.org/@mate-academy/scripts/-/scripts-2.1.3.tgz",
+      "integrity": "sha512-a07wHTj/1QUK2Aac5zHad+sGw4rIvcNl5lJmJpAD7OxeSbnCdyI6RXUHwXhjF5MaVo9YHrJ0xVahyERS2IIyBQ==",
       "dev": true,
+      "license": "MIT",
       "dependencies": {
         "@octokit/rest": "^17.11.2",
         "@types/get-port": "^4.2.0",
diff --git a/package.json b/package.json
index cda47c54b..2ae5e8de2 100644
--- a/package.json
+++ b/package.json
@@ -16,7 +16,7 @@
   "devDependencies": {
     "@cypress/react18": "^2.0.1",
     "@faker-js/faker": "^8.4.1",
-    "@mate-academy/scripts": "^1.8.5",
+    "@mate-academy/scripts": "^2.1.3",
     "@mate-academy/students-ts-config": "*",
     "@mate-academy/stylelint-config": "*",
     "@types/lodash.debounce": "^4.0.9",
diff --git a/src/App.tsx b/src/App.tsx
index a88cd7a6d..731a0db35 100644
--- a/src/App.tsx
+++ b/src/App.tsx
@@ -1,73 +1,32 @@
-import React from 'react';
+import React, { useCallback, useState } from 'react';
 import './App.scss';
 import { peopleFromServer } from './data/people';
+import { Autocomplete } from './components/Autocomplete/Autocomplete';
+import { Person } from './types/Person';
 
 export const App: React.FC = () => {
-  const { name, born, died } = peopleFromServer[0];
+  const [selectedPerson, setSelectedPerson] = useState<Person | null>(null);
+
+  const handleSelect = useCallback((person: Person) => {
+    setSelectedPerson(person);
+  }, []);
 
   return (
     <div className="container">
       <main className="section is-flex is-flex-direction-column">
         <h1 className="title" data-cy="title">
-          {`${name} (${born} - ${died})`}
+          {selectedPerson
+            ? `${selectedPerson.name} (${selectedPerson.born} - ${selectedPerson.died})`
+            : 'No selected person'}
         </h1>
-
-        <div className="dropdown is-active">
-          <div className="dropdown-trigger">
-            <input
-              type="text"
-              placeholder="Enter a part of the name"
-              className="input"
-              data-cy="search-input"
-            />
-          </div>
-
-          <div className="dropdown-menu" role="menu" data-cy="suggestions-list">
-            <div className="dropdown-content">
-              <div className="dropdown-item" data-cy="suggestion-item">
-                <p className="has-text-link">Pieter Haverbeke</p>
-              </div>
-
-              <div className="dropdown-item" data-cy="suggestion-item">
-                <p className="has-text-link">Pieter Bernard Haverbeke</p>
-              </div>
-
-              <div className="dropdown-item" data-cy="suggestion-item">
-                <p className="has-text-link">Pieter Antone Haverbeke</p>
-              </div>
-
-              <div className="dropdown-item" data-cy="suggestion-item">
-                <p className="has-text-danger">Elisabeth Haverbeke</p>
-              </div>
-
-              <div className="dropdown-item" data-cy="suggestion-item">
-                <p className="has-text-link">Pieter de Decker</p>
-              </div>
-
-              <div className="dropdown-item" data-cy="suggestion-item">
-                <p className="has-text-danger">Petronella de Decker</p>
-              </div>
-
-              <div className="dropdown-item" data-cy="suggestion-item">
-                <p className="has-text-danger">Elisabeth Hercke</p>
-              </div>
-            </div>
-          </div>
-        </div>
-
-        <div
-          className="
-            notification
-            is-danger
-            is-light
-            mt-3
-            is-align-self-flex-start
-          "
-          role="alert"
-          data-cy="no-suggestions-message"
-        >
-          <p className="has-text-danger">No matching suggestions</p>
-        </div>
+        <Autocomplete
+          people={peopleFromServer}
+          onSelect={handleSelect}
+          onChange={() => {
+            setSelectedPerson(null);
+          }}
+          delay={300}
+        />
       </main>
     </div>
   );
diff --git a/src/components/Autocomplete/Autocomplete.tsx b/src/components/Autocomplete/Autocomplete.tsx
new file mode 100644
index 000000000..a571a8086
--- /dev/null
+++ b/src/components/Autocomplete/Autocomplete.tsx
@@ -0,0 +1,139 @@
+import cn from 'classnames';
+import debounce from 'lodash.debounce';
+import React, { useCallback, useMemo, useState } from 'react';
+import { Person } from '../../types/Person';
+
+type Props = {
+  people: Person[];
+  onSelect: (person: Person) => void;
+  onChange: () => void;
+  delay?: number;
+};
+
+export const Autocomplete: React.FC<Props> = React.memo(function Autocomplete({
+  people,
+  onSelect,
+  onChange,
+  delay = 300,
+}) {
+  const [query, setQuery] = useState('');
+  const [appliedQuery, setAppliedQuery] = useState('');
+  const [isOpen, setIsOpen] = useState(false);
+  const [highlightIndex, setHighlightIndex] = useState<number>(-1);
+
+  const applyQuery = useMemo(() => {
+    return debounce((value: string) => {
+      setAppliedQuery(value);
+    }, delay);
+  }, [delay]);
+
+  const handleQueryChange = useCallback(
+    (event: React.ChangeEvent<HTMLInputElement>) => {
+      const input = event.target.value;
+
+      setQuery(input);
+
+      if (!input.trim()) {
+        return;
+      }
+
+      applyQuery(input);
+      onChange();
+      setIsOpen(true);
+      setHighlightIndex(-1);
+    },
+    [applyQuery, onChange],
+  );
+
+  const suggestions = useMemo(() => {
+    if (!appliedQuery.trim()) {
+      return people;
+    }
+
+    return people.filter(p =>
+      p.name.toLowerCase().includes(appliedQuery.toLowerCase()),
+    );
+  }, [appliedQuery, people]);
+
+  const handleSelect = useCallback(
+    (person: Person) => {
+      setQuery(person.name);
+      setAppliedQuery(person.name);
+      setIsOpen(false);
+      onSelect(person);
+    },
+    [onSelect],
+  );
+
+  const handleKeyDown = (event: React.KeyboardEvent<HTMLInputElement>) => {
+    if (!isOpen || suggestions.length === 0) {
+      return;
+    }
+
+    if (event.key === 'ArrowDown') {
+      setHighlightIndex(prev => (prev + 1) % suggestions.length);
+    } else if (event.key === 'ArrowUp') {
+      setHighlightIndex(prev =>
+        prev <= 0 ? suggestions.length - 1 : prev - 1,
+      );
+    } else if (event.key === 'Enter' && highlightIndex >= 0) {
+      handleSelect(suggestions[highlightIndex]);
+    }
+  };
+
+  return (
+    <div className={cn('dropdown', { 'is-active': isOpen })}>
+      <div className="dropdown-trigger">
+        <input
+          type="text"
+          placeholder="Enter a part of the name"
+          className="input"
+          value={query}
+          onChange={handleQueryChange}
+          onFocus={() => setIsOpen(true)}
+          onKeyDown={handleKeyDown}
+          aria-expanded={isOpen}
+          aria-controls="suggestions-list"
+          data-cy="search-input"
+        />
+      </div>
+
+      {isOpen && (
+        <div
+          id="suggestions-list"
+          className="dropdown-menu"
+          role="listbox"
+          data-cy="suggestions-list"
+        >
+          <div className="dropdown-content">
+            {suggestions.map((person, index) => (
+              <div
+                // key={`${person.slug}-${index}`} //
+                key={person.slug}
+                role="option"
+                aria-selected={highlightIndex === index}
+                className={cn('dropdown-item', {
+                  'is-active': highlightIndex === index,
+                })}
+                onClick={() => handleSelect(person)}
+                data-cy="suggestion-item"
+              >
+                <p className="has-text-link">{person.name}</p>
+              </div>
+            ))}
+          </div>
+        </div>
+      )}
+
+      {suggestions.length === 0 && query.trim() !== '' && (
+        <div
+          className="notification is-danger is-light mt-3"
+          role="alert"
+          data-cy="no-suggestions-message"
+        >
+          <p className="has-text-danger">No matching suggestions</p>
+        </div>
+      )}
+    </div>
+  );
+});