diff --git a/playground/app.vue b/playground/app.vue
index 5c8f5a2b..4df511af 100644
--- a/playground/app.vue
+++ b/playground/app.vue
@@ -1,23 +1,21 @@
-<template>
-  <UContainer class="min-h-screen flex items-center">
-    <UCard class="flex-1" :ui="{ background: 'bg-gray-50 dark:bg-gray-800/50', ring: 'ring-1 ring-gray-300 dark:ring-gray-700', divide: 'divide-y divide-gray-300 dark:divide-gray-700', header: { base: 'font-bold' } }">
-      <template #header>
-        Welcome to the playground!
-      </template>
+<script setup lang="ts">
+const people = ['Wade Cooper', 'Arlene Mccoy', 'Devon Webb', 'Tom Cook', 'Tanya Fox', 'Hellen Schmidt', 'Caroline Schultz', 'Mason Heaney', 'Claudie Smitham', 'Emil Schaefer']
 
-      <p class="text-gray-500 dark:text-gray-400">
-        Try your components here!
-      </p>
-    </UCard>
-  </UContainer>
-</template>
-
-<script setup>
+const selected = ref()
 
+const handleClose = () => {
+}
 </script>
 
-<style>
-body {
-  @apply antialiased font-sans text-gray-700 dark:text-gray-200 bg-white dark:bg-gray-900;
-}
-</style>
+<template>
+  <UContainer>
+    <USelectMenu
+      v-model="selected"
+      multiple
+      clearable
+      :options="people"
+      placeholder="Select people"
+      @clear="handleClose"
+    />
+  </UContainer>
+</template>
diff --git a/src/runtime/components/forms/SelectMenu.vue b/src/runtime/components/forms/SelectMenu.vue
index 273f1bd7..84f5568f 100644
--- a/src/runtime/components/forms/SelectMenu.vue
+++ b/src/runtime/components/forms/SelectMenu.vue
@@ -41,8 +41,11 @@
           </slot>
 
           <span v-if="(isTrailing && trailingIconName) || $slots.trailing" :class="trailingWrapperIconClass">
-            <slot name="trailing" :selected="selected" :disabled="disabled" :loading="loading">
-              <UIcon :name="trailingIconName" :class="trailingIconClass" aria-hidden="true" />
+            <slot
+              name="trailing"
+              v-bind="trailingSlotProps()"
+            >
+              <UIcon :name="trailingIconName" :class="trailingIconClass" aria-hidden="true" @click="onClear" />
             </slot>
           </span>
         </button>
@@ -332,9 +335,21 @@ export default defineComponent({
     uiMenu: {
       type: Object as PropType<DeepPartial<typeof configMenu> & { strategy?: Strategy }>,
       default: () => ({})
+    },
+    clearable: {
+      type: Boolean,
+      default: false
+    },
+    clearableIcon: {
+      type: String,
+      default: () => config.default.clerableIcon
+    },
+    closeOnClear: {
+      type: Boolean,
+      default: () => configMenu.default.closeOnClear
     }
   },
-  emits: ['update:modelValue', 'update:query', 'open', 'close', 'change'],
+  emits: ['update:modelValue', 'update:query', 'open', 'close', 'change', 'clear'],
   setup(props, { emit, slots }) {
     if (import.meta.dev && props.multiple && !Array.isArray(props.modelValue)) {
       console.warn(`[@nuxt/ui] The USelectMenu components needs to have a modelValue of type Array when using the multiple prop. Got '${typeof props.modelValue}' instead.`, props.modelValue)
@@ -431,7 +446,12 @@ export default defineComponent({
       return props.leadingIcon || props.icon
     })
 
+    const canClearValue = computed(() => props.clearable && (Array.isArray(selected.value) ? selected.value.length > 0 : !!selected.value))
+
     const trailingIconName = computed(() => {
+      if (canClearValue.value) {
+        return props.clearableIcon
+      }
       if (props.loading && !isLeading.value) {
         return props.loadingIcon
       }
@@ -534,7 +554,7 @@ export default defineComponent({
       return ['string', 'number'].includes(typeof props.modelValue) ? query.value : { [props.optionAttribute]: query.value }
     })
 
-    function clearOnClose() {
+    function handleClearSearchOnClose() {
       if (props.clearSearchOnClose) {
         query.value = ''
       }
@@ -544,7 +564,7 @@ export default defineComponent({
       if (value) {
         emit('open')
       } else {
-        clearOnClose()
+        handleClearSearchOnClose()
         emit('close')
         emitFormBlur()
       }
@@ -564,6 +584,31 @@ export default defineComponent({
       query.value = event.target.value
     }
 
+    function onClear(e: Event) {
+      if (canClearValue.value) {
+        if (!props.closeOnClear) {
+          e.stopPropagation()
+        }
+        emit('update:modelValue', props.multiple ? [] : null)
+        emit('clear')
+        emitFormChange()
+      }
+    }
+
+    function trailingSlotProps() {
+      const slotProps: Record<string, any> = {
+        selected: selected.value,
+        loading: props.loading,
+        disabled: props.disabled
+      }
+
+      if (props.clearable) {
+        slotProps.onClear = onClear
+      }
+
+      return slotProps
+    }
+
     provideUseId(() => useId())
 
     return {
@@ -583,6 +628,7 @@ export default defineComponent({
       label,
       accessor,
       isLeading,
+      onClear,
       isTrailing,
       // eslint-disable-next-line vue/no-dupe-keys
       selectClass,
@@ -597,7 +643,8 @@ export default defineComponent({
       // eslint-disable-next-line vue/no-dupe-keys
       query,
       onUpdate,
-      onQueryChange
+      onQueryChange,
+      trailingSlotProps
     }
   }
 })
diff --git a/src/runtime/ui.config/forms/select.ts b/src/runtime/ui.config/forms/select.ts
index c9039839..6c0eac36 100644
--- a/src/runtime/ui.config/forms/select.ts
+++ b/src/runtime/ui.config/forms/select.ts
@@ -9,6 +9,7 @@ export default {
     color: 'white',
     variant: 'outline',
     loadingIcon: 'i-heroicons-arrow-path-20-solid',
-    trailingIcon: 'i-heroicons-chevron-down-20-solid'
+    trailingIcon: 'i-heroicons-chevron-down-20-solid',
+    clerableIcon: 'i-heroicons-x-mark-20-solid'
   }
 }
diff --git a/src/runtime/ui.config/forms/selectMenu.ts b/src/runtime/ui.config/forms/selectMenu.ts
index 96b56686..56e03fb7 100644
--- a/src/runtime/ui.config/forms/selectMenu.ts
+++ b/src/runtime/ui.config/forms/selectMenu.ts
@@ -23,6 +23,7 @@ export default {
   default: {
     selectedIcon: 'i-heroicons-check-20-solid',
     clearSearchOnClose: false,
+    closeOnClear: true,
     showCreateOptionWhen: 'empty',
     searchablePlaceholder: {
       label: 'Search...'