diff --git a/packages/module/patternfly-docs/content/extensions/chatbot/examples/UI/ChatbotMessageBarResourceTagging.tsx b/packages/module/patternfly-docs/content/extensions/chatbot/examples/UI/ChatbotMessageBarResourceTagging.tsx
new file mode 100644
index 000000000..8be325988
--- /dev/null
+++ b/packages/module/patternfly-docs/content/extensions/chatbot/examples/UI/ChatbotMessageBarResourceTagging.tsx
@@ -0,0 +1,233 @@
+import { useState, FunctionComponent, useRef, useEffect } from 'react';
+import { MessageBar } from '@patternfly/chatbot/dist/dynamic/MessageBar';
+import { Label, LabelGroup, Menu, MenuContent, MenuItem, MenuList, Popper } from '@patternfly/react-core';
+
+interface Resource {
+  id: string;
+  name: string;
+  type: string;
+}
+
+export const ChatbotMessageBarResourceTaggingExample: FunctionComponent = () => {
+  const [message, setMessage] = useState<string>('');
+  const [isMenuOpen, setIsMenuOpen] = useState<boolean>(false);
+  const [selectedResources, setSelectedResources] = useState<Resource[]>([]);
+  const [filteredResources, setFilteredResources] = useState<Resource[]>([]);
+  const [triggerPosition, setTriggerPosition] = useState<number>(-1);
+  const [searchTerm, setSearchTerm] = useState<string>('');
+  const [activeItemIndex, setActiveItemIndex] = useState<number>(0);
+
+  const textareaRef = useRef<HTMLTextAreaElement>(null);
+  const menuRef = useRef<HTMLDivElement>(null);
+
+  // Sample resources
+  const availableResources: Resource[] = [
+    { id: '1', name: 'pod/auth-operator', type: 'Pod' },
+    { id: '2', name: 'deployment/frontend-app', type: 'Deployment' },
+    { id: '3', name: 'service/backend-api', type: 'Service' },
+    { id: '4', name: 'configmap/app-config', type: 'ConfigMap' },
+    { id: '5', name: 'secret/db-credentials', type: 'Secret' },
+    { id: '6', name: 'pod/redis-cache', type: 'Pod' },
+    { id: '7', name: 'deployment/nginx-proxy', type: 'Deployment' },
+    { id: '8', name: 'service/auth-service', type: 'Service' }
+  ];
+
+  const handleSend = (msg: string | number) => {
+    alert(`Sending message: ${msg}\nWith resources: ${selectedResources.map((r) => r.name).join(', ')}`);
+    setSelectedResources([]);
+    setMessage('');
+  };
+
+  const handleChange = (_event: React.ChangeEvent<HTMLTextAreaElement>, value: string | number) => {
+    const newValue = value.toString();
+    setMessage(newValue);
+
+    // Check if "#" was just typed
+    const lastChar = newValue[newValue.length - 1];
+    const cursorPos = textareaRef.current?.selectionStart || 0;
+
+    if (lastChar === '#') {
+      setTriggerPosition(cursorPos - 1);
+      setIsMenuOpen(true);
+      setSearchTerm('');
+      setFilteredResources(availableResources);
+      setActiveItemIndex(0);
+    } else if (isMenuOpen && triggerPosition >= 0) {
+      // Extract the search term after the "#"
+      const textAfterTrigger = newValue.substring(triggerPosition + 1, cursorPos);
+
+      // Check if we've moved away from the tag or pressed space
+      if (textAfterTrigger.includes(' ') || cursorPos < triggerPosition) {
+        setIsMenuOpen(false);
+        setTriggerPosition(-1);
+      } else {
+        setSearchTerm(textAfterTrigger);
+        // Filter resources based on search term
+        const filtered = availableResources.filter((resource) =>
+          resource.name.toLowerCase().includes(textAfterTrigger.toLowerCase())
+        );
+        setFilteredResources(filtered);
+        setActiveItemIndex(0);
+      }
+    }
+  };
+
+  const handleResourceSelect = (resource: Resource) => {
+    if (!textareaRef.current) {
+      return;
+    }
+
+    // Get the text before the "#" and after the current cursor position
+    const beforeTag = message.substring(0, triggerPosition);
+    const cursorPos = textareaRef.current.selectionStart || 0;
+    const afterCursor = message.substring(cursorPos);
+
+    // Build new message with the full resource name, keeping the "#"
+    const newMessage = `${beforeTag}#${resource.name} ${afterCursor}`;
+
+    // Update state - MessageBar will sync via its internal useEffect
+    setMessage(newMessage);
+
+    // Add resource to selected resources if not already added
+    if (!selectedResources.find((r) => r.id === resource.id)) {
+      setSelectedResources([...selectedResources, resource]);
+    }
+
+    // Close the menu and reset
+    setIsMenuOpen(false);
+    setTriggerPosition(-1);
+    setSearchTerm('');
+
+    // Focus textarea and set cursor position after the inserted resource
+    setTimeout(() => {
+      if (textareaRef.current) {
+        const newCursorPos = beforeTag.length + resource.name.length + 2; // +2 for "#" and space
+        textareaRef.current.focus();
+        textareaRef.current.setSelectionRange(newCursorPos, newCursorPos);
+      }
+    }, 0);
+  };
+
+  const handleRemoveResource = (resourceId: string) => {
+    setSelectedResources(selectedResources.filter((r) => r.id !== resourceId));
+  };
+
+  const handleKeyDown = (event: React.KeyboardEvent<HTMLTextAreaElement>) => {
+    if (!isMenuOpen || filteredResources.length === 0) {
+      return;
+    }
+
+    switch (event.key) {
+      case 'ArrowDown':
+        event.preventDefault();
+        setActiveItemIndex((prev) => (prev + 1) % filteredResources.length);
+        break;
+      case 'ArrowUp':
+        event.preventDefault();
+        setActiveItemIndex((prev) => (prev - 1 + filteredResources.length) % filteredResources.length);
+        break;
+      case 'Enter':
+        if (isMenuOpen) {
+          event.preventDefault();
+          const selectedResource = filteredResources[activeItemIndex];
+          if (selectedResource) {
+            handleResourceSelect(selectedResource);
+          }
+        }
+        break;
+      case 'Escape':
+        if (isMenuOpen) {
+          event.preventDefault();
+          setIsMenuOpen(false);
+          setTriggerPosition(-1);
+        }
+        break;
+    }
+  };
+
+  // Close menu when clicking outside
+  useEffect(() => {
+    const handleClickOutside = (event: MouseEvent) => {
+      if (
+        menuRef.current &&
+        !menuRef.current.contains(event.target as Node) &&
+        textareaRef.current &&
+        !textareaRef.current.contains(event.target as Node)
+      ) {
+        setIsMenuOpen(false);
+        setTriggerPosition(-1);
+      }
+    };
+
+    document.addEventListener('mousedown', handleClickOutside);
+    return () => {
+      document.removeEventListener('mousedown', handleClickOutside);
+    };
+  }, []);
+
+  const menu = (
+    <Menu
+      ref={menuRef}
+      onSelect={(_event, itemId) => {
+        const resource = filteredResources.find((r) => r.id === itemId?.toString());
+        if (resource) {
+          handleResourceSelect(resource);
+        }
+      }}
+    >
+      <MenuContent>
+        <MenuList>
+          {filteredResources.length > 0 ? (
+            filteredResources.map((resource, index) => (
+              <MenuItem
+                key={resource.id}
+                itemId={resource.id}
+                description={resource.type}
+                isFocused={index === activeItemIndex}
+              >
+                {resource.name}
+              </MenuItem>
+            ))
+          ) : (
+            <MenuItem isDisabled>No resources found</MenuItem>
+          )}
+        </MenuList>
+      </MenuContent>
+    </Menu>
+  );
+
+  return (
+    <div className="pf-chatbot__footer-container" style={{ position: 'relative' }}>
+      <Popper
+        triggerRef={textareaRef}
+        popper={menu}
+        isVisible={isMenuOpen}
+        enableFlip={true}
+        placement="top-start"
+      />
+      {selectedResources.length > 0 && (
+        <div style={{ padding: '0.5rem 1rem' }}>
+          <LabelGroup categoryName="Resources" isClosable={false}>
+            {selectedResources.map((resource) => (
+              <Label
+                key={resource.id}
+                onClose={() => handleRemoveResource(resource.id)}
+                closeBtnAriaLabel={`Remove ${resource.name}`}
+              >
+                {resource.name}
+              </Label>
+            ))}
+          </LabelGroup>
+        </div>
+      )}
+      <MessageBar
+        onSendMessage={handleSend}
+        value={message}
+        onChange={handleChange}
+        onKeyDown={handleKeyDown}
+        innerRef={textareaRef}
+        placeholder="Type # to tag a resource..."
+      />
+    </div>
+  );
+};
diff --git a/packages/module/patternfly-docs/content/extensions/chatbot/examples/UI/UI.md b/packages/module/patternfly-docs/content/extensions/chatbot/examples/UI/UI.md
index fb035c4c3..7ef4d5254 100644
--- a/packages/module/patternfly-docs/content/extensions/chatbot/examples/UI/UI.md
+++ b/packages/module/patternfly-docs/content/extensions/chatbot/examples/UI/UI.md
@@ -74,7 +74,7 @@ import { BellIcon, CalendarAltIcon, ClipboardIcon, CodeIcon, ThumbtackIcon, Uplo
 import { useDropzone } from 'react-dropzone';
 
 import ChatbotConversationHistoryNav from '@patternfly/chatbot/dist/dynamic/ChatbotConversationHistoryNav';
-import { Button, DropdownItem, DropdownList, Checkbox, MenuToggle, Select, SelectList, SelectOption } from '@patternfly/react-core';
+import { Button, DropdownItem, DropdownList, Checkbox, Label, LabelGroup, Menu, MenuContent, MenuItem, MenuList, MenuToggle, Popper, Select, SelectList, SelectOption } from '@patternfly/react-core';
 
 import OutlinedWindowRestoreIcon from '@patternfly/react-icons/dist/esm/icons/outlined-window-restore-icon';
 import ExpandIcon from '@patternfly/react-icons/dist/esm/icons/expand-icon';
@@ -291,6 +291,23 @@ Attachments can also be added to the ChatBot via [drag and drop.](/extensions/ch
 
 ```
 
+### Message bar with resource tagging
+
+You can implement custom keyboard logic to create a typeahead-style dropdown that opens when users type special characters. This example demonstrates a resource tagging feature where:
+
+1. Typing "#" opens a dropdown menu of available resources
+2. The menu automatically filters as you continue typing
+3. Selecting a resource autofills the name in the input
+4. A dismissable label appears above the message input showing the selected resource
+5. Multiple resources can be tagged in a single message
+6. Arrow keys navigate the menu (ArrowUp/ArrowDown), Enter selects, Escape closes
+
+This pattern is useful for mentioning resources, users, channels, or other entities within chat messages.
+
+```js file="./ChatbotMessageBarResourceTagging.tsx"
+
+```
+
 ### Footer with message bar and footnote
 
 A simple footer with a message bar and footnote would have this code structure:
diff --git a/packages/module/src/MessageBar/MessageBar.tsx b/packages/module/src/MessageBar/MessageBar.tsx
index 578f21e82..d53471291 100644
--- a/packages/module/src/MessageBar/MessageBar.tsx
+++ b/packages/module/src/MessageBar/MessageBar.tsx
@@ -168,6 +168,13 @@ export const MessageBarBase: FunctionComponent<MessageBarProps> = ({
 
   const topMargin = '1rem';
 
+  // Sync internal state when value prop changes (controlled component behavior)
+  useEffect(() => {
+    if (value !== undefined && value !== message) {
+      setMessage(value);
+    }
+  }, [value, message]);
+
   const setInitialLineHeight = (field: HTMLTextAreaElement) => {
     field.style.setProperty('line-height', '1rem');
     const parent = field.parentElement;