diff --git a/src/auto-complete.js b/src/auto-complete.js
index 57896622..c09f30d3 100644
--- a/src/auto-complete.js
+++ b/src/auto-complete.js
@@ -214,6 +214,9 @@ tagsInput.directive('autoComplete', function($document, $timeout, $sce, tiConfig
                             scope.$apply();
                         }
                     }
+                })
+                .on('input-blur', function() {
+                    suggestionList.reset();
                 });
 
             $document.on('click', function() {
diff --git a/src/tags-input.js b/src/tags-input.js
index 265f8481..0dec6471 100644
--- a/src/tags-input.js
+++ b/src/tags-input.js
@@ -58,8 +58,7 @@ tagsInput.directive('tagsInput', function($timeout, $document, tiConfiguration)
         transclude: true,
         templateUrl: 'ngTagsInput/tags-input.html',
         controller: function($scope, $attrs, $element) {
-            var events = new SimplePubSub(),
-                shouldRemoveLastTag;
+            var shouldRemoveLastTag;
 
             tiConfiguration.load($scope, $attrs, {
                 customClass: { type: String, defaultValue: '' },
@@ -77,8 +76,10 @@ tagsInput.directive('tagsInput', function($timeout, $document, tiConfiguration)
                 enableEditingLastTag: { type: Boolean, defaultValue: false }
             });
 
-            events.on('tag-added', $scope.onTagAdded);
-            events.on('tag-removed', $scope.onTagRemoved);
+            $scope.events = new SimplePubSub();
+
+            $scope.events.on('tag-added', $scope.onTagAdded);
+            $scope.events.on('tag-removed', $scope.onTagRemoved);
 
             $scope.newTag = '';
             $scope.tags = $scope.tags || [];
@@ -96,11 +97,11 @@ tagsInput.directive('tagsInput', function($timeout, $document, tiConfiguration)
                     if ($scope.tags.indexOf(tag) === -1) {
                         $scope.tags.push(tag);
 
-                        events.trigger('tag-added', { $tag: tag });
+                        $scope.events.trigger('tag-added', { $tag: tag });
                     }
 
                     $scope.newTag = '';
-                    events.trigger('input-changed', '');
+                    $scope.events.trigger('input-changed', '');
                     changed = true;
                 }
                 return changed;
@@ -130,7 +131,7 @@ tagsInput.directive('tagsInput', function($timeout, $document, tiConfiguration)
 
             $scope.remove = function(index) {
                 var removedTag = $scope.tags.splice(index, 1)[0];
-                events.trigger('tag-removed', { $tag: removedTag });
+                $scope.events.trigger('tag-removed', { $tag: removedTag });
                 return removedTag;
             };
 
@@ -146,11 +147,11 @@ tagsInput.directive('tagsInput', function($timeout, $document, tiConfiguration)
             this.registerAutocomplete = function() {
                 var input = $element.find('input');
                 input.on('keydown', function(e) {
-                    events.trigger('input-keydown', e);
+                    $scope.events.trigger('input-keydown', e);
                 });
 
                 $scope.newTagChange = function() {
-                    events.trigger('input-changed', $scope.newTag);
+                    $scope.events.trigger('input-changed', $scope.newTag);
                 };
 
                 return {
@@ -165,7 +166,7 @@ tagsInput.directive('tagsInput', function($timeout, $document, tiConfiguration)
                         return $scope.tags;
                     },
                     on: function(name, handler) {
-                        events.on(name, handler);
+                        $scope.events.on(name, handler);
                         return this;
                     }
                 };
@@ -223,6 +224,7 @@ tagsInput.directive('tagsInput', function($timeout, $document, tiConfiguration)
                             if (scope.options.addOnBlur) {
                                 scope.tryAdd();
                             }
+                            scope.events.trigger('input-blur');
                             scope.$apply();
                         }
                     }, 0, false);
diff --git a/test/auto-complete.spec.js b/test/auto-complete.spec.js
index 69db16cd..deae7f2d 100644
--- a/test/auto-complete.spec.js
+++ b/test/auto-complete.spec.js
@@ -188,6 +188,17 @@ describe('autocomplete-directive', function() {
             expect(isSuggestionsBoxVisible()).toBe(false);
         });
 
+        it('hides the suggestion box when the input field loses focus', function() {
+            // Arrange
+            suggestionList.visible = true;
+
+            // Act
+            eventHandlers['input-blur']();
+
+            // Assert
+            expect(isSuggestionsBoxVisible()).toBe(false);
+        });
+
         it('adds the selected suggestion when the enter key is pressed and the suggestions box is visible', function() {
             // Arrange
             loadSuggestions(['Item1', 'Item2']);