diff --git a/web/react/components/search_autocomplete.jsx b/web/react/components/search_autocomplete.jsx
index 0229b07fdd..03c7b894cf 100644
--- a/web/react/components/search_autocomplete.jsx
+++ b/web/react/components/search_autocomplete.jsx
@@ -2,13 +2,14 @@
 // See License.txt for license information.
 
 const ChannelStore = require('../stores/channel_store.jsx');
+const KeyCodes = require('../utils/constants.jsx').KeyCodes;
 const UserStore = require('../stores/user_store.jsx');
 const Utils = require('../utils/utils.jsx');
 
-const patterns = {
-    channels: /\b(?:in|channel):\s*(\S*)$/i,
-    users: /\bfrom:\s*(\S*)$/i
-};
+const patterns = new Map([
+    ['channels', /\b(?:in|channel):\s*(\S*)$/i],
+    ['users', /\bfrom:\s*(\S*)$/i]
+]);
 
 export default class SearchAutocomplete extends React.Component {
     constructor(props) {
@@ -17,11 +18,17 @@ export default class SearchAutocomplete extends React.Component {
         this.handleClick = this.handleClick.bind(this);
         this.handleDocumentClick = this.handleDocumentClick.bind(this);
         this.handleInputChange = this.handleInputChange.bind(this);
+        this.handleKeyDown = this.handleKeyDown.bind(this);
+
+        this.completeWord = this.completeWord.bind(this);
+        this.updateSuggestions = this.updateSuggestions.bind(this);
 
         this.state = {
             show: false,
             mode: '',
-            filter: ''
+            filter: '',
+            selection: 0,
+            suggestions: new Map()
         };
     }
 
@@ -34,13 +41,7 @@ export default class SearchAutocomplete extends React.Component {
     }
 
     handleClick(value) {
-        this.props.completeWord(this.state.filter, value);
-
-        this.setState({
-            show: false,
-            mode: '',
-            filter: ''
-        });
+        this.completeWord(value);
     }
 
     handleDocumentClick(e) {
@@ -59,16 +60,20 @@ export default class SearchAutocomplete extends React.Component {
 
         let mode = '';
         let filter = '';
-        for (const pattern in patterns) {
-            const result = patterns[pattern].exec(preText);
+        for (const [modeForPattern, pattern] of patterns) {
+            const result = pattern.exec(preText);
 
             if (result) {
-                mode = pattern;
+                mode = modeForPattern;
                 filter = result[1];
                 break;
             }
         }
 
+        if (mode !== this.state.mode || filter !== this.state.filter) {
+            this.updateSuggestions(mode, filter);
+        }
+
         this.setState({
             mode,
             filter,
@@ -76,48 +81,147 @@ export default class SearchAutocomplete extends React.Component {
         });
     }
 
+    handleKeyDown(e) {
+        if (!this.state.show || this.state.suggestions.length === 0) {
+            return;
+        }
+
+        if (e.which === KeyCodes.UP || e.which === KeyCodes.DOWN) {
+            e.preventDefault();
+
+            let selection = this.state.selection;
+
+            if (e.which === KeyCodes.UP) {
+                selection -= 1;
+            } else {
+                selection += 1;
+            }
+
+            if (selection >= 0 && selection < this.state.suggestions.length) {
+                this.setState({
+                    selection
+                });
+            }
+        } else if (e.which === KeyCodes.ENTER || e.which === KeyCodes.SPACE) {
+            e.preventDefault();
+
+            this.completeSelectedWord();
+        }
+    }
+
+    completeSelectedWord() {
+        if (this.state.mode === 'channels') {
+            this.completeWord(this.state.suggestions[this.state.selection].name);
+        } else if (this.state.mode === 'users') {
+            this.completeWord(this.state.suggestions[this.state.selection].username);
+        }
+    }
+
+    completeWord(value) {
+        // add a space so that anything else typed doesn't interfere with the search flag
+        this.props.completeWord(this.state.filter, value + ' ');
+
+        this.setState({
+            show: false,
+            mode: '',
+            filter: '',
+            selection: 0
+        });
+    }
+
+    updateSuggestions(mode, filter) {
+        let suggestions = [];
+
+        if (mode === 'channels') {
+            let channels = ChannelStore.getAll();
+
+            if (filter) {
+                channels = channels.filter((channel) => channel.name.startsWith(filter));
+            }
+
+            channels.sort((a, b) => a.name.localeCompare(b.name));
+
+            suggestions = channels;
+        } else if (mode === 'users') {
+            let users = UserStore.getActiveOnlyProfileList();
+
+            if (filter) {
+                users = users.filter((user) => user.username.startsWith(filter));
+            }
+
+            users.sort((a, b) => a.username.localeCompare(b.username));
+
+            suggestions = users;
+        }
+
+        let selection = this.state.selection;
+
+        // keep the same user/channel selected if it's still visible as a suggestion
+        if (selection > 0 && this.state.suggestions.length > 0) {
+            // we can't just use indexOf to find if the selection is still in the list since they are different javascript objects
+            const currentSelectionId = this.state.suggestions[selection].id;
+            let found = false;
+
+            for (let i = 0; i < suggestions.length; i++) {
+                if (suggestions[i].id === currentSelectionId) {
+                    selection = i;
+                    found = true;
+
+                    break;
+                }
+            }
+
+            if (!found) {
+                selection = 0;
+            }
+        } else {
+            selection = 0;
+        }
+
+        this.setState({
+            suggestions,
+            selection
+        });
+    }
+
     render() {
-        if (!this.state.show) {
+        if (!this.state.show || this.state.suggestions.length === 0) {
             return null;
         }
 
         let suggestions = [];
 
         if (this.state.mode === 'channels') {
-            let channels = ChannelStore.getAll();
+            suggestions = this.state.suggestions.map((channel, index) => {
+                let className = 'search-autocomplete__channel';
+                if (this.state.selection === index) {
+                    className += ' selected';
+                }
 
-            if (this.state.filter) {
-                channels = channels.filter((channel) => channel.name.startsWith(this.state.filter));
-            }
-
-            channels.sort((a, b) => a.name.localeCompare(b.name));
-
-            suggestions = channels.map((channel) => {
                 return (
                     <div
-                        key={channel.id}
+                        key={channel.name}
+                        ref={channel.name}
                         onClick={this.handleClick.bind(this, channel.name)}
-                        className='search-autocomplete__channel'
+                        className={className}
                     >
                         {channel.name}
                     </div>
                 );
             });
         } else if (this.state.mode === 'users') {
-            let users = UserStore.getActiveOnlyProfileList();
+            suggestions = this.state.suggestions.map((user, index) => {
+                let className = 'search-autocomplete__user';
+                if (this.state.selection === index) {
+                    className += ' selected';
+                }
 
-            if (this.state.filter) {
-                users = users.filter((user) => user.username.startsWith(this.state.filter));
-            }
-
-            users.sort((a, b) => a.username.localeCompare(b.username));
-
-            suggestions = users.map((user) => {
                 return (
                     <div
-                        key={user.id}
+                        key={user.username}
+                        ref={user.username}
                         onClick={this.handleClick.bind(this, user.username)}
-                        className='search-autocomplete__user'
+                        className={className}
                     >
                         <img
                             className='profile-img'
@@ -129,10 +233,6 @@ export default class SearchAutocomplete extends React.Component {
             });
         }
 
-        if (suggestions.length === 0) {
-            return null;
-        }
-
         return (
             <div
                 ref='container'
diff --git a/web/react/components/search_bar.jsx b/web/react/components/search_bar.jsx
index 509ca94e9d..3932807d0c 100644
--- a/web/react/components/search_bar.jsx
+++ b/web/react/components/search_bar.jsx
@@ -17,6 +17,7 @@ export default class SearchBar extends React.Component {
         this.mounted = false;
 
         this.onListenerChange = this.onListenerChange.bind(this);
+        this.handleKeyDown = this.handleKeyDown.bind(this);
         this.handleUserInput = this.handleUserInput.bind(this);
         this.handleUserFocus = this.handleUserFocus.bind(this);
         this.handleUserBlur = this.handleUserBlur.bind(this);
@@ -76,6 +77,11 @@ export default class SearchBar extends React.Component {
             results: null
         });
     }
+    handleKeyDown(e) {
+        if (this.refs.autocomplete) {
+            this.refs.autocomplete.handleKeyDown(e);
+        }
+    }
     handleUserInput(e) {
         var term = e.target.value;
         PostStore.storeSearchTerm(term);
@@ -101,7 +107,7 @@ export default class SearchBar extends React.Component {
             this.setState({isSearching: true});
             client.search(
                 terms,
-                function success(data) {
+                (data) => {
                     this.setState({isSearching: false});
                     if (utils.isMobile()) {
                         ReactDOM.findDOMNode(this.refs.search).value = '';
@@ -112,11 +118,11 @@ export default class SearchBar extends React.Component {
                         results: data,
                         is_mention_search: isMentionSearch
                     });
-                }.bind(this),
-                function error(err) {
+                },
+                (err) => {
                     this.setState({isSearching: false});
                     AsyncClient.dispatchError(err, 'search');
-                }.bind(this)
+                }
             );
         }
     }
@@ -165,13 +171,13 @@ export default class SearchBar extends React.Component {
                     className='search__clear'
                     onClick={this.clearFocus}
                 >
-                    Cancel
+                    {'Cancel'}
                 </span>
                 <form
                     role='form'
                     className='search__form relative-div'
                     onSubmit={this.handleSubmit}
-                    style={{"overflow": "visible"}}
+                    style={{overflow: 'visible'}}
                 >
                     <span className='glyphicon glyphicon-search sidebar__search-icon' />
                     <input
@@ -183,6 +189,7 @@ export default class SearchBar extends React.Component {
                         onFocus={this.handleUserFocus}
                         onBlur={this.handleUserBlur}
                         onChange={this.handleUserInput}
+                        onKeyDown={this.handleKeyDown}
                         onMouseUp={this.handleMouseInput}
                     />
                     {isSearching}
diff --git a/web/react/stores/user_store.jsx b/web/react/stores/user_store.jsx
index e3e1944ceb..ce80c5ec9f 100644
--- a/web/react/stores/user_store.jsx
+++ b/web/react/stores/user_store.jsx
@@ -221,7 +221,9 @@ class UserStoreClass extends EventEmitter {
         const profiles = [];
 
         for (const id in profileMap) {
-            profiles.push(profileMap[id]);
+            if (profileMap.hasOwnProperty(id)) {
+                profiles.push(profileMap[id]);
+            }
         }
 
         return profiles;
diff --git a/web/react/utils/constants.jsx b/web/react/utils/constants.jsx
index 7d2626fc13..72773bf057 100644
--- a/web/react/utils/constants.jsx
+++ b/web/react/utils/constants.jsx
@@ -311,6 +311,7 @@ module.exports = {
         RIGHT: 39,
         BACKSPACE: 8,
         ENTER: 13,
-        ESCAPE: 27
+        ESCAPE: 27,
+        SPACE: 32
     }
 };
diff --git a/web/sass-files/sass/partials/_search.scss b/web/sass-files/sass/partials/_search.scss
index d7287295b5..ce35638854 100644
--- a/web/sass-files/sass/partials/_search.scss
+++ b/web/sass-files/sass/partials/_search.scss
@@ -124,11 +124,17 @@
 }
 
 .search-autocomplete__channel {
+    cursor: pointer;
     height: 36px;
     padding: 0px 6px;
+
+    &.selected {
+        background-color:rgba(51, 51, 51, 0.15);
+    }
 }
 
 .search-autocomplete__user {
+    cursor: pointer;
     height: 36px;
     padding: 0px;
 
@@ -138,4 +144,8 @@
         width: 32px;
         @include border-radius(16px);
     }
+
+    &.selected {
+        background-color:rgba(51, 51, 51, 0.15);
+    }
 }