diff --git a/.changeset/poor-pots-speak.md b/.changeset/poor-pots-speak.md
new file mode 100644
index 000000000..1ca52aa4d
--- /dev/null
+++ b/.changeset/poor-pots-speak.md
@@ -0,0 +1,5 @@
+---
+"@ensembleui/react-runtime": patch
+---
+
+fix: create new option incase of no exact match found
diff --git a/packages/runtime/src/widgets/Form/MultiSelect.tsx b/packages/runtime/src/widgets/Form/MultiSelect.tsx
index 1e674aa0a..296c1c3a8 100644
--- a/packages/runtime/src/widgets/Form/MultiSelect.tsx
+++ b/packages/runtime/src/widgets/Form/MultiSelect.tsx
@@ -228,9 +228,8 @@ const MultiSelect: React.FC<MultiSelectProps> = (props) => {
       setSearchValue(value);
       return;
     }
-    const isOptionExist = options.find(
-      (option) =>
-        option.label.toString().toLowerCase().search(value.toLowerCase()) > -1,
+    const isOptionExist = options.some(
+      (option) => option.label.toString().toLowerCase() === value.toLowerCase(),
     );
 
     if (!isOptionExist && values?.allowCreateOptions) {