diff --git a/packages/connect-react/CHANGELOG.md b/packages/connect-react/CHANGELOG.md
index ecf02d4922374..91eb9e0021eed 100644
--- a/packages/connect-react/CHANGELOG.md
+++ b/packages/connect-react/CHANGELOG.md
@@ -2,6 +2,11 @@
 
 # Changelog
 
+# [1.2.1] - 2025-06-07
+
+- Fixing the SelectApp component to properly handle controlled values when not found in search results
+- Fixing infinite re-render issue in ComponentFormContainer by memoizing configurableProps
+
 # [1.2.0] - 2025-06-05
 
 - Adding basic support for 'sql' prop types
diff --git a/packages/connect-react/package.json b/packages/connect-react/package.json
index deccc7509f710..84c28e1962c22 100644
--- a/packages/connect-react/package.json
+++ b/packages/connect-react/package.json
@@ -1,6 +1,6 @@
 {
   "name": "@pipedream/connect-react",
-  "version": "1.2.0",
+  "version": "1.2.1",
   "description": "Pipedream Connect library for React",
   "files": [
     "dist"
diff --git a/packages/connect-react/src/components/SelectApp.tsx b/packages/connect-react/src/components/SelectApp.tsx
index 834082c2b7ba2..0042e4b0446ec 100644
--- a/packages/connect-react/src/components/SelectApp.tsx
+++ b/packages/connect-react/src/components/SelectApp.tsx
@@ -1,5 +1,5 @@
 import {
-  useId, useState,
+  useId, useState, useEffect,
 } from "react";
 import Select, { components } from "react-select";
 import { useApps } from "../hooks/use-apps";
@@ -13,11 +13,28 @@ type SelectAppProps = {
 export function SelectApp({
   value, onChange,
 }: SelectAppProps) {
+  const [
+    inputValue,
+    setInputValue,
+  ] = useState("");
   const [
     q,
     setQ,
-  ] = useState(""); // XXX can we just use Select ref.value instead?
+  ] = useState(""); // Debounced query value
+
   const instanceId = useId();
+
+  // Debounce the search query
+  useEffect(() => {
+    const timer = setTimeout(() => {
+      setQ(inputValue);
+    }, 300); // 300ms delay
+
+    return () => clearTimeout(timer);
+  }, [
+    inputValue,
+  ]);
+
   const {
     isLoading,
     // TODO error
@@ -29,7 +46,11 @@ export function SelectApp({
     Option,
     SingleValue,
   } = components;
-  const selectedValue = apps?.find((o) => o.name_slug === value?.name_slug) || null;
+  // If we have a value prop but it's not in the search results, use the value prop directly
+  const selectedValue = apps?.find((o) => o.name_slug === value?.name_slug)
+    || (value?.name_slug
+      ? value as AppResponse
+      : null);
   return (
     <Select
       instanceId={instanceId}
@@ -86,8 +107,11 @@ export function SelectApp({
       getOptionValue={(o) => o.name_slug}
       value={selectedValue}
       onChange={(o) => onChange?.((o as AppResponse) || undefined)}
-      onInputChange={(v) => {
-        if (v) setQ(v)
+      onInputChange={(v, { action }) => {
+        // Only update on user input, not on blur/menu-close/etc
+        if (action === "input-change") {
+          setInputValue(v)
+        }
       }}
       isLoading={isLoading}
     />
diff --git a/packages/connect-react/src/hooks/form-context.tsx b/packages/connect-react/src/hooks/form-context.tsx
index 48913894e7463..e78ba540919a3 100644
--- a/packages/connect-react/src/hooks/form-context.tsx
+++ b/packages/connect-react/src/hooks/form-context.tsx
@@ -1,5 +1,5 @@
 import {
-  createContext, useContext, useEffect, useId, useState, type ReactNode,
+  createContext, useContext, useEffect, useId, useMemo, useState, type ReactNode,
 } from "react";
 import isEqual from "lodash.isequal";
 import { useQuery } from "@tanstack/react-query";
@@ -101,7 +101,7 @@ export const FormContextProvider = <T extends ConfigurableProps>({
   const [
     sdkErrors,
     setSdkErrors,
-  ] = useState<SdkError[]>([])
+  ] = useState<SdkError[]>([]);
 
   const [
     enabledOptionalProps,
@@ -187,20 +187,30 @@ export const FormContextProvider = <T extends ConfigurableProps>({
   ]);
 
   // XXX fix types of dynamicProps, props.component so this type decl not needed
-  let configurableProps: T = dynamicProps?.configurableProps || formProps.component.configurable_props || [];
-  if (propNames?.length) {
-    const _configurableProps = [];
-    for (const prop of configurableProps) {
-      // TODO decided propNames (and hideOptionalProps) should NOT filter dynamic props
-      if (propNames.findIndex((name) => prop.name === name) >= 0) {
-        _configurableProps.push(prop);
+  const configurableProps = useMemo<T>(() => {
+    let props: T = dynamicProps?.configurableProps || formProps.component.configurable_props || [];
+    if (propNames?.length) {
+      const _configurableProps = [];
+      for (const prop of props) {
+        // TODO decided propNames (and hideOptionalProps) should NOT filter dynamic props
+        if (propNames.findIndex((name) => prop.name === name) >= 0) {
+          _configurableProps.push(prop);
+        }
       }
+      props = _configurableProps as unknown as T; // XXX
     }
-    configurableProps = _configurableProps as unknown as T; // XXX
-  }
-  if (reloadPropIdx != null) {
-    configurableProps = configurableProps.slice(0, reloadPropIdx + 1) as unknown as T; // XXX
-  }
+    if (reloadPropIdx != null) {
+      props = Array.isArray(props)
+        ? props.slice(0, reloadPropIdx + 1) as unknown as T // eslint-disable-line react/prop-types
+        : props; // XXX
+    }
+    return props;
+  }, [
+    dynamicProps?.configurableProps,
+    formProps.component.configurable_props,
+    propNames,
+    reloadPropIdx,
+  ]);
 
   // these validations are necessary because they might override PropInput for number case for instance
   // so can't rely on that base control form validation