diff --git a/packages/grafana-ui/src/components/Combobox/Combobox.story.tsx b/packages/grafana-ui/src/components/Combobox/Combobox.story.tsx
index 309a3028098..23c8f30032b 100644
--- a/packages/grafana-ui/src/components/Combobox/Combobox.story.tsx
+++ b/packages/grafana-ui/src/components/Combobox/Combobox.story.tsx
@@ -273,6 +273,14 @@ const AsyncStory: StoryFn<PropsAndCustomArgs> = (args) => {
     );
   }, []);
 
+  const loadOptionsWithErrors = useCallback((inputValue: string) => {
+    if (inputValue.length % 2 === 0) {
+      return fakeSearchAPI(`http://example.com/search?query=${inputValue}`);
+    } else {
+      throw new Error('Could not retrieve options');
+    }
+  }, []);
+
   return (
     <>
       <Field
@@ -309,6 +317,18 @@ const AsyncStory: StoryFn<PropsAndCustomArgs> = (args) => {
         />
       </Field>
 
+      <Field label="Async with error" description="An odd number of characters throws an error">
+        <Combobox
+          id="test-combobox-error"
+          placeholder="Select an option"
+          options={loadOptionsWithErrors}
+          value={selectedOption}
+          onChange={(val) => {
+            action('onChange')(val);
+            setSelectedOption(val);
+          }}
+        />
+      </Field>
       <Field label="Compared to AsyncSelect">
         <AsyncSelect
           id="test-async-select"
diff --git a/packages/grafana-ui/src/components/Combobox/Combobox.test.tsx b/packages/grafana-ui/src/components/Combobox/Combobox.test.tsx
index 462e9ca7f14..87a84c7e3d3 100644
--- a/packages/grafana-ui/src/components/Combobox/Combobox.test.tsx
+++ b/packages/grafana-ui/src/components/Combobox/Combobox.test.tsx
@@ -274,5 +274,25 @@ describe('Combobox', () => {
 
       expect(customItem).toBeInTheDocument();
     });
+
+    it('should display message when there is an error loading async options', async () => {
+      const asyncOptions = jest.fn(() => {
+        throw new Error('Could not retrieve options');
+      });
+
+      render(<Combobox options={asyncOptions} value={null} onChange={onChangeHandler} />);
+
+      const input = screen.getByRole('combobox');
+      await user.click(input);
+      await user.type(input, 'test');
+
+      await act(async () => {
+        jest.advanceTimersToNextTimer();
+      });
+
+      const emptyMessage = screen.queryByText('An error occurred while loading options.');
+
+      expect(emptyMessage).toBeInTheDocument();
+    });
   });
 });
diff --git a/packages/grafana-ui/src/components/Combobox/Combobox.tsx b/packages/grafana-ui/src/components/Combobox/Combobox.tsx
index f2e439946aa..933cee2d8c0 100644
--- a/packages/grafana-ui/src/components/Combobox/Combobox.tsx
+++ b/packages/grafana-ui/src/components/Combobox/Combobox.tsx
@@ -9,6 +9,8 @@ import { t } from '../../utils/i18n';
 import { Icon } from '../Icon/Icon';
 import { AutoSizeInput } from '../Input/AutoSizeInput';
 import { Input, Props as InputProps } from '../Input/Input';
+import { Stack } from '../Layout/Stack/Stack';
+import { Text } from '../Text/Text';
 
 import { getComboboxStyles } from './getComboboxStyles';
 import { useComboboxFloat, OPTION_HEIGHT } from './useComboboxFloat';
@@ -94,6 +96,7 @@ export const Combobox = <T extends string | number>({
   const isAsync = typeof options === 'function';
   const loadOptions = useLatestAsyncCall(isAsync ? options : asyncNoop); // loadOptions isn't called at all if not async
   const [asyncLoading, setAsyncLoading] = useState(false);
+  const [asyncError, setAsyncError] = useState(false);
 
   const [items, setItems] = useState(isAsync ? [] : options);
 
@@ -143,10 +146,11 @@ export const Combobox = <T extends string | number>({
           .then((opts) => {
             setItems(customValueOption ? [customValueOption, ...opts] : opts);
             setAsyncLoading(false);
+            setAsyncError(false);
           })
           .catch((err) => {
             if (!(err instanceof StaleResultError)) {
-              // TODO: handle error
+              setAsyncError(true);
               setAsyncLoading(false);
             }
           });
@@ -217,12 +221,12 @@ export const Combobox = <T extends string | number>({
           .then((options) => {
             setItems(options);
             setAsyncLoading(false);
+            setAsyncError(false);
           })
           .catch((err) => {
             if (!(err instanceof StaleResultError)) {
-              // TODO: handle error
+              setAsyncError(true);
               setAsyncLoading(false);
-              throw err;
             }
           });
         return;
@@ -307,7 +311,7 @@ export const Combobox = <T extends string | number>({
           'aria-labelledby': ariaLabelledBy,
         })}
       >
-        {isOpen && (
+        {isOpen && !asyncError && (
           <ul style={{ height: rowVirtualizer.getTotalSize() }} className={styles.menuUlContainer}>
             {rowVirtualizer.getVirtualItems().map((virtualRow) => {
               return (
@@ -341,6 +345,12 @@ export const Combobox = <T extends string | number>({
             })}
           </ul>
         )}
+        {asyncError && (
+          <Stack justifyContent="center" alignItems="center" height={8}>
+            <Icon name="exclamation-triangle" size="md" className={styles.warningIcon} />
+            <Text color="secondary">{t('combobox.async.error', 'An error occurred while loading options.')}</Text>
+          </Stack>
+        )}
       </div>
     </div>
   );
diff --git a/packages/grafana-ui/src/components/Combobox/getComboboxStyles.ts b/packages/grafana-ui/src/components/Combobox/getComboboxStyles.ts
index 9c24efae0ea..95ceef76a7e 100644
--- a/packages/grafana-ui/src/components/Combobox/getComboboxStyles.ts
+++ b/packages/grafana-ui/src/components/Combobox/getComboboxStyles.ts
@@ -98,5 +98,9 @@ export const getComboboxStyles = (theme: GrafanaTheme2) => {
         color: theme.colors.text.primary,
       },
     }),
+    warningIcon: css({
+      label: 'grafana-select-warning-icon',
+      color: theme.colors.text.secondary,
+    }),
   };
 };
diff --git a/public/locales/en-US/grafana.json b/public/locales/en-US/grafana.json
index 43faff4dc65..526c5f9aace 100644
--- a/public/locales/en-US/grafana.json
+++ b/public/locales/en-US/grafana.json
@@ -448,6 +448,9 @@
     }
   },
   "combobox": {
+    "async": {
+      "error": "An error occurred while loading options."
+    },
     "clear": {
       "title": "Clear value"
     },
diff --git a/public/locales/pseudo-LOCALE/grafana.json b/public/locales/pseudo-LOCALE/grafana.json
index d1ac1ff091a..859c47639f7 100644
--- a/public/locales/pseudo-LOCALE/grafana.json
+++ b/public/locales/pseudo-LOCALE/grafana.json
@@ -448,6 +448,9 @@
     }
   },
   "combobox": {
+    "async": {
+      "error": "Åʼn ęřřőř őččūřřęđ ŵĥįľę ľőäđįʼnģ őpŧįőʼnş."
+    },
     "clear": {
       "title": "Cľęäř väľūę"
     },