diff --git a/libs/ui/src/lib/input/PhoneInput.tsx b/libs/ui/src/lib/input/PhoneInput.tsx
index 0454f166d..1493a2d0c 100644
--- a/libs/ui/src/lib/input/PhoneInput.tsx
+++ b/libs/ui/src/lib/input/PhoneInput.tsx
@@ -2,14 +2,13 @@ import { useEffect, useMemo, useRef, useState } from 'react';
 import { useTranslation } from 'react-i18next';
 import { Group, Select, Text, TextInput, type ComboboxItem, type SelectProps } from '@mantine/core';
 import {
-  AsYouType,
   getCountries,
   getCountryCallingCode,
   parsePhoneNumberFromString,
   type CountryCode,
 } from 'libphonenumber-js';
 import { CountryFlag, getCountryName, resolveLang } from './CountrySelect';
-import { nextNationalDigits, toE164, toNationalDigits } from './phone';
+import { formatNational, nextNationalDigits, toE164, toNationalDigits } from './phone';
 
 // Static list, computed once at module load — same as CountrySelect's dataset.
 const COUNTRY_CODES = getCountries();
@@ -87,8 +86,11 @@ export function PhoneInput({
   const initialCountry = parsePhoneNumberFromString(value || '')?.country ?? 'ET';
   const [country, setCountry] = useState<CountryCode>(initialCountry);
   const [national, setNational] = useState(() =>
-    new AsYouType(initialCountry).input(toNationalDigits(value, initialCountry)),
+    formatNational(toNationalDigits(value, initialCountry), initialCountry),
   );
+  // Mantine keeps the selected label ("+251") as the search text, so typing
+  // would search for "+251u". Cleared while the dropdown is open instead.
+  const [search, setSearch] = useState('');
 
   // What this field last pushed upward, so an echo of our own value isn't
   // mistaken for the parent resetting the form.
@@ -99,7 +101,7 @@ export function PhoneInput({
     const parsedCountry = parsePhoneNumberFromString(value || '')?.country;
     const next = parsedCountry ?? country;
     if (parsedCountry) setCountry(parsedCountry);
-    setNational(new AsYouType(next).input(toNationalDigits(value, next)));
+    setNational(formatNational(toNationalDigits(value, next), next));
     emitted.current = value;
     // Adopting an outside change only — `country` is state written here, so
     // re-running on it would fight the user's typing.
@@ -122,12 +124,14 @@ export function PhoneInput({
   }
 
   function applyDigits(digits: string, forCountry: CountryCode) {
-    // Once the digits parse, show the true national number: someone who
+    // Once the number is valid, show the true national part: someone who
     // types a trunk prefix (0911111111) or the country code (251911111111)
-    // shouldn't end up with it doubled beside the "+251" selector.
+    // shouldn't end up with it doubled beside the "+251" selector. Not
+    // before: a partial number can parse too, and rewriting it mid-typing
+    // makes digits vanish under the caret.
     const parsed = parsePhoneNumberFromString(digits, forCountry);
-    setNational(new AsYouType(forCountry).input(parsed?.nationalNumber ?? digits));
-    push(parsed?.number ?? toE164(digits, forCountry));
+    setNational(formatNational(parsed?.isValid() ? parsed.nationalNumber : digits, forCountry));
+    push(toE164(digits, forCountry));
   }
 
   function handleText(text: string) {
@@ -139,7 +143,7 @@ export function PhoneInput({
       const parsed = parsePhoneNumberFromString(trimmed);
       if (parsed?.country) {
         setCountry(parsed.country);
-        setNational(new AsYouType(parsed.country).input(parsed.nationalNumber));
+        setNational(formatNational(parsed.nationalNumber, parsed.country));
         push(parsed.number);
         return;
       }
@@ -169,7 +173,13 @@ export function PhoneInput({
       placeholder={placeholder}
       value={national}
       onChange={(e) => handleText(e.currentTarget.value)}
-      onBlur={onBlur}
+      // Blur of the whole field, not of the number box: moving into the
+      // country select mustn't validate a half-typed number.
+      wrapperProps={{
+        onBlur: (e: React.FocusEvent<HTMLDivElement>) => {
+          if (!e.currentTarget.contains(e.relatedTarget)) onBlur?.();
+        },
+      }}
       leftSectionWidth={92}
       leftSectionPointerEvents={disabled || readOnly ? 'none' : 'all'}
       leftSection={
@@ -181,6 +191,12 @@ export function PhoneInput({
           renderOption={renderCountryOption}
           filter={filterCountries}
           searchable
+          searchValue={search}
+          onSearchChange={setSearch}
+          onDropdownOpen={() => setSearch('')}
+          onDropdownClose={() => setSearch(`+${getCountryCallingCode(country)}`)}
+          nothingFoundMessage={t('phone.noCountry', 'No matching country')}
+          allowDeselect={false}
           disabled={disabled || readOnly}
           variant="unstyled"
           size="xs"
diff --git a/libs/ui/src/lib/input/phone.spec.ts b/libs/ui/src/lib/input/phone.spec.ts
index f46f39712..e1c2a0f11 100644
--- a/libs/ui/src/lib/input/phone.spec.ts
+++ b/libs/ui/src/lib/input/phone.spec.ts
@@ -1,5 +1,5 @@
 import { describe, expect, it } from 'vitest';
-import { nextNationalDigits, optionalPhoneNumber, phoneNumber, toE164, toNationalDigits } from './phone';
+import { formatNational, nextNationalDigits, optionalPhoneNumber, phoneNumber, toE164, toNationalDigits } from './phone';
 import { AsYouType, parsePhoneNumberFromString } from 'libphonenumber-js';
 
 describe('phoneNumber', () => {
@@ -91,3 +91,22 @@ describe('trunk prefix and country code entered into the number box', () => {
     expect(phoneNumber.parse('+251911666666')).toBe('+251911666666');
   });
 });
+
+describe('formatNational', () => {
+  it('groups digits without the dial code or trunk prefix', () => {
+    expect(formatNational('911223344', 'ET')).toBe('91 122 3344');
+    expect(formatNational('4155552671', 'US')).toBe('415 555 2671');
+    expect(formatNational('91', 'ET')).toBe('91');
+    expect(formatNational('', 'ET')).toBe('');
+  });
+
+  it('keeps digits intact when the number does not format', () => {
+    expect(formatNational('0911223344', 'ET').replace(/\D/g, '')).toBe('0911223344');
+  });
+});
+
+describe('legacy stored values', () => {
+  it('shows a national record without the trunk prefix', () => {
+    expect(toNationalDigits('0911223344', 'ET')).toBe('911223344');
+  });
+});
diff --git a/libs/ui/src/lib/input/phone.ts b/libs/ui/src/lib/input/phone.ts
index a7b877dbc..be38b6238 100644
--- a/libs/ui/src/lib/input/phone.ts
+++ b/libs/ui/src/lib/input/phone.ts
@@ -1,5 +1,5 @@
 import { z } from 'zod';
-import { getCountryCallingCode, isValidPhoneNumber, parsePhoneNumberFromString, type CountryCode } from 'libphonenumber-js';
+import { AsYouType, getCountryCallingCode, isValidPhoneNumber, parsePhoneNumberFromString, type CountryCode } from 'libphonenumber-js';
 
 /**
  * Accepts any international number in E.164 (`+<country><number>`) or a
@@ -33,7 +33,8 @@ export function nextNationalDigits(text: string, prevDisplay: string): string {
 /** National digits of a stored value, for display in the number box. */
 export function toNationalDigits(value: string, country: CountryCode): string {
   if (!value) return '';
-  const parsed = parsePhoneNumberFromString(value);
+  // `country` also resolves legacy national records ("0911223344").
+  const parsed = parsePhoneNumberFromString(value, country);
   if (parsed) return parsed.nationalNumber;
   if (value.startsWith('+')) {
     const prefix = `+${getCountryCallingCode(country)}`;
@@ -54,3 +55,15 @@ export function toE164(digits: string, country: CountryCode): string {
     `+${getCountryCallingCode(country)}${digits}`
   );
 }
+
+/**
+ * Digits grouped for display ("91 122 3344"). Formatted as an international
+ * number with the dial code cut off: AsYouType's national mode leaves the
+ * number ungrouped unless the trunk prefix was typed.
+ */
+export function formatNational(digits: string, country: CountryCode): string {
+  if (!digits) return '';
+  const prefix = `+${getCountryCallingCode(country)}`;
+  const formatted = new AsYouType().input(prefix + digits);
+  return formatted.startsWith(prefix) ? formatted.slice(prefix.length).trimStart() : digits;
+}