diff --git a/addons/web/static/src/js/fields/relational_fields.js b/addons/web/static/src/js/fields/relational_fields.js
index 4cbbf498e82..194165b2206 100644
--- a/addons/web/static/src/js/fields/relational_fields.js
+++ b/addons/web/static/src/js/fields/relational_fields.js
@@ -371,9 +371,14 @@ var FieldMany2One = AbstractField.extend({
                 }
                 // create and edit ...
                 if (create_enabled && !self.nodeOptions.no_create_edit) {
+                    var createAndEditAction = function () {
+                        // Clear the value in case the user clicks on discard
+                        self.$('input').val('');
+                        return self._searchCreatePopup("form", false, self._createContext(search_val));
+                    };
                     values.push({
                         label: _t("Create and Edit..."),
-                        action: self._searchCreatePopup.bind(self, "form", false, self._createContext(search_val)),
+                        action: createAndEditAction,
                         classname: 'o_m2o_dropdown_option',
                     });
                 } else if (values.length === 0) {
diff --git a/addons/web/static/tests/fields/relational_fields_tests.js b/addons/web/static/tests/fields/relational_fields_tests.js
index 5325132c09d..cfa6726f429 100644
--- a/addons/web/static/tests/fields/relational_fields_tests.js
+++ b/addons/web/static/tests/fields/relational_fields_tests.js
@@ -1489,7 +1489,7 @@ QUnit.module('relational_fields', {
 
     QUnit.test('pressing ENTER on a \'no_quick_create\' many2one should not trigger M2ODialog', function (assert) {
         var done = assert.async();
-        assert.expect(1);
+        assert.expect(2);
 
         var M2O_DELAY = relationalFields.FieldMany2One.prototype.AUTOCOMPLETE_DELAY;
         relationalFields.FieldMany2One.prototype.AUTOCOMPLETE_DELAY = 0;
@@ -1527,6 +1527,10 @@ QUnit.module('relational_fields', {
                 $input.blur();
                 assert.strictEqual($('.modal').length, 1,
                     "should have one modal in body");
+                // Check that discarding clears $input
+                $('.modal .o_form_button_cancel').click();
+                assert.strictEqual($input.val(), '',
+                    "the field should be empty");
                 form.destroy();
                 relationalFields.FieldMany2One.prototype.AUTOCOMPLETE_DELAY = M2O_DELAY;
                 done();