diff --git a/site/src/components/Combobox/Combobox.stories.tsx b/site/src/components/Combobox/Combobox.stories.tsx
index 2207f4e64686f..075a57261e536 100644
--- a/site/src/components/Combobox/Combobox.stories.tsx
+++ b/site/src/components/Combobox/Combobox.stories.tsx
@@ -103,7 +103,8 @@ export const SearchAndFilter: Story = {
 				screen.queryByRole("option", { name: "Kotlin" }),
 			).not.toBeInTheDocument();
 		});
-		await userEvent.click(screen.getByRole("option", { name: "Rust" }));
+		// Accessible name includes both image alt text and text content: "Rust Rust"
+		await userEvent.click(screen.getByRole("option", { name: "Rust Rust" }));
 	},
 };
 
@@ -137,9 +138,11 @@ export const ClearSelectedOption: Story = {
 		await userEvent.click(canvas.getByRole("button"));
 		// const goOption = screen.getByText("Go");
 		// First select an option
-		await userEvent.click(await screen.findByRole("option", { name: "Go" }));
+		// Accessible name includes both image alt text and text content: "Go Go"
+		await userEvent.click(await screen.findByRole("option", { name: "Go Go" }));
 		// Then clear it by selecting it again
-		await userEvent.click(await screen.findByRole("option", { name: "Go" }));
+		// Accessible name includes both image alt text and text content: "Go Go"
+		await userEvent.click(await screen.findByRole("option", { name: "Go Go" }));
 
 		await waitFor(() =>
 			expect(canvas.getByRole("button")).toHaveTextContent("Select option"),
diff --git a/site/src/components/Combobox/Combobox.tsx b/site/src/components/Combobox/Combobox.tsx
index e815ca601f0af..6ef29cade0390 100644
--- a/site/src/components/Combobox/Combobox.tsx
+++ b/site/src/components/Combobox/Combobox.tsx
@@ -1,4 +1,3 @@
-import { Avatar } from "components/Avatar/Avatar";
 import { Button } from "components/Button/Button";
 import {
 	Command,
@@ -23,6 +22,7 @@ import { Check, ChevronDown, CornerDownLeft } from "lucide-react";
 import { Info } from "lucide-react";
 import { type FC, type KeyboardEventHandler, useState } from "react";
 import { cn } from "utils/cn";
+import { ExternalImage } from "../ExternalImage/ExternalImage";
 
 interface ComboboxProps {
 	value: string;
@@ -69,19 +69,18 @@ export const Combobox: FC<ComboboxProps> = ({
 
 	const isOpen = open ?? managedOpen;
 
+	const handleOpenChange = (newOpen: boolean) => {
+		setManagedOpen(newOpen);
+		onOpenChange?.(newOpen);
+	};
+
 	return (
-		<Popover
-			open={isOpen}
-			onOpenChange={(newOpen) => {
-				setManagedOpen(newOpen);
-				onOpenChange?.(newOpen);
-			}}
-		>
+		<Popover open={isOpen} onOpenChange={handleOpenChange}>
 			<PopoverTrigger asChild>
 				<Button
 					variant="outline"
 					aria-expanded={isOpen}
-					className="w-72 justify-between group"
+					className="w-full justify-between group"
 				>
 					<span className={cn(!value && "text-content-secondary")}>
 						{optionsMap.get(value)?.displayName || value || placeholder}
@@ -89,7 +88,7 @@ export const Combobox: FC<ComboboxProps> = ({
 					<ChevronDown className="size-icon-sm text-content-secondary group-hover:text-content-primary" />
 				</Button>
 			</PopoverTrigger>
-			<PopoverContent className="w-72">
+			<PopoverContent className="w-[var(--radix-popover-trigger-width)]">
 				<Command>
 					<CommandInput
 						placeholder="Search or enter custom value"
@@ -116,15 +115,21 @@ export const Combobox: FC<ComboboxProps> = ({
 									keywords={[option.displayName]}
 									onSelect={(currentValue) => {
 										onSelect(currentValue === value ? "" : currentValue);
+										// Close the popover after selection
+										handleOpenChange(false);
 									}}
 								>
-									{showIcons && (
-										<Avatar
-											size="sm"
-											src={option.icon}
-											fallback={option.value}
-										/>
-									)}
+									{showIcons &&
+										(option.icon ? (
+											<ExternalImage
+												className="w-4 h-4 object-contain"
+												src={option.icon}
+												alt={option.displayName}
+											/>
+										) : (
+											/* Placeholder for missing icon to maintain layout consistency */
+											<div className="w-4 h-4"></div>
+										))}
 									{option.displayName}
 									<div className="flex flex-row items-center ml-auto gap-1">
 										{value === option.value && (
diff --git a/site/src/pages/CreateWorkspacePage/CreateWorkspacePageView.stories.tsx b/site/src/pages/CreateWorkspacePage/CreateWorkspacePageView.stories.tsx
index 4d0e3ff81c95f..44bc21951fcb9 100644
--- a/site/src/pages/CreateWorkspacePage/CreateWorkspacePageView.stories.tsx
+++ b/site/src/pages/CreateWorkspacePage/CreateWorkspacePageView.stories.tsx
@@ -1,5 +1,6 @@
 import { action } from "@storybook/addon-actions";
 import type { Meta, StoryObj } from "@storybook/react";
+import { expect, screen, waitFor } from "@storybook/test";
 import { within } from "@testing-library/react";
 import userEvent from "@testing-library/user-event";
 import { chromatic } from "testHelpers/chromatic";
@@ -129,8 +130,8 @@ export const PresetsButNoneSelected: Story = {
 			{
 				ID: "preset-1",
 				Name: "Preset 1",
-				Description: "",
-				Icon: "",
+				Description: "Preset 1 description",
+				Icon: "/emojis/0031-fe0f-20e3.png",
 				Default: false,
 				Parameters: [
 					{
@@ -143,9 +144,8 @@ export const PresetsButNoneSelected: Story = {
 			{
 				ID: "preset-2",
 				Name: "Preset 2",
-				Description:
-					"Lorem ipsum dolor sit amet, consectetur adipiscing elit. Suspendisse imperdiet ultricies massa, eu dapibus ex fermentum ac.",
-				Icon: "/emojis/1f60e.png",
+				Description: "Preset 2 description",
+				Icon: "/emojis/0032-fe0f-20e3.png",
 				Default: false,
 				Parameters: [
 					{
@@ -165,21 +165,12 @@ export const PresetsButNoneSelected: Story = {
 };
 
 export const PresetSelected: Story = {
-	args: PresetsButNoneSelected.args,
-	play: async ({ canvasElement }) => {
-		const canvas = within(canvasElement);
-		await userEvent.click(canvas.getByLabelText("Preset"));
-		await userEvent.click(canvas.getByText("Preset 1"));
-	},
-};
-
-export const PresetSelectedWithHiddenParameters: Story = {
 	args: PresetsButNoneSelected.args,
 	play: async ({ canvasElement }) => {
 		const canvas = within(canvasElement);
 		// Select a preset
-		await userEvent.click(canvas.getByLabelText("Preset"));
-		await userEvent.click(canvas.getByText("Preset 1"));
+		await userEvent.click(canvas.getByRole("button", { name: "None" }));
+		await userEvent.click(screen.getByText("Preset 1"));
 	},
 };
 
@@ -188,8 +179,8 @@ export const PresetSelectedWithVisibleParameters: Story = {
 	play: async ({ canvasElement }) => {
 		const canvas = within(canvasElement);
 		// Select a preset
-		await userEvent.click(canvas.getByLabelText("Preset"));
-		await userEvent.click(canvas.getByText("Preset 1"));
+		await userEvent.click(canvas.getByRole("button", { name: "None" }));
+		await userEvent.click(screen.getByText("Preset 1"));
 		// Toggle off the show preset parameters switch
 		await userEvent.click(canvas.getByLabelText("Show preset parameters"));
 	},
@@ -201,16 +192,12 @@ export const PresetReselected: Story = {
 		const canvas = within(canvasElement);
 
 		// First selection of Preset 1
-		await userEvent.click(canvas.getByLabelText("Preset"));
-		await userEvent.click(
-			canvas.getByText("Preset 1", { selector: ".MuiMenuItem-root" }),
-		);
+		await userEvent.click(canvas.getByRole("button", { name: "None" }));
+		await userEvent.click(screen.getByText("Preset 1"));
 
 		// Reselect the same preset
-		await userEvent.click(canvas.getByLabelText("Preset"));
-		await userEvent.click(
-			canvas.getByText("Preset 1", { selector: ".MuiMenuItem-root" }),
-		);
+		await userEvent.click(canvas.getByRole("button", { name: "Preset 1" }));
+		await userEvent.click(canvas.getByText("Preset 1"));
 	},
 };
 
@@ -230,12 +217,11 @@ export const PresetNoneSelected: Story = {
 		const canvas = within(canvasElement);
 
 		// First select a preset to set the field value
-		await userEvent.click(canvas.getByLabelText("Preset"));
-		await userEvent.click(canvas.getByText("Preset 1"));
+		await userEvent.click(canvas.getByRole("button", { name: "None" }));
+		await userEvent.click(screen.getByText("Preset 1"));
 
 		// Then select "None" to unset the field value
-		await userEvent.click(canvas.getByLabelText("Preset"));
-		await userEvent.click(canvas.getByText("None"));
+		await userEvent.click(screen.getByText("None"));
 
 		// Fill in required fields and submit to test the API call
 		await userEvent.type(
@@ -260,8 +246,8 @@ export const PresetsWithDefault: Story = {
 			{
 				ID: "preset-1",
 				Name: "Preset 1",
-				Icon: "",
-				Description: "",
+				Description: "Preset 1 description",
+				Icon: "/emojis/0031-fe0f-20e3.png",
 				Default: false,
 				Parameters: [
 					{
@@ -274,9 +260,8 @@ export const PresetsWithDefault: Story = {
 			{
 				ID: "preset-2",
 				Name: "Preset 2",
-				Icon: "/emojis/1f60e.png",
-				Description:
-					"Lorem ipsum dolor sit amet, consectetur adipiscing elit. Suspendisse imperdiet ultricies massa, eu dapibus ex fermentum ac.",
+				Description: "Preset 2 description",
+				Icon: "/emojis/0032-fe0f-20e3.png",
 				Default: true,
 				Parameters: [
 					{
@@ -295,6 +280,10 @@ export const PresetsWithDefault: Story = {
 	},
 	play: async ({ canvasElement }) => {
 		const canvas = within(canvasElement);
+		// Should have the default preset listed first
+		await waitFor(() =>
+			expect(canvas.getByRole("button", { name: "Preset 2 (Default)" })),
+		);
 		// Wait for the switch to be available since preset parameters are populated asynchronously
 		await canvas.findByLabelText("Show preset parameters");
 		// Toggle off the show preset parameters switch
diff --git a/site/src/pages/CreateWorkspacePage/CreateWorkspacePageView.tsx b/site/src/pages/CreateWorkspacePage/CreateWorkspacePageView.tsx
index bc31e1db42742..8b5d4dabe675c 100644
--- a/site/src/pages/CreateWorkspacePage/CreateWorkspacePageView.tsx
+++ b/site/src/pages/CreateWorkspacePage/CreateWorkspacePageView.tsx
@@ -6,7 +6,7 @@ import { Alert } from "components/Alert/Alert";
 import { ErrorAlert } from "components/Alert/ErrorAlert";
 import { Avatar } from "components/Avatar/Avatar";
 import { Button } from "components/Button/Button";
-import { SelectFilter } from "components/Filter/SelectFilter";
+import { Combobox } from "components/Combobox/Combobox";
 import {
 	FormFields,
 	FormFooter,
@@ -158,16 +158,18 @@ export const CreateWorkspacePageView: FC<CreateWorkspacePageViewProps> = ({
 	);
 
 	const [presetOptions, setPresetOptions] = useState([
-		{ label: "None", value: "" },
+		{ displayName: "None", value: "undefined", icon: "", description: "" },
 	]);
 	const [selectedPresetIndex, setSelectedPresetIndex] = useState(0);
 	// Build options and keep default label/value in sync
 	useEffect(() => {
 		const options = [
-			{ label: "None", value: "" },
-			...presets.map((p) => ({
-				label: p.Default ? `${p.Name} (Default)` : p.Name,
-				value: p.ID,
+			{ displayName: "None", value: "undefined", icon: "", description: "" },
+			...presets.map((preset) => ({
+				displayName: preset.Default ? `${preset.Name} (Default)` : preset.Name,
+				value: preset.ID,
+				icon: preset.Icon,
+				description: preset.Description,
 			})),
 		];
 		setPresetOptions(options);
@@ -392,12 +394,15 @@ export const CreateWorkspacePageView: FC<CreateWorkspacePageViewProps> = ({
 									</Stack>
 									<Stack direction="column" spacing={2}>
 										<Stack direction="row" spacing={2}>
-											<SelectFilter
-												label="Preset"
+											<Combobox
+												value={
+													presetOptions[selectedPresetIndex]?.displayName || ""
+												}
 												options={presetOptions}
-												onSelect={(option) => {
+												placeholder="Select a preset"
+												onSelect={(value) => {
 													const index = presetOptions.findIndex(
-														(preset) => preset.value === option?.value,
+														(preset) => preset.value === value,
 													);
 													if (index === -1) {
 														return;
@@ -405,12 +410,13 @@ export const CreateWorkspacePageView: FC<CreateWorkspacePageViewProps> = ({
 													setSelectedPresetIndex(index);
 													form.setFieldValue(
 														"template_version_preset_id",
-														// Empty string is equivalent to using None
-														option?.value === "" ? undefined : option?.value,
+														// "undefined" string is equivalent to using None option
+														// Combobox requires a value in order to correctly highlight the None option
+														presetOptions[index].value === "undefined"
+															? undefined
+															: presetOptions[index].value,
 													);
 												}}
-												placeholder="Select a preset"
-												selectedOption={presetOptions[selectedPresetIndex]}
 											/>
 										</Stack>
 										{/* Only show the preset parameter visibility toggle if preset parameters are actually being modified, otherwise it has no effect. */}
diff --git a/site/src/pages/DeploymentSettingsPage/IdpOrgSyncPage/IdpOrgSyncPageView.tsx b/site/src/pages/DeploymentSettingsPage/IdpOrgSyncPage/IdpOrgSyncPageView.tsx
index 3fb267fb9daac..1feb4a8707f9b 100644
--- a/site/src/pages/DeploymentSettingsPage/IdpOrgSyncPage/IdpOrgSyncPageView.tsx
+++ b/site/src/pages/DeploymentSettingsPage/IdpOrgSyncPage/IdpOrgSyncPageView.tsx
@@ -215,7 +215,7 @@ export const IdpOrgSyncPageView: FC<IdpSyncPageViewProps> = ({
 					)}
 					<div className="flex flex-col gap-7">
 						<div className="flex flex-row pt-8 gap-2 justify-between items-start">
-							<div className="grid items-center gap-1">
+							<div className="grid items-center gap-1 w-72">
 								<Label className="text-sm" htmlFor={`${id}-idp-org-name`}>
 									IdP organization name
 								</Label>
diff --git a/site/src/pages/OrganizationSettingsPage/IdpSyncPage/IdpGroupSyncForm.tsx b/site/src/pages/OrganizationSettingsPage/IdpSyncPage/IdpGroupSyncForm.tsx
index 9282bd6bfd2b1..1be01567f6bb3 100644
--- a/site/src/pages/OrganizationSettingsPage/IdpSyncPage/IdpGroupSyncForm.tsx
+++ b/site/src/pages/OrganizationSettingsPage/IdpSyncPage/IdpGroupSyncForm.tsx
@@ -219,7 +219,7 @@ export const IdpGroupSyncForm: FC<IdpGroupSyncFormProps> = ({
 					</span>
 				</div>
 				<div className="flex flex-row gap-2 justify-between items-start">
-					<div className="grid items-center gap-1">
+					<div className="grid items-center gap-1 w-72">
 						<Label className="text-sm" htmlFor={`${id}-idp-group-name`}>
 							IdP group name
 						</Label>
diff --git a/site/src/pages/OrganizationSettingsPage/IdpSyncPage/IdpRoleSyncForm.tsx b/site/src/pages/OrganizationSettingsPage/IdpSyncPage/IdpRoleSyncForm.tsx
index 0825ab4217395..2efbf6f758393 100644
--- a/site/src/pages/OrganizationSettingsPage/IdpSyncPage/IdpRoleSyncForm.tsx
+++ b/site/src/pages/OrganizationSettingsPage/IdpSyncPage/IdpRoleSyncForm.tsx
@@ -159,7 +159,7 @@ export const IdpRoleSyncForm: FC<IdpRoleSyncFormProps> = ({
 					<p className="text-content-danger text-sm m-0">{form.errors.field}</p>
 				)}
 				<div className="flex flex-row gap-2 justify-between items-start">
-					<div className="grid items-center gap-1">
+					<div className="grid items-center gap-1 w-72">
 						<Label className="text-sm" htmlFor={`${id}-idp-role-name`}>
 							IdP role name
 						</Label>