diff --git a/src/jquery.selectric.js b/src/jquery.selectric.js
index e500fda..e0c3753 100644
--- a/src/jquery.selectric.js
+++ b/src/jquery.selectric.js
@@ -624,13 +624,37 @@
               _this.elements.input.val('');
             }, _this.options.keySearchTimeout);
 
-            if ( val.length ) {
-              // Search in select options
-              $.each(_this.items, function(i, elm) {
-                if ( !elm.disabled && searchRegExp.test(elm.text) || searchRegExp.test(elm.slug) ) {
-                  _this.highlight(i);
-                  return;
-                }
+            if (val.length) {
+              var suitableIndexes = [];
+              $.each(_this.items, function (i, elm) {
+                  if (elm.element.is('optgroup')) {
+                      $.each(elm.items, function (k, subElm) {
+                          if (!subElm.disabled && (searchRegExp.test(subElm.text) || searchRegExp.test(subElm.slug))) {
+                              suitableIndexes.push(subElm.index);
+                          }
+                      });
+                  } else if (!elm.disabled && (searchRegExp.test(elm.text) || searchRegExp.test(elm.slug))) {
+                      suitableIndexes.push(elm.index);
+                  }
+              });  
+              var alreadyHighlighted = $.inArray(_this.state.highlightedIdx, suitableIndexes) > -1;  
+              var lastItem = suitableIndexes.slice(-1).pop();  
+              $.each(suitableIndexes, function (i, elm) {
+                  if (alreadyHighlighted) {
+                      if (elm < _this.state.highlightedIdx) {
+                          if (lastItem && lastItem === _this.state.highlightedIdx) {
+                              _this.highlight(elm);
+                              return false;
+                          }
+                      } else if (elm > _this.state.highlightedIdx) {
+                          _this.highlight(elm);
+                          return false;
+                      }
+                      
+                  } else {
+                      _this.highlight(elm);
+                      return false;
+                  }
               });
             }
           });