diff --git a/src/cdk-experimental/combobox/combobox.spec.ts b/src/cdk-experimental/combobox/combobox.spec.ts
index cba1ab7c1562..e2604f0f68fa 100644
--- a/src/cdk-experimental/combobox/combobox.spec.ts
+++ b/src/cdk-experimental/combobox/combobox.spec.ts
@@ -379,6 +379,7 @@ describe('Combobox', () => {
     No Value
   </button>
   <div id="other-content"></div>
+
   <ng-template cdkComboboxPanel #panel="cdkComboboxPanel">
     <div dialogContent #dialog="dialogContent" [parentPanel]="panel">
       <input #input>
diff --git a/src/cdk-experimental/combobox/combobox.ts b/src/cdk-experimental/combobox/combobox.ts
index 11c06a663ce6..dfb734181286 100644
--- a/src/cdk-experimental/combobox/combobox.ts
+++ b/src/cdk-experimental/combobox/combobox.ts
@@ -6,7 +6,6 @@
  * found in the LICENSE file at https://angular.io/license
  */
 
-
 export type OpenAction = 'focus' | 'click' | 'downKey' | 'toggle';
 export type OpenActionInput = OpenAction | OpenAction[] | string | null | undefined;
 
diff --git a/src/cdk-experimental/listbox/BUILD.bazel b/src/cdk-experimental/listbox/BUILD.bazel
index 41d32d2db0fe..7de4cdfa79e0 100644
--- a/src/cdk-experimental/listbox/BUILD.bazel
+++ b/src/cdk-experimental/listbox/BUILD.bazel
@@ -10,6 +10,7 @@ ng_module(
     ),
     module_name = "@angular/cdk-experimental/listbox",
     deps = [
+        "//src/cdk-experimental/combobox",
         "//src/cdk/a11y",
         "//src/cdk/collections",
         "//src/cdk/keycodes",
@@ -25,6 +26,7 @@ ng_test_library(
     ),
     deps = [
         ":listbox",
+        "//src/cdk-experimental/combobox",
         "//src/cdk/keycodes",
         "//src/cdk/testing/private",
         "@npm//@angular/forms",
diff --git a/src/cdk-experimental/listbox/listbox.spec.ts b/src/cdk-experimental/listbox/listbox.spec.ts
index 12b58e06b687..1cc657054cc1 100644
--- a/src/cdk-experimental/listbox/listbox.spec.ts
+++ b/src/cdk-experimental/listbox/listbox.spec.ts
@@ -16,6 +16,8 @@ import {
 } from '@angular/cdk/testing/private';
 import {A, DOWN_ARROW, END, HOME, SPACE} from '@angular/cdk/keycodes';
 import {FormControl, FormsModule, ReactiveFormsModule} from '@angular/forms';
+import {CdkCombobox, CdkComboboxModule} from '@angular/cdk-experimental/combobox';
+
 
 describe('CdkOption and CdkListbox', () => {
 
@@ -657,6 +659,11 @@ describe('CdkOption and CdkListbox', () => {
       listboxInstance.writeValue(['arc', 'stasis']);
       fixture.detectChanges();
 
+      const selectedValues = listboxInstance.getSelectedValues();
+      expect(selectedValues.length).toBe(2);
+      expect(selectedValues[0]).toBe('arc');
+      expect(selectedValues[1]).toBe('stasis');
+
       expect(optionElements[0].hasAttribute('aria-selected')).toBeFalse();
       expect(optionElements[1].hasAttribute('aria-selected')).toBeFalse();
 
@@ -762,6 +769,118 @@ describe('CdkOption and CdkListbox', () => {
       expect(testComponent.form.value).toEqual(['solar']);
     });
   });
+
+  describe('inside a combobox', () => {
+    let fixture: ComponentFixture<ListboxInsideCombobox>;
+    let testComponent: ListboxInsideCombobox;
+
+    let listbox: DebugElement;
+    let listboxInstance: CdkListbox<unknown>;
+    let listboxElement: HTMLElement;
+
+    let combobox: DebugElement;
+    let comboboxInstance: CdkCombobox<string>;
+    let comboboxElement: HTMLElement;
+
+    let options: DebugElement[];
+    let optionInstances: CdkOption[];
+    let optionElements: HTMLElement[];
+
+    beforeEach(async(() => {
+      TestBed.configureTestingModule({
+        imports: [CdkListboxModule, CdkComboboxModule],
+        declarations: [ListboxInsideCombobox],
+      }).compileComponents();
+    }));
+
+    beforeEach(() => {
+      fixture = TestBed.createComponent(ListboxInsideCombobox);
+      fixture.detectChanges();
+
+      testComponent = fixture.debugElement.componentInstance;
+
+      combobox = fixture.debugElement.query(By.directive(CdkCombobox));
+      comboboxInstance = combobox.injector.get<CdkCombobox<string>>(CdkCombobox);
+      comboboxElement = combobox.nativeElement;
+
+    });
+
+    it('should update combobox value on selection of an option', () => {
+      expect(comboboxInstance.value).toBeUndefined();
+      expect(comboboxInstance.isOpen()).toBeFalse();
+
+      dispatchMouseEvent(comboboxElement, 'click');
+      fixture.detectChanges();
+
+      listbox = fixture.debugElement.query(By.directive(CdkListbox));
+      listboxInstance = listbox.injector.get<CdkListbox<unknown>>(CdkListbox);
+
+      options = fixture.debugElement.queryAll(By.directive(CdkOption));
+      optionInstances = options.map(o => o.injector.get<CdkOption>(CdkOption));
+      optionElements = options.map(o => o.nativeElement);
+
+      expect(comboboxInstance.isOpen()).toBeTrue();
+
+      dispatchMouseEvent(optionElements[0], 'click');
+      fixture.detectChanges();
+
+      expect(comboboxInstance.isOpen()).toBeFalse();
+      expect(comboboxInstance.value).toBe('purple');
+    });
+
+    it('should update combobox value on selection via keyboard', () => {
+      expect(comboboxInstance.value).toBeUndefined();
+      expect(comboboxInstance.isOpen()).toBeFalse();
+
+      dispatchMouseEvent(comboboxElement, 'click');
+      fixture.detectChanges();
+
+      listbox = fixture.debugElement.query(By.directive(CdkListbox));
+      listboxInstance = listbox.injector.get<CdkListbox<unknown>>(CdkListbox);
+      listboxElement = listbox.nativeElement;
+
+      options = fixture.debugElement.queryAll(By.directive(CdkOption));
+      optionInstances = options.map(o => o.injector.get<CdkOption>(CdkOption));
+      optionElements = options.map(o => o.nativeElement);
+
+      expect(comboboxInstance.isOpen()).toBeTrue();
+
+      listboxInstance.setActiveOption(optionInstances[1]);
+      dispatchKeyboardEvent(listboxElement, 'keydown', SPACE);
+      fixture.detectChanges();
+
+      expect(comboboxInstance.isOpen()).toBeFalse();
+      expect(comboboxInstance.value).toBe('solar');
+    });
+
+    it('should not update combobox if listbox is in multiple mode', () => {
+      expect(comboboxInstance.value).toBeUndefined();
+      expect(comboboxInstance.isOpen()).toBeFalse();
+
+      dispatchMouseEvent(comboboxElement, 'click');
+      fixture.detectChanges();
+
+      listbox = fixture.debugElement.query(By.directive(CdkListbox));
+      listboxInstance = listbox.injector.get<CdkListbox<unknown>>(CdkListbox);
+      listboxElement = listbox.nativeElement;
+
+      testComponent.isMultiselectable = true;
+      fixture.detectChanges();
+
+      options = fixture.debugElement.queryAll(By.directive(CdkOption));
+      optionInstances = options.map(o => o.injector.get<CdkOption>(CdkOption));
+      optionElements = options.map(o => o.nativeElement);
+
+      expect(comboboxInstance.isOpen()).toBeTrue();
+
+      listboxInstance.setActiveOption(optionInstances[1]);
+      dispatchKeyboardEvent(listboxElement, 'keydown', SPACE);
+      fixture.detectChanges();
+
+      expect(comboboxInstance.isOpen()).toBeTrue();
+      expect(comboboxInstance.value).toBeUndefined();
+    });
+  });
 });
 
 @Component({
@@ -862,3 +981,36 @@ class ListboxControlValueAccessor {
     this.changedOption = event.option;
   }
 }
+
+@Component({
+  template: `
+    <button cdkCombobox #toggleCombobox class="example-combobox"
+            [cdkComboboxTriggerFor]="panel"
+            [openActions]="'click'">
+      No Value
+    </button>
+
+    <ng-template cdkComboboxPanel #panel="cdkComboboxPanel">
+      <select cdkListbox
+              [parentPanel]="panel"
+              [disabled]="isDisabled"
+              [multiple]="isMultiselectable"
+              (selectionChange)="onSelectionChange($event)">
+        <option cdkOption [value]="'purple'">Purple</option>
+        <option cdkOption [value]="'solar'">Solar</option>
+        <option cdkOption [value]="'arc'">Arc</option>
+        <option cdkOption [value]="'stasis'">Stasis</option>
+      </select>
+    </ng-template>
+  `
+})
+class ListboxInsideCombobox {
+  changedOption: CdkOption<string>;
+  isDisabled: boolean = false;
+  isMultiselectable: boolean = false;
+  @ViewChild(CdkListbox) listbox: CdkListbox<string>;
+
+  onSelectionChange(event: ListboxSelectionChangeEvent<string>) {
+    this.changedOption = event.option;
+  }
+}
diff --git a/src/cdk-experimental/listbox/listbox.ts b/src/cdk-experimental/listbox/listbox.ts
index a48ce103a3fb..9d68137682a3 100644
--- a/src/cdk-experimental/listbox/listbox.ts
+++ b/src/cdk-experimental/listbox/listbox.ts
@@ -11,8 +11,8 @@ import {
   ContentChildren,
   Directive,
   ElementRef, EventEmitter, forwardRef,
-  Inject,
-  Input, OnDestroy, OnInit, Output,
+  Inject, InjectionToken,
+  Input, OnDestroy, OnInit, Optional, Output,
   QueryList
 } from '@angular/core';
 import {ActiveDescendantKeyManager, Highlightable, ListKeyManagerOption} from '@angular/cdk/a11y';
@@ -22,8 +22,10 @@ import {SelectionChange, SelectionModel} from '@angular/cdk/collections';
 import {defer, merge, Observable, Subject} from 'rxjs';
 import {startWith, switchMap, takeUntil} from 'rxjs/operators';
 import {ControlValueAccessor, NG_VALUE_ACCESSOR} from '@angular/forms';
+import {CdkComboboxPanel} from '@angular/cdk-experimental/combobox';
 
 let nextId = 0;
+let listboxId = 0;
 
 export const CDK_LISTBOX_VALUE_ACCESSOR: any = {
   provide: NG_VALUE_ACCESSOR,
@@ -31,6 +33,8 @@ export const CDK_LISTBOX_VALUE_ACCESSOR: any = {
   multi: true
 };
 
+export const PANEL = new InjectionToken<CdkComboboxPanel>('CdkComboboxPanel');
+
 @Directive({
   selector: '[cdkOption]',
   exportAs: 'cdkOption',
@@ -172,6 +176,10 @@ export class CdkOption<T = unknown> implements ListKeyManagerOption, Highlightab
     }
   }
 
+  getElementRef() {
+    return this._elementRef;
+  }
+
   /** Sets the active property to true to enable the active css class. */
   setActiveStyles() {
     this._active = true;
@@ -191,6 +199,7 @@ export class CdkOption<T = unknown> implements ListKeyManagerOption, Highlightab
   exportAs: 'cdkListbox',
   host: {
     'role': 'listbox',
+    '[id]': 'id',
     '(keydown)': '_keydown($event)',
     '[attr.tabindex]': '_tabIndex',
     '[attr.aria-disabled]': 'disabled',
@@ -231,6 +240,8 @@ export class CdkListbox<T> implements AfterContentInit, OnDestroy, OnInit, Contr
   @Output() readonly selectionChange: EventEmitter<ListboxSelectionChangeEvent<T>> =
       new EventEmitter<ListboxSelectionChangeEvent<T>>();
 
+  @Input() id = `cdk-option-${listboxId++}`;
+
   /**
    * Whether the listbox allows multiple options to be selected.
    * If `multiple` switches from `true` to `false`, all options are deselected.
@@ -263,6 +274,10 @@ export class CdkListbox<T> implements AfterContentInit, OnDestroy, OnInit, Contr
 
   @Input() compareWith: (o1: T, o2: T) => boolean = (a1, a2) => a1 === a2;
 
+  @Input('parentPanel') private readonly _explicitPanel: CdkComboboxPanel;
+
+  constructor(@Optional() @Inject(PANEL) readonly _parentPanel?: CdkComboboxPanel<T>) { }
+
   ngOnInit() {
     this._selectionModel = new SelectionModel<CdkOption<T>>(this.multiple);
   }
@@ -270,11 +285,13 @@ export class CdkListbox<T> implements AfterContentInit, OnDestroy, OnInit, Contr
   ngAfterContentInit() {
     this._initKeyManager();
     this._initSelectionModel();
+    this._registerWithPanel();
 
     this.optionSelectionChanges.subscribe(event => {
       this._emitChangeEvent(event.source);
       this._updateSelectionModel(event.source);
       this.setActiveOption(event.source);
+      this._updatePanelForSelection(event.source);
     });
   }
 
@@ -284,6 +301,11 @@ export class CdkListbox<T> implements AfterContentInit, OnDestroy, OnInit, Contr
     this._destroyed.complete();
   }
 
+  private _registerWithPanel(): void {
+    const panel = this._parentPanel || this._explicitPanel;
+    panel?._registerContent(this.id, 'listbox');
+  }
+
   private _initKeyManager() {
     this._listKeyManager = new ActiveDescendantKeyManager(this._options)
         .withWrap()
@@ -358,6 +380,13 @@ export class CdkListbox<T> implements AfterContentInit, OnDestroy, OnInit, Contr
                       this._selectionModel.deselect(option);
   }
 
+  _updatePanelForSelection(option: CdkOption<T>) {
+    if (!this.multiple) {
+      const panel = this._parentPanel || this._explicitPanel;
+      option.selected ? panel?.closePanel(option.value) : panel?.closePanel();
+    }
+  }
+
   /** Toggles the selected state of the active option if not disabled. */
   private _toggleActiveOption() {
     const activeOption = this._listKeyManager.activeItem;
@@ -420,6 +449,7 @@ export class CdkListbox<T> implements AfterContentInit, OnDestroy, OnInit, Contr
   /** Updates the key manager's active item to the given option. */
   setActiveOption(option: CdkOption<T>) {
     this._listKeyManager.updateActiveItem(option);
+    this._updateActiveOption();
   }
 
   /**
@@ -450,6 +480,11 @@ export class CdkListbox<T> implements AfterContentInit, OnDestroy, OnInit, Contr
     this.disabled = isDisabled;
   }
 
+  /** Returns the values of the currently selected options. */
+  getSelectedValues(): T[] {
+    return this._options.filter(option => option.selected).map(option => option.value);
+  }
+
   /** Selects an option that has the corresponding given value. */
   private _setSelectionByValue(values: T | T[]) {
     for (const option of this._options.toArray()) {