diff --git a/ui/src/components/IssueProperties.test.tsx b/ui/src/components/IssueProperties.test.tsx
index ec0ec658b6c..63f8d1eb138 100644
--- a/ui/src/components/IssueProperties.test.tsx
+++ b/ui/src/components/IssueProperties.test.tsx
@@ -460,6 +460,53 @@ describe("IssueProperties", () => {
     act(() => root.unmount());
   });
 
+  it("filters the no-assignee option with assignee search", async () => {
+    mockAgentsApi.list.mockResolvedValue([
+      {
+        id: "agent-1",
+        name: "ClaudeCoder",
+        role: "",
+        title: null,
+        icon: null,
+        status: "active",
+        orgChainHealth: { status: "ok" },
+      } as unknown as Parameters<typeof mockAgentsApi.list.mockResolvedValue>[0][number],
+    ]);
+    const root = renderProperties(container, {
+      issue: createIssue(),
+      childIssues: [],
+      onUpdate: vi.fn(),
+    });
+    await flush();
+
+    const searchInput = container.querySelector(
+      'input[placeholder="Search assignees..."]',
+    ) as HTMLInputElement | null;
+    expect(searchInput).not.toBeNull();
+
+    await act(async () => {
+      const nativeSetter = Object.getOwnPropertyDescriptor(HTMLInputElement.prototype, "value")?.set;
+      nativeSetter?.call(searchInput, "no");
+      searchInput!.dispatchEvent(new Event("input", { bubbles: true }));
+    });
+    await flush();
+
+    expect(container.textContent).toContain("No assignee");
+    expect(container.textContent).not.toContain("No matches.");
+
+    await act(async () => {
+      const nativeSetter = Object.getOwnPropertyDescriptor(HTMLInputElement.prototype, "value")?.set;
+      nativeSetter?.call(searchInput, "zzzz");
+      searchInput!.dispatchEvent(new Event("input", { bubbles: true }));
+    });
+    await flush();
+
+    expect(container.textContent).not.toContain("No assignee");
+    expect(container.textContent).toContain("No matches.");
+
+    act(() => root.unmount());
+  });
+
   it("always exposes the add sub-issue action", async () => {
     const onAddSubIssue = vi.fn();
     const root = renderProperties(container, {
diff --git a/ui/src/components/IssueProperties.tsx b/ui/src/components/IssueProperties.tsx
index b730bd83ce7..a3d419255b6 100644
--- a/ui/src/components/IssueProperties.tsx
+++ b/ui/src/components/IssueProperties.tsx
@@ -1431,6 +1431,7 @@ export function IssueProperties({
   const visibleAgentOptions = agentAssigneeOptions.filter((option) =>
     matchesAssigneeSearch(option.label, option.searchText),
   );
+  const showNoAssigneeOption = matchesAssigneeSearch("No assignee", "");
   const sectionHeader = (text: string) => (
     <div className="px-2 pb-0.5 pt-1.5 text-[10px] font-medium uppercase tracking-wider text-muted-foreground">
       {text}
@@ -1467,7 +1468,9 @@ export function IssueProperties({
         autoFocus={!inline}
       />
       <div className="max-h-56 overflow-y-auto overscroll-contain">
-        {renderAssigneeOption({ kind: "none", value: "", label: "No assignee", searchText: "" })}
+        {showNoAssigneeOption
+          ? renderAssigneeOption({ kind: "none", value: "", label: "No assignee", searchText: "" })
+          : null}
         {visibleAgentOptions.length > 0 ? (
           <>
             {sectionHeader("Agents")}
@@ -1480,7 +1483,7 @@ export function IssueProperties({
             {visibleUserOptions.map((option) => renderAssigneeOption(option))}
           </>
         ) : null}
-        {visibleAgentOptions.length === 0 && visibleUserOptions.length === 0 ? (
+        {!showNoAssigneeOption && visibleAgentOptions.length === 0 && visibleUserOptions.length === 0 ? (
           <div className="px-2 py-2 text-xs text-muted-foreground">No matches.</div>
         ) : null}
       </div>