diff --git a/src/graphics/graphics_task.rs b/src/graphics/graphics_task.rs
index 39214c3..6153dae 100644
--- a/src/graphics/graphics_task.rs
+++ b/src/graphics/graphics_task.rs
@@ -34,7 +34,7 @@ use ratatui::{
     Frame, Terminal,
     backend::CrosstermBackend,
     layout::{Alignment, Constraint, Direction, Layout, Rect},
-    style::{Color, Style},
+    style::{Color, Modifier, Style},
     text::{Line, Span},
     widgets::{Block, BorderType, Borders, Clear, Paragraph, block::Title},
 };
@@ -380,7 +380,7 @@ impl GraphicsTask {
         frame: &mut Frame,
         command_bar_y: u16,
     ) {
-        let (autocomplete_list, pattern, input_mode, cursor, command) = {
+        let (autocomplete_list, pattern, input_mode, cursor, command, selected) = {
             let inputs_shared = inputs_shared
                 .read()
                 .expect("Cannot get inputs lock for read");
@@ -391,6 +391,7 @@ impl GraphicsTask {
                 inputs_shared.mode,
                 inputs_shared.cursor,
                 inputs_shared.command_line.clone(),
+                inputs_shared.tag_list.selected(),
             )
         };
 
@@ -398,16 +399,21 @@ impl GraphicsTask {
             return;
         }
 
-        let max_entries = min(frame.size().height as usize / 2, autocomplete_list.len());
-        let mut entries = autocomplete_list[..max_entries].to_vec();
-        if entries.len() < autocomplete_list.len() {
-            entries.push(Arc::new("...".to_string()));
-        }
-
-        let longest_entry_len = entries
+        // Window the list so the highlighted entry is always on screen, keeping
+        // as many earlier entries visible as fit; a trailing `...` marks that
+        // more entries exist below the window.
+        let cap = min(frame.size().height as usize / 2, autocomplete_list.len()).max(1);
+        let start = selected
+            .saturating_sub(cap - 1)
+            .min(autocomplete_list.len() - cap);
+        let window = &autocomplete_list[start..start + cap];
+        let has_more_below = start + cap < autocomplete_list.len();
+
+        let longest_entry_len = window
             .iter()
             .fold(0u16, |len, x| max(len, x.chars().count() as u16));
-        let area_size = (longest_entry_len + 5, entries.len() as u16 + 2);
+        let row_count = window.len() as u16 + if has_more_below { 1 } else { 0 };
+        let area_size = (longest_entry_len + 5, row_count + 2);
         let max_x = frame.size().x
             + frame
                 .size()
@@ -430,29 +436,40 @@ impl GraphicsTask {
             .borders(Borders::ALL)
             .border_type(BorderType::Thick)
             .style(Style::default().fg(Color::Cyan));
-        let text = entries
+        let inner_width = area_size.0.saturating_sub(2) as usize;
+        let skip_chars = pattern.chars().count().saturating_sub(1);
+        let mut text = window
             .iter()
-            .map(|x| {
-                let is_last =
-                    (x == entries.last().unwrap()) && (entries.len() < autocomplete_list.len());
-
-                Line::from(vec![
-                    Span::styled(
-                        format!(" {}", if !is_last { &pattern } else { "" }),
-                        Style::default().fg(Color::Cyan),
-                    ),
-                    Span::styled(
-                        if x.as_str() == "..." {
-                            x.to_string()
-                        } else {
-                            let skip_chars = pattern.chars().count().saturating_sub(1);
-                            x.as_str().chars().skip(skip_chars).collect::<String>()
-                        },
-                        Style::default().fg(Color::DarkGray),
-                    ),
-                ])
+            .enumerate()
+            .map(|(i, x)| {
+                let suffix = x.as_str().chars().skip(skip_chars).collect::<String>();
+
+                if start + i == selected {
+                    // Highlighted entry: a full-width cyan bar so the current
+                    // selection is unmistakable.
+                    let content = format!(" {}{}", pattern, suffix);
+                    let pad = inner_width.saturating_sub(content.chars().count());
+                    Line::from(Span::styled(
+                        format!("{}{}", content, " ".repeat(pad)),
+                        Style::default()
+                            .fg(Color::Black)
+                            .bg(Color::Cyan)
+                            .add_modifier(Modifier::BOLD),
+                    ))
+                } else {
+                    Line::from(vec![
+                        Span::styled(format!(" {}", pattern), Style::default().fg(Color::Cyan)),
+                        Span::styled(suffix, Style::default().fg(Color::DarkGray)),
+                    ])
+                }
             })
             .collect::<Vec<_>>();
+        if has_more_below {
+            text.push(Line::from(Span::styled(
+                " ...",
+                Style::default().fg(Color::DarkGray),
+            )));
+        }
         let paragraph = Paragraph::new(text).block(block);
 
         frame.render_widget(Clear, area);
diff --git a/src/infra/tags.rs b/src/infra/tags.rs
index 8678620..971f416 100644
--- a/src/infra/tags.rs
+++ b/src/infra/tags.rs
@@ -11,6 +11,7 @@ pub struct TagList {
     tags: Arc<HashMap<String, String>>,
     pattern: Arc<String>,
     autocomplete_list: Vec<Arc<String>>,
+    selected: usize,
 }
 
 impl TagList {
@@ -30,8 +31,32 @@ impl TagList {
         })
     }
 
-    pub fn get_first_autocomplete_list(&self) -> Option<Arc<String>> {
-        self.autocomplete_list.first().cloned()
+    /// The tag entry currently highlighted in the autocomplete pop-up, if any.
+    pub fn get_selected_autocomplete(&self) -> Option<Arc<String>> {
+        self.autocomplete_list.get(self.selected).cloned()
+    }
+
+    /// Index of the highlighted entry within the autocomplete list.
+    pub fn selected(&self) -> usize {
+        self.selected
+    }
+
+    /// Move the highlight down one entry, stopping at the last item.
+    pub fn select_next(&mut self) {
+        if self.autocomplete_list.is_empty() {
+            return;
+        }
+        self.selected = (self.selected + 1).min(self.autocomplete_list.len() - 1);
+    }
+
+    /// Move the highlight up one entry, stopping at the first item.
+    pub fn select_prev(&mut self) {
+        self.selected = self.selected.saturating_sub(1);
+    }
+
+    /// Whether the autocomplete pop-up currently has entries to show.
+    pub fn has_suggestions(&self) -> bool {
+        !self.pattern.is_empty() && !self.autocomplete_list.is_empty()
     }
 
     pub fn new(file_path: PathBuf) -> Result<Self, String> {
@@ -112,11 +137,15 @@ impl TagList {
             .collect();
         self.autocomplete_list
             .sort_by_key(|a| a.to_ascii_lowercase());
+        // The list is rebuilt on every keystroke, so the highlight returns to
+        // the top; the user drives it away with the up/down arrows.
+        self.selected = 0;
     }
 
     pub fn clear(&mut self) {
         self.pattern = Arc::new(String::new());
         self.autocomplete_list.clear();
+        self.selected = 0;
     }
 
     pub fn full_clear(&mut self) {
@@ -226,4 +255,98 @@ mod tests {
         }
         assert_eq!(resolved, "\"hello\"");
     }
+
+    // Autocomplete pop-up navigation (issue #177).
+
+    fn tag_list_showing(tags: &[(&str, &str)], pattern: &str) -> TagList {
+        let mut tag_list = tag_list_with(tags);
+        tag_list.update_pattern(pattern, pattern.chars().count());
+        tag_list.update_autocomplete_list();
+        tag_list
+    }
+
+    #[test]
+    fn test_selection_starts_at_first_entry() {
+        let tag_list = tag_list_showing(&[("alpha", "1"), ("beta", "2"), ("gamma", "3")], "@");
+        assert_eq!(tag_list.selected(), 0);
+        assert_eq!(
+            tag_list
+                .get_selected_autocomplete()
+                .as_deref()
+                .map(String::as_str),
+            Some("alpha")
+        );
+    }
+
+    #[test]
+    fn test_select_next_and_prev_walk_the_list() {
+        // Sorted case-insensitively -> [alpha, beta, gamma].
+        let mut tag_list = tag_list_showing(&[("beta", "2"), ("alpha", "1"), ("gamma", "3")], "@");
+
+        tag_list.select_next();
+        assert_eq!(tag_list.selected(), 1);
+        assert_eq!(
+            tag_list
+                .get_selected_autocomplete()
+                .as_deref()
+                .map(String::as_str),
+            Some("beta")
+        );
+
+        tag_list.select_prev();
+        assert_eq!(tag_list.selected(), 0);
+    }
+
+    #[test]
+    fn test_selection_clamps_at_both_ends() {
+        let mut tag_list = tag_list_showing(&[("alpha", "1"), ("beta", "2")], "@");
+
+        // Cannot step above the first entry.
+        tag_list.select_prev();
+        assert_eq!(tag_list.selected(), 0);
+
+        // Cannot step past the last entry.
+        tag_list.select_next();
+        tag_list.select_next();
+        tag_list.select_next();
+        assert_eq!(tag_list.selected(), 1);
+    }
+
+    #[test]
+    fn test_selection_resets_when_list_is_rebuilt() {
+        let mut tag_list = tag_list_showing(&[("alpha", "1"), ("beta", "2")], "@");
+        tag_list.select_next();
+        assert_eq!(tag_list.selected(), 1);
+
+        // A keystroke rebuilds the list and returns the highlight to the top.
+        tag_list.update_autocomplete_list();
+        assert_eq!(tag_list.selected(), 0);
+    }
+
+    #[test]
+    fn test_clear_resets_selection_and_hides_popup() {
+        let mut tag_list = tag_list_showing(&[("alpha", "1"), ("beta", "2")], "@");
+        tag_list.select_next();
+        assert!(tag_list.has_suggestions());
+
+        tag_list.clear();
+        assert_eq!(tag_list.selected(), 0);
+        assert!(!tag_list.has_suggestions());
+        assert!(tag_list.get_selected_autocomplete().is_none());
+    }
+
+    #[test]
+    fn test_has_suggestions_requires_pattern_and_matches() {
+        // No pattern typed yet -> no pop-up.
+        let empty = tag_list_with(&[("alpha", "1")]);
+        assert!(!empty.has_suggestions());
+
+        // Pattern with no matching tag -> no pop-up.
+        let no_match = tag_list_showing(&[("alpha", "1")], "@zzz");
+        assert!(!no_match.has_suggestions());
+
+        // Pattern with matches -> pop-up shows.
+        let matching = tag_list_showing(&[("alpha", "1")], "@al");
+        assert!(matching.has_suggestions());
+    }
 }
diff --git a/src/inputs/inputs_task.rs b/src/inputs/inputs_task.rs
index a4c0762..8975643 100644
--- a/src/inputs/inputs_task.rs
+++ b/src/inputs/inputs_task.rs
@@ -504,6 +504,13 @@ impl InputsTask {
             KeyCode::Up => {
                 let mut sw = shared.write().expect("Cannot get input lock for write");
 
+                // While the tag pop-up is up, the arrows drive its selection
+                // instead of the command history (issue #177).
+                if sw.mode == InputMode::Normal && sw.tag_list.has_suggestions() {
+                    sw.tag_list.select_prev();
+                    return LoopStatus::Continue;
+                }
+
                 match sw.mode {
                     InputMode::Normal => {
                         if let HistoryNavResult::Entry(entry) =
@@ -525,6 +532,11 @@ impl InputsTask {
             KeyCode::Down => {
                 let mut sw = shared.write().expect("Cannot get input lock for write");
 
+                if sw.mode == InputMode::Normal && sw.tag_list.has_suggestions() {
+                    sw.tag_list.select_next();
+                    return LoopStatus::Continue;
+                }
+
                 match sw.mode {
                     InputMode::Normal => {
                         if private.history.is_empty() {
@@ -754,7 +766,7 @@ impl InputsTask {
     fn handle_tab_input(private: &mut InputsConnections, shared: Arc<RwLock<InputsShared>>) {
         let mut sw = shared.write().expect("Cannot get input lock for write");
 
-        let Some(first_entry) = sw.tag_list.get_first_autocomplete_list() else {
+        let Some(first_entry) = sw.tag_list.get_selected_autocomplete() else {
             return;
         };
 
diff --git a/tests/tui_e2e.rs b/tests/tui_e2e.rs
index ad2ecb8..6a518cb 100644
--- a/tests/tui_e2e.rs
+++ b/tests/tui_e2e.rs
@@ -265,6 +265,25 @@ fn tag_autocomplete_lists_only_matching_tags() {
     );
 }
 
+#[test]
+fn tag_autocomplete_down_arrow_then_tab_completes_selected_tag() {
+    // Issue #177: the arrows move the highlight inside the pop-up and Tab
+    // completes the *selected* entry, not just the first one. With the list
+    // sorted [tag1, tag2], one Down selects tag2, so Tab must yield "@tag2"
+    // (which resolves to tag2's value on Enter), never "@tag1".
+    let mut tui = Tui::start(&[("tag1", "hello"), ("tag2", "world")]);
+    tui.wait_until_ready();
+
+    tui.type_text("@ta");
+    tui.wait_for("@tag2", SETTLE);
+
+    tui.type_text("\x1b[B"); // Down arrow: highlight tag2
+    tui.type_text("\t"); // Tab: complete the highlighted entry
+    tui.press_enter();
+
+    tui.wait_for("world\\r\\n", SETTLE);
+}
+
 #[test]
 fn bracketed_paste_inserts_into_command_bar() {
     // A terminal delivers a paste wrapped in the bracketed-paste markers