diff --git a/packages/eds-core-react/src/components/Autocomplete/Autocomplete.tsx b/packages/eds-core-react/src/components/Autocomplete/Autocomplete.tsx
index 61cf6cd97e..05a1d5202e 100644
--- a/packages/eds-core-react/src/components/Autocomplete/Autocomplete.tsx
+++ b/packages/eds-core-react/src/components/Autocomplete/Autocomplete.tsx
@@ -195,6 +195,28 @@ const findPrevIndex: IndexFinderType = ({
   return prevIndex
 }
 
+type OptionLabelProps<T> = T extends string
+  ? {
+      /**  Custom option label */
+      optionLabel?: (option: T) => string
+      /** Disable option
+       * @default () => false
+       */
+      optionDisabled?: (option: T) => boolean
+      /** List of options in dropdown */
+      options: string[]
+    }
+  : {
+      /**  Custom option label */
+      optionLabel: (option: T) => string
+      /** Disable option
+       * @default () => false
+       */
+      optionDisabled?: (option: T) => boolean
+      /** List of options in dropdown */
+      options: T[]
+    }
+
 export type AutocompleteChanges<T> = { selectedItems: T[] }
 
 export type AutocompleteProps<T> = {
@@ -251,16 +273,10 @@ export type AutocompleteProps<T> = {
   multiple?: boolean
   /** Add select-all option. Throws an error if true while multiple = false */
   allowSelectAll?: boolean
-  /**  Custom option label. NOTE: This is required when option is an object */
-  optionLabel?: (option: T) => string
   /**  Custom option template */
   optionComponent?: (option: T, isSelected: boolean) => ReactNode
   /** Disable use of react portal for dropdown */
   disablePortal?: boolean
-  /** Disable option
-   * @default () => false
-   */
-  optionDisabled?: (option: T) => boolean
   /** Custom filter function for options */
   optionsFilter?: (option: T, inputValue: string) => boolean
   /** If `true` the width of the dropdown will adjust to the width of the input */
@@ -279,7 +295,8 @@ export type AutocompleteProps<T> = {
    *  @default 300
    */
   dropdownHeight?: number
-} & HTMLAttributes<HTMLDivElement>
+} & HTMLAttributes<HTMLDivElement> &
+  OptionLabelProps<T>
 
 function AutocompleteInner<T>(
   props: AutocompleteProps<T>,