diff --git a/README.md b/README.md
index 8b5ca04a0..54807e997 100644
--- a/README.md
+++ b/README.md
@@ -906,7 +906,7 @@ These are functions you can call to change the state of the downshift component.
 | `selectHighlightedItem` | `function(otherStateToSet: object, cb: Function)`                | selects the item that is currently highlighted                                                                                                                                                                                                                         |
 | `selectItem`            | `function(item: any, otherStateToSet: object, cb: Function)`     | selects the given item                                                                                                                                                                                                                                                 |
 | `selectItemAtIndex`     | `function(index: number, otherStateToSet: object, cb: Function)` | selects the item at the given index                                                                                                                                                                                                                                    |
-| `setHighlightedIndex`   | `function(index: number, otherStateToSet: object, cb: Function)` | call to set a new highlighted index                                                                                                                                                                                                                                    |
+| `setHighlightedIndex`   | `function(index: number | null, otherStateToSet: object, cb: Function)` | call to set a new highlighted index                                                                                                                                                                                                                                    |
 | `toggleMenu`            | `function(otherStateToSet: object, cb: Function)`                | toggle the menu open state                                                                                                                                                                                                                                             |
 | `reset`                 | `function(otherStateToSet: object, cb: Function)`                | this resets downshift's state to a reasonable default                                                                                                                                                                                                                  |
 | `setItemCount`          | `function(count: number)`                                        | this sets the `itemCount`. Handy in situations where you're using windowing and the items are loaded asynchronously from within downshift (so you can't use the `itemCount` prop.                                                                                      |
diff --git a/typings/index.d.ts b/typings/index.d.ts
index 7b4302a7f..9add1bb08 100644
--- a/typings/index.d.ts
+++ b/typings/index.d.ts
@@ -255,7 +255,7 @@ export interface Actions<Item> {
     cb?: Callback,
   ) => void
   setHighlightedIndex: (
-    index: number,
+    index: number | null,
     otherStateToSet?: Partial<StateChangeOptions<Item>>,
     cb?: Callback,
   ) => void
@@ -459,7 +459,7 @@ export interface UseSelectActions<Item> {
   closeMenu: () => void
   toggleMenu: () => void
   selectItem: (item: Item | null) => void
-  setHighlightedIndex: (index: number) => void
+  setHighlightedIndex: (index: number | null) => void
 }
 
 export type UseSelectReturnValue<Item> = UseSelectState<Item> &
@@ -666,7 +666,7 @@ export interface UseComboboxActions<Item> {
   closeMenu: () => void
   toggleMenu: () => void
   selectItem: (item: Item | null) => void
-  setHighlightedIndex: (index: number) => void
+  setHighlightedIndex: (index: number | null) => void
   setInputValue: (inputValue: string) => void
 }