diff --git a/packages/components/src/utils/hooks/index.js b/packages/components/src/utils/hooks/index.js
index 3eeca7881e2563..187718e5e70a9a 100644
--- a/packages/components/src/utils/hooks/index.js
+++ b/packages/components/src/utils/hooks/index.js
@@ -1,3 +1,4 @@
 export { default as useControlledState } from './use-controlled-state';
 export { default as useJumpStep } from './use-jump-step';
 export { default as useUpdateEffect } from './use-update-effect';
+export { useControlledValue } from './use-controlled-value';
diff --git a/packages/components/src/utils/hooks/test/use-controlled-value.js b/packages/components/src/utils/hooks/test/use-controlled-value.js
new file mode 100644
index 00000000000000..1d63d9248021ea
--- /dev/null
+++ b/packages/components/src/utils/hooks/test/use-controlled-value.js
@@ -0,0 +1,101 @@
+/**
+ * External dependencies
+ */
+import { fireEvent, render, screen } from '@testing-library/react';
+
+/**
+ * Internal dependencies
+ */
+import { useControlledValue } from '../use-controlled-value';
+
+function Input( props ) {
+	const [ value, setValue ] = useControlledValue( props );
+	return (
+		<input
+			value={ value }
+			onChange={ ( event ) => setValue( event.target.value ) }
+		/>
+	);
+}
+
+function getInput() {
+	return screen.getByRole( 'textbox' );
+}
+
+describe( 'useControlledValue', () => {
+	it( 'should use the default value', () => {
+		render( <Input defaultValue="WordPress.org" /> );
+		expect( getInput() ).toHaveValue( 'WordPress.org' );
+	} );
+
+	it( 'should use the default value then switch to the controlled value', () => {
+		const { rerender } = render( <Input defaultValue="WordPress.org" /> );
+		expect( getInput() ).toHaveValue( 'WordPress.org' );
+
+		rerender(
+			<Input defaultValue="WordPress.org" value="Code is Poetry" />
+		);
+		expect( getInput() ).toHaveValue( 'Code is Poetry' );
+	} );
+
+	it( 'should not call onChange only when there is no value being passed in', () => {
+		const onChange = jest.fn();
+		render( <Input defaultValue="WordPress.org" onChange={ onChange } /> );
+
+		expect( getInput() ).toHaveValue( 'WordPress.org' );
+
+		fireEvent.change( getInput(), { target: { value: 'Code is Poetry' } } );
+
+		expect( getInput() ).toHaveValue( 'Code is Poetry' );
+		expect( onChange ).not.toHaveBeenCalled();
+	} );
+
+	it( 'should call onChange when there is a value passed in', () => {
+		const onChange = jest.fn();
+		const { rerender } = render(
+			<Input
+				defaultValue="WordPress.org"
+				value="Code is Poetry"
+				onChange={ onChange }
+			/>
+		);
+
+		expect( getInput() ).toHaveValue( 'Code is Poetry' );
+
+		fireEvent.change( getInput(), {
+			target: { value: 'WordPress rocks!' },
+		} );
+
+		rerender(
+			<Input
+				defaultValue="WordPress.org"
+				value="WordPress rocks!"
+				onChange={ onChange }
+			/>
+		);
+
+		expect( getInput() ).toHaveValue( 'WordPress rocks!' );
+		expect( onChange ).toHaveBeenCalledWith( 'WordPress rocks!' );
+	} );
+
+	it( 'should not maintain internal state if no onChange is passed but a value is passed', () => {
+		const { rerender } = render( <Input value="Code is Poetry" /> );
+
+		expect( getInput() ).toHaveValue( 'Code is Poetry' );
+
+		// primarily this proves that the hook doesn't break if no onChange is passed but
+		// value turns into a controlled state, for example if the value needs to be set
+		// to a constant in certain conditions but no change listening needs to happen
+		fireEvent.change( getInput(), { target: { value: 'WordPress.org' } } );
+
+		// If `value` is passed then we expect the value to be fully controlled
+		// meaning that the value passed in will always be used even though
+		// we're managing internal state.
+		expect( getInput() ).toHaveValue( 'Code is Poetry' );
+
+		// Next we un-set the value to uncover the internal state which was still maintained
+		rerender( <Input /> );
+
+		expect( getInput() ).toHaveValue( 'WordPress.org' );
+	} );
+} );
diff --git a/packages/components/src/utils/hooks/use-controlled-value.ts b/packages/components/src/utils/hooks/use-controlled-value.ts
new file mode 100644
index 00000000000000..c0878e75f191cf
--- /dev/null
+++ b/packages/components/src/utils/hooks/use-controlled-value.ts
@@ -0,0 +1,34 @@
+/**
+ * WordPress dependencies
+ */
+import { useState } from '@wordpress/element';
+
+type Props< T > = {
+	defaultValue?: T;
+	value?: T;
+	onChange?: ( value: T ) => void;
+};
+
+/**
+ * Simplified and improved implementation of useControlledState.
+ *
+ * @param  props
+ * @param  props.defaultValue
+ * @param  props.value
+ * @param  props.onChange
+ * @return The controlled value and the value setter.
+ */
+export function useControlledValue< T >( {
+	defaultValue,
+	onChange,
+	value: valueProp,
+}: Props< T > ): [ T | undefined, ( value: T ) => void ] {
+	const hasValue = typeof valueProp !== 'undefined';
+	const initialValue = hasValue ? valueProp : defaultValue;
+	const [ state, setState ] = useState( initialValue );
+	const value = hasValue ? valueProp : state;
+	const setValue =
+		hasValue && typeof onChange === 'function' ? onChange : setState;
+
+	return [ value, setValue ];
+}