diff --git a/packages/devextreme/js/__internal/ui/m_tag_box.ts b/packages/devextreme/js/__internal/ui/m_tag_box.ts
index 86177873114..0d4eb96d52b 100644
--- a/packages/devextreme/js/__internal/ui/m_tag_box.ts
+++ b/packages/devextreme/js/__internal/ui/m_tag_box.ts
@@ -1497,6 +1497,23 @@ const TagBox = (SelectBox as any).inherit({
     delete this._tagTemplate;
   },
 
+  _synchronizeTagsWithData() {
+    const dataSource = this.option('dataSource') || [];
+    const selectedItems = this.option('selectedItems') || [];
+
+    if (!dataSource.length) {
+      this.option('selectedItems', []);
+      this.option('value', []);
+      return;
+    }
+
+    const validSelectedItems = this._filterSelectedItems(dataSource, selectedItems);
+    const validValues = validSelectedItems.map((item) => this._valueGetter(item));
+
+    this.option('selectedItems', validSelectedItems);
+    this.option('value', validValues);
+  },
+
   _getSelectedItemsDifference(newItems, previousItems) {
     if (!newItems.length) {
       return {
@@ -1592,6 +1609,10 @@ const TagBox = (SelectBox as any).inherit({
         this.$element().toggleClass(TAGBOX_SINGLE_LINE_CLASS, !value);
         this._renderSingleLineScroll();
         break;
+      case 'dataSource':
+        this._synchronizeTagsWithData();
+        this._renderTags();
+        break;
       case 'maxFilterQueryLength':
         break;
       default:
diff --git a/packages/devextreme/testing/tests/DevExpress.ui.widgets.editors/tagBox.tests.js b/packages/devextreme/testing/tests/DevExpress.ui.widgets.editors/tagBox.tests.js
index 2d6c083b263..d9a4953f0de 100644
--- a/packages/devextreme/testing/tests/DevExpress.ui.widgets.editors/tagBox.tests.js
+++ b/packages/devextreme/testing/tests/DevExpress.ui.widgets.editors/tagBox.tests.js
@@ -6693,6 +6693,58 @@ QUnit.module('dataSource integration', moduleSetup, () => {
         assert.ok(true, 'TagBox rendered');
     });
 
+    QUnit.module('Updating DataSource', {
+        beforeEach: function() {
+            this.data = [
+                { ID: 1, Name: 'HD Video Player' },
+                { ID: 2, Name: 'SuperHD Video Player' }
+            ];
+            this.$tagBox = $('#tagBox').dxTagBox({
+                dataSource: this.data,
+                value: [1, 2],
+                displayExpr: 'Name',
+                valueExpr: 'ID',
+            });
+            this.tagBox = this.$tagBox.dxTagBox('instance');
+        }
+    }, () => {
+        QUnit.test('Tagbox should only render existing tags (T1253312)', function(assert) {
+            this.tagBox.option('dataSource', this.data.slice(0, 1));
+
+            assert.strictEqual(this.$tagBox.find(`.${TAGBOX_TAG_CLASS}`).length, 1, 'Only one tag is rendered after the dataSource is reduced.');
+            assert.strictEqual(this.$tagBox.find(`.${TAGBOX_TAG_CLASS}`).eq(0).text(), 'HD Video Player', 'Rendered tags match the updated dataSource.');
+        });
+
+        QUnit.test('Tagbox updates value and selectedItems (T1253312)', function(assert) {
+            this.tagBox.option('dataSource', this.data.slice(0, 1));
+
+            assert.deepEqual(this.tagBox.option('selectedItems'), this.data.slice(0, 1), 'selectedItems match the updated dataSource.');
+            assert.deepEqual(this.tagBox.option('value'), [1], 'value is updated based on the new dataSource.');
+        });
+
+        QUnit.test('Tagbox shouldnt render any tags if dataSource is updated to either null or empty (T1253312)', function(assert) {
+            this.tagBox.option('dataSource', []);
+
+            assert.strictEqual(this.$tagBox.find(`.${TAGBOX_TAG_CLASS}`).length, 0, 'No tags are rendered after empty dataSource');
+
+            this.tagBox.option('dataSource', null);
+
+            assert.strictEqual(this.$tagBox.find(`.${TAGBOX_TAG_CLASS}`).length, 0, 'No tags are rendered after null dataSource');
+        });
+
+        QUnit.test('Tagbox should update its selectedItems and value to empty if dataSource is updated to empty or null (T1253312)', function(assert) {
+            this.tagBox.option('dataSource', []);
+
+            assert.deepEqual(this.tagBox.option('selectedItems'), [], 'selectedItems is updated to empty array when dataSource is empty');
+            assert.deepEqual(this.tagBox.option('value'), [], 'value is updated to empty array when dataSource is empty');
+
+            this.tagBox.option('dataSource', null);
+
+            assert.deepEqual(this.tagBox.option('selectedItems'), [], 'selectedItems is updated to empty array when dataSource is null');
+            assert.deepEqual(this.tagBox.option('value'), [], 'value is updated to empty array when dataSource is null');
+        });
+    });
+
     QUnit.test('tags loading call result should be ignored after new call', function(assert) {
         const items = [{ id: 1, text: 'first' }, { id: 2, text: 'second' }];
         const customStore = new CustomStore({