diff --git a/packages/material-ui/src/Chip/Chip.js b/packages/material-ui/src/Chip/Chip.js
index 190ecdb05c5a09..f7de4db23f96f5 100644
--- a/packages/material-ui/src/Chip/Chip.js
+++ b/packages/material-ui/src/Chip/Chip.js
@@ -301,7 +301,6 @@ const Chip = React.forwardRef(function Chip(props, ref) {
     label,
     onClick,
     onDelete,
-    onKeyDown,
     onKeyUp,
     size = 'medium',
     variant = 'default',
@@ -319,22 +318,6 @@ const Chip = React.forwardRef(function Chip(props, ref) {
     }
   };
 
-  const handleKeyDown = event => {
-    if (onKeyDown) {
-      onKeyDown(event);
-    }
-
-    // Ignore events from children of `Chip`.
-    // TODO: Remove in v5. It doesn't handle library code
-    if (event.currentTarget !== event.target) {
-      return;
-    }
-
-    if ([' ', 'Enter', 'Backspace', 'Delete', 'Escape'].indexOf(event.key) !== -1) {
-      event.preventDefault();
-    }
-  };
-
   const handleKeyUp = event => {
     if (onKeyUp) {
       onKeyUp(event);
@@ -438,7 +421,6 @@ const Chip = React.forwardRef(function Chip(props, ref) {
       aria-disabled={disabled ? true : undefined}
       tabIndex={clickable ? 0 : undefined}
       onClick={onClick}
-      onKeyDown={handleKeyDown}
       onKeyUp={handleKeyUp}
       ref={handleRef}
       {...moreProps}
diff --git a/packages/material-ui/src/Chip/Chip.test.js b/packages/material-ui/src/Chip/Chip.test.js
index a62bacaf135463..853610d7cd1296 100644
--- a/packages/material-ui/src/Chip/Chip.test.js
+++ b/packages/material-ui/src/Chip/Chip.test.js
@@ -383,6 +383,36 @@ describe('<Chip />', () => {
         });
       });
 
+      it(`should not call onClick for child keyup event when 'Space' is released`, () => {
+        const handleClick = spy();
+        const handleKeyUp = spy();
+        render(
+          <Chip
+            onClick={handleClick}
+            label={<input autoFocus className="child-input" onKeyUp={handleKeyUp} />}
+          />,
+        );
+
+        fireEvent.keyUp(document.activeElement, { key: ' ' });
+        expect(handleKeyUp.callCount).to.equal(1);
+        expect(handleClick.callCount).to.equal(0);
+      });
+
+      it(`should not call onClick for child keydown event when 'Enter' is pressed`, () => {
+        const handleClick = spy();
+        const handleKeyDown = spy();
+        render(
+          <Chip
+            onClick={handleClick}
+            label={<input autoFocus className="child-input" onKeyDown={handleKeyDown} />}
+          />,
+        );
+
+        fireEvent.keyDown(document.activeElement, { key: 'Enter' });
+        expect(handleKeyDown.callCount).to.equal(1);
+        expect(handleClick.callCount).to.equal(0);
+      });
+
       it('should not call onClick for child event when `space` is released', () => {
         const handleClick = spy();
         const handleKeyUp = spy();