To reproduce:

Add a RadDropDownList to a Form. Add the following item:

RadListDataItem oItem1 = new RadListDataItem(value1, text1);
oItem1.Image = Resources.SomeImage;

Add a button and in the code behind subscribe to its click event and add the following code in the handler:

this.radDropDownList.SelectedItem = null;

Start the application, select the item and click the button. You will notice that the image will stay in the middle of the dropdown's editable area.



Workaround:

Add this code after setting the SelectedItem

this.radDropDownList.DropDownListElement.EditableElement.Image = null;