diff --git a/assets/js/admin/wc-enhanced-select.js b/assets/js/admin/wc-enhanced-select.js
index 5438085a90d..4eac44f6371 100644
--- a/assets/js/admin/wc-enhanced-select.js
+++ b/assets/js/admin/wc-enhanced-select.js
@@ -91,6 +91,7 @@ jQuery( function( $ ) {
 									action       : $( this ).data( 'action' ) || 'woocommerce_json_search_products_and_variations',
 									security     : wc_enhanced_select_params.search_products_nonce,
 									exclude      : $( this ).data( 'exclude' ),
+									exclude_type : $( this ).data( 'exclude_type' ),
 									include      : $( this ).data( 'include' ),
 									limit        : $( this ).data( 'limit' ),
 									display_stock: $( this ).data( 'display_stock' )
@@ -260,14 +261,16 @@ jQuery( function( $ ) {
 
 			// WooCommerce Backbone Modal
 			.on( 'wc_backbone_modal_before_remove', function() {
-				$( '.wc-enhanced-select, :input.wc-product-search, :input.wc-customer-search' ).filter( '.select2-hidden-accessible' ).selectWoo( 'close' );
+				$( '.wc-enhanced-select, :input.wc-product-search, :input.wc-customer-search' ).filter( '.select2-hidden-accessible' )
+					.selectWoo( 'close' );
 			})
 
 			.trigger( 'wc-enhanced-select-init' );
 
 		$( 'html' ).on( 'click', function( event ) {
 			if ( this === event.target ) {
-				$( '.wc-enhanced-select, :input.wc-product-search, :input.wc-customer-search' ).filter( '.select2-hidden-accessible' ).selectWoo( 'close' );
+				$( '.wc-enhanced-select, :input.wc-product-search, :input.wc-customer-search' ).filter( '.select2-hidden-accessible' )
+					.selectWoo( 'close' );
 			}
 		} );
 	} catch( err ) {
diff --git a/includes/class-wc-ajax.php b/includes/class-wc-ajax.php
index 48a7eef227b..d1e3b534d26 100644
--- a/includes/class-wc-ajax.php
+++ b/includes/class-wc-ajax.php
@@ -1540,6 +1540,15 @@ class WC_AJAX {
 		$include_ids = ! empty( $_GET['include'] ) ? array_map( 'absint', (array) wp_unslash( $_GET['include'] ) ) : array();
 		$exclude_ids = ! empty( $_GET['exclude'] ) ? array_map( 'absint', (array) wp_unslash( $_GET['exclude'] ) ) : array();
 
+		if ( ! empty( $_GET['exclude_type'] ) ) {
+			$exclude_types = array_map( 'strtolower', (array) wp_unslash( $_GET['exclude_type'] ) ); // phpcs:ignore WordPress.Security.ValidatedSanitizedInput.InputNotSanitized
+
+			// Sanitize the excluded types against valid product types.
+			$exclude_types = array_intersect( array_keys( wc_get_product_types() ), $exclude_types );
+		} else {
+			$exclude_types = array();
+		}
+
 		$data_store = WC_Data_Store::load( 'product' );
 		$ids        = $data_store->search_products( $term, '', (bool) $include_variations, false, $limit, $include_ids, $exclude_ids );
 
@@ -1550,6 +1559,10 @@ class WC_AJAX {
 			$formatted_name = $product_object->get_formatted_name();
 			$managing_stock = $product_object->managing_stock();
 
+			if ( in_array( $product_object->get_type(), $exclude_types, true ) ) {
+				continue;
+			}
+
 			if ( $managing_stock && ! empty( $_GET['display_stock'] ) ) {
 				$stock_amount    = $product_object->get_stock_quantity();
 				/* Translators: %d stock amount */