My client is using Telerik ASP MVC ASP MVC components. So I wonder what particular component should I use in order to achieve autosuggest combo box with pictures (similar to LinkedIn – see the screenshot below)?

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This functionality is actually possible using the Kendo UI Autocomplete, along with some customizations. We’ve done this for both the search on the docs.kendoui.com site as well as the Kendo Music Store Sample and you can check the source of the latter to learn more about how.
Hope that helps.