the bast way i use i bind the textblock and combobox to same property and this property should support notifyPropertyChanged.
i used relativeresource to bind to parent view datacontext which is usercontrol to go up datagrid level in binding because in this case the datagrid will search in object that you used in datagrid.itemsource
<DataGridTemplateColumn Header="your_columnName">
<DataGridTemplateColumn.CellTemplate>
<DataTemplate>
<TextBlock Text="{Binding RelativeSource={RelativeSource AncestorType={x:Type UserControl}}, Path=DataContext.SelectedUnit.Name, Mode=TwoWay}" />
</DataTemplate>
</DataGridTemplateColumn.CellTemplate>
<DataGridTemplateColumn.CellEditingTemplate>
<DataTemplate>
<ComboBox DisplayMemberPath="Name"
IsEditable="True"
ItemsSource="{Binding RelativeSource={RelativeSource AncestorType={x:Type UserControl}}, Path=DataContext.UnitLookupCollection}"
SelectedItem="{Binding RelativeSource={RelativeSource AncestorType={x:Type UserControl}}, Path=DataContext.SelectedUnit, Mode=TwoWay, UpdateSourceTrigger=PropertyChanged}"
SelectedValue="{Binding UnitId, Mode=TwoWay, UpdateSourceTrigger=PropertyChanged}"
SelectedValuePath="Id" />
</DataTemplate>
</DataGridTemplateColumn.CellEditingTemplate>
</DataGridTemplateColumn>