diff --git a/assets/js/modules/analytics-4/components/audience-segmentation/dashboard/AudienceSelectionPanel/AddGroupNotice.js b/assets/js/modules/analytics-4/components/audience-segmentation/dashboard/AudienceSelectionPanel/AddGroupNotice.js
index 2c1679f26dd..5efb537fe2a 100644
--- a/assets/js/modules/analytics-4/components/audience-segmentation/dashboard/AudienceSelectionPanel/AddGroupNotice.js
+++ b/assets/js/modules/analytics-4/components/audience-segmentation/dashboard/AudienceSelectionPanel/AddGroupNotice.js
@@ -24,7 +24,7 @@ import PropTypes from 'prop-types';
 /**
  * WordPress dependencies
  */
-import { useCallback } from '@wordpress/element';
+import { useState, useCallback, useEffect } from '@wordpress/element';
 import { __ } from '@wordpress/i18n';
 
 /**
@@ -33,24 +33,35 @@ import { __ } from '@wordpress/i18n';
 import { useSelect, useDispatch } from 'googlesitekit-data';
 import {
 	AUDIENCE_ADD_GROUP_NOTICE_SLUG,
-	AUDIENCE_SELECTION_CHANGED,
+	AUDIENCE_SELECTED,
 	AUDIENCE_SELECTION_FORM,
+	AUDIENCE_SELECTION_PANEL_OPENED_KEY,
 } from './constants';
 import { CORE_FORMS } from '../../../../../../googlesitekit/datastore/forms/constants';
 import { CORE_USER } from '../../../../../../googlesitekit/datastore/user/constants';
 import InfoIcon from '../../../../../../../svg/icons/info-circle.svg';
 import InfoNotice from '../InfoNotice';
+import { CORE_UI } from '../../../../../../googlesitekit/datastore/ui/constants';
+import { MODULES_ANALYTICS_4 } from '../../../../datastore/constants';
+
+export default function AddGroupNotice() {
+	const [ twoOrMoreAudiencesSelected, setTwoOrMoreAudiencesSelected ] =
+		useState( false );
 
-export default function AddGroupNotice( { savedItemSlugs = [] } ) {
 	const isDismissed = useSelect( ( select ) =>
 		select( CORE_USER ).isItemDismissed( AUDIENCE_ADD_GROUP_NOTICE_SLUG )
 	);
-	const selectionChanged = useSelect(
-		( select ) =>
-			select( CORE_FORMS ).getValue(
-				AUDIENCE_SELECTION_FORM,
-				AUDIENCE_SELECTION_CHANGED
-			) || false
+	const isSelectionPanelOpen = useSelect( ( select ) =>
+		select( CORE_UI ).getValue( AUDIENCE_SELECTION_PANEL_OPENED_KEY )
+	);
+	const isLoading = useSelect( ( select ) =>
+		select( MODULES_ANALYTICS_4 ).isFetchingSyncAvailableAudiences()
+	);
+	const selectedAudiences = useSelect( ( select ) =>
+		select( CORE_FORMS ).getValue(
+			AUDIENCE_SELECTION_FORM,
+			AUDIENCE_SELECTED
+		)
 	);
 
 	const { dismissItem } = useDispatch( CORE_USER );
@@ -59,7 +70,38 @@ export default function AddGroupNotice( { savedItemSlugs = [] } ) {
 		await dismissItem( AUDIENCE_ADD_GROUP_NOTICE_SLUG );
 	}, [ dismissItem ] );
 
-	if ( isDismissed || savedItemSlugs.length !== 1 || selectionChanged ) {
+	useEffect( () => {
+		if ( ! Array.isArray( selectedAudiences ) ) {
+			return;
+		}
+
+		if ( selectedAudiences.length > 1 ) {
+			setTwoOrMoreAudiencesSelected( true );
+		}
+
+		// If selected items changed to only 1 or less selected audiences
+		// reset the value. Otherwise `twoOrMoreAudiencesSelected` always remains `true`.
+		// We are checking if selection panel is closed to do that, so notice is not re-surfaced
+		// while selection panel is still open.
+		if ( ! isSelectionPanelOpen && selectedAudiences?.length === 1 ) {
+			setTwoOrMoreAudiencesSelected( false );
+		}
+	}, [
+		selectedAudiences,
+		isSelectionPanelOpen,
+		setTwoOrMoreAudiencesSelected,
+	] );
+
+	if (
+		// Do not render the notice if the slection panel is dismissed.
+		isDismissed ||
+		// Has two or more audiences selected.
+		twoOrMoreAudiencesSelected ||
+		// Items are showing as preview blocks - re-syncing is still in progress.
+		isLoading ||
+		// There is no audience selected.
+		! selectedAudiences?.length
+	) {
 		return null;
 	}
 
diff --git a/assets/js/modules/analytics-4/components/audience-segmentation/dashboard/AudienceSelectionPanel/index.js b/assets/js/modules/analytics-4/components/audience-segmentation/dashboard/AudienceSelectionPanel/index.js
index 70d28de939b..2260ec57d62 100644
--- a/assets/js/modules/analytics-4/components/audience-segmentation/dashboard/AudienceSelectionPanel/index.js
+++ b/assets/js/modules/analytics-4/components/audience-segmentation/dashboard/AudienceSelectionPanel/index.js
@@ -91,7 +91,7 @@ export default function AudienceSelectionPanel() {
 		>
 			<Header closePanel={ closePanel } />
 			<AudienceItems savedItemSlugs={ savedItemSlugs } />
-			<AddGroupNotice savedItemSlugs={ savedItemSlugs } />
+			<AddGroupNotice />
 			<AudienceCreationNotice />
 			<LearnMoreLink />
 			<ErrorNotice />
diff --git a/assets/js/modules/analytics-4/components/audience-segmentation/dashboard/AudienceSelectionPanel/index.test.js b/assets/js/modules/analytics-4/components/audience-segmentation/dashboard/AudienceSelectionPanel/index.test.js
index ca675f1ff69..f7f4a373c9f 100644
--- a/assets/js/modules/analytics-4/components/audience-segmentation/dashboard/AudienceSelectionPanel/index.test.js
+++ b/assets/js/modules/analytics-4/components/audience-segmentation/dashboard/AudienceSelectionPanel/index.test.js
@@ -464,9 +464,17 @@ describe( 'AudienceSelectionPanel', () => {
 
 	describe( 'AddGroupNotice', () => {
 		it( 'should display notice when there is a saved selection of one group', async () => {
+			const selectedAudiences = [ 'properties/12345/audiences/3' ];
 			registry
 				.dispatch( MODULES_ANALYTICS_4 )
-				.setConfiguredAudiences( [ 'properties/12345/audiences/3' ] );
+				.setConfiguredAudiences( selectedAudiences );
+
+			registry
+				.dispatch( CORE_FORMS )
+				.setValues( AUDIENCE_SELECTION_FORM, {
+					[ AUDIENCE_SELECTED ]: selectedAudiences,
+					[ AUDIENCE_SELECTION_CHANGED ]: true,
+				} );
 
 			const { getByText, waitForRegistry } = render(
 				<AudienceSelectionPanel />,