diff --git a/ee/app/assets/javascripts/admin/dev_ops_report/components/devops_adoption_segment_modal.vue b/ee/app/assets/javascripts/admin/dev_ops_report/components/devops_adoption_segment_modal.vue
index 5e794abbfe4f23090d2eac933ada39de2e63db10..0efb50d7b2de5c9b6265e59c4c953dcf2d0294d9 100644
--- a/ee/app/assets/javascripts/admin/dev_ops_report/components/devops_adoption_segment_modal.vue
+++ b/ee/app/assets/javascripts/admin/dev_ops_report/components/devops_adoption_segment_modal.vue
@@ -53,8 +53,11 @@ export default {
     },
     cancelOptions() {
       return {
-        text: this.$options.i18n.cancel,
-        attributes: [{ disabled: this.loading }],
+        button: {
+          text: this.$options.i18n.cancel,
+          attributes: [{ disabled: this.loading }],
+        },
+        callback: this.resetForm,
       };
     },
     primaryOptions() {
@@ -115,6 +118,7 @@ export default {
         if (errors.length) {
           this.errors = errors;
         } else {
+          this.resetForm();
           this.closeModal();
         }
       } catch (error) {
@@ -161,6 +165,11 @@ export default {
     checkboxValuesFromSegment() {
       return this.segment.groups.map(({ id }) => getIdFromGraphQLId(id));
     },
+    resetForm() {
+      this.name = this.segment?.name || '';
+      this.checkboxValues = this.segment ? this.checkboxValuesFromSegment() : [];
+      this.filter = '';
+    },
   },
   devopsSegmentModalId: DEVOPS_ADOPTION_SEGMENT_MODAL_ID,
 };
@@ -173,8 +182,10 @@ export default {
     size="sm"
     scrollable
     :action-primary="primaryOptions.button"
-    :action-cancel="cancelOptions"
+    :action-cancel="cancelOptions.button"
     @primary.prevent="primaryOptions.callback"
+    @canceled="cancelOptions.callback"
+    @hide="resetForm"
   >
     <gl-alert v-if="errors.length" variant="danger" class="gl-mb-3" @dismiss="clearErrors">
       {{ displayError }}
diff --git a/ee/changelogs/unreleased/293714-devops-adoption-clear-previously-selected-groups-when-creating-.yml b/ee/changelogs/unreleased/293714-devops-adoption-clear-previously-selected-groups-when-creating-.yml
new file mode 100644
index 0000000000000000000000000000000000000000..feb2da16a4eb284f40357e84b5ad2c0480ef9185
--- /dev/null
+++ b/ee/changelogs/unreleased/293714-devops-adoption-clear-previously-selected-groups-when-creating-.yml
@@ -0,0 +1,5 @@
+---
+title: 'DevOps Adoption: Clear form when creating a new segment'
+merge_request: 50766
+author:
+type: fixed
diff --git a/ee/spec/frontend/admin/dev_ops_report/components/devops_adoption_segment_modal_spec.js b/ee/spec/frontend/admin/dev_ops_report/components/devops_adoption_segment_modal_spec.js
index 534adef0c465d20593043080a4a9a6fcd24a6543..d248ba41803bda04072a3957ef7e2185da10a5cf 100644
--- a/ee/spec/frontend/admin/dev_ops_report/components/devops_adoption_segment_modal_spec.js
+++ b/ee/spec/frontend/admin/dev_ops_report/components/devops_adoption_segment_modal_spec.js
@@ -298,6 +298,15 @@ describe('DevopsAdoptionSegmentModal', () => {
         it('closes the modal after a successful mutation', async () => {
           expect(wrapper.vm.$refs.modal.hide).toHaveBeenCalled();
         });
+
+        it('resets the form fields', async () => {
+          const name = segment ? 'Segment 1' : '';
+          const checkboxValues = segment ? [1] : [];
+
+          expect(wrapper.vm.name).toBe(name);
+          expect(wrapper.vm.checkboxValues).toEqual(checkboxValues);
+          expect(wrapper.vm.filter).toBe('');
+        });
       });
 
       describe('error handling', () => {