diff --git a/app/assets/javascripts/work_items/components/work_item_description.vue b/app/assets/javascripts/work_items/components/work_item_description.vue
index 25293cb5e26087a1db125aca941f6732739a469e..e5d12b7c16b9c76888a2ceb25ed0d0f7c7ef8af6 100644
--- a/app/assets/javascripts/work_items/components/work_item_description.vue
+++ b/app/assets/javascripts/work_items/components/work_item_description.vue
@@ -184,11 +184,17 @@ export default {
       return this.workItem?.namespace?.id || '';
     },
     markdownPreviewPath() {
+      const isNewWorkItemInGroup = this.isGroup && this.workItemIid === NEW_WORK_ITEM_IID;
       const {
         fullPath,
         workItem: { iid },
       } = this;
-      return markdownPreviewPath({ fullPath, iid, isGroup: this.isGroupWorkItem });
+
+      return markdownPreviewPath({
+        fullPath,
+        iid,
+        isGroup: this.isGroupWorkItem || isNewWorkItemInGroup,
+      });
     },
     autocompleteDataSources() {
       const isNewWorkItemInGroup = this.isGroup && this.workItemIid === NEW_WORK_ITEM_IID;
diff --git a/spec/frontend/work_items/components/work_item_description_spec.js b/spec/frontend/work_items/components/work_item_description_spec.js
index 687824b068af88fd7d0c99f0855398dc20d4b9ea..2deb9abf335da785bdf1081ceffa7409ca35a39f 100644
--- a/spec/frontend/work_items/components/work_item_description_spec.js
+++ b/spec/frontend/work_items/components/work_item_description_spec.js
@@ -16,7 +16,7 @@ import updateWorkItemMutation from '~/work_items/graphql/update_work_item.mutati
 import workItemByIidQuery from '~/work_items/graphql/work_item_by_iid.query.graphql';
 import workItemDescriptionTemplateQuery from '~/work_items/graphql/work_item_description_template.query.graphql';
 import { autocompleteDataSources, markdownPreviewPath, newWorkItemId } from '~/work_items/utils';
-import { ROUTES } from '~/work_items/constants';
+import { ROUTES, NEW_WORK_ITEM_IID, NEW_WORK_ITEM_GID } from '~/work_items/constants';
 import {
   updateWorkItemMutationResponse,
   workItemByIidResponseFactory,
@@ -77,6 +77,7 @@ describe('WorkItemDescription', () => {
     descriptionTemplateHandler = successfulTemplateHandler,
     routeName = '',
     routeQuery = {},
+    fullPath = 'test-project-path',
     hideFullscreenMarkdownButton = false,
   } = {}) => {
     router = {
@@ -90,7 +91,7 @@ describe('WorkItemDescription', () => {
         [workItemDescriptionTemplateQuery, descriptionTemplateHandler],
       ]),
       propsData: {
-        fullPath: 'test-project-path',
+        fullPath,
         workItemId,
         workItemIid,
         workItemTypeId,
@@ -185,6 +186,61 @@ describe('WorkItemDescription', () => {
       });
     });
 
+    it('passes correct autocompletion data sources when it is a new group work item', async () => {
+      const workItemResponse = workItemByIidResponseFactory({
+        iid: NEW_WORK_ITEM_IID,
+        id: NEW_WORK_ITEM_GID,
+      });
+
+      const newGroupWorkItem = {
+        data: {
+          workspace: {
+            __typename: 'Group',
+            id: 'gid://gitlab/Group/24',
+            workItem: {
+              ...workItemResponse.data.workspace.workItem,
+              namespace: {
+                id: 'gid://gitlab/Group/24',
+                fullPath: 'gitlab-org',
+                name: 'Gitlab Org',
+                fullName: 'Gitlab Org',
+                __typename: 'Namespace',
+              },
+            },
+          },
+        },
+      };
+
+      const {
+        namespace: { fullPath },
+      } = newGroupWorkItem.data.workspace.workItem;
+
+      createComponent({
+        isEditing: true,
+        isGroup: true,
+        workItemResponse: newGroupWorkItem,
+        workItemIid: NEW_WORK_ITEM_IID,
+        fullPath,
+      });
+
+      await waitForPromises();
+
+      expect(findMarkdownEditor().props()).toMatchObject({
+        supportsQuickActions: true,
+        renderMarkdownPath: markdownPreviewPath({
+          fullPath,
+          iid: NEW_WORK_ITEM_IID,
+          isGroup: true,
+        }),
+        autocompleteDataSources: autocompleteDataSources({
+          fullPath,
+          iid: NEW_WORK_ITEM_IID,
+          isGroup: true,
+          workItemTypeId: 'gid://gitlab/WorkItems::Type/5',
+        }),
+      });
+    });
+
     it('shows edited by text', async () => {
       const lastEditedAt = '2022-09-21T06:18:42Z';
       const lastEditedBy = {