diff --git a/.changeset/fix-widget-resize-after-edit.md b/.changeset/fix-widget-resize-after-edit.md
new file mode 100644
index 0000000000..fd88f12133
--- /dev/null
+++ b/.changeset/fix-widget-resize-after-edit.md
@@ -0,0 +1,5 @@
+---
+'@backstage/plugin-home': patch
+---
+
+Fixed widgets not being draggable and resizable after saved edits. Previously, entering edit mode didn't restore `isDraggable` and `isResizable`.
diff --git a/plugins/home/src/components/CustomHomepage/CustomHomepageGrid.tsx b/plugins/home/src/components/CustomHomepage/CustomHomepageGrid.tsx
index 065caff3f4..ce97e65e4e 100644
--- a/plugins/home/src/components/CustomHomepage/CustomHomepageGrid.tsx
+++ b/plugins/home/src/components/CustomHomepage/CustomHomepageGrid.tsx
@@ -302,15 +302,18 @@ export const CustomHomepageGrid = (props: CustomHomepageGridProps) => {
   const changeEditMode = (mode: boolean) => {
     setEditMode(mode);
 
-    if (!mode) {
-      const newWidgets = widgets.map(w => {
-        const resizable = w.resizable === false ? false : mode;
-        const movable = w.movable === false ? false : mode;
-        return {
-          ...w,
-          layout: { ...w.layout, isDraggable: movable, isResizable: resizable },
-        };
-      });
+    const newWidgets = widgets.map(w => {
+      const resizable = w.resizable === false ? false : mode;
+      const movable = w.movable === false ? false : mode;
+      return {
+        ...w,
+        layout: { ...w.layout, isDraggable: movable, isResizable: resizable },
+      };
+    });
+
+    if (mode) {
+      setWidgets(newWidgets);
+    } else {
       storeWidgets(newWidgets);
     }
   };