diff --git a/.changeset/old-melons-bathe.md b/.changeset/old-melons-bathe.md
new file mode 100644
index 0000000000..1a0db03b6e
--- /dev/null
+++ b/.changeset/old-melons-bathe.md
@@ -0,0 +1,5 @@
+---
+'@backstage/plugin-scaffolder': patch
+---
+
+Fixed the `allowedOwners` from resetting itself when you make a selection or leave the Allowed Owners drop down and start typing in an input below it
diff --git a/plugins/scaffolder/src/components/fields/RepoUrlPicker/RepoUrlPicker.tsx b/plugins/scaffolder/src/components/fields/RepoUrlPicker/RepoUrlPicker.tsx
index 14fbfcee0b..75f5d998ab 100644
--- a/plugins/scaffolder/src/components/fields/RepoUrlPicker/RepoUrlPicker.tsx
+++ b/plugins/scaffolder/src/components/fields/RepoUrlPicker/RepoUrlPicker.tsx
@@ -106,7 +106,7 @@ export const RepoUrlPicker = (
     if (allowedOwners.length > 0) {
       setState(prevState => ({
         ...prevState,
-        owner: allowedOwners[0],
+        allowedOwners,
       }));
     }
   }, [setState, allowedOwners]);
@@ -174,9 +174,9 @@ export const RepoUrlPicker = (
       {hostType === 'github' && (
         <GithubRepoPicker
           allowedOwners={allowedOwners}
+          onChange={updateLocalState}
           rawErrors={rawErrors}
           state={state}
-          onChange={updateLocalState}
         />
       )}
       {hostType === 'gitlab' && (