diff --git a/assets/js/modules/analytics-4/datastore/audiences.js b/assets/js/modules/analytics-4/datastore/audiences.js
index c43a639078d..a910222a329 100644
--- a/assets/js/modules/analytics-4/datastore/audiences.js
+++ b/assets/js/modules/analytics-4/datastore/audiences.js
@@ -657,6 +657,16 @@ const baseResolvers = {
 };
 
 const baseSelectors = {
+	/**
+	 * Checks if the audience group setup is in progress.
+	 *
+	 * @since n.e.x.t
+	 *
+	 * @param {Object} state Data store's state.
+	 * @return {boolean} True if the audience group setup is in progress, otherwise false.
+	 */
+	isSettingUpAudiences: ( state ) => state.isSettingUpAudiences,
+
 	/**
 	 * Checks if the given audience is a default audience.
 	 *
@@ -709,16 +719,6 @@ const baseSelectors = {
 		}
 	),
 
-	/**
-	 * Checks if the audience group setup is in progress.
-	 *
-	 * @since n.e.x.t
-	 *
-	 * @param {Object} state Data store's state.
-	 * @return {boolean} True if the audience group setup is in progress, otherwise false.
-	 */
-	isSettingUpAudiences: ( state ) => state.isSettingUpAudiences,
-
 	/**
 	 * Checks if the given audience is a user-defined audience.
 	 *
diff --git a/assets/js/modules/analytics-4/datastore/audiences.test.js b/assets/js/modules/analytics-4/datastore/audiences.test.js
index 31fee7ee908..331426bbcd1 100644
--- a/assets/js/modules/analytics-4/datastore/audiences.test.js
+++ b/assets/js/modules/analytics-4/datastore/audiences.test.js
@@ -612,6 +612,60 @@ describe( 'modules/analytics-4 audiences', () => {
 				} );
 			} );
 
+			it( 'sets `isSettingUpAudiences` to true while the action is in progress', async () => {
+				fetchMock.postOnce( syncAvailableAudiencesEndpoint, {
+					body: availableAudiencesFixture,
+					status: 200,
+				} );
+
+				fetchMock.postOnce( audienceSettingsEndpoint, {
+					body: {
+						configuredAudiences: [],
+						isAudienceSegmentationWidgetHidden,
+					},
+					status: 200,
+				} );
+
+				const options = registry
+					.select( MODULES_ANALYTICS_4 )
+					.getAudiencesUserCountReportOptions(
+						[ availableUserAudienceFixture ],
+						{ startDate, endDate: referenceDate }
+					);
+
+				registry
+					.dispatch( MODULES_ANALYTICS_4 )
+					.receiveGetReport( {}, { options } );
+
+				registry
+					.dispatch( MODULES_ANALYTICS_4 )
+					.finishResolution( 'getReport', [ options ] );
+
+				expect(
+					registry
+						.select( MODULES_ANALYTICS_4 )
+						.isSettingUpAudiences()
+				).toBe( false );
+
+				const promise = registry
+					.dispatch( MODULES_ANALYTICS_4 )
+					.enableAudienceGroup();
+
+				expect(
+					registry
+						.select( MODULES_ANALYTICS_4 )
+						.isSettingUpAudiences()
+				).toBe( true );
+
+				await promise;
+
+				expect(
+					registry
+						.select( MODULES_ANALYTICS_4 )
+						.isSettingUpAudiences()
+				).toBe( false );
+			} );
+
 			it( 'syncs `availableAudiences`', async () => {
 				fetchMock.postOnce( syncAvailableAudiencesEndpoint, {
 					body: availableAudiencesFixture,
@@ -1575,6 +1629,60 @@ describe( 'modules/analytics-4 audiences', () => {
 				} );
 			} );
 
+			it( 'sets `isSettingUpAudiences` to true while the action is in progress', async () => {
+				fetchMock.postOnce( syncAvailableAudiencesEndpoint, {
+					body: availableAudiencesFixture,
+					status: 200,
+				} );
+
+				fetchMock.postOnce( audienceSettingsEndpoint, {
+					body: {
+						configuredAudiences: [],
+						isAudienceSegmentationWidgetHidden,
+					},
+					status: 200,
+				} );
+
+				const options = registry
+					.select( MODULES_ANALYTICS_4 )
+					.getAudiencesUserCountReportOptions(
+						[ availableUserAudienceFixture ],
+						{ startDate, endDate: referenceDate }
+					);
+
+				registry
+					.dispatch( MODULES_ANALYTICS_4 )
+					.receiveGetReport( {}, { options } );
+
+				registry
+					.dispatch( MODULES_ANALYTICS_4 )
+					.finishResolution( 'getReport', [ options ] );
+
+				expect(
+					registry
+						.select( MODULES_ANALYTICS_4 )
+						.isSettingUpAudiences()
+				).toBe( false );
+
+				const promise = registry
+					.dispatch( MODULES_ANALYTICS_4 )
+					.enableSecondaryUserAudienceGroup();
+
+				expect(
+					registry
+						.select( MODULES_ANALYTICS_4 )
+						.isSettingUpAudiences()
+				).toBe( true );
+
+				await promise;
+
+				expect(
+					registry
+						.select( MODULES_ANALYTICS_4 )
+						.isSettingUpAudiences()
+				).toBe( false );
+			} );
+
 			it( 'does not sync `availableAudiences` for unauthenticated user', async () => {
 				provideUserAuthentication( registry, {
 					authenticated: false,