diff --git a/src/components/shared/Fields/Form/Form.tsx b/src/components/shared/Fields/Form/Form.tsx
index b51e699376..cf870a92d6 100644
--- a/src/components/shared/Fields/Form/Form.tsx
+++ b/src/components/shared/Fields/Form/Form.tsx
@@ -129,6 +129,20 @@ const Form = <FormData extends FieldValues>({
     [handleSubmit, onSubmit, formHelpers, onError],
   );
 
+  // Separate concern for handling defaultValues updates
+  useEffect(() => {
+    const initializeForm = async () => {
+      const resolvedDefaultValues =
+        typeof defaultValues === 'function'
+          ? await defaultValues()
+          : defaultValues;
+
+      formHelpers.reset(resolvedDefaultValues);
+    };
+
+    initializeForm();
+  }, [defaultValues, formHelpers]);
+
   return (
     <AdditionalFormOptionsContextProvider value={{ readonly }}>
       <FormProvider {...formHelpers}>
diff --git a/src/components/v5/common/ActionSidebar/hooks/useActionFormProps.ts b/src/components/v5/common/ActionSidebar/hooks/useActionFormProps.ts
index 11e446a85d..a78be2cc10 100644
--- a/src/components/v5/common/ActionSidebar/hooks/useActionFormProps.ts
+++ b/src/components/v5/common/ActionSidebar/hooks/useActionFormProps.ts
@@ -1,5 +1,5 @@
 import { noop } from 'lodash';
-import { useCallback, useRef, useState } from 'react';
+import { useCallback, useEffect, useRef, useState } from 'react';
 import { useSearchParams } from 'react-router-dom';
 
 import { type Action } from '~constants/actions.ts';
@@ -33,6 +33,17 @@ const useActionFormProps = (
   const { colony } = useColonyContext();
   const [searchParams, setSearchParams] = useSearchParams();
 
+  // This ensures that actionFormProps always receives the freshest defaultValues updates
+  useEffect(() => {
+    if (defaultValues) {
+      setActionFormProps((state) => ({
+        ...state,
+        actionType: defaultValues.actionType,
+        defaultValues,
+      }));
+    }
+  }, [defaultValues]);
+
   const getFormOptions = useCallback<ActionFormBaseProps['getFormOptions']>(
     async (formOptions, form) => {
       if (!formOptions) {
@@ -82,7 +93,7 @@ const useActionFormProps = (
           readonly: isReadonly,
           ...formOptions.options,
         },
-        defaultValues: formOptionsWithDefaults,
+        defaultValues: actionFormProps.defaultValues,
       });
 
       if (prevActionTypeRef.current === actionType) {
@@ -99,6 +110,7 @@ const useActionFormProps = (
       defaultValues,
       colony.nativeToken.tokenAddress,
       isReadonly,
+      actionFormProps.defaultValues,
       searchParams,
       setSearchParams,
     ],