diff --git a/packages/dnb-eufemia/src/extensions/forms/Field/PostalCodeAndCity/__tests__/PostalCodeAndCity.test.tsx b/packages/dnb-eufemia/src/extensions/forms/Field/PostalCodeAndCity/__tests__/PostalCodeAndCity.test.tsx
index b8df3d1f6cd..1708ffde760 100644
--- a/packages/dnb-eufemia/src/extensions/forms/Field/PostalCodeAndCity/__tests__/PostalCodeAndCity.test.tsx
+++ b/packages/dnb-eufemia/src/extensions/forms/Field/PostalCodeAndCity/__tests__/PostalCodeAndCity.test.tsx
@@ -240,6 +240,34 @@ describe('Field.PostalCodeAndCity', () => {
     expect(postalCodeNo).toHaveAttribute('aria-placeholder', '0000')
   })
 
+  it('should use value from country inside iterate', async () => {
+    render(
+      <Form.Handler
+        defaultData={{ items: [{ country: 'NO' }, { country: 'DE' }] }}
+      >
+        <Iterate.Array path="/items">
+          <Field.PostalCodeAndCity country="/country" />
+        </Iterate.Array>
+      </Form.Handler>
+    )
+
+    const [norway, germany] = Array.from(
+      document.querySelectorAll('.dnb-forms-field-postal-code-and-city')
+    )
+
+    await userEvent.type(
+      norway.querySelector('input'),
+      '{Backspace>4}987654'
+    )
+    expect(norway.querySelector('input').value).toBe('9876')
+
+    await userEvent.type(
+      germany.querySelector('input'),
+      '{Backspace>4}987654'
+    )
+    expect(germany.querySelector('input').value).toBe('987654')
+  })
+
   describe('ARIA', () => {
     const props = {
       postalCode: { required: true, validateInitially: true },
diff --git a/packages/dnb-eufemia/src/extensions/forms/hooks/useDataValue.ts b/packages/dnb-eufemia/src/extensions/forms/hooks/useDataValue.ts
index 2371afe13b2..74a772bb7a7 100644
--- a/packages/dnb-eufemia/src/extensions/forms/hooks/useDataValue.ts
+++ b/packages/dnb-eufemia/src/extensions/forms/hooks/useDataValue.ts
@@ -2,6 +2,7 @@ import { useCallback, useContext, useRef } from 'react'
 import pointer from '../utils/json-pointer'
 import { Path } from '../types'
 import DataContext, { ContextState } from '../DataContext/Context'
+import IterateItemContext from '../Iterate/IterateItemContext'
 import usePath from './usePath'
 
 export type Props<Value> = {
@@ -16,7 +17,8 @@ export default function useDataValue<Value>({
   value,
 }: Props<Value> = {}) {
   const dataContextRef = useRef<ContextState>()
-  dataContextRef.current = useContext<ContextState>(DataContext)
+  dataContextRef.current = useContext(DataContext)
+  const iterateItemContext = useContext(IterateItemContext)
 
   const { makePath, makeIteratePath } = usePath()
 
@@ -76,12 +78,16 @@ export default function useDataValue<Value>({
   const getSourceValue = useCallback(
     (source: Path | Value) => {
       if (typeof source === 'string' && isPath(source)) {
+        if (iterateItemContext) {
+          return getValueByIteratePath(source)
+        }
+
         return getValueByPath(source)
       }
 
       return source
     },
-    [getValueByPath]
+    [getValueByIteratePath, getValueByPath, iterateItemContext]
   )
 
   if (pathProp) {