diff --git a/.changeset/cold-jeans-yawn.md b/.changeset/cold-jeans-yawn.md
new file mode 100644
index 0000000000..0aabaac2fa
--- /dev/null
+++ b/.changeset/cold-jeans-yawn.md
@@ -0,0 +1,5 @@
+---
+"@adyen/adyen-web": patch
+---
+
+Fix address lookup reseting state field after country change
diff --git a/packages/lib/src/components/internal/Address/Address.tsx b/packages/lib/src/components/internal/Address/Address.tsx
index 88294b480f..fbf571329d 100644
--- a/packages/lib/src/components/internal/Address/Address.tsx
+++ b/packages/lib/src/components/internal/Address/Address.tsx
@@ -39,9 +39,11 @@ export default function Address(props: AddressProps) {
 
     const showAddressSearch = !!props.onAddressLookup;
 
+    const [ignoreCountryChange, setIgnoreCountryChange] = useState(false);
+
     const showAddressFields = props.onAddressLookup ? hasSelectedAddress || useManualAddress : true;
 
-    const { data, errors, valid, isValid, handleChangeFor, triggerValidation, setData } = useForm<AddressData>({
+    const { data, errors, valid, isValid, handleChangeFor, triggerValidation, setData, mergeData } = useForm<AddressData>({
         schema: requiredFieldsSchema,
         defaultData: props.data,
         // Ensure any passed validation rules are merged with the default ones
@@ -52,13 +54,17 @@ export default function Address(props: AddressProps) {
     const setSearchData = useCallback(
         (selectedAddress: AddressData) => {
             const propsKeysToProcess = ADDRESS_SCHEMA;
-            propsKeysToProcess.forEach(propKey => {
+            const newStateData = propsKeysToProcess.reduce((acc: AddressData, propKey) => {
                 // Make sure the data provided by the merchant is always strings
                 const providedValue = selectedAddress[propKey];
-                if (providedValue === null || providedValue === undefined) return;
-                // Cast everything to string
-                setData(propKey, String(providedValue));
-            });
+                if (providedValue !== null && providedValue !== undefined) {
+                    // Cast everything to string
+                    acc[propKey] = String(providedValue);
+                }
+                return acc;
+            }, {});
+            mergeData(newStateData);
+            setIgnoreCountryChange(true);
             triggerValidation();
             setHasSelectedAddress(true);
         },
@@ -93,6 +99,12 @@ export default function Address(props: AddressProps) {
      * - Applies validation on postalCode field in case it has any value
      */
     useEffect((): void => {
+        // if the country was set via setSearchData we don't want to trigger this
+        if (ignoreCountryChange) {
+            setIgnoreCountryChange(false);
+            return;
+        }
+
         const stateOrProvince = specifications.countryHasDataset(data.country) ? '' : FALLBACK_VALUE;
         const newData = { ...data, stateOrProvince };
 
diff --git a/packages/lib/src/utils/useForm/reducer.ts b/packages/lib/src/utils/useForm/reducer.ts
index 108e37efc2..e1eca0b18f 100644
--- a/packages/lib/src/utils/useForm/reducer.ts
+++ b/packages/lib/src/utils/useForm/reducer.ts
@@ -54,13 +54,16 @@ export function init({ schema, defaultData, processField, fieldProblems }) {
 }
 
 export function getReducer(processField) {
-    return function reducer(state, { type, key, value, mode, schema, defaultData, formValue, selectedSchema, fieldProblems }: any) {
+    return function reducer(state, { type, key, value, mode, schema, defaultData, formValue, selectedSchema, fieldProblems, data }) {
         const validationSchema: string[] = selectedSchema || state.schema;
 
         switch (type) {
             case 'setData': {
                 return { ...state, data: { ...state['data'], [key]: value } };
             }
+            case 'mergeData': {
+                return { ...state, data: { ...state['data'], ...data } };
+            }
             case 'setValid': {
                 return { ...state, valid: { ...state['valid'], [key]: value } };
             }
diff --git a/packages/lib/src/utils/useForm/types.ts b/packages/lib/src/utils/useForm/types.ts
index 9f8fae2fb8..69c879146b 100644
--- a/packages/lib/src/utils/useForm/types.ts
+++ b/packages/lib/src/utils/useForm/types.ts
@@ -35,6 +35,7 @@ export interface Form<FormSchema> extends FormState<FormSchema> {
     triggerValidation: (schema?: any) => void;
     setSchema: (schema: any) => void;
     setData: (key: string, value: any) => void;
+    mergeData: (data: FormSchema) => void;
     setValid: (key: string, value: any) => void;
     setErrors: (key: string, value: any) => void;
     mergeForm: (formValue: any) => void;
diff --git a/packages/lib/src/utils/useForm/useForm.ts b/packages/lib/src/utils/useForm/useForm.ts
index 02fa074c46..8caea4cedb 100644
--- a/packages/lib/src/utils/useForm/useForm.ts
+++ b/packages/lib/src/utils/useForm/useForm.ts
@@ -55,6 +55,7 @@ function useForm<FormSchema>(props: FormProps): Form<FormSchema> {
     const setErrors = useCallback((key, value) => dispatch({ type: 'setErrors', key, value }), []);
     const setValid = useCallback((key, value) => dispatch({ type: 'setValid', key, value }), []);
     const setData = useCallback((key, value) => dispatch({ type: 'setData', key, value }), []);
+    const mergeData = useCallback(data => dispatch({ type: 'mergeData', data }), []);
     const setSchema = useCallback(schema => dispatch({ type: 'setSchema', schema, defaultData }), [state.schema]);
     const mergeForm = useCallback(formValue => dispatch({ type: 'mergeForm', formValue }), []);
     const setFieldProblems = useCallback(fieldProblems => dispatch({ type: 'setFieldProblems', fieldProblems }), [state.schema]);
@@ -69,6 +70,7 @@ function useForm<FormSchema>(props: FormProps): Form<FormSchema> {
         triggerValidation,
         setSchema,
         setData,
+        mergeData,
         setValid,
         setErrors,
         isValid,