diff --git a/.changeset/famous-rockets-press.md b/.changeset/famous-rockets-press.md
new file mode 100644
index 00000000000..42c4cd91c73
--- /dev/null
+++ b/.changeset/famous-rockets-press.md
@@ -0,0 +1,5 @@
+---
+"@wso2is/admin.roles.v2": patch
+---
+
+Fix roles dropdown being shown on selecting application roles option and discarding confirmation.
diff --git a/features/admin.roles.v2/components/application-roles.tsx b/features/admin.roles.v2/components/application-roles.tsx
index efb11739552..c315331adff 100755
--- a/features/admin.roles.v2/components/application-roles.tsx
+++ b/features/admin.roles.v2/components/application-roles.tsx
@@ -479,7 +479,10 @@ export const ApplicationRoles: FunctionComponent<ApplicationRolesSettingsInterfa
                 </Grid>
             </EmphasizedSegment>
             <ConfirmationModal
-                onClose={ (): void => setShowSwitchAudienceWarning(false) }
+                onClose={ (): void => {
+                    setTempRoleAudience(undefined);
+                    setShowSwitchAudienceWarning(false);
+                } }
                 type="negative"
                 open={ showSwitchAudienceWarning }
                 assertionHint={ t("extensions:develop.applications.edit.sections." +
@@ -488,6 +491,7 @@ export const ApplicationRoles: FunctionComponent<ApplicationRolesSettingsInterfa
                 primaryAction={ t("common:confirm") }
                 secondaryAction={ t("common:cancel") }
                 onSecondaryActionClick={ (): void => {
+                    setTempRoleAudience(undefined);
                     setShowSwitchAudienceWarning(false);
                 } }
                 onPrimaryActionClick={ (): void => {