diff --git a/packages/features/webhooks/components/WebhookForm.tsx b/packages/features/webhooks/components/WebhookForm.tsx
index 4bc4a84d23..6afce5eb9b 100644
--- a/packages/features/webhooks/components/WebhookForm.tsx
+++ b/packages/features/webhooks/components/WebhookForm.tsx
@@ -324,7 +324,7 @@ const WebhookForm = (props: {
                       setUseCustomTemplate(true);
                     }
                   }}
-                  defaultValue={value ? "custom" : "default"}
+                  value={useCustomTemplate ? "custom" : "default"}
                   options={[
                     { value: "default", label: t("default") },
                     { value: "custom", label: t("custom") },