diff --git a/assets/js/modules/analytics-4/components/audience-segmentation/dashboard/AudienceSegmentationSetupCTAWidget.js b/assets/js/modules/analytics-4/components/audience-segmentation/dashboard/AudienceSegmentationSetupCTAWidget.js
index 48f4f72ac29..8aa0bdfa78a 100644
--- a/assets/js/modules/analytics-4/components/audience-segmentation/dashboard/AudienceSegmentationSetupCTAWidget.js
+++ b/assets/js/modules/analytics-4/components/audience-segmentation/dashboard/AudienceSegmentationSetupCTAWidget.js
@@ -104,24 +104,26 @@ function AudienceSegmentationSetupCTAWidget( { id, Notification } ) {
 
 	const { dismissItem, dismissPrompt } = useDispatch( CORE_USER );
 
+	const onSuccess = useCallback( () => {
+		invalidateResolution( 'getQueuedNotifications', [
+			viewContext,
+			NOTIFICATION_GROUPS.DEFAULT,
+		] );
+		dismissPrompt( id, {
+			expiresInSeconds: 0,
+		} );
+		// Dismiss success notification in settings.
+		dismissItem( SETTINGS_VISITOR_GROUPS_SETUP_SUCCESS_NOTIFICATION );
+	}, [ dismissItem, dismissPrompt, id, invalidateResolution, viewContext ] );
+
+	const onError = useCallback( () => {
+		setShowErrorModal( true );
+	}, [ setShowErrorModal ] );
+
 	const { apiErrors, failedAudiences, isSaving, onEnableGroups } =
 		useEnableAudienceGroup( {
-			onSuccess: () => {
-				invalidateResolution( 'getQueuedNotifications', [
-					viewContext,
-					NOTIFICATION_GROUPS.DEFAULT,
-				] );
-				dismissPrompt( id, {
-					expiresInSeconds: 0,
-				} );
-				// Dismiss success notification in settings.
-				dismissItem(
-					SETTINGS_VISITOR_GROUPS_SETUP_SUCCESS_NOTIFICATION
-				);
-			},
-			onError: () => {
-				setShowErrorModal( true );
-			},
+			onSuccess,
+			onError,
 		} );
 
 	const { clearPermissionScopeError } = useDispatch( CORE_USER );
diff --git a/assets/js/modules/analytics-4/components/audience-segmentation/dashboard/AudienceSegmentationSetupCTAWidget.test.js b/assets/js/modules/analytics-4/components/audience-segmentation/dashboard/AudienceSegmentationSetupCTAWidget.test.js
index 0c37e210fec..c00bb075b00 100644
--- a/assets/js/modules/analytics-4/components/audience-segmentation/dashboard/AudienceSegmentationSetupCTAWidget.test.js
+++ b/assets/js/modules/analytics-4/components/audience-segmentation/dashboard/AudienceSegmentationSetupCTAWidget.test.js
@@ -28,6 +28,7 @@ import {
 } from '../../../../../../../tests/js/test-utils';
 import {
 	createTestRegistry,
+	freezeFetch,
 	muteFetch,
 	provideModules,
 	provideSiteInfo,
@@ -898,6 +899,8 @@ describe( 'AudienceSegmentationSetupCTAWidget', () => {
 			it( 'should track an event when the Retry button is clicked', () => {
 				mockTrackEvent.mockClear();
 
+				freezeFetch( syncAvailableAudiencesEndpoint );
+
 				act( () => {
 					fireEvent.click(
 						getByRole( 'button', { name: /retry/i } )
diff --git a/assets/js/modules/analytics-4/components/audience-segmentation/settings/SettingsCardVisitorGroups/SetupCTA.js b/assets/js/modules/analytics-4/components/audience-segmentation/settings/SettingsCardVisitorGroups/SetupCTA.js
index 7ea9e9dc48a..4b7d62bfa7b 100644
--- a/assets/js/modules/analytics-4/components/audience-segmentation/settings/SettingsCardVisitorGroups/SetupCTA.js
+++ b/assets/js/modules/analytics-4/components/audience-segmentation/settings/SettingsCardVisitorGroups/SetupCTA.js
@@ -19,7 +19,7 @@
 /**
  * WordPress dependencies
  */
-import { useState } from '@wordpress/element';
+import { useCallback, useState } from '@wordpress/element';
 import { __ } from '@wordpress/i18n';
 
 /**
@@ -46,18 +46,20 @@ export default function SetupCTA() {
 
 	const { dismissNotification } = useDispatch( CORE_NOTIFICATIONS );
 
+	const onSuccess = useCallback( () => {
+		// Dismiss success notification in dashboard.
+		dismissNotification( AUDIENCE_SEGMENTATION_SETUP_SUCCESS_NOTIFICATION );
+	}, [ dismissNotification ] );
+
+	const onError = useCallback( () => {
+		setShowErrorModal( true );
+	}, [ setShowErrorModal ] );
+
 	const { apiErrors, failedAudiences, isSaving, onEnableGroups } =
 		useEnableAudienceGroup( {
 			redirectURL: global.location.href,
-			onSuccess: () => {
-				// Dismiss success notification in dashboard.
-				dismissNotification(
-					AUDIENCE_SEGMENTATION_SETUP_SUCCESS_NOTIFICATION
-				);
-			},
-			onError: () => {
-				setShowErrorModal( true );
-			},
+			onSuccess,
+			onError,
 		} );
 
 	const setupErrorCode = useSelect( ( select ) =>
diff --git a/assets/js/modules/analytics-4/components/audience-segmentation/settings/SettingsCardVisitorGroups/SetupCTA.test.js b/assets/js/modules/analytics-4/components/audience-segmentation/settings/SettingsCardVisitorGroups/SetupCTA.test.js
index f9cf30afee5..4df32d45d94 100644
--- a/assets/js/modules/analytics-4/components/audience-segmentation/settings/SettingsCardVisitorGroups/SetupCTA.test.js
+++ b/assets/js/modules/analytics-4/components/audience-segmentation/settings/SettingsCardVisitorGroups/SetupCTA.test.js
@@ -60,6 +60,9 @@ describe( 'SettingsCardVisitorGroups SetupCTA', () => {
 	const syncAvailableAudiencesEndpoint = new RegExp(
 		'^/google-site-kit/v1/modules/analytics-4/data/sync-audiences'
 	);
+	const syncAvailableCustomDimensionsEndpoint = new RegExp(
+		'^/google-site-kit/v1/modules/analytics-4/data/sync-custom-dimensions'
+	);
 
 	beforeEach( () => {
 		registry = createTestRegistry();
@@ -157,6 +160,9 @@ describe( 'SettingsCardVisitorGroups SetupCTA', () => {
 		);
 
 		expect( fetchMock ).toHaveFetched( syncAvailableAudiencesEndpoint );
+		expect( fetchMock ).toHaveFetched(
+			syncAvailableCustomDimensionsEndpoint
+		);
 
 		await act( waitForDefaultTimeouts );
 	} );
@@ -185,6 +191,16 @@ describe( 'SettingsCardVisitorGroups SetupCTA', () => {
 
 	describe( 'AudienceErrorModal', () => {
 		it( 'should show the OAuth error modal when the required scopes are not granted', async () => {
+			fetchMock.postOnce( syncAvailableAudiencesEndpoint, {
+				body: [],
+				status: 200,
+			} );
+
+			fetchMock.postOnce( syncAvailableCustomDimensionsEndpoint, {
+				body: [],
+				status: 200,
+			} );
+
 			provideSiteInfo( registry, {
 				setupErrorCode: 'access_denied',
 			} );
@@ -221,13 +237,13 @@ describe( 'SettingsCardVisitorGroups SetupCTA', () => {
 				);
 			} );
 
-			// Allow the `trackEvent()` promise to resolve.
-			await waitForDefaultTimeouts();
-
-			// Verify the error is an OAuth error variant.
-			expect(
-				getByText( /Analytics update failed/i )
-			).toBeInTheDocument();
+			// Wait for the error modal to be displayed.
+			await waitFor( () => {
+				// Verify the error is an OAuth error variant.
+				expect(
+					getByText( /Analytics update failed/i )
+				).toBeInTheDocument();
+			} );
 
 			// Verify the "Get help" link is displayed.
 			expect( getByText( /get help/i ) ).toBeInTheDocument();
@@ -252,7 +268,7 @@ describe( 'SettingsCardVisitorGroups SetupCTA', () => {
 				data: { reason: ERROR_REASON_INSUFFICIENT_PERMISSIONS },
 			};
 
-			fetchMock.post( syncAvailableAudiencesEndpoint, {
+			fetchMock.postOnce( syncAvailableAudiencesEndpoint, {
 				body: errorResponse,
 				status: 500,
 			} );
@@ -292,7 +308,7 @@ describe( 'SettingsCardVisitorGroups SetupCTA', () => {
 				data: { status: 500 },
 			};
 
-			fetchMock.post( syncAvailableAudiencesEndpoint, {
+			fetchMock.postOnce( syncAvailableAudiencesEndpoint, {
 				body: errorResponse,
 				status: 500,
 			} );
diff --git a/assets/js/modules/analytics-4/datastore/audiences.js b/assets/js/modules/analytics-4/datastore/audiences.js
index b9822b021db..9f4b838318e 100644
--- a/assets/js/modules/analytics-4/datastore/audiences.js
+++ b/assets/js/modules/analytics-4/datastore/audiences.js
@@ -128,6 +128,129 @@ const fetchSyncAvailableAudiencesStore = createFetchStore( {
 	},
 } );
 
+/**
+ * Retrieves the initial set of selected audiences from the existing audiences.
+ *
+ * @since n.e.x.t
+ *
+ * @param {Object} registry Registry object.
+ * @return {Object} Object with `configuredAudiences` or `error`.
+ */
+async function getConfiguredAudiencesFromExistingAudiences( registry ) {
+	const { resolveSelect, select } = registry;
+
+	const availableAudiences =
+		select( MODULES_ANALYTICS_4 ).getAvailableAudiences();
+
+	const { error, configuredAudiences } = await getInitialConfiguredAudiences(
+		registry,
+		availableAudiences
+	);
+
+	if ( error ) {
+		return { error };
+	}
+
+	if ( configuredAudiences.length === 1 ) {
+		// Add 'Purchasers' audience if it has data.
+		const purchasersAudience = availableAudiences.find(
+			( { audienceSlug } ) => audienceSlug === 'purchasers'
+		);
+
+		if ( purchasersAudience ) {
+			const purchasersResourceDataAvailabilityDate = await resolveSelect(
+				MODULES_ANALYTICS_4
+			).getResourceDataAvailabilityDate(
+				purchasersAudience.name,
+				RESOURCE_TYPE_AUDIENCE
+			);
+
+			if ( purchasersResourceDataAvailabilityDate ) {
+				configuredAudiences.push( purchasersAudience.name );
+			}
+		}
+	}
+
+	return { configuredAudiences };
+}
+
+/**
+ * Retrives the initial set of audiences for selection.
+ *
+ * @since 1.136.0
+ * @since n.e.x.t Extracted to a helper function. Renamed from `retrieveInitialAudienceSelection` to `getInitialConfiguredAudiences`.
+ *
+ * @param {Object} registry           Registry object.
+ * @param {Array}  availableAudiences List of available audiences.
+ * @return {Object} Object with properties `configuredAudiences` or `error`.
+ */
+async function getInitialConfiguredAudiences( registry, availableAudiences ) {
+	const { select } = registry;
+
+	const configuredAudiences = [];
+
+	const userAudiences = availableAudiences.filter(
+		( { audienceType } ) => audienceType === 'USER_AUDIENCE'
+	);
+
+	if ( userAudiences.length > 0 ) {
+		// If there are user audiences, filter and sort them by total users over the last 90 days,
+		// and add the top two (MAX_INITIAL_AUDIENCES) which have users to the configured audiences.
+
+		const endDate = select( CORE_USER ).getReferenceDate();
+
+		const startDate = getPreviousDate(
+			endDate,
+			90 + DATE_RANGE_OFFSET // Add offset to ensure we have data for the entirety of the last 90 days.
+		);
+
+		const { audienceResourceNames, error } =
+			await getNonZeroDataAudiencesSortedByTotalUsers(
+				registry,
+				userAudiences,
+				startDate,
+				endDate
+			);
+
+		if ( error ) {
+			return { error };
+		}
+
+		configuredAudiences.push(
+			...audienceResourceNames.slice( 0, MAX_INITIAL_AUDIENCES )
+		);
+	}
+
+	if ( configuredAudiences.length < MAX_INITIAL_AUDIENCES ) {
+		// If there are less than two (MAX_INITIAL_AUDIENCES) configured user audiences, add the Site Kit-created audiences
+		// if they exist, up to the limit of two.
+
+		const siteKitAudiences = availableAudiences.filter(
+			( { audienceType } ) => audienceType === 'SITE_KIT_AUDIENCE'
+		);
+
+		// Audience slugs to sort by:
+		const sortedSlugs = [ 'new-visitors', 'returning-visitors' ];
+
+		const sortedSiteKitAudiences = siteKitAudiences.sort(
+			( audienceA, audienceB ) => {
+				const indexA = sortedSlugs.indexOf( audienceA.audienceSlug );
+				const indexB = sortedSlugs.indexOf( audienceB.audienceSlug );
+
+				return indexA - indexB;
+			}
+		);
+
+		const audienceResourceNames = sortedSiteKitAudiences
+			.slice( 0, MAX_INITIAL_AUDIENCES - configuredAudiences.length )
+			.map( ( { name } ) => name );
+
+		configuredAudiences.push( ...audienceResourceNames );
+	}
+
+	return { configuredAudiences };
+}
+
 export const baseInitialState = {
 	isSettingUpAudiences: false,
 };
@@ -262,88 +385,6 @@ const baseActions = {
 		}
 	},
 
-	/**
-	 * Retrives the initial set of audiences for selection.
-	 *
-	 * @since 1.136.0
-	 *
-	 * @param {Array} availableAudiences List of available audiences.
-	 * @return {Object} Object with properties `configuredAudiences` or `error`.
-	 */
-	*retrieveInitialAudienceSelection( availableAudiences ) {
-		const registry = yield commonActions.getRegistry();
-
-		const { select } = registry;
-
-		const configuredAudiences = [];
-
-		const userAudiences = availableAudiences.filter(
-			( { audienceType } ) => audienceType === 'USER_AUDIENCE'
-		);
-
-		if ( userAudiences.length > 0 ) {
-			// If there are user audiences, filter and sort them by total users over the last 90 days,
-			// and add the top two (MAX_INITIAL_AUDIENCES) which have users to the configured audiences.
-
-			const endDate = select( CORE_USER ).getReferenceDate();
-
-			const startDate = getPreviousDate(
-				endDate,
-				90 + DATE_RANGE_OFFSET // Add offset to ensure we have data for the entirety of the last 90 days.
-			);
-
-			const { audienceResourceNames, error } = yield commonActions.await(
-				getNonZeroDataAudiencesSortedByTotalUsers(
-					registry,
-					userAudiences,
-					startDate,
-					endDate
-				)
-			);
-
-			if ( error ) {
-				return { error };
-			}
-
-			configuredAudiences.push(
-				...audienceResourceNames.slice( 0, MAX_INITIAL_AUDIENCES )
-			);
-		}
-
-		if ( configuredAudiences.length < MAX_INITIAL_AUDIENCES ) {
-			// If there are less than two (MAX_INITIAL_AUDIENCES) configured user audiences, add the Site Kit-created audiences
-			// if they exist, up to the limit of two.
-
-			const siteKitAudiences = availableAudiences.filter(
-				( { audienceType } ) => audienceType === 'SITE_KIT_AUDIENCE'
-			);
-
-			// Audience slugs to sort by:
-			const sortedSlugs = [ 'new-visitors', 'returning-visitors' ];
-
-			const sortedSiteKitAudiences = siteKitAudiences.sort(
-				( audienceA, audienceB ) => {
-					const indexA = sortedSlugs.indexOf(
-						audienceA.audienceSlug
-					);
-					const indexB = sortedSlugs.indexOf(
-						audienceB.audienceSlug
-					);
-
-					return indexA - indexB;
-				}
-			);
-
-			const audienceResourceNames = sortedSiteKitAudiences
-				.slice( 0, MAX_INITIAL_AUDIENCES - configuredAudiences.length )
-				.map( ( { name } ) => name );
-
-			configuredAudiences.push( ...audienceResourceNames );
-		}
-
-		return { configuredAudiences };
-	},
-
 	/**
 	 * Populates the configured audiences with the top two user audiences and/or the Site Kit-created audiences,
 	 * depending on their availability and suitability (data over the last 90 days is required for user audiences).
@@ -370,43 +411,57 @@ const baseActions = {
 	},
 
 	/**
-	 * This contains the main logic for the `*enableAudienceGroup()` action above.
+	 * Checks if the user needs to grant the Analytics 4 edit scope to create audiences or custom dimensions.
 	 *
-	 * @since 1.136.0
+	 * @since n.e.x.t
 	 *
-	 * @param {Array} failedSiteKitAudienceSlugs List of failed Site Kit audience slugs to retry.
-	 * @return {Object} Object with `failedSiteKitAudienceSlugs`, `createdSiteKitAudienceSlugs` and `error`.
+	 * @return {Object} Object with `needsScope` or `error`.
 	 */
-	*enableAudienceGroupMain( failedSiteKitAudienceSlugs ) {
+	*determineNeedForAnalytics4EditScope() {
 		const registry = yield commonActions.getRegistry();
+		const { resolveSelect, select } = registry;
 
-		const { dispatch, select, resolveSelect } = registry;
-
-		const { response: availableAudiences, error: syncError } =
-			yield commonActions.await(
-				dispatch( MODULES_ANALYTICS_4 ).syncAvailableAudiences()
-			);
+		yield commonActions.await(
+			resolveSelect( MODULES_ANALYTICS_4 ).getAvailableCustomDimensions()
+		);
 
-		if ( syncError ) {
-			return { error: syncError };
+		if (
+			! select( MODULES_ANALYTICS_4 ).hasCustomDimensions(
+				'googlesitekit_post_type'
+			)
+		) {
+			return { needsScope: true };
 		}
 
-		const { error: syncDimensionsError } = yield commonActions.await(
-			dispatch( MODULES_ANALYTICS_4 ).fetchSyncAvailableCustomDimensions()
+		const { error, configuredAudiences } = yield commonActions.await(
+			getConfiguredAudiencesFromExistingAudiences( registry )
 		);
 
-		if ( syncDimensionsError ) {
-			return { error: syncDimensionsError };
+		if ( error ) {
+			return { error };
 		}
 
+		return { needsScope: configuredAudiences.length === 0 };
+	},
+
+	/**
+	 * This contains the main logic for the `*enableAudienceGroup()` action above.
+	 *
+	 * @since 1.136.0
+	 *
+	 * @param {Array} failedSiteKitAudienceSlugs List of failed Site Kit audience slugs to retry.
+	 * @return {Object} Object with `failedSiteKitAudienceSlugs`, `createdSiteKitAudienceSlugs` and `error`.
+	 */
+	*enableAudienceGroupMain( failedSiteKitAudienceSlugs ) {
+		const registry = yield commonActions.getRegistry();
+		const { dispatch, select, resolveSelect } = registry;
+
 		const configuredAudiences = [];
 
 		if ( ! failedSiteKitAudienceSlugs?.length ) {
 			const { error, configuredAudiences: audiences } =
 				yield commonActions.await(
-					dispatch(
-						MODULES_ANALYTICS_4
-					).retrieveInitialAudienceSelection( availableAudiences )
+					getConfiguredAudiencesFromExistingAudiences( registry )
 				);
 
 			if ( error ) {
@@ -416,29 +471,6 @@ const baseActions = {
 			configuredAudiences.push( ...audiences );
 		}
 
-		if ( configuredAudiences.length === 1 ) {
-			// Add 'Purchasers' audience if it has data.
-			const purchasersAudience = availableAudiences.find(
-				( { audienceSlug } ) => audienceSlug === 'purchasers'
-			);
-
-			if ( purchasersAudience ) {
-				const purchasersResourceDataAvailabilityDate =
-					yield commonActions.await(
-						resolveSelect(
-							MODULES_ANALYTICS_4
-						).getResourceDataAvailabilityDate(
-							purchasersAudience.name,
-							RESOURCE_TYPE_AUDIENCE
-						)
-					);
-
-				if ( purchasersResourceDataAvailabilityDate ) {
-					configuredAudiences.push( purchasersAudience.name );
-				}
-			}
-		}
-
 		if ( configuredAudiences.length === 0 ) {
 			const requiredAudienceSlugs = [
 				'new-visitors',
@@ -497,11 +529,15 @@ const baseActions = {
 			configuredAudiences.push( ...existingConfiguredAudiences );
 
 			// Resync available audiences to ensure the newly created audiences are available.
-			const { response: newAvailableAudiences } =
+			const { error, response: newAvailableAudiences } =
 				yield commonActions.await(
 					dispatch( MODULES_ANALYTICS_4 ).syncAvailableAudiences()
 				);
 
+			if ( error ) {
+				return { error };
+			}
+
 			// Find the audience in the newly available audiences that matches the required slug.
 			// If a matching audience is found and it's not already in the configured audiences, add it.
 			// This is to ensure if one audience was created successfully but the other failed,
@@ -645,9 +681,7 @@ const baseActions = {
 			error: retrieveInitialAudienceSelectionError,
 			configuredAudiences,
 		} = yield commonActions.await(
-			dispatch( MODULES_ANALYTICS_4 ).retrieveInitialAudienceSelection(
-				availableAudiences
-			)
+			getInitialConfiguredAudiences( registry, availableAudiences )
 		);
 
 		if ( retrieveInitialAudienceSelectionError ) {
diff --git a/assets/js/modules/analytics-4/datastore/audiences.test.js b/assets/js/modules/analytics-4/datastore/audiences.test.js
index 48eee1811b2..4f65729d8a1 100644
--- a/assets/js/modules/analytics-4/datastore/audiences.test.js
+++ b/assets/js/modules/analytics-4/datastore/audiences.test.js
@@ -615,7 +615,7 @@ describe( 'modules/analytics-4 audiences', () => {
 				provideUserAuthentication( registry );
 
 				registry.dispatch( MODULES_ANALYTICS_4 ).setSettings( {
-					availableAudiences: null,
+					availableAudiences: availableAudiencesFixture,
 					availableCustomDimensions: [ 'googlesitekit_post_type' ],
 					propertyID: testPropertyID,
 				} );
@@ -635,16 +635,6 @@ describe( 'modules/analytics-4 audiences', () => {
 			} );
 
 			it( 'sets `isSettingUpAudiences` to true while the action is in progress', async () => {
-				fetchMock.postOnce( syncAvailableAudiencesEndpoint, {
-					body: availableAudiencesFixture,
-					status: 200,
-				} );
-
-				fetchMock.postOnce( syncAvailableCustomDimensionsEndpoint, {
-					body: [ 'googlesitekit_post_type' ],
-					status: 200,
-				} );
-
 				fetchMock.postOnce( audienceSettingsEndpoint, {
 					body: {
 						configuredAudiences: [],
@@ -699,62 +689,6 @@ describe( 'modules/analytics-4 audiences', () => {
 				);
 			} );
 
-			it( 'syncs `availableAudiences`', async () => {
-				fetchMock.postOnce( syncAvailableAudiencesEndpoint, {
-					body: availableAudiencesFixture,
-					status: 200,
-				} );
-
-				fetchMock.postOnce( syncAvailableCustomDimensionsEndpoint, {
-					body: [ 'googlesitekit_post_type' ],
-					status: 200,
-				} );
-
-				fetchMock.postOnce( audienceSettingsEndpoint, {
-					body: {
-						configuredAudiences: [],
-						isAudienceSegmentationWidgetHidden,
-					},
-					status: 200,
-				} );
-
-				muteFetch( expirableItemEndpoint );
-
-				const options = registry
-					.select( MODULES_ANALYTICS_4 )
-					.getAudiencesUserCountReportOptions(
-						[ availableUserAudienceFixture ],
-						{ startDate, endDate: referenceDate }
-					);
-
-				registry
-					.dispatch( MODULES_ANALYTICS_4 )
-					.receiveGetReport( {}, { options } );
-
-				registry
-					.dispatch( MODULES_ANALYTICS_4 )
-					.finishResolution( 'getReport', [ options ] );
-
-				await registry
-					.dispatch( MODULES_ANALYTICS_4 )
-					.enableAudienceGroup();
-
-				expect( fetchMock ).toHaveFetchedTimes(
-					1,
-					syncAvailableAudiencesEndpoint
-				);
-
-				expect(
-					registry
-						.select( MODULES_ANALYTICS_4 )
-						.getAvailableAudiences()
-				).toEqual( availableAudiencesFixture );
-
-				await waitFor( () =>
-					expect( fetchMock ).toHaveFetched( surveyTriggerEndpoint )
-				);
-			} );
-
 			it.each( [
 				[
 					'the top 1 from 1 of 3 candidate user audiences with data over the past 90 days', // Test description differentiator.
@@ -803,15 +737,9 @@ describe( 'modules/analytics-4 audiences', () => {
 					_,
 					{ totalUsersByAudience, expectedConfiguredAudiences }
 				) => {
-					fetchMock.postOnce( syncAvailableAudiencesEndpoint, {
-						body: availableUserAudiences,
-						status: 200,
-					} );
-
-					fetchMock.postOnce( syncAvailableCustomDimensionsEndpoint, {
-						body: [ 'googlesitekit_post_type' ],
-						status: 200,
-					} );
+					registry
+						.dispatch( MODULES_ANALYTICS_4 )
+						.setAvailableAudiences( availableUserAudiences );
 
 					fetchMock.postOnce( audienceSettingsEndpoint, {
 						body: {
@@ -910,18 +838,12 @@ describe( 'modules/analytics-4 audiences', () => {
 					_,
 					{ totalUsersByAudience, expectedConfiguredAudiences }
 				) => {
-					fetchMock.postOnce( syncAvailableAudiencesEndpoint, {
-						body: [
+					registry
+						.dispatch( MODULES_ANALYTICS_4 )
+						.setAvailableAudiences( [
 							...availableAudiencesFixture,
 							...availableUserAudiences.slice( 1 ),
-						],
-						status: 200,
-					} );
-
-					fetchMock.postOnce( syncAvailableCustomDimensionsEndpoint, {
-						body: [ 'googlesitekit_post_type' ],
-						status: 200,
-					} );
+						] );
 
 					fetchMock.postOnce( audienceSettingsEndpoint, {
 						body: {
@@ -1005,31 +927,15 @@ describe( 'modules/analytics-4 audiences', () => {
 					],
 				];
 
-				fetchMock.postOnce( syncAvailableCustomDimensionsEndpoint, {
-					body: [ 'googlesitekit_post_type' ],
+				registry
+					.dispatch( MODULES_ANALYTICS_4 )
+					.setAvailableAudiences( availableUserAudiences );
+
+				fetchMock.postOnce( syncAvailableAudiencesEndpoint, {
+					body: finalAvailableAudiences,
 					status: 200,
 				} );
 
-				fetchMock.post(
-					{
-						url: syncAvailableAudiencesEndpoint,
-						repeat: 2,
-					},
-					() => {
-						const callCount = fetchMock.calls(
-							syncAvailableAudiencesEndpoint
-						).length;
-
-						return {
-							body:
-								callCount === 1
-									? availableUserAudiences
-									: finalAvailableAudiences,
-							status: 200,
-						};
-					}
-				);
-
 				const expectedConfiguredAudiences = [
 					createdNewVisitorsAudienceName,
 					createdReturningVisitorsAudienceName,
@@ -1092,7 +998,7 @@ describe( 'modules/analytics-4 audiences', () => {
 					.enableAudienceGroup();
 
 				expect( fetchMock ).toHaveFetchedTimes(
-					2,
+					1,
 					syncAvailableAudiencesEndpoint
 				);
 
@@ -1176,16 +1082,6 @@ describe( 'modules/analytics-4 audiences', () => {
 						property: {},
 					} );
 
-				fetchMock.postOnce( syncAvailableAudiencesEndpoint, {
-					body: availableAudiences,
-					status: 200,
-				} );
-
-				fetchMock.postOnce( syncAvailableCustomDimensionsEndpoint, {
-					body: [ 'googlesitekit_post_type' ],
-					status: 200,
-				} );
-
 				const options = registry
 					.select( MODULES_ANALYTICS_4 )
 					.getAudiencesUserCountReportOptions( [ userAudience ], {
@@ -1247,18 +1143,12 @@ describe( 'modules/analytics-4 audiences', () => {
 					availableReturningVisitorsAudienceFixture.name,
 				];
 
-				fetchMock.postOnce( syncAvailableAudiencesEndpoint, {
-					body: [
+				registry
+					.dispatch( MODULES_ANALYTICS_4 )
+					.setAvailableAudiences( [
 						...availableAudiencesFixture,
 						...availableUserAudiences.slice( 1 ),
-					],
-					status: 200,
-				} );
-
-				fetchMock.postOnce( syncAvailableCustomDimensionsEndpoint, {
-					body: [ 'googlesitekit_post_type' ],
-					status: 200,
-				} );
+					] );
 
 				fetchMock.postOnce( audienceSettingsEndpoint, {
 					body: {
@@ -1326,18 +1216,12 @@ describe( 'modules/analytics-4 audiences', () => {
 					availableReturningVisitorsAudienceFixture.name,
 				];
 
-				fetchMock.postOnce( syncAvailableAudiencesEndpoint, {
-					body: [
+				registry
+					.dispatch( MODULES_ANALYTICS_4 )
+					.setAvailableAudiences( [
 						availableNewVisitorsAudienceFixture,
 						availableReturningVisitorsAudienceFixture,
-					],
-					status: 200,
-				} );
-
-				fetchMock.postOnce( syncAvailableCustomDimensionsEndpoint, {
-					body: [ 'googlesitekit_post_type' ],
-					status: 200,
-				} );
+					] );
 
 				fetchMock.postOnce( audienceSettingsEndpoint, {
 					body: {
@@ -1379,18 +1263,13 @@ describe( 'modules/analytics-4 audiences', () => {
 					provideUserCapabilities( registry );
 
 					registry.dispatch( MODULES_ANALYTICS_4 ).setSettings( {
-						availableAudiences: null,
-						availableCustomDimensions: null,
+						availableAudiences: availableAudiencesFixture,
+						availableCustomDimensions: [],
 						propertyID: testPropertyID,
 					} );
 				} );
 
 				it( "creates the `googlesitekit_post_type` custom dimension if it doesn't exist", async () => {
-					fetchMock.postOnce( syncAvailableAudiencesEndpoint, {
-						body: availableAudiencesFixture,
-						status: 200,
-					} );
-
 					fetchMock.postOnce( audienceSettingsEndpoint, {
 						body: {
 							configuredAudiences: [],
@@ -1399,27 +1278,12 @@ describe( 'modules/analytics-4 audiences', () => {
 						status: 200,
 					} );
 
-					fetchMock.post(
-						{
-							url: syncAvailableCustomDimensionsEndpoint,
-							repeat: 2,
-						},
-						() => {
-							const callCount = fetchMock.calls(
-								syncAvailableCustomDimensionsEndpoint
-							).length;
-
-							return {
-								body:
-									callCount === 1
-										? []
-										: [
-												CUSTOM_DIMENSION_DEFINITIONS.googlesitekit_post_type,
-										  ],
-								status: 200,
-							};
-						}
-					);
+					fetchMock.postOnce( syncAvailableCustomDimensionsEndpoint, {
+						body: [
+							CUSTOM_DIMENSION_DEFINITIONS.googlesitekit_post_type,
+						],
+						status: 200,
+					} );
 
 					fetchMock.postOnce( createCustomDimensionEndpoint, {
 						body: CUSTOM_DIMENSION_DEFINITIONS.googlesitekit_post_type,
@@ -1462,7 +1326,7 @@ describe( 'modules/analytics-4 audiences', () => {
 					);
 
 					expect( fetchMock ).toHaveFetchedTimes(
-						2,
+						1,
 						syncAvailableCustomDimensionsEndpoint
 					);
 
@@ -1498,42 +1362,9 @@ describe( 'modules/analytics-4 audiences', () => {
 				};
 
 				beforeEach( () => {
-					fetchMock.postOnce( syncAvailableCustomDimensionsEndpoint, {
-						body: [ 'googlesitekit_post_type' ],
-						status: 200,
-					} );
-				} );
-
-				it( 'should return and dispatch an error if syncing available audiences request fails', async () => {
-					fetchMock.post( syncAvailableAudiencesEndpoint, {
-						body: errorResponse,
-						status: 500,
-					} );
-
-					fetchMock.get( audienceSettingsEndpoint, {
-						body: {
-							data: {
-								configuredAudiences: [],
-							},
-						},
-					} );
-
-					const { response, error } = await registry
+					registry
 						.dispatch( MODULES_ANALYTICS_4 )
-						.enableAudienceGroup();
-
-					await waitForDefaultTimeouts();
-
-					expect( response ).toBeUndefined();
-					expect( error ).toEqual( errorResponse );
-
-					expect(
-						registry
-							.select( MODULES_ANALYTICS_4 )
-							.getErrorForAction( 'syncAvailableAudiences' )
-					).toEqual( errorResponse );
-
-					expect( console ).toHaveErrored();
+						.setAvailableAudiences( [] );
 				} );
 
 				it( 'should return failed audience names when creating new visitors and returning visitors audiences fails', async () => {
@@ -1542,11 +1373,6 @@ describe( 'modules/analytics-4 audiences', () => {
 						'returning-visitors',
 					];
 
-					fetchMock.postOnce( syncAvailableAudiencesEndpoint, {
-						body: [],
-						status: 200,
-					} );
-
 					// Mocking createAudience API call with failure response.
 					fetchMock.post(
 						{ url: createAudienceEndpoint, repeat: 2 },
@@ -1606,11 +1432,6 @@ describe( 'modules/analytics-4 audiences', () => {
 						}
 					);
 
-					fetchMock.postOnce( syncAvailableAudiencesEndpoint, {
-						body: [],
-						status: 200,
-					} );
-
 					const result = await registry
 						.dispatch( MODULES_ANALYTICS_4 )
 						.enableAudienceGroup( failedAudiencesToRetry );
@@ -1631,16 +1452,15 @@ describe( 'modules/analytics-4 audiences', () => {
 						createAudienceEndpoint
 					);
 
-					expect( fetchMock ).toHaveFetchedTimes(
-						1,
-						syncAvailableAudiencesEndpoint
-					);
-
 					// Ensure conse error is logged only once.
 					expect( console ).toHaveErrored();
 				} );
 
 				it( 'should create provided "failedSiteKitAudienceSlugs" correctly', async () => {
+					registry
+						.dispatch( MODULES_ANALYTICS_4 )
+						.setAvailableAudiences( availableUserAudiences );
+
 					const failedAudiencesToRetry = [
 						'new-visitors',
 						'returning-visitors',
@@ -1670,25 +1490,10 @@ describe( 'modules/analytics-4 audiences', () => {
 						],
 					];
 
-					fetchMock.post(
-						{
-							url: syncAvailableAudiencesEndpoint,
-							repeat: 2,
-						},
-						() => {
-							const callCount = fetchMock.calls(
-								syncAvailableAudiencesEndpoint
-							).length;
-
-							return {
-								body:
-									callCount === 1
-										? availableUserAudiences
-										: finalAvailableAudiences,
-								status: 200,
-							};
-						}
-					);
+					fetchMock.postOnce( syncAvailableAudiencesEndpoint, {
+						body: finalAvailableAudiences,
+						status: 200,
+					} );
 
 					fetchMock.postOnce( audienceSettingsEndpoint, {
 						body: {
@@ -1727,7 +1532,7 @@ describe( 'modules/analytics-4 audiences', () => {
 						.enableAudienceGroup( failedAudiencesToRetry );
 
 					expect( fetchMock ).toHaveFetchedTimes(
-						2,
+						1,
 						syncAvailableAudiencesEndpoint
 					);
 
@@ -1791,11 +1596,6 @@ describe( 'modules/analytics-4 audiences', () => {
 						},
 					};
 
-					fetchMock.postOnce( syncAvailableAudiencesEndpoint, {
-						body: [],
-						status: 200,
-					} );
-
 					// Mocking createAudience API call with insufficient permissions error.
 					fetchMock.post(
 						{ url: createAudienceEndpoint, repeat: 2 },
@@ -1822,6 +1622,94 @@ describe( 'modules/analytics-4 audiences', () => {
 					expect( console ).toHaveErrored();
 					expect( console ).toHaveErrored();
 				} );
+
+				it( 'should return and dispatch an error if syncing available audiences request fails', async () => {
+					const createdNewVisitorsAudienceName =
+						'properties/12345/audiences/888';
+					const createdReturningVisitorsAudienceName =
+						'properties/12345/audiences/999';
+
+					registry
+						.dispatch( MODULES_ANALYTICS_4 )
+						.setAvailableAudiences( availableUserAudiences );
+
+					fetchMock.post( syncAvailableAudiencesEndpoint, {
+						body: errorResponse,
+						status: 500,
+					} );
+
+					const expectedConfiguredAudiences = [
+						createdNewVisitorsAudienceName,
+						createdReturningVisitorsAudienceName,
+					];
+
+					fetchMock.postOnce( audienceSettingsEndpoint, {
+						body: {
+							configuredAudiences: expectedConfiguredAudiences,
+							isAudienceSegmentationWidgetHidden,
+						},
+						status: 200,
+					} );
+
+					fetchMock.post(
+						{ url: createAudienceEndpoint, repeat: 2 },
+						( url, opts ) => {
+							return {
+								body: opts.body.includes( 'new_visitors' )
+									? {
+											...SITE_KIT_AUDIENCE_DEFINITIONS[
+												'new-visitors'
+											],
+											name: createdNewVisitorsAudienceName,
+									  }
+									: {
+											...SITE_KIT_AUDIENCE_DEFINITIONS[
+												'returning-visitors'
+											],
+											name: createdReturningVisitorsAudienceName,
+									  },
+								status: 200,
+							};
+						}
+					);
+
+					muteFetch( expirableItemEndpoint );
+
+					const options = registry
+						.select( MODULES_ANALYTICS_4 )
+						.getAudiencesUserCountReportOptions(
+							availableUserAudiences,
+							{ startDate, endDate: referenceDate }
+						);
+
+					registry.dispatch( MODULES_ANALYTICS_4 ).receiveGetReport(
+						createAudiencesTotalUsersMockReport( {
+							[ availableUserAudiences[ 0 ].name ]: 0,
+							[ availableUserAudiences[ 1 ].name ]: 0,
+							[ availableUserAudiences[ 2 ].name ]: 0,
+						} ),
+						{ options }
+					);
+
+					registry
+						.dispatch( MODULES_ANALYTICS_4 )
+						.finishResolution( 'getReport', [ options ] );
+
+					const { response, error } = await registry
+						.dispatch( MODULES_ANALYTICS_4 )
+						.enableAudienceGroup();
+
+					expect( response ).toBeUndefined();
+					expect( error ).toEqual( errorResponse );
+
+					expect(
+						registry
+							.select( MODULES_ANALYTICS_4 )
+							.getErrorForAction( 'syncAvailableAudiences' )
+					).toEqual( errorResponse );
+
+					expect( console ).toHaveErrored();
+				} );
 			} );
 		} );
 
diff --git a/assets/js/modules/analytics-4/hooks/useEnableAudienceGroup.js b/assets/js/modules/analytics-4/hooks/useEnableAudienceGroup.js
index 2d83c40ad6c..800353478ec 100644
--- a/assets/js/modules/analytics-4/hooks/useEnableAudienceGroup.js
+++ b/assets/js/modules/analytics-4/hooks/useEnableAudienceGroup.js
@@ -64,7 +64,12 @@ export default function useEnableAudienceGroup( {
 
 	const { setValues } = useDispatch( CORE_FORMS );
 	const { setPermissionScopeError } = useDispatch( CORE_USER );
-	const { enableAudienceGroup } = useDispatch( MODULES_ANALYTICS_4 );
+	const {
+		enableAudienceGroup,
+		fetchSyncAvailableCustomDimensions,
+		determineNeedForAnalytics4EditScope,
+		syncAvailableAudiences,
+	} = useDispatch( MODULES_ANALYTICS_4 );
 
 	if ( ! redirectURL ) {
 		redirectURL = addQueryArgs( global.location.href, {
@@ -72,13 +77,56 @@ export default function useEnableAudienceGroup( {
 		} );
 	}
 
+	const maybeEnableAudienceGroup = useCallback( async () => {
+		const { error: syncAudiencesError } = await syncAvailableAudiences();
+
+		if ( syncAudiencesError ) {
+			return { error: syncAudiencesError };
+		}
+
+		const { error: syncDimensionsError } =
+			await fetchSyncAvailableCustomDimensions();
+
+		if ( syncDimensionsError ) {
+			return { error: syncDimensionsError };
+		}
+
+		if ( ! hasAnalytics4EditScope ) {
+			const { error, needsScope } =
+				await determineNeedForAnalytics4EditScope();
+
+			if ( error ) {
+				return { error };
+			} else if ( needsScope ) {
+				return { needsScope: true };
+			}
+		}
+
+		setValues( AUDIENCE_SEGMENTATION_SETUP_FORM, {
+			autoSubmit: false,
+		} );
+
+		const { error, failedSiteKitAudienceSlugs } =
+			( await enableAudienceGroup( failedAudiences ) ) || {};
+
+		return { error, failedSiteKitAudienceSlugs };
+	}, [
+		enableAudienceGroup,
+		failedAudiences,
+		fetchSyncAvailableCustomDimensions,
+		hasAnalytics4EditScope,
+		determineNeedForAnalytics4EditScope,
+		setValues,
+		syncAvailableAudiences,
+	] );
+
 	const onEnableGroups = useCallback( async () => {
 		setIsSaving( true );
 
-		// If scope is not granted, trigger scope error right away. These are
-		// typically handled automatically based on API responses, but
-		// this particular case has some special handling to improve UX.
-		if ( ! hasAnalytics4EditScope ) {
+		const { error, needsScope, failedSiteKitAudienceSlugs } =
+			await maybeEnableAudienceGroup();
+
+		if ( needsScope ) {
 			setValues( AUDIENCE_SEGMENTATION_SETUP_FORM, {
 				autoSubmit: true,
 			} );
@@ -99,14 +147,12 @@ export default function useEnableAudienceGroup( {
 				},
 			} );
 
+			// Note that we don't set isSaving to false here, this is to ensure that, when the page begins to navigate to the OAuth flow:
+			// - The in-progress state for the Audience Segmentation Setup CTA is retained.
+			// - The OAuth error modal doesn't disappear when it's shown and the user clicks the "Retry" button.
 			return;
 		}
 
-		setValues( AUDIENCE_SEGMENTATION_SETUP_FORM, { autoSubmit: false } );
-
-		const { error, failedSiteKitAudienceSlugs } =
-			( await enableAudienceGroup( failedAudiences ) ) || {};
-
 		if ( !! error || !! failedSiteKitAudienceSlugs ) {
 			onError?.();
 		} else {
@@ -114,25 +160,27 @@ export default function useEnableAudienceGroup( {
 		}
 
 		if ( isMounted() ) {
+			function newArrayIfNotEmpty( currentArray ) {
+				return currentArray.length ? [] : currentArray;
+			}
+
 			if ( error ) {
 				setApiErrors( [ error ] );
-				setFailedAudiences( [] );
+				setFailedAudiences( newArrayIfNotEmpty );
 			} else if ( Array.isArray( failedSiteKitAudienceSlugs ) ) {
 				setFailedAudiences( failedSiteKitAudienceSlugs );
-				setApiErrors( [] );
+				setApiErrors( newArrayIfNotEmpty );
 			} else {
-				setApiErrors( [] );
-				setFailedAudiences( [] );
+				setApiErrors( newArrayIfNotEmpty );
+				setFailedAudiences( newArrayIfNotEmpty );
 			}
 
 			setIsSaving( false );
 		}
 	}, [
-		hasAnalytics4EditScope,
-		setValues,
-		enableAudienceGroup,
-		failedAudiences,
+		maybeEnableAudienceGroup,
 		isMounted,
+		setValues,
 		setPermissionScopeError,
 		redirectURL,
 		onError,
diff --git a/assets/js/modules/analytics-4/hooks/useEnableAudienceGroup.test.js b/assets/js/modules/analytics-4/hooks/useEnableAudienceGroup.test.js
index bda7a72e1f6..82299bad687 100644
--- a/assets/js/modules/analytics-4/hooks/useEnableAudienceGroup.test.js
+++ b/assets/js/modules/analytics-4/hooks/useEnableAudienceGroup.test.js
@@ -144,30 +144,117 @@ describe( 'useEnableAudienceGroup', () => {
 		expect( result.current.isSaving ).toBe( true );
 	} );
 
-	it( 'should set permission scope error when `onEnableGroups` is called but the user does not have the required scope', () => {
+	it.each( [
+		[
+			'audiences and custom dimension',
+			{ availableAudiences: null, availableCustomDimensions: null },
+		],
+		[
+			'audiences',
+			{
+				availableAudiences: null,
+				availableCustomDimensions: [ 'googlesitekit_post_type' ],
+			},
+		],
+		[
+			'custom dimension',
+			{
+				availableAudiences: audiencesFixture,
+				availableCustomDimensions: null,
+			},
+		],
+	] )(
+		'should set permission scope error when `onEnableGroups` is called but the user does not have the required scope and %s',
+		async ( _, settings ) => {
+			provideUserAuthentication( registry, {
+				grantedScopes: [],
+			} );
+
+			registry.dispatch( MODULES_ANALYTICS_4 ).setSettings( settings );
+
+			fetchMock.postOnce( syncAvailableAudiencesEndpoint, {
+				status: 200,
+				body: [],
+			} );
+
+			fetchMock.postOnce( syncAvailableCustomDimensionsEndpoint, {
+				body: [],
+				status: 200,
+			} );
+
+			const { result } = renderHook( () => useEnableAudienceGroup(), {
+				registry,
+			} );
+
+			const { onEnableGroups } = result.current;
+
+			await actHook( async () => {
+				await onEnableGroups();
+			} );
+
+			const { message } = registry
+				.select( CORE_USER )
+				.getPermissionScopeError();
+
+			expect( message ).toBe(
+				'Additional permissions are required to create new audiences in Analytics.'
+			);
+
+			expect( enableAudienceGroupSpy ).not.toHaveBeenCalled();
+		}
+	);
+
+	it( 'should not set permission scope error when `onEnableGroups` is called and the user does not have the required scope, but has required audiences and custom dimension', async () => {
 		provideUserAuthentication( registry, {
 			grantedScopes: [],
 		} );
 
+		registry.dispatch( MODULES_ANALYTICS_4 ).setSettings( {
+			availableAudiences: audiencesFixture,
+			availableCustomDimensions: [ 'googlesitekit_post_type' ],
+		} );
+
+		fetchMock.post( syncAvailableAudiencesEndpoint, {
+			status: 200,
+			body: audiencesFixture,
+		} );
+
+		fetchMock.post( syncAvailableCustomDimensionsEndpoint, {
+			body: [ 'googlesitekit_post_type' ],
+			status: 200,
+		} );
+
+		fetchMock.postOnce( audienceSettingsEndpoint, {
+			status: 200,
+			body: {
+				configuredAudiences: [
+					audiencesFixture[ 3 ].name,
+					audiencesFixture[ 4 ].name,
+				],
+				isAudienceSegmentationWidgetHidden: false,
+			},
+		} );
+
+		muteFetch( reportEndpoint );
+		muteFetch( expirableItemEndpoint );
+
+		mockSurveyEndpoints();
+
 		const { result } = renderHook( () => useEnableAudienceGroup(), {
 			registry,
 		} );
 
 		const { onEnableGroups } = result.current;
 
-		actHook( () => {
-			onEnableGroups();
+		await actHook( async () => {
+			await onEnableGroups();
 		} );
 
-		const { message } = registry
-			.select( CORE_USER )
-			.getPermissionScopeError();
+		expect(
+			registry.select( CORE_USER ).getPermissionScopeError()
+		).toBeNull();
 
-		expect( message ).toBe(
-			'Additional permissions are required to create new audiences in Analytics.'
-		);
-
-		expect( enableAudienceGroupSpy ).not.toHaveBeenCalled();
+		expect( enableAudienceGroupSpy ).toHaveBeenCalledTimes( 1 );
 	} );
 
 	it( 'should automatically call `onEnableGroups` function when user returns from the OAuth screen', async () => {