diff --git a/projects/packages/forms/changelog/fix-forms-other-option-label-reset b/projects/packages/forms/changelog/fix-forms-other-option-label-reset
new file mode 100644
index 00000000000..7e800f017fd
--- /dev/null
+++ b/projects/packages/forms/changelog/fix-forms-other-option-label-reset
@@ -0,0 +1,4 @@
+Significance: patch
+Type: fixed
+
+Fix "Other" option toggle not updating the option label in the editor
diff --git a/projects/packages/forms/src/blocks/option/edit.js b/projects/packages/forms/src/blocks/option/edit.js
index 080b7c1489c..4341daf637d 100644
--- a/projects/packages/forms/src/blocks/option/edit.js
+++ b/projects/packages/forms/src/blocks/option/edit.js
@@ -151,7 +151,12 @@ const OptionEdit = ( {
 						<ToggleControl
 							label={ __( '"Other" option', 'jetpack-forms' ) }
 							checked={ !! isOther }
-							onChange={ value => setAttributes( { isOther: value } ) }
+							onChange={ value =>
+								setAttributes( {
+									isOther: value,
+									label: value ? '' : label,
+								} )
+							}
 							help={ __(
 								'Show as "Other" option with a text input field below it.',
 								'jetpack-forms'
@@ -169,7 +174,7 @@ const OptionEdit = ( {
 					tagName="div"
 					className="wp-block"
 					value={ labelValue }
-					placeholder={ __( 'Add option…', 'jetpack-forms' ) }
+					placeholder={ placeholderValue }
 					__unstableDisableFormats
 					onChange={ newLabel => setAttributes( { label: newLabel } ) }
 					onMerge={ mergeBlocks }