diff --git a/packages/hoppscotch-common/src/components/environments/index.vue b/packages/hoppscotch-common/src/components/environments/index.vue
index cc239d7d6..a0c9cd5c6 100644
--- a/packages/hoppscotch-common/src/components/environments/index.vue
+++ b/packages/hoppscotch-common/src/components/environments/index.vue
@@ -139,16 +139,27 @@ const workspace = workspaceService.currentWorkspace
 // Switch to my environments if workspace is personal and to team environments if workspace is team
 // also resets selected environment if workspace is personal and the previous selected environment was a team environment
 watch(workspace, (newWorkspace) => {
-  if (newWorkspace.type === "personal") {
+  const { type: newWorkspaceType } = newWorkspace
+
+  if (newWorkspaceType === "personal") {
     switchToMyEnvironments()
-    if (selectedEnvironmentIndex.value.type !== "MY_ENV") {
-      setSelectedEnvironmentIndex({
-        type: "NO_ENV_SELECTED",
-      })
-    }
-  } else if (newWorkspace.type === "team") {
+  } else {
     updateSelectedTeam(newWorkspace)
   }
+
+  const newTeamID =
+    newWorkspaceType === "team" ? newWorkspace.teamID : undefined
+
+  // Set active environment to the `No environment` state
+  // if navigating away from a team workspace
+  if (
+    selectedEnvironmentIndex.value.type === "TEAM_ENV" &&
+    selectedEnvironmentIndex.value.teamID !== newTeamID
+  ) {
+    setSelectedEnvironmentIndex({
+      type: "NO_ENV_SELECTED",
+    })
+  }
 })
 
 watch(
diff --git a/packages/hoppscotch-common/src/services/secret-environment.service.ts b/packages/hoppscotch-common/src/services/secret-environment.service.ts
index 4411df685..1f68d00c4 100644
--- a/packages/hoppscotch-common/src/services/secret-environment.service.ts
+++ b/packages/hoppscotch-common/src/services/secret-environment.service.ts
@@ -1,6 +1,5 @@
 import { Service } from "dioc"
-import { reactive } from "vue"
-import { computed } from "vue"
+import { reactive, computed } from "vue"
 
 /**
  * Defines a secret environment variable.