diff --git a/frappe/public/js/form_builder/components/FieldTypes.vue b/frappe/public/js/form_builder/components/FieldTypes.vue
index 5570064d03..e6c19a5913 100644
--- a/frappe/public/js/form_builder/components/FieldTypes.vue
+++ b/frappe/public/js/form_builder/components/FieldTypes.vue
@@ -66,6 +66,7 @@ let fields = computed(() => {
 	gap: 8px;
 	padding: 8px;
 	grid-template-columns: 1fr 1fr;
+	grid-auto-rows: max-content;
 
 	.field {
 		background-color: var(--bg-light-gray);
diff --git a/frappe/public/js/form_builder/store.js b/frappe/public/js/form_builder/store.js
index f3bcdb8b90..e397f653e8 100644
--- a/frappe/public/js/form_builder/store.js
+++ b/frappe/public/js/form_builder/store.js
@@ -131,6 +131,11 @@ export const useStore = defineStore("form-builder-store", {
 				}
 
 				tab.sections.forEach((section, j) => {
+					// data before section is added
+					let fields_copy = JSON.parse(JSON.stringify(fields));
+					let old_idx = idx;
+					section.has_fields = false;
+
 					// do not consider first section if label is not set
 					if ((j == 0 && section.df.label) || j > 0) {
 						idx++;
@@ -150,8 +155,15 @@ export const useStore = defineStore("form-builder-store", {
 							idx++;
 							field.df.idx = idx;
 							fields.push(field.df);
+							section.has_fields = true;
 						});
 					});
+
+					// restore data back to data before section is added.
+					if (!section.has_fields) {
+						fields = fields_copy || [];
+						idx = old_idx;
+					}
 				});
 			});
 
diff --git a/frappe/public/js/form_builder/utils.js b/frappe/public/js/form_builder/utils.js
index 1a60a6751e..76d898eb39 100644
--- a/frappe/public/js/form_builder/utils.js
+++ b/frappe/public/js/form_builder/utils.js
@@ -88,7 +88,8 @@ export function create_layout(fields) {
 
 	// remove empty sections
 	for (let tab of layout.tabs) {
-		for (let section of tab.sections) {
+		for (let i = tab.sections.length - 1; i >= 0; --i) {
+			let section = tab.sections[i];
 			if (!section.has_fields) {
 				tab.sections.splice(tab.sections.indexOf(section), 1);
 			}