diff --git a/changes/issue-6981-keep-policy-filter-across-team-changes b/changes/issue-6981-keep-policy-filter-across-team-changes
new file mode 100644
index 0000000000..29394340d0
--- /dev/null
+++ b/changes/issue-6981-keep-policy-filter-across-team-changes
@@ -0,0 +1 @@
+- keep policy filter on Manage Hosts Page changes across a team changes
diff --git a/frontend/components/TeamsDropdown/TeamsDropdown.tests.tsx b/frontend/components/TeamsDropdown/TeamsDropdown.tests.tsx
new file mode 100644
index 0000000000..93f427bf90
--- /dev/null
+++ b/frontend/components/TeamsDropdown/TeamsDropdown.tests.tsx
@@ -0,0 +1,82 @@
+import React from "react";
+import { render, screen } from "@testing-library/react";
+import { noop } from "lodash";
+import { renderWithAppContext } from "test/test-utils";
+
+import TeamsDropdown from "./TeamsDropdown";
+
+describe("TeamsDropdown - component", () => {
+  const USER_TEAMS = [
+    { id: 1, name: "Team 1" },
+    { id: 2, name: "Team 2" },
+  ];
+
+  it("renders the given selected team from selectedTeamId", () => {
+    render(
+      <TeamsDropdown
+        currentUserTeams={USER_TEAMS}
+        selectedTeamId={1}
+        onChange={noop}
+      />
+    );
+
+    const selectedTeam = screen.getByText("Team 1");
+    expect(selectedTeam).toBeInTheDocument();
+  });
+
+  it("renders the first team option when includeAll is false and when no selectedTeamId is given", () => {
+    render(
+      <TeamsDropdown
+        currentUserTeams={USER_TEAMS}
+        includeAll={false}
+        onChange={noop}
+      />
+    );
+
+    const selectedTeam = screen.getByText("Team 1");
+    expect(selectedTeam).toBeInTheDocument();
+  });
+
+  describe("user is on the global team", () => {
+    const contextValue = {
+      isOnGlobalTeam: true,
+    };
+
+    it("renders 'All teams' when no selectedTeamId is given", () => {
+      renderWithAppContext(
+        <TeamsDropdown currentUserTeams={USER_TEAMS} onChange={noop} />,
+        { contextValue }
+      );
+
+      const selectedTeam = screen.getByText("All teams");
+      expect(selectedTeam).toBeInTheDocument();
+    });
+
+    it("renders the first team option when includeAll is false and when no selectedTeamId is given", () => {
+      renderWithAppContext(
+        <TeamsDropdown
+          currentUserTeams={USER_TEAMS}
+          includeAll={false}
+          onChange={noop}
+        />,
+        { contextValue }
+      );
+
+      const selectedTeam = screen.getByText("Team 1");
+      expect(selectedTeam).toBeInTheDocument();
+    });
+  });
+
+  describe("user is not on the global team", () => {
+    const contextValue = { isOnGlobalTeam: false };
+
+    it("renders the first team when no selectedTeamId is given", () => {
+      renderWithAppContext(
+        <TeamsDropdown currentUserTeams={USER_TEAMS} onChange={noop} />,
+        { contextValue }
+      );
+
+      expect(screen.getByText("Team 1")).toBeInTheDocument();
+    });
+  });
+});
diff --git a/frontend/components/TeamsDropdown/TeamsDropdown.tsx b/frontend/components/TeamsDropdown/TeamsDropdown.tsx
index a58f7b00d4..30b0f0c883 100644
--- a/frontend/components/TeamsDropdown/TeamsDropdown.tsx
+++ b/frontend/components/TeamsDropdown/TeamsDropdown.tsx
@@ -1,14 +1,14 @@
 import React, { useContext, useMemo } from "react";
 import classnames from "classnames";
-import { AppContext } from "context/app";
 import { ITeamSummary } from "interfaces/team";
 
 // @ts-ignore
 import Dropdown from "components/forms/fields/Dropdown";
+import { AppContext } from "context/app";
 
 const generateDropdownOptions = (
   teams: ITeamSummary[] | undefined,
-  includeAll: boolean | undefined
+  includeAll: boolean
 ) => {
   if (!teams) {
     return [];
@@ -30,12 +30,10 @@ const generateDropdownOptions = (
 
   return options;
 };
-
 interface ITeamsDropdownProps {
   currentUserTeams: ITeamSummary[];
-  selectedTeamId: number;
-  includeAll?: boolean; // Include "All Teams" option for all users
-  disableAll?: boolean; // Disable "All Teams" option for global users
+  selectedTeamId?: number;
+  includeAll?: boolean; // Include the "All Teams" option;
   isDisabled?: boolean;
   onChange: (newSelectedValue: number) => void;
   onOpen?: () => void;
@@ -47,22 +45,18 @@ const baseClass = "component__team-dropdown";
 const TeamsDropdown = ({
   currentUserTeams,
   selectedTeamId,
-  includeAll = false,
-  disableAll = false,
+  includeAll = true,
   isDisabled,
   onChange,
   onOpen,
   onClose,
 }: ITeamsDropdownProps): JSX.Element => {
-  const { isOnGlobalTeam } = useContext(AppContext);
+  const { isOnGlobalTeam = false } = useContext(AppContext);
 
   const teamOptions = useMemo(
     () =>
-      generateDropdownOptions(
-        currentUserTeams,
-        (isOnGlobalTeam && !disableAll) || includeAll
-      ),
-    [currentUserTeams, isOnGlobalTeam]
+      generateDropdownOptions(currentUserTeams, includeAll && isOnGlobalTeam),
+    [currentUserTeams, includeAll, isOnGlobalTeam]
   );
 
   const selectedValue = teamOptions.find(
diff --git a/frontend/components/forms/fields/AutoSizeInputField/AutoSizeInputField.tsx b/frontend/components/forms/fields/AutoSizeInputField/AutoSizeInputField.tsx
index a63ae03b16..1ef1d34caa 100644
--- a/frontend/components/forms/fields/AutoSizeInputField/AutoSizeInputField.tsx
+++ b/frontend/components/forms/fields/AutoSizeInputField/AutoSizeInputField.tsx
@@ -24,7 +24,7 @@ interface IAutoSizeInputFieldProps {
 
 const baseClass = "component__auto-size-input-field";
 
-const TeamsDropdown = ({
+const AutoSizeInputField = ({
   name,
   placeholder,
   value,
@@ -102,4 +102,4 @@ const TeamsDropdown = ({
   );
 };
 
-export default TeamsDropdown;
+export default AutoSizeInputField;
diff --git a/frontend/context/app.tsx b/frontend/context/app.tsx
index b693479ec7..c397e67809 100644
--- a/frontend/context/app.tsx
+++ b/frontend/context/app.tsx
@@ -57,32 +57,32 @@ type Props = {
 };
 
 type InitialStateType = {
-  availableTeams: ITeamSummary[] | undefined;
+  availableTeams?: ITeamSummary[];
   config: IConfig | null;
   currentUser: IUser | null;
-  currentTeam: ITeamSummary | undefined;
+  currentTeam?: ITeamSummary;
   enrollSecret: IEnrollSecret[] | null;
-  isPreviewMode: boolean | undefined;
-  isSandboxMode: boolean | undefined;
-  isFreeTier: boolean | undefined;
-  isPremiumTier: boolean | undefined;
-  isGlobalAdmin: boolean | undefined;
-  isGlobalMaintainer: boolean | undefined;
-  isGlobalObserver: boolean | undefined;
-  isOnGlobalTeam: boolean | undefined;
-  isAnyTeamMaintainer: boolean | undefined;
-  isAnyTeamMaintainerOrTeamAdmin: boolean | undefined;
-  isTeamObserver: boolean | undefined;
-  isTeamMaintainer: boolean | undefined;
-  isTeamMaintainerOrTeamAdmin: boolean | undefined;
-  isAnyTeamAdmin: boolean | undefined;
-  isTeamAdmin: boolean | undefined;
-  isOnlyObserver: boolean | undefined;
-  isNoAccess: boolean | undefined;
+  isPreviewMode?: boolean;
+  isSandboxMode?: boolean;
+  isFreeTier?: boolean;
+  isPremiumTier?: boolean;
+  isGlobalAdmin?: boolean;
+  isGlobalMaintainer?: boolean;
+  isGlobalObserver?: boolean;
+  isOnGlobalTeam?: boolean;
+  isAnyTeamMaintainer?: boolean;
+  isAnyTeamMaintainerOrTeamAdmin?: boolean;
+  isTeamObserver?: boolean;
+  isTeamMaintainer?: boolean;
+  isTeamMaintainerOrTeamAdmin?: boolean;
+  isAnyTeamAdmin?: boolean;
+  isTeamAdmin?: boolean;
+  isOnlyObserver?: boolean;
+  isNoAccess?: boolean;
   sandboxExpiry?: string;
   setAvailableTeams: (availableTeams: ITeamSummary[]) => void;
   setCurrentUser: (user: IUser) => void;
-  setCurrentTeam: (team: ITeamSummary | undefined) => void;
+  setCurrentTeam: (team?: ITeamSummary) => void;
   setConfig: (config: IConfig) => void;
   setEnrollSecret: (enrollSecret: IEnrollSecret[]) => void;
   setSandboxExpiry: (sandboxExpiry: string) => void;
@@ -90,7 +90,7 @@ type InitialStateType = {
 
 export type IAppContext = InitialStateType;
 
-const initialState = {
+export const initialState = {
   availableTeams: undefined,
   config: null,
   currentUser: null,
diff --git a/frontend/pages/admin/TeamManagementPage/TeamDetailsWrapper/TeamDetailsWrapper.tsx b/frontend/pages/admin/TeamManagementPage/TeamDetailsWrapper/TeamDetailsWrapper.tsx
index 9206e50dc2..1c54fa78cb 100644
--- a/frontend/pages/admin/TeamManagementPage/TeamDetailsWrapper/TeamDetailsWrapper.tsx
+++ b/frontend/pages/admin/TeamManagementPage/TeamDetailsWrapper/TeamDetailsWrapper.tsx
@@ -414,7 +414,7 @@ const TeamDetailsWrapper = ({
                   selectedTeamId={toNumber(routeParams.team_id)}
                   currentUserTeams={adminTeams || []}
                   isDisabled={isLoadingTeams}
-                  disableAll
+                  includeAll={false}
                   onChange={(newSelectedValue: number) =>
                     handleTeamSelect(newSelectedValue)
                   }
diff --git a/frontend/pages/hosts/ManageHostsPage/ManageHostsPage.tsx b/frontend/pages/hosts/ManageHostsPage/ManageHostsPage.tsx
index ef3d1f8661..8a6b478695 100644
--- a/frontend/pages/hosts/ManageHostsPage/ManageHostsPage.tsx
+++ b/frontend/pages/hosts/ManageHostsPage/ManageHostsPage.tsx
@@ -338,13 +338,7 @@ const ManageHostsPage = ({
 
   useQuery<IPolicyAPIResponse, Error>(
     ["policy"],
-    () => {
-      const teamId = parseInt(queryParams?.team_id, 10) || 0;
-      const request = teamId
-        ? teamPoliciesAPI.load(teamId, policyId)
-        : globalPoliciesAPI.load(policyId);
-      return request;
-    },
+    () => globalPoliciesAPI.load(policyId),
     {
       enabled: !!policyId,
       onSuccess: ({ policy: policyAPIResponse }) => {
@@ -408,10 +402,6 @@ const ManageHostsPage = ({
     }
   };
 
-  const getLabelSelected = () => {
-    return selectedFilters.find((f) => f.includes(LABEL_SLUG_PREFIX));
-  };
-
   const getStatusSelected = () => {
     return selectedFilters.find((f) => !f.includes(LABEL_SLUG_PREFIX));
   };
@@ -714,22 +704,19 @@ const ManageHostsPage = ({
 
   const handleTeamSelect = (teamId: number) => {
     const { MANAGE_HOSTS } = PATHS;
+
     const teamIdParam = getValidatedTeamId(
       availableTeams || [],
       teamId,
       currentUser,
-      isOnGlobalTeam as boolean
+      isOnGlobalTeam ?? false
     );
 
-    const slimmerParams = omit(queryParams, [
-      "policy_id",
-      "policy_response",
-      "team_id",
-    ]);
+    const slimmerParams = omit(queryParams, ["team_id"]);
 
     const newQueryParams = !teamIdParam
       ? slimmerParams
-      : Object.assign({}, slimmerParams, { team_id: teamIdParam });
+      : Object.assign(slimmerParams, { team_id: teamIdParam });
 
     const nextLocation = getNextLocationPath({
       pathPrefix: MANAGE_HOSTS,
@@ -1168,9 +1155,7 @@ const ManageHostsPage = ({
   const renderTeamsFilterDropdown = () => (
     <TeamsDropdown
       currentUserTeams={availableTeams || []}
-      selectedTeamId={
-        (policyId && policy?.team_id) || (currentTeam?.id as number)
-      }
+      selectedTeamId={currentTeam?.id}
       isDisabled={isHostsLoading || isHostCountLoading}
       onChange={(newSelectedValue: number) =>
         handleTeamSelect(newSelectedValue)
@@ -1257,7 +1242,7 @@ const ManageHostsPage = ({
       />
       <FilterPill
         icon={PolicyIcon}
-        label={policy?.name ?? ""}
+        label={policy?.name ?? "..."}
         onClear={handleClearPoliciesFilter}
         className={`${baseClass}__policies-filter-pill`}
       />
diff --git a/frontend/test/test-utils.tsx b/frontend/test/test-utils.tsx
new file mode 100644
index 0000000000..a26af30994
--- /dev/null
+++ b/frontend/test/test-utils.tsx
@@ -0,0 +1,23 @@
+import React from "react";
+import { render, RenderOptions } from "@testing-library/react";
+
+import { AppContext, IAppContext, initialState } from "context/app";
+
+type RenderOptionsWithProviderProps = RenderOptions & {
+  contextValue: Partial<IAppContext>;
+};
+
+/**
+ * A custom render method that provides a configurable App context when testing components
+ */
+// eslint-disable-next-line import/prefer-default-export
+export const renderWithAppContext = (
+  component: React.ReactNode,
+  { contextValue, ...renderOptions }: RenderOptionsWithProviderProps
+) => {
+  const value: IAppContext = { ...initialState, ...contextValue };
+  return render(
+    <AppContext.Provider value={value}>{component}</AppContext.Provider>,
+    renderOptions
+  );
+};