diff --git a/packages/js/product-editor/changelog/fix-38623 b/packages/js/product-editor/changelog/fix-38623
new file mode 100644
index 00000000000..7f2a88a4405
--- /dev/null
+++ b/packages/js/product-editor/changelog/fix-38623
@@ -0,0 +1,4 @@
+Significance: minor
+Type: fix
+
+Fix empty state for currency inputs in product editor
diff --git a/packages/js/product-editor/src/hooks/use-currency-input-props.ts b/packages/js/product-editor/src/hooks/use-currency-input-props.ts
index f92e141bae7..b4aabcd0d09 100644
--- a/packages/js/product-editor/src/hooks/use-currency-input-props.ts
+++ b/packages/js/product-editor/src/hooks/use-currency-input-props.ts
@@ -81,7 +81,7 @@ export const useCurrencyInputProps = ( {
 			}
 		},
 		onChange( newValue: string ) {
-			const sanitizeValue = sanitizePrice( newValue || '0' );
+			const sanitizeValue = sanitizePrice( newValue );
 			if ( onChange ) {
 				onChange( sanitizeValue );
 			}
diff --git a/packages/js/product-editor/src/hooks/use-product-helper.ts b/packages/js/product-editor/src/hooks/use-product-helper.ts
index b55178bd511..fc8da5d5a02 100644
--- a/packages/js/product-editor/src/hooks/use-product-helper.ts
+++ b/packages/js/product-editor/src/hooks/use-product-helper.ts
@@ -312,6 +312,10 @@ export function useProductHelper() {
 	 */
 	const sanitizePrice = useCallback(
 		( price: string ) => {
+			if ( ! price.length ) {
+				return '';
+			}
+
 			const { getCurrencyConfig } = context;
 			const { decimalSeparator } = getCurrencyConfig();
 			// Build regex to strip out everything except digits, decimal point and minus sign.