diff --git a/plugins/woocommerce-admin/changelogs/fix-7321_free_extensions_list b/plugins/woocommerce-admin/changelogs/fix-7321_free_extensions_list
new file mode 100644
index 00000000000..5742541df87
--- /dev/null
+++ b/plugins/woocommerce-admin/changelogs/fix-7321_free_extensions_list
@@ -0,0 +1,4 @@
+Significance: patch
+Type: Fix
+
+Fix Onboarding flow where extensions might not be selected and installed. #7979
\ No newline at end of file
diff --git a/plugins/woocommerce-admin/client/profile-wizard/steps/business-details/flows/selective-bundle/selective-extensions-bundle/index.js b/plugins/woocommerce-admin/client/profile-wizard/steps/business-details/flows/selective-bundle/selective-extensions-bundle/index.js
index f66993c7e17..ce1247d64c2 100644
--- a/plugins/woocommerce-admin/client/profile-wizard/steps/business-details/flows/selective-bundle/selective-extensions-bundle/index.js
+++ b/plugins/woocommerce-admin/client/profile-wizard/steps/business-details/flows/selective-bundle/selective-extensions-bundle/index.js
@@ -284,6 +284,10 @@ export const SelectiveExtensionsBundle = ( {
 						</p>
 						<Button
 							className="woocommerce-admin__business-details__selective-extensions-bundle__expand"
+							disabled={
+								! installableExtensions ||
+								installableExtensions.length === 0
+							}
 							onClick={ () => {
 								setShowExtensions( ! showExtensions );
 
@@ -340,8 +344,8 @@ export const SelectiveExtensionsBundle = ( {
 						onClick={ () => {
 							onSubmit( values );
 						} }
-						isBusy={ isInstallingActivating }
-						disabled={ isInstallingActivating }
+						isBusy={ isInstallingActivating || isResolving }
+						disabled={ isInstallingActivating || isResolving }
 						isPrimary
 					>
 						{ __( 'Continue', 'woocommerce-admin' ) }
diff --git a/plugins/woocommerce-admin/packages/admin-e2e-tests/src/sections/onboarding/BusinessSection.ts b/plugins/woocommerce-admin/packages/admin-e2e-tests/src/sections/onboarding/BusinessSection.ts
index 4979b58a882..1b3db07d2e3 100644
--- a/plugins/woocommerce-admin/packages/admin-e2e-tests/src/sections/onboarding/BusinessSection.ts
+++ b/plugins/woocommerce-admin/packages/admin-e2e-tests/src/sections/onboarding/BusinessSection.ts
@@ -50,6 +50,9 @@ export class BusinessSection extends BasePage {
 		const expandButtonSelector =
 			'.woocommerce-admin__business-details__selective-extensions-bundle__expand';
 
+		await this.page.waitForSelector(
+			expandButtonSelector + ':not([disabled])'
+		);
 		await this.click( expandButtonSelector );
 
 		// Confirm that expanding the list shows all the extensions available to install.