diff --git a/ee/app/assets/javascripts/analytics/cycle_analytics/store/actions.js b/ee/app/assets/javascripts/analytics/cycle_analytics/store/actions.js
index d266c94306c4972d78ca45c31433fafc4bf347ed..779ee3c2783648eba080ed24a0036d286574baea 100644
--- a/ee/app/assets/javascripts/analytics/cycle_analytics/store/actions.js
+++ b/ee/app/assets/javascripts/analytics/cycle_analytics/store/actions.js
@@ -336,8 +336,8 @@ export const reorderStage = ({ dispatch, getters }, initialData) => {
     );
 };
 
-export const receiveCreateValueStreamSuccess = ({ commit, dispatch }) => {
-  commit(types.RECEIVE_CREATE_VALUE_STREAM_SUCCESS);
+export const receiveCreateValueStreamSuccess = ({ commit, dispatch }, valueStream = {}) => {
+  commit(types.RECEIVE_CREATE_VALUE_STREAM_SUCCESS, valueStream);
   return dispatch('fetchCycleAnalyticsData');
 };
 
@@ -346,7 +346,7 @@ export const createValueStream = ({ commit, dispatch, getters }, data) => {
   commit(types.REQUEST_CREATE_VALUE_STREAM);
 
   return Api.cycleAnalyticsCreateValueStream(currentGroupPath, data)
-    .then(() => dispatch('receiveCreateValueStreamSuccess'))
+    .then(({ data: newValueStream }) => dispatch('receiveCreateValueStreamSuccess', newValueStream))
     .catch(({ response } = {}) => {
       const { data: { message, payload: { errors } } = null } = response;
       commit(types.RECEIVE_CREATE_VALUE_STREAM_ERROR, { message, errors });
@@ -372,8 +372,8 @@ export const fetchValueStreamData = ({ dispatch }) =>
     .then(() => dispatch('fetchStageMedianValues'))
     .then(() => dispatch('durationChart/fetchDurationData'));
 
-export const setSelectedValueStream = ({ commit, dispatch }, streamId) => {
-  commit(types.SET_SELECTED_VALUE_STREAM, streamId);
+export const setSelectedValueStream = ({ commit, dispatch }, valueStream) => {
+  commit(types.SET_SELECTED_VALUE_STREAM, valueStream);
   return dispatch(FETCH_VALUE_STREAM_DATA);
 };
 
diff --git a/ee/app/assets/javascripts/analytics/cycle_analytics/store/mutations.js b/ee/app/assets/javascripts/analytics/cycle_analytics/store/mutations.js
index eeda334096f427732d917f6f88044c73a693d4e3..226c37656da32d8ed4f6e3a80174d18156221360 100644
--- a/ee/app/assets/javascripts/analytics/cycle_analytics/store/mutations.js
+++ b/ee/app/assets/javascripts/analytics/cycle_analytics/store/mutations.js
@@ -124,9 +124,10 @@ export default {
     state.isCreatingValueStream = false;
     state.createValueStreamErrors = errors;
   },
-  [types.RECEIVE_CREATE_VALUE_STREAM_SUCCESS](state) {
+  [types.RECEIVE_CREATE_VALUE_STREAM_SUCCESS](state, valueStream) {
     state.isCreatingValueStream = false;
     state.createValueStreamErrors = {};
+    state.selectedValueStream = convertObjectPropsToCamelCase(valueStream);
   },
   [types.REQUEST_DELETE_VALUE_STREAM](state) {
     state.isDeletingValueStream = true;
@@ -139,9 +140,10 @@ export default {
   [types.RECEIVE_DELETE_VALUE_STREAM_SUCCESS](state) {
     state.isDeletingValueStream = false;
     state.deleteValueStreamError = null;
+    state.selectedValueStream = null;
   },
   [types.SET_SELECTED_VALUE_STREAM](state, valueStream) {
-    state.selectedValueStream = valueStream;
+    state.selectedValueStream = convertObjectPropsToCamelCase(valueStream);
   },
   [types.REQUEST_VALUE_STREAMS](state) {
     state.isLoadingValueStreams = true;
diff --git a/ee/changelogs/unreleased/263392-update-selected-value-stream-after-deletion.yml b/ee/changelogs/unreleased/263392-update-selected-value-stream-after-deletion.yml
new file mode 100644
index 0000000000000000000000000000000000000000..c9c468ae031b033766874b1f080bddf60f1b95f9
--- /dev/null
+++ b/ee/changelogs/unreleased/263392-update-selected-value-stream-after-deletion.yml
@@ -0,0 +1,5 @@
+---
+title: Set selected value stream after create and delete
+merge_request: 46100
+author:
+type: fixed
diff --git a/ee/spec/frontend/analytics/cycle_analytics/store/actions_spec.js b/ee/spec/frontend/analytics/cycle_analytics/store/actions_spec.js
index 71958ed905fccab399d5930cf892a94750c0cd6e..02540550b1f1c4c2bdfb855c42e71b32c73f2af9 100644
--- a/ee/spec/frontend/analytics/cycle_analytics/store/actions_spec.js
+++ b/ee/spec/frontend/analytics/cycle_analytics/store/actions_spec.js
@@ -884,6 +884,7 @@ describe('Cycle analytics actions', () => {
 
   describe('createValueStream', () => {
     const payload = { name: 'cool value stream' };
+    const createResp = { id: 'new value stream', is_custom: true, ...payload };
 
     beforeEach(() => {
       state = { currentGroup };
@@ -891,7 +892,7 @@ describe('Cycle analytics actions', () => {
 
     describe('with no errors', () => {
       beforeEach(() => {
-        mock.onPost(endpoints.valueStreamData).replyOnce(httpStatusCodes.OK, {});
+        mock.onPost(endpoints.valueStreamData).replyOnce(httpStatusCodes.OK, createResp);
       });
 
       it(`commits the ${types.REQUEST_CREATE_VALUE_STREAM} and ${types.RECEIVE_CREATE_VALUE_STREAM_SUCCESS} actions`, () => {
@@ -904,7 +905,7 @@ describe('Cycle analytics actions', () => {
               type: types.REQUEST_CREATE_VALUE_STREAM,
             },
           ],
-          [{ type: 'receiveCreateValueStreamSuccess' }],
+          [{ type: 'receiveCreateValueStreamSuccess', payload: createResp }],
         );
       });
     });
diff --git a/ee/spec/frontend/analytics/cycle_analytics/store/mutations_spec.js b/ee/spec/frontend/analytics/cycle_analytics/store/mutations_spec.js
index 38aa6943a3308a84e0ac9a39b93137d150b857fa..9fe0d89d4845562e97e9d33e7b1e723950bf1cfe 100644
--- a/ee/spec/frontend/analytics/cycle_analytics/store/mutations_spec.js
+++ b/ee/spec/frontend/analytics/cycle_analytics/store/mutations_spec.js
@@ -52,6 +52,7 @@ describe('Cycle analytics mutations', () => {
     ${types.RECEIVE_DELETE_VALUE_STREAM_SUCCESS} | ${'isDeletingValueStream'}   | ${false}
     ${types.REQUEST_DELETE_VALUE_STREAM}         | ${'deleteValueStreamError'}  | ${null}
     ${types.RECEIVE_DELETE_VALUE_STREAM_SUCCESS} | ${'deleteValueStreamError'}  | ${null}
+    ${types.RECEIVE_DELETE_VALUE_STREAM_SUCCESS} | ${'selectedValueStream'}     | ${null}
     ${types.INITIALIZE_CYCLE_ANALYTICS_SUCCESS}  | ${'isLoading'}               | ${false}
   `('$mutation will set $stateKey=$value', ({ mutation, stateKey, value }) => {
     mutations[mutation](state);
@@ -60,15 +61,16 @@ describe('Cycle analytics mutations', () => {
   });
 
   it.each`
-    mutation                                   | payload                                  | expectedState
-    ${types.SET_FEATURE_FLAGS}                 | ${{ hasDurationChart: true }}            | ${{ featureFlags: { hasDurationChart: true } }}
-    ${types.SET_SELECTED_PROJECTS}             | ${selectedProjects}                      | ${{ selectedProjects }}
-    ${types.SET_DATE_RANGE}                    | ${{ startDate, endDate }}                | ${{ startDate, endDate }}
-    ${types.SET_SELECTED_STAGE}                | ${{ id: 'first-stage' }}                 | ${{ selectedStage: { id: 'first-stage' } }}
-    ${types.RECEIVE_CREATE_VALUE_STREAM_ERROR} | ${{ errors: { name: ['is required'] } }} | ${{ createValueStreamErrors: { name: ['is required'] }, isCreatingValueStream: false }}
-    ${types.RECEIVE_DELETE_VALUE_STREAM_ERROR} | ${'Some error occurred'}                 | ${{ deleteValueStreamError: 'Some error occurred' }}
-    ${types.RECEIVE_VALUE_STREAMS_SUCCESS}     | ${valueStreams}                          | ${{ valueStreams, isLoadingValueStreams: false }}
-    ${types.SET_SELECTED_VALUE_STREAM}         | ${valueStreams[1].id}                    | ${{ selectedValueStream: {} }}
+    mutation                                     | payload                                  | expectedState
+    ${types.SET_FEATURE_FLAGS}                   | ${{ hasDurationChart: true }}            | ${{ featureFlags: { hasDurationChart: true } }}
+    ${types.SET_SELECTED_PROJECTS}               | ${selectedProjects}                      | ${{ selectedProjects }}
+    ${types.SET_DATE_RANGE}                      | ${{ startDate, endDate }}                | ${{ startDate, endDate }}
+    ${types.SET_SELECTED_STAGE}                  | ${{ id: 'first-stage' }}                 | ${{ selectedStage: { id: 'first-stage' } }}
+    ${types.RECEIVE_CREATE_VALUE_STREAM_ERROR}   | ${{ errors: { name: ['is required'] } }} | ${{ createValueStreamErrors: { name: ['is required'] }, isCreatingValueStream: false }}
+    ${types.RECEIVE_DELETE_VALUE_STREAM_ERROR}   | ${'Some error occurred'}                 | ${{ deleteValueStreamError: 'Some error occurred' }}
+    ${types.RECEIVE_VALUE_STREAMS_SUCCESS}       | ${valueStreams}                          | ${{ valueStreams, isLoadingValueStreams: false }}
+    ${types.SET_SELECTED_VALUE_STREAM}           | ${valueStreams[1].id}                    | ${{ selectedValueStream: {} }}
+    ${types.RECEIVE_CREATE_VALUE_STREAM_SUCCESS} | ${valueStreams[1]}                       | ${{ selectedValueStream: valueStreams[1] }}
   `(
     '$mutation with payload $payload will update state with $expectedState',
     ({ mutation, payload, expectedState }) => {