diff --git a/awx/ui_next/src/components/Lookup/HostFilterLookup.jsx b/awx/ui_next/src/components/Lookup/HostFilterLookup.jsx
index f8f7d56d84..13a89512ea 100644
--- a/awx/ui_next/src/components/Lookup/HostFilterLookup.jsx
+++ b/awx/ui_next/src/components/Lookup/HostFilterLookup.jsx
@@ -196,7 +196,7 @@ function HostFilterLookup({
 
   function buildChips(filter = {}) {
     const inputGroupChips = Object.keys(filter).reduce((obj, param) => {
-      const parsedKey = param.replace('__icontains', '').replace('or__', '');
+      const parsedKey = param.replace('or__', '');
       const chipsArray = [];
 
       if (Array.isArray(filter[param])) {
diff --git a/awx/ui_next/src/screens/Inventory/shared/SmartInventoryForm.test.jsx b/awx/ui_next/src/screens/Inventory/shared/SmartInventoryForm.test.jsx
index 34d7fb72c7..3f26decf00 100644
--- a/awx/ui_next/src/screens/Inventory/shared/SmartInventoryForm.test.jsx
+++ b/awx/ui_next/src/screens/Inventory/shared/SmartInventoryForm.test.jsx
@@ -26,7 +26,7 @@ const mockFormValues = {
   description: '',
   organization: { id: 1, name: 'mock organization' },
   host_filter:
-    'name__icontains=mock and name__icontains=foo and groups__name=mock group',
+    'name__icontains=mock and name__icontains=foo and groups__name__icontains=mock group',
   instance_groups: [{ id: 123 }],
   variables: '---',
 };