diff --git a/packages/dnb-design-system-portal/src/docs/uilib/extensions/forms/Form/Handler/Examples.tsx b/packages/dnb-design-system-portal/src/docs/uilib/extensions/forms/Form/Handler/Examples.tsx
index 866b463be8b..60c2e8e1713 100644
--- a/packages/dnb-design-system-portal/src/docs/uilib/extensions/forms/Form/Handler/Examples.tsx
+++ b/packages/dnb-design-system-portal/src/docs/uilib/extensions/forms/Form/Handler/Examples.tsx
@@ -408,7 +408,9 @@ export const TransformData = () => {
             const transformedData = transformData(
               data,
               ({ value, displayValue, label }) => {
-                return { value, displayValue, label }
+                if (!Array.isArray(value)) {
+                  return { value, displayValue, label }
+                }
               },
             )
 
diff --git a/packages/dnb-design-system-portal/src/docs/uilib/extensions/forms/Form/Handler/info.mdx b/packages/dnb-design-system-portal/src/docs/uilib/extensions/forms/Form/Handler/info.mdx
index 049f4cb2ad4..97fa2010338 100644
--- a/packages/dnb-design-system-portal/src/docs/uilib/extensions/forms/Form/Handler/info.mdx
+++ b/packages/dnb-design-system-portal/src/docs/uilib/extensions/forms/Form/Handler/info.mdx
@@ -339,3 +339,35 @@ The callback function receives the following arguments as an object:
 Most of the fields will return the `displayValue` as a string. But there are some exceptions:
 
 - [ArraySelection](/uilib/extensions/forms/base-fields/ArraySelection/) will return the displayed/active options content as an array that contains a string (or React.ReactNode).
+
+##### `displayValue` from fields inside Iterate.Array
+
+When using the `Iterate.Array` component, you may check if the current entry is an array. This way you ensure you never transform the array itself, but only the values from the fields inside the array.
+
+```jsx
+import { Form } from '@dnb/eufemia/extensions/forms'
+
+const MyForm = () => {
+  return (
+    <Form.Handler
+      onSubmit={(data, { transformData }) => {
+        const transformedData = transformData(
+          data,
+          ({ value, displayValue, label }) => {
+            if (!Array.isArray(value)) {
+              return { value, displayValue, label }
+            }
+          },
+        )
+      }}
+    >
+      <Form.Card>
+        <Iterate.Array path="/myArray">
+          <Field.String itemPath="/" label="My label" />
+        </Iterate.Array>
+      </Form.Card>
+      <Form.SubmitButton />
+    </Form.Handler>
+  )
+}
+```
diff --git a/packages/dnb-eufemia/src/extensions/forms/DataContext/Provider/Provider.tsx b/packages/dnb-eufemia/src/extensions/forms/DataContext/Provider/Provider.tsx
index e584077c70c..4e405c32c10 100644
--- a/packages/dnb-eufemia/src/extensions/forms/DataContext/Provider/Provider.tsx
+++ b/packages/dnb-eufemia/src/extensions/forms/DataContext/Provider/Provider.tsx
@@ -424,8 +424,13 @@ export default function Provider<Data extends JsonObject>(
    * Mutate the data set based on the filterData function
    */
   const mutateDataHandler = useCallback(
-    (data: Data, handler: TransformData | FilterData, remove = false) => {
-      const mutate = (path: Path, result: boolean | unknown) => {
+    (
+      data: Data,
+      handler: TransformData | FilterData,
+      { remove = false, mutate = true } = {}
+    ) => {
+      const freshData = {} as Data
+      const mutateEntry = (path: Path, result: boolean | unknown) => {
         if (remove) {
           if (result === false) {
             data = structuredClone(data)
@@ -433,8 +438,12 @@ export default function Provider<Data extends JsonObject>(
           }
         } else {
           if (typeof result !== 'undefined') {
-            data = structuredClone(data)
-            pointer.set(data, path, result)
+            if (mutate) {
+              data = structuredClone(data)
+              pointer.set(data, path, result)
+            } else {
+              pointer.set(freshData, path, result)
+            }
           }
         }
       }
@@ -458,11 +467,15 @@ export default function Provider<Data extends JsonObject>(
                 props,
                 internal,
               })
-              mutate(path, result)
+              mutateEntry(path, result)
             }
           }
         )
 
+        if (!mutate) {
+          return freshData
+        }
+
         return data
       } else if (handler) {
         const runFilter = ({ path, condition }) => {
@@ -480,7 +493,7 @@ export default function Provider<Data extends JsonObject>(
                     internal,
                   })
                 : condition
-            mutate(path, result)
+            mutateEntry(path, result)
           }
         }
 
@@ -567,7 +580,7 @@ export default function Provider<Data extends JsonObject>(
   const filterDataHandler = useCallback(
     (data: Data, filter: FilterData) => {
       if (filter) {
-        return mutateDataHandler(data, filter, true)
+        return mutateDataHandler(data, filter, { remove: true })
       }
 
       return data
@@ -1176,7 +1189,7 @@ export default function Provider<Data extends JsonObject>(
     }
 
     const transformData = (data: Data, handler: TransformData) => {
-      return mutateDataHandler(data, handler)
+      return mutateDataHandler(data, handler, { mutate: false })
     }
 
     const formElement = formElementRef.current
diff --git a/packages/dnb-eufemia/src/extensions/forms/DataContext/Provider/__tests__/Provider.test.tsx b/packages/dnb-eufemia/src/extensions/forms/DataContext/Provider/__tests__/Provider.test.tsx
index 0de80d238f4..2281a12c80f 100644
--- a/packages/dnb-eufemia/src/extensions/forms/DataContext/Provider/__tests__/Provider.test.tsx
+++ b/packages/dnb-eufemia/src/extensions/forms/DataContext/Provider/__tests__/Provider.test.tsx
@@ -23,6 +23,7 @@ import {
   OnChange,
   DataValueWriteProps,
   OnSubmit,
+  Iterate,
 } from '../../../'
 import { isCI } from 'repo-utils'
 import { Props as StringFieldProps } from '../../../Field/String'
@@ -4883,6 +4884,70 @@ describe('DataContext.Provider', () => {
     })
   })
 
+  it('should transform data with "transformData" from fields inside Iterate', async () => {
+    let transformedData = undefined
+    const onSubmit = jest.fn((data, { transformData }) => {
+      transformedData = transformData(
+        data,
+        ({ value, displayValue, label }) => {
+          if (!Array.isArray(value)) {
+            return { value, displayValue, label }
+          }
+        }
+      )
+    })
+
+    render(
+      <Form.Handler
+        onSubmit={onSubmit}
+        defaultData={{
+          accounts: [null],
+        }}
+      >
+        <Iterate.Array path="/accounts">
+          <Field.String
+            label="Bar label"
+            itemPath="/fooPath"
+            defaultValue="foo value"
+          />
+        </Iterate.Array>
+      </Form.Handler>
+    )
+
+    fireEvent.submit(document.querySelector('form'))
+
+    expect(onSubmit).toHaveBeenCalledTimes(1)
+    expect(transformedData).toEqual({
+      accounts: [
+        {
+          fooPath: {
+            displayValue: 'foo value',
+            label: 'Bar label',
+            value: 'foo value',
+          },
+        },
+      ],
+    })
+
+    const stringField = document.querySelector('input')
+    fireEvent.change(stringField, { target: { value: 'bar value' } })
+
+    fireEvent.submit(document.querySelector('form'))
+
+    expect(onSubmit).toHaveBeenCalledTimes(2)
+    expect(transformedData).toEqual({
+      accounts: [
+        {
+          fooPath: {
+            displayValue: 'bar value',
+            label: 'Bar label',
+            value: 'bar value',
+          },
+        },
+      ],
+    })
+  })
+
   describe('reduceToVisibleFields', () => {
     it('should remove data entries of hidden fields using Visibility', async () => {
       let submitData = null