diff --git a/r/R/dplyr-functions.R b/r/R/dplyr-functions.R
index 0ccc5734a7f..b1f8a65f93d 100644
--- a/r/R/dplyr-functions.R
+++ b/r/R/dplyr-functions.R
@@ -908,17 +908,6 @@ nse_funcs$if_else <- function(condition, true, false, missing = NULL) {
     ))
   }
 
-  # if_else doesn't yet support factors/dictionaries
-  # TODO: remove this after ARROW-13358 is merged
-  warn_types <- nse_funcs$is.factor(true) | nse_funcs$is.factor(false)
-  if (warn_types) {
-    warning(
-      "Dictionaries (in R: factors) are currently converted to strings (characters) ",
-      "in if_else and ifelse",
-      call. = FALSE
-    )
-  }
-
   build_expr("if_else", condition, true, false)
 }
 
diff --git a/r/tests/testthat/test-dplyr-funcs-conditional.R b/r/tests/testthat/test-dplyr-funcs-conditional.R
index 4e4346a7592..a5e6ce6ea09 100644
--- a/r/tests/testthat/test-dplyr-funcs-conditional.R
+++ b/r/tests/testthat/test-dplyr-funcs-conditional.R
@@ -116,18 +116,20 @@ test_that("if_else and ifelse", {
     tbl
   )
 
-  # TODO: remove the mutate + warning after ARROW-13358 is merged and Arrow
-  # supports factors in if(_)else
   compare_dplyr_binding(
     .input %>%
       mutate(
         y = if_else(int > 5, fct, factor("a"))
       ) %>%
       collect() %>%
-      # This is a no-op on the Arrow side, but necessary to make the results equal
-      mutate(y = as.character(y)),
-    tbl,
-    warning = "Dictionaries .* are currently converted to strings .* in if_else and ifelse"
+      # Arrow if_else() kernel does not preserve unused factor levels,
+      # so reset the levels of all the factor columns to make the test pass
+      # (ARROW-14649)
+      transmute(across(
+        where(is.factor),
+        ~ factor(.x, levels = c("a", "b", "c", "d", "g", "h", "i", "j"))
+      )),
+    tbl
   )
 
   # detecting NA and NaN works just fine