diff --git a/r/R/dplyr-collect.R b/r/R/dplyr-collect.R
index deb26859e8b..5640565b153 100644
--- a/r/R/dplyr-collect.R
+++ b/r/R/dplyr-collect.R
@@ -62,17 +62,18 @@ restore_dplyr_features <- function(df, query) {
   # An arrow_dplyr_query holds some attributes that Arrow doesn't know about
   # After calling collect(), make sure these features are carried over
 
-  if (length(query$group_by_vars) > 0) {
-    # Preserve groupings, if present
+  if (length(dplyr::group_vars(query))) {
     if (is.data.frame(df)) {
-      df <- dplyr::grouped_df(
+      # Preserve groupings, if present
+      df <- dplyr::group_by(
         df,
-        dplyr::group_vars(query),
-        drop = dplyr::group_by_drop_default(query)
+        !!!syms(dplyr::group_vars(query)),
+        .drop = dplyr::group_by_drop_default(query),
+        .add = FALSE
       )
     } else {
       # This is a Table, via compute() or collect(as_data_frame = FALSE)
-      df$metadata$r$attributes$.group_vars <- query$group_by_vars
+      df$metadata$r$attributes$.group_vars <- dplyr::group_vars(query)
     }
   }
   df
diff --git a/r/R/dplyr.R b/r/R/dplyr.R
index 1f529066dd3..c7b58bc0275 100644
--- a/r/R/dplyr.R
+++ b/r/R/dplyr.R
@@ -49,6 +49,12 @@ arrow_dplyr_query <- function(.data) {
   if (inherits(.data, "data.frame")) {
     .data <- Table$create(.data)
   }
+  # ARROW-17737: If .data is a Table, remove groups from metadata
+  # (we've already grabbed the groups above)
+  if (inherits(.data, "ArrowTabular")) {
+    .data <- ungroup.ArrowTabular(.data)
+  }
+
   # Evaluating expressions on a dataset with duplicated fieldnames will error
   dupes <- duplicated(names(.data))
   if (any(dupes)) {
@@ -182,7 +188,7 @@ dim.arrow_dplyr_query <- function(x) {
     # Query on in-memory Table, so evaluate the filter
     # Don't need any columns
     x <- select.arrow_dplyr_query(x, NULL)
-    rows <- nrow(compute.arrow_dplyr_query(x))
+    rows <- nrow(as_arrow_table(x))
   }
   c(rows, cols)
 }
diff --git a/r/tests/testthat/test-dplyr-group-by.R b/r/tests/testthat/test-dplyr-group-by.R
index 9bb6aa9600d..319eec25ed7 100644
--- a/r/tests/testthat/test-dplyr-group-by.R
+++ b/r/tests/testthat/test-dplyr-group-by.R
@@ -79,6 +79,25 @@ test_that("ungroup", {
   )
 })
 
+test_that("Groups before conversion to a Table must not be restored after collect() (ARROW-17737)", {
+  compare_dplyr_binding(
+    .input %>%
+      group_by(chr, .add = FALSE) %>%
+      ungroup() %>%
+      collect(),
+    tbl %>%
+      group_by(int)
+  )
+  compare_dplyr_binding(
+    .input %>%
+      group_by(chr, .add = TRUE) %>%
+      ungroup() %>%
+      collect(),
+    tbl %>%
+      group_by(int)
+  )
+})
+
 test_that("group_by then rename", {
   compare_dplyr_binding(
     .input %>%
@@ -196,6 +215,20 @@ test_that("group_by() with .add", {
       collect(),
     tbl
   )
+  compare_dplyr_binding(
+    .input %>%
+      group_by(.add = FALSE) %>%
+      collect(),
+    tbl %>%
+      group_by(dbl2)
+  )
+  compare_dplyr_binding(
+    .input %>%
+      group_by(.add = TRUE) %>%
+      collect(),
+    tbl %>%
+      group_by(dbl2)
+  )
   compare_dplyr_binding(
     .input %>%
       group_by(chr, .add = FALSE) %>%