diff --git a/mod/assign/locallib.php b/mod/assign/locallib.php
index 76312d630a3..df9d54b86d9 100644
--- a/mod/assign/locallib.php
+++ b/mod/assign/locallib.php
@@ -167,6 +167,12 @@ class assign {
     /** @var array cached list of IDs of users who share group membership with the user. The cache key will be the user. */
     private $sharedgroupmembers = array();
 
+    /**
+     * @var stdClass The most recent team submission. Used to determine additional attempt numbers and whether
+     * to update the gradebook.
+     */
+    private $mostrecentteamsubmission = null;
+
     /**
      * Constructor for the base assign class.
      *
@@ -2473,13 +2479,16 @@ class assign {
 
         $submission = null;
         if ($this->get_instance()->teamsubmission) {
-            $submission = $this->get_group_submission($grade->userid, 0, false);
+            if (isset($this->mostrecentteamsubmission)) {
+                $submission = $this->mostrecentteamsubmission;
+            } else {
+                $submission = $this->get_group_submission($grade->userid, 0, false);
+            }
         } else {
             $submission = $this->get_user_submission($grade->userid, false);
         }
 
-        // Only push to gradebook if the update is for the latest attempt.
-        // Not the latest attempt.
+        // Only push to gradebook if the update is for the most recent attempt.
         if ($submission && $submission->attemptnumber != $grade->attemptnumber) {
             return true;
         }
@@ -7930,6 +7939,12 @@ class assign {
         $instance = $this->get_instance();
         $submission = null;
         if ($instance->teamsubmission) {
+            // We need to know what the most recent group submission is.
+            // Specifically when determining if we are adding another attempt (we only want to add one attempt per team),
+            // and when deciding if we need to update the gradebook with an edited grade.
+            $mostrecentsubmission = $this->get_group_submission($userid, 0, false, -1);
+            $this->set_most_recent_team_submission($mostrecentsubmission);
+            // Get the submission that we are saving grades for. The data attempt number determines which submission attempt.
             $submission = $this->get_group_submission($userid, 0, false, $data->attemptnumber);
         } else {
             $submission = $this->get_user_submission($userid, false, $data->attemptnumber);
@@ -7944,8 +7959,10 @@ class assign {
             }
             $members = $this->get_submission_group_members($groupid, true, $this->show_only_active_users());
             foreach ($members as $member) {
-                // User may exist in multple groups (which should put them in the default group).
-                $this->apply_grade_to_user($data, $member->id, $data->attemptnumber);
+                // We only want to update the grade for this group submission attempt. The data attempt number could be
+                // -1 which may end up in additional attempts being created for each group member instead of just one
+                // additional attempt for the group.
+                $this->apply_grade_to_user($data, $member->id, $submission->attemptnumber);
                 $this->process_outcomes($member->id, $data, $userid);
             }
         } else {
@@ -8116,6 +8133,11 @@ class assign {
             }
 
             if (empty($groupsprocessed[$groupid])) {
+                // We need to know what the most recent group submission is.
+                // Specifically when determining if we are adding another attempt (we only want to add one attempt per team),
+                // and when deciding if we need to update the gradebook with an edited grade.
+                $currentsubmission = $this->get_group_submission($userid, 0, false, -1);
+                $this->set_most_recent_team_submission($currentsubmission);
                 $result = $this->process_add_attempt($userid) && $result;
                 $groupsprocessed[$groupid] = true;
             }
@@ -8166,7 +8188,18 @@ class assign {
 
         // Create the new submission record for the group/user.
         if ($this->get_instance()->teamsubmission) {
-            $newsubmission = $this->get_group_submission($userid, 0, true, $oldsubmission->attemptnumber + 1);
+            if (isset($this->mostrecentteamsubmission)) {
+                // Team submissions can end up in this function for each user (via save_grade). We don't want to create
+                // more than one attempt for the whole team.
+                if ($this->mostrecentteamsubmission->attemptnumber == $oldsubmission->attemptnumber) {
+                    $newsubmission = $this->get_group_submission($userid, 0, true, $oldsubmission->attemptnumber + 1);
+                } else {
+                    $newsubmission = $this->get_group_submission($userid, 0, false, $oldsubmission->attemptnumber);
+                }
+            } else {
+                debugging('Please use set_most_recent_team_submission() before calling add_attempt', DEBUG_DEVELOPER);
+                $newsubmission = $this->get_group_submission($userid, 0, true, $oldsubmission->attemptnumber + 1);
+            }
         } else {
             $newsubmission = $this->get_user_submission($userid, true, $oldsubmission->attemptnumber + 1);
         }
@@ -8630,6 +8663,18 @@ class assign {
 
         return $o;
     }
+
+    /**
+     * Set the most recent submission for the team.
+     * The most recent team submission is used to determine if another attempt should be created when allowing another
+     * attempt on a group assignment, and whether the gradebook should be updated.
+     *
+     * @since Moodle 3.3.3
+     * @param stdClass $submission The most recent submission of the group.
+     */
+    public function set_most_recent_team_submission($submission) {
+        $this->mostrecentteamsubmission = $submission;
+    }
 }
 
 /**
diff --git a/mod/assign/upgrade.txt b/mod/assign/upgrade.txt
index 0d99f0776db..18611afefeb 100644
--- a/mod/assign/upgrade.txt
+++ b/mod/assign/upgrade.txt
@@ -1,5 +1,9 @@
 This files describes API changes in the assign code.
 
+=== 3.3.3 ===
+* assign::add_attempt requires that set_most_recent_team_submission() be called if attempting to use this function with a team
+  submission.
+
 === 3.3.2 ===
 * assign_refresh_events() Now takes two additional parameters to refine the update to a specific instance. This function
   now optionally takes the module instance object or ID, and the course module object or ID. Please try to send the full