diff --git a/src/libs/actions/Policy/Policy.ts b/src/libs/actions/Policy/Policy.ts
index 690a55daa1d0..f514a9b27158 100644
--- a/src/libs/actions/Policy/Policy.ts
+++ b/src/libs/actions/Policy/Policy.ts
@@ -199,6 +199,12 @@ Onyx.connect({
     callback: (val) => (allRecentlyUsedCurrencies = val ?? []),
 });
 
+let activePolicyID: OnyxEntry<string>;
+Onyx.connect({
+    key: ONYXKEYS.NVP_ACTIVE_POLICY_ID,
+    callback: (value) => (activePolicyID = value),
+});
+
 /**
  * Stores in Onyx the policy ID of the last workspace that was accessed by the user
  */
@@ -224,15 +230,6 @@ function getPolicy(policyID: string | undefined): OnyxEntry<Policy> {
     return allPolicies[`${ONYXKEYS.COLLECTION.POLICY}${policyID}`];
 }
 
-/**
- * Returns a primary policy for the user
- */
-function getPrimaryPolicy(activePolicyID: OnyxEntry<string>, currentUserLogin: string | undefined): Policy | undefined {
-    const activeAdminWorkspaces = PolicyUtils.getActiveAdminWorkspaces(allPolicies, currentUserLogin);
-    const primaryPolicy: Policy | null | undefined = activeAdminWorkspaces.find((policy) => policy.id === activePolicyID);
-    return primaryPolicy ?? activeAdminWorkspaces.at(0);
-}
-
 /** Check if the policy has invoicing company details */
 function hasInvoicingDetails(policy: OnyxEntry<Policy>): boolean {
     return !!policy?.invoice?.companyName && !!policy?.invoice?.companyWebsite;
@@ -241,8 +238,8 @@ function hasInvoicingDetails(policy: OnyxEntry<Policy>): boolean {
 /**
  * Returns a primary invoice workspace for the user
  */
-function getInvoicePrimaryWorkspace(activePolicyID: OnyxEntry<string>, currentUserLogin: string | undefined): Policy | undefined {
-    if (PolicyUtils.canSendInvoiceFromWorkspace(activePolicyID)) {
+function getInvoicePrimaryWorkspace(currentUserLogin: string | undefined): Policy | undefined {
+    if (PolicyUtils.canSendInvoiceFromWorkspace(activePolicyID ?? '-1')) {
         return allPolicies?.[`${ONYXKEYS.COLLECTION.POLICY}${activePolicyID ?? '-1'}`];
     }
     const activeAdminWorkspaces = PolicyUtils.getActiveAdminWorkspaces(allPolicies, currentUserLogin);
@@ -1621,6 +1618,8 @@ function buildPolicyData(policyOwnerEmail = '', makeMeAdmin = false, policyName
 
     const optimisticCategoriesData = buildOptimisticPolicyCategories(policyID, CONST.POLICY.DEFAULT_CATEGORIES);
 
+    const shouldSetCreatedWorkspaceAsActivePolicy = !!activePolicyID && allPolicies?.[`${ONYXKEYS.COLLECTION.POLICY}${activePolicyID}`]?.type === CONST.POLICY.TYPE.PERSONAL;
+
     const optimisticData: OnyxUpdate[] = [
         {
             onyxMethod: Onyx.METHOD.SET,
@@ -1706,8 +1705,21 @@ function buildPolicyData(policyOwnerEmail = '', makeMeAdmin = false, policyName
             key: `${ONYXKEYS.COLLECTION.REPORT_DRAFT}${expenseChatReportID}`,
             value: null,
         },
+        {
+            onyxMethod: Onyx.METHOD.SET,
+            key: `${ONYXKEYS.COLLECTION.REPORT_DRAFT}${adminsChatReportID}`,
+            value: null,
+        },
     ];
 
+    if (shouldSetCreatedWorkspaceAsActivePolicy) {
+        optimisticData.push({
+            onyxMethod: Onyx.METHOD.SET,
+            key: ONYXKEYS.NVP_ACTIVE_POLICY_ID,
+            value: policyID,
+        });
+    }
+
     const successData: OnyxUpdate[] = [
         {
             onyxMethod: Onyx.METHOD.MERGE,
@@ -1796,6 +1808,14 @@ function buildPolicyData(policyOwnerEmail = '', makeMeAdmin = false, policyName
         },
     ];
 
+    if (shouldSetCreatedWorkspaceAsActivePolicy) {
+        failureData.push({
+            onyxMethod: Onyx.METHOD.SET,
+            key: ONYXKEYS.NVP_ACTIVE_POLICY_ID,
+            value: activePolicyID ?? '',
+        });
+    }
+
     if (optimisticCategoriesData.optimisticData) {
         optimisticData.push(...optimisticCategoriesData.optimisticData);
     }
@@ -4597,7 +4617,6 @@ export {
     setPolicyCustomTaxName,
     clearPolicyErrorField,
     isCurrencySupportedForDirectReimbursement,
-    getPrimaryPolicy,
     getInvoicePrimaryWorkspace,
     createDraftWorkspace,
     savePreferredExportMethod,
diff --git a/src/pages/iou/request/MoneyRequestParticipantsSelector.tsx b/src/pages/iou/request/MoneyRequestParticipantsSelector.tsx
index df8d7797b41f..4478951555ef 100644
--- a/src/pages/iou/request/MoneyRequestParticipantsSelector.tsx
+++ b/src/pages/iou/request/MoneyRequestParticipantsSelector.tsx
@@ -241,7 +241,7 @@ function MoneyRequestParticipantsSelector({
             ];
 
             if (iouType === CONST.IOU.TYPE.INVOICE) {
-                const policyID = option.item && ReportUtils.isInvoiceRoom(option.item) ? option.policyID : Policy.getInvoicePrimaryWorkspace(activePolicyID, currentUserLogin)?.id;
+                const policyID = option.item && ReportUtils.isInvoiceRoom(option.item) ? option.policyID : Policy.getInvoicePrimaryWorkspace(currentUserLogin)?.id;
                 newParticipants.push({
                     policyID,
                     isSender: true,
diff --git a/tests/actions/PolicyTest.ts b/tests/actions/PolicyTest.ts
index 2ede9f5e5228..0bcd22e05bb7 100644
--- a/tests/actions/PolicyTest.ts
+++ b/tests/actions/PolicyTest.ts
@@ -6,6 +6,7 @@ import * as Policy from '@src/libs/actions/Policy/Policy';
 import ONYXKEYS from '@src/ONYXKEYS';
 import type {Policy as PolicyType, Report, ReportAction, ReportActions} from '@src/types/onyx';
 import type {Participant} from '@src/types/onyx/Report';
+import createRandomPolicy from '../utils/collections/policies';
 import * as TestHelper from '../utils/TestHelper';
 import type {MockFetch} from '../utils/TestHelper';
 import waitForBatchedUpdates from '../utils/waitForBatchedUpdates';
@@ -33,6 +34,9 @@ describe('actions/Policy', () => {
         it('creates a new workspace', async () => {
             (fetch as MockFetch)?.pause?.();
             Onyx.set(ONYXKEYS.SESSION, {email: ESH_EMAIL, accountID: ESH_ACCOUNT_ID});
+            const fakePolicy = createRandomPolicy(0, CONST.POLICY.TYPE.PERSONAL);
+            Onyx.set(`${ONYXKEYS.COLLECTION.POLICY}${fakePolicy.id}`, fakePolicy);
+            Onyx.set(`${ONYXKEYS.NVP_ACTIVE_POLICY_ID}`, fakePolicy.id);
             await waitForBatchedUpdates();
 
             let adminReportID;
@@ -52,6 +56,19 @@ describe('actions/Policy', () => {
                 });
             });
 
+            const activePolicyID: OnyxEntry<string> = await new Promise((resolve) => {
+                const connection = Onyx.connect({
+                    key: `${ONYXKEYS.NVP_ACTIVE_POLICY_ID}`,
+                    callback: (id) => {
+                        Onyx.disconnect(connection);
+                        resolve(id);
+                    },
+                });
+            });
+
+            // check if NVP_ACTIVE_POLICY_ID is updated to created policy id
+            expect(activePolicyID).toBe(policyID);
+
             // check if policy was created with correct values
             expect(policy?.id).toBe(policyID);
             expect(policy?.name).toBe(WORKSPACE_NAME);
diff --git a/tests/utils/collections/policies.ts b/tests/utils/collections/policies.ts
index 47bf996afb7e..bda1c3242997 100644
--- a/tests/utils/collections/policies.ts
+++ b/tests/utils/collections/policies.ts
@@ -3,11 +3,11 @@ import type {ValueOf} from 'type-fest';
 import CONST from '@src/CONST';
 import type {Policy} from '@src/types/onyx';
 
-export default function createRandomPolicy(index: number): Policy {
+export default function createRandomPolicy(index: number, type?: ValueOf<typeof CONST.POLICY.TYPE>): Policy {
     return {
         id: index.toString(),
         name: randWord(),
-        type: rand(Object.values(CONST.POLICY.TYPE)),
+        type: type ?? rand(Object.values(CONST.POLICY.TYPE)),
         autoReporting: randBoolean(),
         isPolicyExpenseChatEnabled: randBoolean(),
         autoReportingFrequency: rand(