diff --git a/src/ROUTES.ts b/src/ROUTES.ts
index 44ff6908fd2f..590748d4e9a5 100644
--- a/src/ROUTES.ts
+++ b/src/ROUTES.ts
@@ -465,10 +465,6 @@ const ROUTES = {
             return getUrlWithBackToParam(baseRoute, backTo);
         },
     },
-    SET_DEFAULT_WORKSPACE: {
-        route: 'set-default-workspace',
-        getRoute: (navigateTo?: string) => (navigateTo ? (`set-default-workspace?navigateTo=${encodeURIComponent(navigateTo)}` as const) : ('set-default-workspace' as const)),
-    },
     REPORT: 'r',
     REPORT_WITH_ID: {
         route: 'r/:reportID?/:reportActionID?',
@@ -906,6 +902,10 @@ const ROUTES = {
             return getUrlWithBackToParam(`${action as string}/${iouType as string}/report/${reportID}/edit${shouldTurnOffSelectionMode ? '?shouldTurnOffSelectionMode=true' : ''}`, backTo);
         },
     },
+    SET_DEFAULT_WORKSPACE: {
+        route: 'set-default-workspace',
+        getRoute: (navigateTo?: string) => (navigateTo ? (`set-default-workspace?navigateTo=${encodeURIComponent(navigateTo)}` as const) : ('set-default-workspace' as const)),
+    },
     SETTINGS_TAGS_ROOT: {
         route: 'settings/:policyID/tags',
         getRoute: (policyID: string | undefined, backTo = '') => {
diff --git a/src/SCREENS.ts b/src/SCREENS.ts
index 5811bf7e08f6..f29c6c91d7b6 100644
--- a/src/SCREENS.ts
+++ b/src/SCREENS.ts
@@ -404,9 +404,7 @@ const SCREENS = {
         ROOT: 'NewReportWorkspaceSelection_Root',
     },
 
-    SET_DEFAULT_WORKSPACE: {
-        ROOT: 'SetDefaultWorkspace_Root',
-    },
+    SET_DEFAULT_WORKSPACE: 'SetDefaultWorkspace',
 
     REPORT_DETAILS: {
         ROOT: 'Report_Details_Root',
diff --git a/src/libs/Navigation/AppNavigator/ModalStackNavigators/index.tsx b/src/libs/Navigation/AppNavigator/ModalStackNavigators/index.tsx
index bdc9bebdbf54..4d3528d985d1 100644
--- a/src/libs/Navigation/AppNavigator/ModalStackNavigators/index.tsx
+++ b/src/libs/Navigation/AppNavigator/ModalStackNavigators/index.tsx
@@ -37,7 +37,6 @@ import type {
     SearchAdvancedFiltersParamList,
     SearchReportParamList,
     SearchSavedSearchParamList,
-    SetDefaultWorkspaceNavigatorParamList,
     SettingsNavigatorParamList,
     ShareNavigatorParamList,
     SignInNavigatorParamList,
@@ -185,6 +184,7 @@ const MoneyRequestModalStackNavigator = createModalStackNavigator<MoneyRequestNa
     [SCREENS.MONEY_REQUEST.DISTANCE_CREATE]: () => require<ReactComponentModule>('../../../../pages/iou/request/DistanceRequestStartPage').default,
     [SCREENS.MONEY_REQUEST.STEP_DISTANCE_MAP]: () => require<ReactComponentModule>('../../../../pages/iou/request/step/IOURequestStepDistanceMap').default,
     [SCREENS.MONEY_REQUEST.STEP_DISTANCE_MANUAL]: () => require<ReactComponentModule>('../../../../pages/iou/request/step/IOURequestStepDistanceManual').default,
+    [SCREENS.SET_DEFAULT_WORKSPACE]: () => require<ReactComponentModule>('../../../../pages/SetDefaultWorkspacePage').default,
 });
 
 const TravelModalStackNavigator = createModalStackNavigator<TravelNavigatorParamList>({
@@ -213,10 +213,6 @@ const NewReportWorkspaceSelectionModalStackNavigator = createModalStackNavigator
     [SCREENS.NEW_REPORT_WORKSPACE_SELECTION.ROOT]: () => require<ReactComponentModule>('../../../../pages/NewReportWorkspaceSelectionPage').default,
 });
 
-const SetDefaultWorkspaceModalStackNavigator = createModalStackNavigator<SetDefaultWorkspaceNavigatorParamList>({
-    [SCREENS.SET_DEFAULT_WORKSPACE.ROOT]: () => require<ReactComponentModule>('../../../../pages/SetDefaultWorkspacePage').default,
-});
-
 const ReportDetailsModalStackNavigator = createModalStackNavigator<ReportDetailsNavigatorParamList>({
     [SCREENS.REPORT_DETAILS.ROOT]: () => require<ReactComponentModule>('../../../../pages/ReportDetailsPage').default,
     [SCREENS.REPORT_DETAILS.SHARE_CODE]: () => require<ReactComponentModule>('../../../../pages/home/report/ReportDetailsShareCodePage').default,
@@ -933,7 +929,6 @@ export {
     ReferralModalStackNavigator,
     TravelModalStackNavigator,
     NewReportWorkspaceSelectionModalStackNavigator,
-    SetDefaultWorkspaceModalStackNavigator,
     ReportDescriptionModalStackNavigator,
     ReportDetailsModalStackNavigator,
     ReportChangeWorkspaceModalStackNavigator,
diff --git a/src/libs/Navigation/AppNavigator/Navigators/RightModalNavigator.tsx b/src/libs/Navigation/AppNavigator/Navigators/RightModalNavigator.tsx
index 6c6e525903b3..b26e7972c1ce 100644
--- a/src/libs/Navigation/AppNavigator/Navigators/RightModalNavigator.tsx
+++ b/src/libs/Navigation/AppNavigator/Navigators/RightModalNavigator.tsx
@@ -107,10 +107,6 @@ function RightModalNavigator({navigation, route}: RightModalNavigatorProps) {
                             name={SCREENS.RIGHT_MODAL.NEW_REPORT_WORKSPACE_SELECTION}
                             component={ModalStackNavigators.NewReportWorkspaceSelectionModalStackNavigator}
                         />
-                        <Stack.Screen
-                            name={SCREENS.RIGHT_MODAL.SET_DEFAULT_WORKSPACE}
-                            component={ModalStackNavigators.SetDefaultWorkspaceModalStackNavigator}
-                        />
                         <Stack.Screen
                             name={SCREENS.RIGHT_MODAL.REPORT_DETAILS}
                             component={ModalStackNavigators.ReportDetailsModalStackNavigator}
diff --git a/src/libs/Navigation/linkingConfig/config.ts b/src/libs/Navigation/linkingConfig/config.ts
index ca0303aba72f..408d7ce3e084 100644
--- a/src/libs/Navigation/linkingConfig/config.ts
+++ b/src/libs/Navigation/linkingConfig/config.ts
@@ -1119,11 +1119,6 @@ const config: LinkingOptions<RootNavigatorParamList>['config'] = {
                         [SCREENS.NEW_REPORT_WORKSPACE_SELECTION.ROOT]: ROUTES.NEW_REPORT_WORKSPACE_SELECTION.route,
                     },
                 },
-                [SCREENS.RIGHT_MODAL.SET_DEFAULT_WORKSPACE]: {
-                    screens: {
-                        [SCREENS.SET_DEFAULT_WORKSPACE.ROOT]: ROUTES.SET_DEFAULT_WORKSPACE.route,
-                    },
-                },
                 [SCREENS.RIGHT_MODAL.REPORT_DETAILS]: {
                     screens: {
                         [SCREENS.REPORT_DETAILS.ROOT]: ROUTES.REPORT_WITH_ID_DETAILS.route,
@@ -1432,6 +1427,7 @@ const config: LinkingOptions<RootNavigatorParamList>['config'] = {
                             path: ROUTES.SPLIT_EXPENSE_EDIT.route,
                             exact: true,
                         },
+                        [SCREENS.SET_DEFAULT_WORKSPACE]: ROUTES.SET_DEFAULT_WORKSPACE.route,
                     },
                 },
                 [SCREENS.RIGHT_MODAL.TRANSACTION_DUPLICATE]: {
diff --git a/src/libs/Navigation/types.ts b/src/libs/Navigation/types.ts
index 873d60e713db..85526fc81ac4 100644
--- a/src/libs/Navigation/types.ts
+++ b/src/libs/Navigation/types.ts
@@ -1359,12 +1359,6 @@ type NewReportWorkspaceSelectionNavigatorParamList = {
     };
 };
 
-type SetDefaultWorkspaceNavigatorParamList = {
-    [SCREENS.SET_DEFAULT_WORKSPACE.ROOT]: {
-        navigateTo?: Routes;
-    };
-};
-
 type ReportDetailsNavigatorParamList = {
     [SCREENS.REPORT_DETAILS.ROOT]: {
         reportID: string;
@@ -1814,6 +1808,9 @@ type MoneyRequestNavigatorParamList = {
         backToReport?: string;
         reportActionID?: string;
     };
+    [SCREENS.SET_DEFAULT_WORKSPACE]: {
+        navigateTo?: Routes;
+    };
 };
 
 type WorkspaceConfirmationNavigatorParamList = {
@@ -2052,7 +2049,6 @@ type RightModalNavigatorParamList = {
     [SCREENS.RIGHT_MODAL.PROFILE]: NavigatorScreenParams<ProfileNavigatorParamList>;
     [SCREENS.SETTINGS.SHARE_CODE]: undefined;
     [SCREENS.RIGHT_MODAL.NEW_REPORT_WORKSPACE_SELECTION]: NavigatorScreenParams<NewReportWorkspaceSelectionNavigatorParamList>;
-    [SCREENS.RIGHT_MODAL.SET_DEFAULT_WORKSPACE]: NavigatorScreenParams<SetDefaultWorkspaceNavigatorParamList>;
     [SCREENS.RIGHT_MODAL.REPORT_DETAILS]: NavigatorScreenParams<ReportDetailsNavigatorParamList>;
     [SCREENS.RIGHT_MODAL.REPORT_CHANGE_WORKSPACE]: NavigatorScreenParams<ReportChangeWorkspaceNavigatorParamList>;
     [SCREENS.RIGHT_MODAL.REPORT_SETTINGS]: NavigatorScreenParams<ReportSettingsNavigatorParamList>;
@@ -2746,7 +2742,6 @@ export type {
     ReimbursementAccountNavigatorParamList,
     ReimbursementAccountEnterSignerInfoNavigatorParamList,
     NewReportWorkspaceSelectionNavigatorParamList,
-    SetDefaultWorkspaceNavigatorParamList,
     ReportDescriptionNavigatorParamList,
     ReportDetailsNavigatorParamList,
     ReportChangeWorkspaceNavigatorParamList,
diff --git a/src/pages/SetDefaultWorkspacePage.tsx b/src/pages/SetDefaultWorkspacePage.tsx
index 20288e4473a9..ab0c61cc30de 100644
--- a/src/pages/SetDefaultWorkspacePage.tsx
+++ b/src/pages/SetDefaultWorkspacePage.tsx
@@ -15,14 +15,13 @@ import useWorkspaceList from '@hooks/useWorkspaceList';
 import Log from '@libs/Log';
 import Navigation from '@libs/Navigation/Navigation';
 import type {PlatformStackScreenProps} from '@libs/Navigation/PlatformStackNavigation/types';
-import type {SetDefaultWorkspaceNavigatorParamList} from '@libs/Navigation/types';
-import {hasEnabledOptions} from '@libs/OptionsListUtils';
 import {isPaidGroupPolicy} from '@libs/PolicyUtils';
+import type {MoneyRequestNavigatorParamList} from '@navigation/types';
 import {setNameValuePair} from '@userActions/User';
 import ONYXKEYS from '@src/ONYXKEYS';
 import type SCREENS from '@src/SCREENS';
 
-type SetDefaultWorkspacePageProps = PlatformStackScreenProps<SetDefaultWorkspaceNavigatorParamList, typeof SCREENS.SET_DEFAULT_WORKSPACE.ROOT>;
+type SetDefaultWorkspacePageProps = PlatformStackScreenProps<MoneyRequestNavigatorParamList, typeof SCREENS.SET_DEFAULT_WORKSPACE>;
 
 function SetDefaultWorkspacePage({route}: SetDefaultWorkspacePageProps) {
     const {navigateTo} = route.params ?? {};
@@ -32,7 +31,6 @@ function SetDefaultWorkspacePage({route}: SetDefaultWorkspacePageProps) {
     const {translate, localeCompare} = useLocalize();
 
     const [policies, fetchStatus] = useOnyx(ONYXKEYS.COLLECTION.POLICY, {canBeMissing: false});
-    const [allPolicyCategories] = useOnyx(ONYXKEYS.COLLECTION.POLICY_CATEGORIES, {canBeMissing: false});
     const [isLoadingApp] = useOnyx(ONYXKEYS.IS_LOADING_APP, {canBeMissing: false});
     const [activePolicyID] = useOnyx(ONYXKEYS.NVP_ACTIVE_POLICY_ID, {canBeMissing: false});
 
@@ -47,11 +45,13 @@ function SetDefaultWorkspacePage({route}: SetDefaultWorkspacePageProps) {
             Log.hmmm(`[SetDefaultWorkspacePage] navigateTo is undefined. Cannot navigate after setting default workspace to ${selectedPolicyID}`);
             return;
         }
-        const policyCategories = allPolicyCategories?.[`${ONYXKEYS.COLLECTION.POLICY_CATEGORIES}${selectedPolicyID}`];
+
+        const policy = policies?.[`${ONYXKEYS.COLLECTION.POLICY}${selectedPolicyID}`];
 
         // eslint-disable-next-line rulesdir/no-default-id-values
         setNameValuePair(ONYXKEYS.NVP_ACTIVE_POLICY_ID, selectedPolicyID, activePolicyID ?? '');
-        if (hasEnabledOptions(policyCategories ?? {})) {
+
+        if (policy?.areCategoriesEnabled) {
             Navigation.navigate(navigateTo);
             return;
         }
diff --git a/src/pages/iou/request/step/IOURequestStepConfirmation.tsx b/src/pages/iou/request/step/IOURequestStepConfirmation.tsx
index 3bfbe695b8f4..ffe8194ea811 100644
--- a/src/pages/iou/request/step/IOURequestStepConfirmation.tsx
+++ b/src/pages/iou/request/step/IOURequestStepConfirmation.tsx
@@ -11,7 +11,7 @@ import HeaderWithBackButton from '@components/HeaderWithBackButton';
 import * as Expensicons from '@components/Icon/Expensicons';
 import LocationPermissionModal from '@components/LocationPermissionModal';
 import MoneyRequestConfirmationList from '@components/MoneyRequestConfirmationList';
-import {usePersonalDetails} from '@components/OnyxListItemProvider';
+import {usePersonalDetails, usePolicyCategories} from '@components/OnyxListItemProvider';
 import PrevNextButtons from '@components/PrevNextButtons';
 import ScreenWrapper from '@components/ScreenWrapper';
 import useArchivedReportsIdSet from '@hooks/useArchivedReportsIdSet';
@@ -116,6 +116,7 @@ function IOURequestStepConfirmation({
 }: IOURequestStepConfirmationProps) {
     const currentUserPersonalDetails = useCurrentUserPersonalDetails();
     const personalDetails = usePersonalDetails();
+    const allPolicyCategories = usePolicyCategories();
 
     const [isRemoveConfirmModalVisible, setRemoveConfirmModalVisible] = useState(false);
     const [optimisticTransactions] = useOnyx(ONYXKEYS.COLLECTION.TRANSACTION_DRAFT, {
@@ -175,7 +176,6 @@ function IOURequestStepConfirmation({
     const policyID = isCreatingTrackExpense || isUnreported ? policyForMovingExpensesID : getIOURequestPolicyID(transaction, report);
     const isDraftPolicy = policy === policyDraft;
 
-    const [policyCategoriesReal] = useOnyx(`${ONYXKEYS.COLLECTION.POLICY_CATEGORIES}${realPolicyID}`, {canBeMissing: true});
     const [policyCategoriesDraft] = useOnyx(`${ONYXKEYS.COLLECTION.POLICY_CATEGORIES_DRAFT}${draftPolicyID}`, {canBeMissing: true});
     const [policyRecentlyUsedCategories] = useOnyx(`${ONYXKEYS.COLLECTION.POLICY_RECENTLY_USED_CATEGORIES}${realPolicyID}`, {canBeMissing: true});
     const [policyTags] = useOnyx(`${ONYXKEYS.COLLECTION.POLICY_TAGS}${realPolicyID}`, {canBeMissing: true});
@@ -184,7 +184,18 @@ function IOURequestStepConfirmation({
     const [reportAttributesDerived] = useOnyx(ONYXKEYS.DERIVED.REPORT_ATTRIBUTES, {canBeMissing: true, selector: reportsSelector});
     const [recentlyUsedDestinations] = useOnyx(`${ONYXKEYS.COLLECTION.POLICY_RECENTLY_USED_DESTINATIONS}${realPolicyID}`, {canBeMissing: true});
 
-    const policyCategories = policyCategoriesReal ?? policyCategoriesDraft;
+    const policyCategories = useMemo(() => {
+        if (isDraftPolicy && draftPolicyID) {
+            return policyCategoriesDraft;
+        }
+
+        if (realPolicyID) {
+            return allPolicyCategories?.[`${ONYXKEYS.COLLECTION.POLICY_CATEGORIES}${realPolicyID}`];
+        }
+
+        return undefined;
+    }, [allPolicyCategories, realPolicyID, policyCategoriesDraft, draftPolicyID, isDraftPolicy]);
+
     const receiverParticipant: Participant | InvoiceReceiver | undefined = transaction?.participants?.find((participant) => participant?.accountID) ?? report?.invoiceReceiver;
     const receiverAccountID = receiverParticipant && 'accountID' in receiverParticipant && receiverParticipant.accountID ? receiverParticipant.accountID : CONST.DEFAULT_NUMBER_ID;
     const receiverType = getReceiverType(receiverParticipant);
@@ -264,19 +275,30 @@ function IOURequestStepConfirmation({
     }, []);
 
     useEffect(() => {
-        if (isCreatingTrackExpense && policyForMovingExpensesID !== undefined && policy?.pendingAction !== CONST.RED_BRICK_ROAD_PENDING_ACTION.ADD) {
-            openDraftWorkspaceRequest(policyForMovingExpensesID);
+        if (!isCreatingTrackExpense || policyForMovingExpensesID === undefined) {
+            return;
         }
 
-        const policyExpenseChat = participants?.find((participant) => participant.isPolicyExpenseChat);
-        if (policyExpenseChat?.policyID && policy?.pendingAction !== CONST.RED_BRICK_ROAD_PENDING_ACTION.ADD) {
-            openDraftWorkspaceRequest(policyExpenseChat.policyID);
+        openDraftWorkspaceRequest(policyForMovingExpensesID);
+    }, [isCreatingTrackExpense, policy?.pendingAction, policyForMovingExpensesID]);
+
+    const policyExpenseChatPolicyID = useMemo(() => {
+        return participants?.find((participant) => participant.isPolicyExpenseChat)?.policyID;
+    }, [participants]);
+
+    const senderPolicyID = useMemo(() => {
+        return participants?.find((participant) => !!participant && 'isSender' in participant && participant.isSender)?.policyID;
+    }, [participants]);
+
+    useEffect(() => {
+        if (policyExpenseChatPolicyID && policy?.pendingAction !== CONST.RED_BRICK_ROAD_PENDING_ACTION.ADD) {
+            openDraftWorkspaceRequest(policyExpenseChatPolicyID);
+            return;
         }
-        const senderPolicyParticipant = participants?.find((participant) => !!participant && 'isSender' in participant && participant.isSender);
-        if (senderPolicyParticipant?.policyID && policy?.pendingAction !== CONST.RED_BRICK_ROAD_PENDING_ACTION.ADD) {
-            openDraftWorkspaceRequest(senderPolicyParticipant.policyID);
+        if (senderPolicyID && policy?.pendingAction !== CONST.RED_BRICK_ROAD_PENDING_ACTION.ADD) {
+            openDraftWorkspaceRequest(senderPolicyID);
         }
-    }, [isCreatingTrackExpense, isOffline, participants, policy?.pendingAction, policyForMovingExpensesID]);
+    }, [isOffline, policy?.pendingAction, policyExpenseChatPolicyID, senderPolicyID]);
 
     const defaultBillable = !!policy?.defaultBillable;
     useEffect(() => {
@@ -324,6 +346,15 @@ function IOURequestStepConfirmation({
     useEffect(() => {
         transactions.forEach((item) => {
             if (!item.category) {
+                // If the expense had his category cleared due to unsaved changes (i.e. changing to recipient to one that does not have category)
+                // then we should reset the category to it's last saved value
+                const existingCategory = existingTransaction?.category;
+                if (existingCategory) {
+                    const isExistingCategoryEnabled = policyCategories?.[existingCategory]?.enabled;
+                    if (isExistingCategoryEnabled) {
+                        setMoneyRequestCategory(item.transactionID, existingCategory, policy?.id);
+                    }
+                }
                 return;
             }