diff --git a/src/libs/actions/IOU.ts b/src/libs/actions/IOU.ts
index 9f832b7f171d..35dc83efa1c5 100644
--- a/src/libs/actions/IOU.ts
+++ b/src/libs/actions/IOU.ts
@@ -944,8 +944,13 @@ function setMoneyRequestBillable(transactionID: string, billable: boolean) {
     Onyx.merge(`${ONYXKEYS.COLLECTION.TRANSACTION_DRAFT}${transactionID}`, {billable});
 }
 
-function setMoneyRequestParticipants(transactionID: string, participants: Participant[] = [], shouldUpdateReportID = false) {
-    return Onyx.merge(`${ONYXKEYS.COLLECTION.TRANSACTION_DRAFT}${transactionID}`, {participants, reportID: shouldUpdateReportID ? participants.at(0)?.reportID : undefined});
+function setMoneyRequestParticipants(transactionID: string, participants: Participant[] = [], isTestTransaction = false) {
+    // We should change the reportID and isFromGlobalCreate of the test transaction since this flow can start inside an existing report
+    return Onyx.merge(`${ONYXKEYS.COLLECTION.TRANSACTION_DRAFT}${transactionID}`, {
+        participants,
+        isFromGlobalCreate: isTestTransaction ? true : undefined,
+        reportID: isTestTransaction ? participants?.at(0)?.reportID : undefined,
+    });
 }
 
 function setSplitPayer(transactionID: string, payerAccountID: number) {
diff --git a/src/pages/iou/request/IOURequestStartPage.tsx b/src/pages/iou/request/IOURequestStartPage.tsx
index 395942de99a3..e2b267e9bd5a 100644
--- a/src/pages/iou/request/IOURequestStartPage.tsx
+++ b/src/pages/iou/request/IOURequestStartPage.tsx
@@ -9,6 +9,7 @@ import ScreenWrapper from '@components/ScreenWrapper';
 import TabSelector from '@components/TabSelector/TabSelector';
 import useLocalize from '@hooks/useLocalize';
 import usePolicy from '@hooks/usePolicy';
+import usePrevious from '@hooks/usePrevious';
 import useThemeStyles from '@hooks/useThemeStyles';
 import {canUseTouchScreen} from '@libs/DeviceCapabilities';
 import Navigation from '@libs/Navigation/Navigation';
@@ -44,14 +45,13 @@ function IOURequestStartPage({
     const {translate} = useLocalize();
     const shouldUseTab = iouType !== CONST.IOU.TYPE.SEND && iouType !== CONST.IOU.TYPE.PAY && iouType !== CONST.IOU.TYPE.INVOICE;
     const [isDraggingOver, setIsDraggingOver] = useState(false);
-    const [report] = useOnyx(`${ONYXKEYS.COLLECTION.REPORT}${reportID}`);
+    const [report] = useOnyx(`${ONYXKEYS.COLLECTION.REPORT}${reportID}`, {canBeMissing: true});
     const policy = usePolicy(report?.policyID);
-    const [selectedTab = CONST.TAB_REQUEST.SCAN, selectedTabResult] = useOnyx(`${ONYXKEYS.COLLECTION.SELECTED_TAB}${CONST.TAB.IOU_REQUEST_TYPE}`);
-    const [session] = useOnyx(ONYXKEYS.SESSION);
+    const [selectedTab = CONST.TAB_REQUEST.SCAN, selectedTabResult] = useOnyx(`${ONYXKEYS.COLLECTION.SELECTED_TAB}${CONST.TAB.IOU_REQUEST_TYPE}`, {canBeMissing: true});
+    const [session] = useOnyx(ONYXKEYS.SESSION, {canBeMissing: false});
     const isLoadingSelectedTab = shouldUseTab ? isLoadingOnyxValue(selectedTabResult) : false;
-    // eslint-disable-next-line  @typescript-eslint/prefer-nullish-coalescing
-    const [transaction] = useOnyx(`${ONYXKEYS.COLLECTION.TRANSACTION_DRAFT}${route?.params.transactionID || CONST.DEFAULT_NUMBER_ID}`);
-    const [allPolicies] = useOnyx(ONYXKEYS.COLLECTION.POLICY);
+    const [transaction] = useOnyx(`${ONYXKEYS.COLLECTION.TRANSACTION_DRAFT}${route?.params.transactionID}`, {canBeMissing: true});
+    const [allPolicies] = useOnyx(ONYXKEYS.COLLECTION.POLICY, {canBeMissing: false});
 
     const tabTitles = {
         [CONST.IOU.TYPE.REQUEST]: translate('iou.createExpense'),
@@ -68,15 +68,17 @@ function IOURequestStartPage({
         [transaction?.iouRequestType, shouldUseTab, selectedTab],
     );
     const isFromGlobalCreate = isEmptyObject(report?.reportID);
+    const prevTransactionReportID = usePrevious(transaction?.reportID);
 
     // Clear out the temporary expense if the reportID in the URL has changed from the transaction's reportID.
     useFocusEffect(
         useCallback(() => {
-            if (transaction?.reportID === reportID || isLoadingSelectedTab) {
+            // The test transaction can change the reportID of the transaction on the flow so we should prevent the reportID from being reverted again.
+            if (transaction?.reportID === reportID || isLoadingSelectedTab || prevTransactionReportID !== transaction?.reportID) {
                 return;
             }
             initMoneyRequest(reportID, policy, isFromGlobalCreate, transaction?.iouRequestType, transactionRequestType);
-        }, [transaction, policy, reportID, isFromGlobalCreate, transactionRequestType, isLoadingSelectedTab]),
+        }, [transaction, policy, reportID, isFromGlobalCreate, transactionRequestType, isLoadingSelectedTab, prevTransactionReportID]),
     );
 
     useEffect(() => {