diff --git a/src/libs/PolicyUtils.ts b/src/libs/PolicyUtils.ts
index e622be4f23a3..348c096a970e 100644
--- a/src/libs/PolicyUtils.ts
+++ b/src/libs/PolicyUtils.ts
@@ -321,10 +321,20 @@ function getCustomUnitsForDuplication(
         return undefined;
     }
 
-    if (isDistanceRatesOptionSelected && isPerDiemOptionSelected) {
-        const distanceCustomUnit = Object.values(customUnits).find((customUnit) => customUnit.name === CONST.CUSTOM_UNITS.NAME_DISTANCE);
-        const perDiemUnit = Object.values(customUnits).find((customUnit) => customUnit.name === CONST.CUSTOM_UNITS.NAME_PER_DIEM_INTERNATIONAL);
+    const getUnitWithoutPendingDeleteRates = (customUnit: CustomUnit | undefined) => {
+        if (!customUnit) {
+            return undefined;
+        }
+        return {
+            ...customUnit,
+            rates: Object.fromEntries(Object.entries(customUnit.rates).filter(([, rate]) => rate.pendingAction !== CONST.RED_BRICK_ROAD_PENDING_ACTION.DELETE)),
+        };
+    };
+
+    const distanceCustomUnit = getUnitWithoutPendingDeleteRates(Object.values(customUnits).find((customUnit) => customUnit.name === CONST.CUSTOM_UNITS.NAME_DISTANCE));
+    const perDiemUnit = getUnitWithoutPendingDeleteRates(Object.values(customUnits).find((customUnit) => customUnit.name === CONST.CUSTOM_UNITS.NAME_PER_DIEM_INTERNATIONAL));
 
+    if (isDistanceRatesOptionSelected && isPerDiemOptionSelected) {
         if (!perDiemUnit || !distanceCustomUnit || !perDiemCustomUnitID || !distanceCustomUnitID) {
             return undefined;
         }
@@ -333,14 +343,12 @@ function getCustomUnitsForDuplication(
     }
 
     if (isDistanceRatesOptionSelected && distanceCustomUnitID) {
-        const distanceCustomUnit = Object.values(customUnits).find((customUnit) => customUnit.name === CONST.CUSTOM_UNITS.NAME_DISTANCE);
         if (!distanceCustomUnit) {
             return undefined;
         }
         return {[distanceCustomUnitID]: distanceCustomUnit};
     }
 
-    const perDiemUnit = Object.values(customUnits).find((customUnit) => customUnit.name === CONST.CUSTOM_UNITS.NAME_PER_DIEM_INTERNATIONAL);
     if (!perDiemUnit || !perDiemCustomUnitID) {
         return undefined;
     }
diff --git a/src/libs/ReportUtils.ts b/src/libs/ReportUtils.ts
index f3000e9c33bc..77b1212c7842 100644
--- a/src/libs/ReportUtils.ts
+++ b/src/libs/ReportUtils.ts
@@ -4566,7 +4566,7 @@ function getReportFieldKey(reportFieldId: string | undefined) {
 /**
  * Get the report fields attached to the policy given policyID
  */
-function getReportFieldsByPolicyID(policyID: string | undefined): Record<string, PolicyReportField> {
+function getReportFieldsByPolicyID(policyID: string | undefined): Policy['fieldList'] {
     if (!policyID) {
         return {};
     }
diff --git a/src/libs/actions/Policy/Category.ts b/src/libs/actions/Policy/Category.ts
index 7223a9a81863..293a18f026ad 100644
--- a/src/libs/actions/Policy/Category.ts
+++ b/src/libs/actions/Policy/Category.ts
@@ -104,6 +104,9 @@ function appendSetupCategoriesOnboardingData(
 function buildOptimisticPolicyWithExistingCategories(policyID: string, categories: PolicyCategories) {
     const categoriesValues = Object.values(categories);
     const optimisticCategoryMap = categoriesValues.reduce<Record<string, Partial<PolicyCategory>>>((acc, category) => {
+        if (category.pendingAction === CONST.RED_BRICK_ROAD_PENDING_ACTION.DELETE) {
+            return acc;
+        }
         acc[category.name] = {
             ...category,
             errors: null,
diff --git a/src/libs/actions/Policy/Policy.ts b/src/libs/actions/Policy/Policy.ts
index 119cf0e270f3..032bb4634dac 100644
--- a/src/libs/actions/Policy/Policy.ts
+++ b/src/libs/actions/Policy/Policy.ts
@@ -3095,6 +3095,98 @@ function createDraftWorkspace(
     return params;
 }
 
+function buildOptimisticDuplicatePolicy(sourcePolicy: Policy, policyOptions: DuplicatePolicyDataOptions) {
+    const {
+        policyName: duplicatedPolicyName = '',
+        targetPolicyID: duplicatedPolicyID,
+        file: duplicatedPolicyFile,
+        parts: duplicatedParts,
+        localCurrency: duplicatedLocalCurrency,
+    } = policyOptions;
+
+    const isMemberFeatureSelected = duplicatedParts?.people;
+    const isReportsFeatureSelected = duplicatedParts?.reports;
+    const isConnectionsFeatureSelected = duplicatedParts?.connections;
+    const isTaxesFeatureSelected = duplicatedParts?.taxes;
+    const isTagsFeatureSelected = duplicatedParts?.tags;
+    const isInvoicesFeatureSelected = duplicatedParts?.invoices;
+    const isDistanceRatesFeatureSelected = duplicatedParts?.distance;
+    const isRulesFeatureSelected = duplicatedParts?.expenses;
+    const isWorkflowsFeatureSelected = duplicatedParts?.exportLayouts;
+    const isPerDiemFeatureSelected = duplicatedParts?.perDiem;
+    const isOverviewFeatureSelected = duplicatedParts?.overview;
+    const isTravelFeatureSelected = duplicatedParts?.travel;
+    const isCodingRulesFeatureSelected = duplicatedParts?.codingRules;
+    const duplicatedOutputCurrency = isOverviewFeatureSelected ? sourcePolicy?.outputCurrency : duplicatedLocalCurrency;
+    const {customUnitID: duplicatedDistanceCustomUnitID} = buildOptimisticDistanceRateCustomUnits(duplicatedOutputCurrency);
+    const duplicatedPerDiemCustomUnitID = generateCustomUnitID();
+
+    const filterPendingDeleteData = <T>(data?: Record<string, T>): Record<string, T> | undefined =>
+        data
+            ? (Object.fromEntries(
+                  Object.entries(data).filter(([, value]) => {
+                      if (!value || typeof value !== 'object' || !('pendingAction' in value)) {
+                          return true;
+                      }
+                      return value.pendingAction !== CONST.RED_BRICK_ROAD_PENDING_ACTION.DELETE;
+                  }),
+              ) as Record<string, T>)
+            : undefined;
+
+    const codingRulesWithoutPendingDelete = filterPendingDeleteData(sourcePolicy?.rules?.codingRules);
+    const employeeListWithoutPendingDelete = filterPendingDeleteData(sourcePolicy?.employeeList);
+    const fieldListWithoutPendingDelete = filterPendingDeleteData(sourcePolicy?.fieldList);
+    const connectionsWithoutPendingDelete = filterPendingDeleteData(sourcePolicy?.connections);
+    const taxRatesWithoutPendingDelete = {
+        ...sourcePolicy?.taxRates,
+        taxes: filterPendingDeleteData(sourcePolicy?.taxRates?.taxes),
+    };
+
+    return {
+        ...sourcePolicy,
+        areCategoriesEnabled: true,
+        areTagsEnabled: isTagsFeatureSelected,
+        areDistanceRatesEnabled: isDistanceRatesFeatureSelected,
+        areInvoicesEnabled: isInvoicesFeatureSelected,
+        areRulesEnabled: isRulesFeatureSelected,
+        areWorkflowsEnabled: isWorkflowsFeatureSelected,
+        areReportFieldsEnabled: isReportsFeatureSelected,
+        areConnectionsEnabled: isConnectionsFeatureSelected,
+        arePerDiemRatesEnabled: isPerDiemFeatureSelected,
+        isTravelEnabled: isTravelFeatureSelected ? sourcePolicy?.isTravelEnabled : undefined,
+        travelSettings: undefined,
+        workspaceAccountID: undefined,
+        tax: isTaxesFeatureSelected ? sourcePolicy?.tax : undefined,
+        employeeList: isMemberFeatureSelected ? employeeListWithoutPendingDelete : {[sourcePolicy.owner]: sourcePolicy?.employeeList?.[sourcePolicy.owner]},
+        id: duplicatedPolicyID,
+        name: duplicatedPolicyName,
+        fieldList: isReportsFeatureSelected ? fieldListWithoutPendingDelete : undefined,
+        connections: isConnectionsFeatureSelected ? connectionsWithoutPendingDelete : undefined,
+        customUnits: getCustomUnitsForDuplication(sourcePolicy, isDistanceRatesFeatureSelected, isPerDiemFeatureSelected, {
+            distanceCustomUnitID: duplicatedDistanceCustomUnitID,
+            perDiemCustomUnitID: duplicatedPerDiemCustomUnitID,
+        }),
+        taxRates: isTaxesFeatureSelected ? taxRatesWithoutPendingDelete : undefined,
+        rules: isCodingRulesFeatureSelected ? {codingRules: codingRulesWithoutPendingDelete} : undefined,
+        pendingAction: CONST.RED_BRICK_ROAD_PENDING_ACTION.ADD,
+        pendingFields: {
+            autoReporting: CONST.RED_BRICK_ROAD_PENDING_ACTION.ADD,
+            approvalMode: CONST.RED_BRICK_ROAD_PENDING_ACTION.ADD,
+            reimbursementChoice: CONST.RED_BRICK_ROAD_PENDING_ACTION.ADD,
+            name: CONST.RED_BRICK_ROAD_PENDING_ACTION.ADD,
+            outputCurrency: CONST.RED_BRICK_ROAD_PENDING_ACTION.ADD,
+            address: CONST.RED_BRICK_ROAD_PENDING_ACTION.ADD,
+            description: CONST.RED_BRICK_ROAD_PENDING_ACTION.ADD,
+            type: CONST.RED_BRICK_ROAD_PENDING_ACTION.ADD,
+            areReportFieldsEnabled: CONST.RED_BRICK_ROAD_PENDING_ACTION.ADD,
+        },
+        avatarURL: duplicatedPolicyFile?.uri,
+        originalFileName: duplicatedPolicyFile?.name,
+        outputCurrency: duplicatedOutputCurrency,
+        address: isOverviewFeatureSelected ? sourcePolicy?.address : undefined,
+    };
+}
+
 function buildDuplicatePolicyData(policy: Policy, options: DuplicatePolicyDataOptions) {
     const {policyName = '', policyID = generatePolicyID(), file, welcomeNote, parts, targetPolicyID = generatePolicyID(), policyCategories, localCurrency} = options;
 
@@ -3110,19 +3202,8 @@ function buildDuplicatePolicyData(policy: Policy, options: DuplicatePolicyDataOp
         pendingChatMembers,
     } = ReportUtils.buildOptimisticWorkspaceChats(targetPolicyID, policyName);
     const isMemberOptionSelected = parts?.people;
-    const isReportsOptionSelected = parts?.reports;
-    const isConnectionsOptionSelected = parts?.connections;
     const isCategoriesOptionSelected = parts?.categories;
-    const isTaxesOptionSelected = parts?.taxes;
-    const isTagsOptionSelected = parts?.tags;
-    const isInvoicesOptionSelected = parts?.invoices;
-    const isDistanceRatesOptionSelected = parts?.distance;
-    const isRulesOptionSelected = parts?.expenses;
-    const isWorkflowsOptionSelected = parts?.exportLayouts;
-    const isPerDiemOptionSelected = parts?.perDiem;
     const isOverviewOptionSelected = parts?.overview;
-    const isTravelOptionSelected = parts?.travel;
-    const isCodingRulesOptionSelected = parts?.codingRules;
 
     const outputCurrency = isOverviewOptionSelected ? policy?.outputCurrency : localCurrency;
 
@@ -3155,46 +3236,7 @@ function buildDuplicatePolicyData(policy: Policy, options: DuplicatePolicyDataOp
         {
             onyxMethod: Onyx.METHOD.SET,
             key: `${ONYXKEYS.COLLECTION.POLICY}${targetPolicyID}`,
-            value: {
-                ...policy,
-                areCategoriesEnabled: true,
-                areTagsEnabled: isTagsOptionSelected,
-                areDistanceRatesEnabled: isDistanceRatesOptionSelected,
-                areInvoicesEnabled: isInvoicesOptionSelected,
-                areRulesEnabled: isRulesOptionSelected,
-                areWorkflowsEnabled: isWorkflowsOptionSelected,
-                areReportFieldsEnabled: isReportsOptionSelected,
-                areConnectionsEnabled: isConnectionsOptionSelected,
-                arePerDiemRatesEnabled: isPerDiemOptionSelected,
-                isTravelEnabled: isTravelOptionSelected ? policy?.isTravelEnabled : undefined,
-                travelSettings: undefined,
-                workspaceAccountID: undefined,
-                tax: isTaxesOptionSelected ? policy?.tax : undefined,
-                employeeList: isMemberOptionSelected ? policy.employeeList : {[policy.owner]: policy?.employeeList?.[policy.owner]},
-                id: targetPolicyID,
-                name: policyName,
-                fieldList: isReportsOptionSelected ? policy?.fieldList : undefined,
-                connections: isConnectionsOptionSelected ? policy?.connections : undefined,
-                customUnits: getCustomUnitsForDuplication(policy, isDistanceRatesOptionSelected, isPerDiemOptionSelected, {distanceCustomUnitID, perDiemCustomUnitID}),
-                taxRates: isTaxesOptionSelected ? policy?.taxRates : undefined,
-                rules: isCodingRulesOptionSelected ? {codingRules: policy?.rules?.codingRules} : undefined,
-                pendingAction: CONST.RED_BRICK_ROAD_PENDING_ACTION.ADD,
-                pendingFields: {
-                    autoReporting: CONST.RED_BRICK_ROAD_PENDING_ACTION.ADD,
-                    approvalMode: CONST.RED_BRICK_ROAD_PENDING_ACTION.ADD,
-                    reimbursementChoice: CONST.RED_BRICK_ROAD_PENDING_ACTION.ADD,
-                    name: CONST.RED_BRICK_ROAD_PENDING_ACTION.ADD,
-                    outputCurrency: CONST.RED_BRICK_ROAD_PENDING_ACTION.ADD,
-                    address: CONST.RED_BRICK_ROAD_PENDING_ACTION.ADD,
-                    description: CONST.RED_BRICK_ROAD_PENDING_ACTION.ADD,
-                    type: CONST.RED_BRICK_ROAD_PENDING_ACTION.ADD,
-                    areReportFieldsEnabled: CONST.RED_BRICK_ROAD_PENDING_ACTION.ADD,
-                },
-                avatarURL: file?.uri,
-                originalFileName: file?.name,
-                outputCurrency,
-                address: isOverviewOptionSelected ? policy?.address : undefined,
-            },
+            value: buildOptimisticDuplicatePolicy(policy, {...options, targetPolicyID}),
         },
         {
             onyxMethod: Onyx.METHOD.MERGE,
diff --git a/src/pages/workspace/duplicate/WorkspaceDuplicateSelectFeaturesForm.tsx b/src/pages/workspace/duplicate/WorkspaceDuplicateSelectFeaturesForm.tsx
index 448157300bd9..7655b7c3508e 100644
--- a/src/pages/workspace/duplicate/WorkspaceDuplicateSelectFeaturesForm.tsx
+++ b/src/pages/workspace/duplicate/WorkspaceDuplicateSelectFeaturesForm.tsx
@@ -38,18 +38,18 @@ function WorkspaceDuplicateSelectFeaturesForm({policyID}: WorkspaceDuplicateForm
     const [duplicateWorkspace] = useOnyx(ONYXKEYS.DUPLICATE_WORKSPACE);
     const [duplicatedWorkspaceAvatar, setDuplicatedWorkspaceAvatar] = useState<File | undefined>();
     const [isDuplicateModalOpen, setIsDuplicateModalOpen] = useState(false);
-    const allIds = getMemberAccountIDsForWorkspace(policy?.employeeList);
+    const allIds = getMemberAccountIDsForWorkspace(policy?.employeeList, false, false);
     const totalMembers = Object.keys(allIds).length;
     const [policyTags] = useOnyx(`${ONYXKEYS.COLLECTION.POLICY_TAGS}${policyID}`);
-    const taxesLength = Object.keys(policy?.taxRates?.taxes ?? {}).length ?? 0;
+    const taxesLength = Object.values(policy?.taxRates?.taxes ?? {}).filter((tax) => tax.pendingAction !== CONST.RED_BRICK_ROAD_PENDING_ACTION.DELETE).length ?? 0;
     const [policyCategories] = useOnyx(`${ONYXKEYS.COLLECTION.POLICY_CATEGORIES}${policyID}`);
-    const categoriesCount = Object.keys(policyCategories ?? {}).length;
-    const codingRulesCount = Object.keys(policy?.rules?.codingRules ?? {}).length;
+    const categoriesCount = Object.values(policyCategories ?? {}).filter((category) => category.pendingAction !== CONST.RED_BRICK_ROAD_PENDING_ACTION.DELETE).length;
+    const codingRulesCount = Object.values(policy?.rules?.codingRules ?? {}).filter((rule) => rule.pendingAction !== CONST.RED_BRICK_ROAD_PENDING_ACTION.DELETE).length;
     const [selectedItems, setSelectedItems] = useState<string[]>([]);
-    const reportFields = Object.keys(getReportFieldsByPolicyID(policyID)).length ?? 0;
+    const reportFields = Object.values(getReportFieldsByPolicyID(policyID) ?? {}).filter((field) => field.pendingAction !== CONST.RED_BRICK_ROAD_PENDING_ACTION.DELETE).length ?? 0;
     const customUnits = getPerDiemCustomUnit(policy);
     const customUnitRates: Record<string, Rate> = customUnits?.rates ?? {};
-    const allRates = Object.values(customUnitRates)?.length;
+    const allRates = Object.values(customUnitRates)?.filter((rate) => rate.pendingAction !== CONST.RED_BRICK_ROAD_PENDING_ACTION.DELETE).length ?? 0;
     const [bankAccountList] = useOnyx(ONYXKEYS.BANK_ACCOUNT_LIST);
     const currentUserPersonalDetails = useCurrentUserPersonalDetails();
 
@@ -57,7 +57,7 @@ function WorkspaceDuplicateSelectFeaturesForm({policyID}: WorkspaceDuplicateForm
     const connectedIntegration = getAllValidConnectedIntegration(policy, accountingIntegrations);
 
     const customUnit = getDistanceRateCustomUnit(policy);
-    const ratesCount = Object.keys(customUnit?.rates ?? {}).length;
+    const ratesCount = Object.values(customUnit?.rates ?? {}).filter((rate) => rate.pendingAction !== CONST.RED_BRICK_ROAD_PENDING_ACTION.DELETE).length;
     const invoiceCompany =
         policy?.invoice?.companyName && policy?.invoice?.companyWebsite
             ? `${policy?.invoice?.companyName}, ${policy?.invoice?.companyWebsite}`
@@ -67,7 +67,10 @@ function WorkspaceDuplicateSelectFeaturesForm({policyID}: WorkspaceDuplicateForm
         if (!policyTags) {
             return 0;
         }
-        return Object.values(policyTags).reduce((sum, tagGroup) => sum + Number(Object.values(tagGroup.tags)?.length ?? 0), 0);
+        return Object.values(policyTags).reduce(
+            (sum, tagGroup) => sum + Number(Object.values(tagGroup.tags)?.filter((tag) => tag.pendingAction !== CONST.RED_BRICK_ROAD_PENDING_ACTION.DELETE).length ?? 0),
+            0,
+        );
     }, [policyTags]);
 
     const formattedAddress = !isEmptyObject(policy) && !isEmptyObject(policy.address) ? formatAddressToString(policy.address) : '';
diff --git a/tests/actions/PolicyTest.ts b/tests/actions/PolicyTest.ts
index faa07b079409..03d323c80318 100644
--- a/tests/actions/PolicyTest.ts
+++ b/tests/actions/PolicyTest.ts
@@ -270,7 +270,10 @@ describe('actions/Policy', () => {
         it('duplicate workspace', async () => {
             (fetch as MockFetch)?.pause?.();
             await Onyx.set(ONYXKEYS.SESSION, {email: ESH_EMAIL, accountID: ESH_ACCOUNT_ID});
-            const fakePolicy = createRandomPolicy(10, CONST.POLICY.TYPE.PERSONAL);
+            const fakePolicy = {
+                ...createRandomPolicy(10, CONST.POLICY.TYPE.PERSONAL),
+                employeeList: {},
+            };
             await Onyx.set(`${ONYXKEYS.COLLECTION.POLICY}${fakePolicy.id}`, fakePolicy);
             await Onyx.set(`${ONYXKEYS.NVP_ACTIVE_POLICY_ID}`, fakePolicy.id);
             await Onyx.set(`${ONYXKEYS.NVP_INTRO_SELECTED}`, {choice: CONST.ONBOARDING_CHOICES.MANAGE_TEAM});