diff --git a/src/ONYXKEYS.ts b/src/ONYXKEYS.ts
index 0a17d3a1d2f7..14c4aaa80447 100755
--- a/src/ONYXKEYS.ts
+++ b/src/ONYXKEYS.ts
@@ -232,6 +232,8 @@ const ONYXKEYS = {
         DOWNLOAD: 'download_',
         POLICY: 'policy_',
         POLICY_MEMBERS: 'policyMembers_',
+        POLICY_DRAFTS: 'policyDrafts_',
+        POLICY_MEMBERS_DRAFTS: 'policyMembersDrafts_',
         POLICY_CATEGORIES: 'policyCategories_',
         POLICY_RECENTLY_USED_CATEGORIES: 'policyRecentlyUsedCategories_',
         POLICY_TAGS: 'policyTags_',
diff --git a/src/libs/actions/App.js b/src/libs/actions/App.js
index 7500af6d829e..e6b1c029f14f 100644
--- a/src/libs/actions/App.js
+++ b/src/libs/actions/App.js
@@ -336,6 +336,40 @@ function createWorkspaceAndNavigateToIt(policyOwnerEmail = '', makeMeAdmin = fal
         .then(endSignOnTransition);
 }
 
+/**
+ * Create a new draft workspace and navigate to it
+ *
+ * @param {String} [policyOwnerEmail] Optional, the email of the account to make the owner of the policy
+ * @param {String} [policyName] Optional, custom policy name we will use for created workspace
+ * @param {Boolean} [transitionFromOldDot] Optional, if the user is transitioning from old dot
+ */
+function createWorkspaceWithPolicyDraftAndNavigateToIt(policyOwnerEmail = '', policyName = '', transitionFromOldDot = false) {
+    const policyID = Policy.generatePolicyID();
+    Policy.createDraftInitialWorkspace(policyOwnerEmail, policyName, policyID);
+
+    Navigation.isNavigationReady()
+        .then(() => {
+            if (transitionFromOldDot) {
+                // We must call goBack() to remove the /transition route from history
+                Navigation.goBack(ROUTES.HOME);
+            }
+            Navigation.navigate(ROUTES.WORKSPACE_INITIAL.getRoute(policyID));
+        })
+        .then(endSignOnTransition);
+}
+
+/**
+ * Create a new workspace and delete the draft
+ *
+ * @param {String} [policyID] the ID of the policy to use
+ * @param {String} [policyName] custom policy name we will use for created workspace
+ * @param {String} [policyOwnerEmail] Optional, the email of the account to make the owner of the policy
+ * @param {Boolean} [makeMeAdmin] Optional, leave the calling account as an admin on the policy
+ */
+function savePolicyDraftByNewWorkspace(policyID, policyName, policyOwnerEmail = '', makeMeAdmin = false) {
+    Policy.createWorkspace(policyOwnerEmail, makeMeAdmin, policyName, policyID);
+}
+
 /**
  * This action runs when the Navigator is ready and the current route changes
  *
@@ -513,4 +547,6 @@ export {
     createWorkspaceAndNavigateToIt,
     getMissingOnyxUpdates,
     finalReconnectAppAfterActivatingReliableUpdates,
+    savePolicyDraftByNewWorkspace,
+    createWorkspaceWithPolicyDraftAndNavigateToIt,
 };
diff --git a/src/libs/actions/Policy.js b/src/libs/actions/Policy.js
index 1a73b148e100..53753e193fb1 100644
--- a/src/libs/actions/Policy.js
+++ b/src/libs/actions/Policy.js
@@ -909,6 +909,48 @@ function buildOptimisticCustomUnits() {
     };
 }
 
+/**
+ * Optimistically creates a Policy Draft for a new workspace
+ *
+ * @param {String} [policyOwnerEmail] Optional, the email of the account to make the owner of the policy
+ * @param {String} [policyName] Optional, custom policy name we will use for created workspace
+ * @param {String} [policyID] Optional, custom policy id we will use for created workspace
+ */
+function createDraftInitialWorkspace(policyOwnerEmail = '', policyName = '', policyID = generatePolicyID()) {
+    const workspaceName = policyName || generateDefaultWorkspaceName(policyOwnerEmail);
+    const {customUnits} = buildOptimisticCustomUnits();
+
+    const optimisticData = [
+        {
+            onyxMethod: Onyx.METHOD.SET,
+            key: `${ONYXKEYS.COLLECTION.POLICY_DRAFTS}${policyID}`,
+            value: {
+                id: policyID,
+                type: CONST.POLICY.TYPE.FREE,
+                name: workspaceName,
+                role: CONST.POLICY.ROLE.ADMIN,
+                owner: sessionEmail,
+                isPolicyExpenseChatEnabled: true,
+                outputCurrency: lodashGet(allPersonalDetails, [sessionAccountID, 'localCurrencyCode'], CONST.CURRENCY.USD),
+                pendingAction: CONST.RED_BRICK_ROAD_PENDING_ACTION.ADD,
+                customUnits,
+            },
+        },
+        {
+            onyxMethod: Onyx.METHOD.SET,
+            key: `${ONYXKEYS.COLLECTION.POLICY_MEMBERS_DRAFTS}${policyID}`,
+            value: {
+                [sessionAccountID]: {
+                    role: CONST.POLICY.ROLE.ADMIN,
+                    errors: {},
+                },
+            },
+        },
+    ];
+
+    Onyx.update(optimisticData);
+}
+
 /**
  * Optimistically creates a new workspace and default workspace chats
  *
@@ -1027,6 +1069,16 @@ function createWorkspace(policyOwnerEmail = '', makeMeAdmin = false, policyName
                     key: `${ONYXKEYS.COLLECTION.REPORT_ACTIONS}${expenseChatReportID}`,
                     value: expenseReportActionData,
                 },
+                {
+                    onyxMethod: Onyx.METHOD.SET,
+                    key: `${ONYXKEYS.COLLECTION.POLICY_DRAFTS}${policyID}`,
+                    value: null,
+                },
+                {
+                    onyxMethod: Onyx.METHOD.SET,
+                    key: `${ONYXKEYS.COLLECTION.POLICY_MEMBERS_DRAFTS}${policyID}`,
+                    value: null,
+                },
             ],
             successData: [
                 {
@@ -1131,6 +1183,7 @@ function createWorkspace(policyOwnerEmail = '', makeMeAdmin = false, policyName
             ],
         },
     );
+
     return adminsChatReportID;
 }
 
@@ -1259,4 +1312,5 @@ export {
     clearErrors,
     openDraftWorkspaceRequest,
     buildOptimisticPolicyRecentlyUsedCategories,
+    createDraftInitialWorkspace,
 };
diff --git a/src/pages/workspace/WorkspaceInitialPage.js b/src/pages/workspace/WorkspaceInitialPage.js
index 567aef1274e1..d275b7f0dd10 100644
--- a/src/pages/workspace/WorkspaceInitialPage.js
+++ b/src/pages/workspace/WorkspaceInitialPage.js
@@ -11,6 +11,7 @@ import Tooltip from '../../components/Tooltip';
 import Text from '../../components/Text';
 import ConfirmModal from '../../components/ConfirmModal';
 import * as Expensicons from '../../components/Icon/Expensicons';
+import * as App from '../../libs/actions/App';
 import ScreenWrapper from '../../components/ScreenWrapper';
 import withLocalize, {withLocalizePropTypes} from '../../components/withLocalize';
 import MenuItem from '../../components/MenuItem';
@@ -65,7 +66,7 @@ function dismissError(policyID) {
 }
 
 function WorkspaceInitialPage(props) {
-    const policy = props.policy;
+    const policy = props.policyDraft && props.policyDraft.id ? props.policyDraft : props.policy;
     const [isDeleteModalOpen, setIsDeleteModalOpen] = useState(false);
     const [isCurrencyModalOpen, setIsCurrencyModalOpen] = useState(false);
     const hasPolicyCreationError = Boolean(policy.pendingAction === CONST.RED_BRICK_ROAD_PENDING_ACTION.ADD && policy.errors);
@@ -81,6 +82,17 @@ function WorkspaceInitialPage(props) {
         Navigation.goBack(ROUTES.SETTINGS_WORKSPACES);
     }, [props.reports, policy]);
 
+    useEffect(() => {
+        const policyDraftId = lodashGet(props.policyDraft, 'id', null);
+        if (!policyDraftId) {
+            return;
+        }
+
+        App.savePolicyDraftByNewWorkspace(props.policyDraft.id, props.policyDraft.name, '', false);
+        // We only care when the component renders the first time
+        // eslint-disable-next-line react-hooks/exhaustive-deps
+    }, []);
+
     useEffect(() => {
         if (!isCurrencyModalOpen || policy.outputCurrency !== CONST.CURRENCY.USD) {
             return;
@@ -189,8 +201,8 @@ function WorkspaceInitialPage(props) {
             {({safeAreaPaddingBottomStyle}) => (
                 <FullPageNotFoundView
                     onBackButtonPress={() => Navigation.goBack(ROUTES.SETTINGS_WORKSPACES)}
-                    shouldShow={_.isEmpty(props.policy) || !PolicyUtils.isPolicyAdmin(props.policy) || PolicyUtils.isPendingDeletePolicy(props.policy)}
-                    subtitleKey={_.isEmpty(props.policy) ? undefined : 'workspace.common.notAuthorized'}
+                    shouldShow={_.isEmpty(policy) || !PolicyUtils.isPolicyAdmin(policy) || PolicyUtils.isPendingDeletePolicy(policy)}
+                    subtitleKey={_.isEmpty(policy) ? undefined : 'workspace.common.notAuthorized'}
                 >
                     <HeaderWithBackButton
                         title={props.translate('workspace.common.workspace')}
diff --git a/src/pages/workspace/WorkspacesListPage.js b/src/pages/workspace/WorkspacesListPage.js
index 369e84bab5d0..5a2e01562cc1 100755
--- a/src/pages/workspace/WorkspacesListPage.js
+++ b/src/pages/workspace/WorkspacesListPage.js
@@ -24,7 +24,6 @@ import * as App from '../../libs/actions/App';
 import useLocalize from '../../hooks/useLocalize';
 import useNetwork from '../../hooks/useNetwork';
 import usePermissions from '../../hooks/usePermissions';
-import useWindowDimensions from '../../hooks/useWindowDimensions';
 import IllustratedHeaderPageLayout from '../../components/IllustratedHeaderPageLayout';
 import SCREENS from '../../SCREENS';
 import * as LottieAnimations from '../../components/LottieAnimations';
@@ -112,7 +111,6 @@ function WorkspacesListPage({policies, allPolicyMembers, reimbursementAccount, u
     const {translate} = useLocalize();
     const {isOffline} = useNetwork();
     const {canUseWallet} = usePermissions();
-    const {isSmallScreenWidth} = useWindowDimensions();
 
     /**
      * @param {Boolean} isPaymentItem whether the item being rendered is the payments menu item
@@ -194,7 +192,7 @@ function WorkspacesListPage({policies, allPolicyMembers, reimbursementAccount, u
                     accessibilityLabel={translate('workspace.new.newWorkspace')}
                     success
                     text={translate('workspace.new.newWorkspace')}
-                    onPress={() => App.createWorkspaceAndNavigateToIt('', false, '', false, !isSmallScreenWidth)}
+                    onPress={() => App.createWorkspaceWithPolicyDraftAndNavigateToIt()}
                 />
             }
         >
diff --git a/src/pages/workspace/withPolicy.js b/src/pages/workspace/withPolicy.js
index b1659ea2b7a6..6ca0ca67fce1 100644
--- a/src/pages/workspace/withPolicy.js
+++ b/src/pages/workspace/withPolicy.js
@@ -120,6 +120,12 @@ export default function (WrappedComponent) {
         policyMembers: {
             key: (props) => `${ONYXKEYS.COLLECTION.POLICY_MEMBERS}${getPolicyIDFromRoute(props.route)}`,
         },
+        policyDraft: {
+            key: (props) => `${ONYXKEYS.COLLECTION.POLICY_DRAFTS}${getPolicyIDFromRoute(props.route)}`,
+        },
+        policyMembersDraft: {
+            key: (props) => `${ONYXKEYS.COLLECTION.POLICY_MEMBERS_DRAFTS}${getPolicyIDFromRoute(props.route)}`,
+        },
     })(withPolicy);
 }
 
diff --git a/src/pages/workspace/withPolicyAndFullscreenLoading.js b/src/pages/workspace/withPolicyAndFullscreenLoading.js
index 29f1424a26f6..8265169434a3 100644
--- a/src/pages/workspace/withPolicyAndFullscreenLoading.js
+++ b/src/pages/workspace/withPolicyAndFullscreenLoading.js
@@ -1,7 +1,8 @@
 import PropTypes from 'prop-types';
 import React from 'react';
 import {withOnyx} from 'react-native-onyx';
-import _ from 'underscore';
+import isEmpty from 'lodash/isEmpty';
+import omit from 'lodash/omit';
 import compose from '../../libs/compose';
 import ONYXKEYS from '../../ONYXKEYS';
 import withPolicy, {policyPropTypes, policyDefaultProps} from './withPolicy';
@@ -27,11 +28,11 @@ export default function (WrappedComponent) {
     };
 
     function WithPolicyAndFullscreenLoading(props) {
-        if (props.isLoadingReportData && _.isEmpty(props.policy)) {
+        if (props.isLoadingReportData && isEmpty(props.policy) && isEmpty(props.policyDraft)) {
             return <FullscreenLoadingIndicator />;
         }
 
-        const rest = _.omit(props, ['forwardedRef']);
+        const rest = omit(props, ['forwardedRef']);
         return (
             <WrappedComponent
                 // eslint-disable-next-line react/jsx-props-no-spreading