diff --git a/src/libs/actions/Policy/Category.ts b/src/libs/actions/Policy/Category.ts
index 3e98d564f5dd0..2e0a57c7e6f3b 100644
--- a/src/libs/actions/Policy/Category.ts
+++ b/src/libs/actions/Policy/Category.ts
@@ -107,7 +107,6 @@ function buildOptimisticPolicyCategories(policyID: string, categories: readonly
     const failureCategoryMap = categories.reduce<Record<string, Partial<PolicyCategory>>>((acc, category) => {
         acc[category] = {
             errors: ErrorUtils.getMicroSecondOnyxErrorWithTranslationKey('workspace.categories.createFailureMessage'),
-            pendingAction: null,
         };
         return acc;
     }, {});
@@ -943,6 +942,13 @@ function clearCategoryErrors(policyID: string, categoryName: string) {
         return;
     }
 
+    if (category.pendingAction === CONST.RED_BRICK_ROAD_PENDING_ACTION.ADD) {
+        Onyx.merge(`${ONYXKEYS.COLLECTION.POLICY_CATEGORIES}${policyID}`, {
+            [category.name]: null,
+        });
+        return;
+    }
+
     Onyx.merge(`${ONYXKEYS.COLLECTION.POLICY_CATEGORIES}${policyID}`, {
         [category.name]: {
             errors: null,
diff --git a/src/libs/actions/Policy/Tag.ts b/src/libs/actions/Policy/Tag.ts
index d792d9625b047..d5290ff41fa38 100644
--- a/src/libs/actions/Policy/Tag.ts
+++ b/src/libs/actions/Policy/Tag.ts
@@ -209,7 +209,6 @@ function createPolicyTag(policyID: string, tagName: string) {
                         tags: {
                             [newTagName]: {
                                 errors: ErrorUtils.getMicroSecondOnyxErrorWithTranslationKey('workspace.tags.genericFailureMessage'),
-                                pendingAction: null,
                             },
                         },
                     },