diff --git a/src/pages/iou/request/IOURequestStartPage.tsx b/src/pages/iou/request/IOURequestStartPage.tsx
index ad31274e5e2c5..755cc80921283 100644
--- a/src/pages/iou/request/IOURequestStartPage.tsx
+++ b/src/pages/iou/request/IOURequestStartPage.tsx
@@ -69,7 +69,9 @@ function IOURequestStartPage({
     const [report] = useOnyx(`${ONYXKEYS.COLLECTION.REPORT}${reportID}`, {canBeMissing: true});
     const [parentReport] = useOnyx(`${ONYXKEYS.COLLECTION.REPORT}${report?.parentReportID}`, {canBeMissing: true});
     const policy = usePolicy(report?.policyID);
-    const [selectedTab, selectedTabResult] = useOnyx(`${ONYXKEYS.COLLECTION.SELECTED_TAB}${CONST.TAB.IOU_REQUEST_TYPE}`, {canBeMissing: true});
+    const [lastSelectedTab, selectedTabResult] = useOnyx(`${ONYXKEYS.COLLECTION.SELECTED_TAB}${CONST.TAB.IOU_REQUEST_TYPE}`, {canBeMissing: true});
+    const [selectedTab, setSelectedTab] = useState(lastSelectedTab);
+
     const isLoadingSelectedTab = shouldUseTab ? isLoadingOnyxValue(selectedTabResult) : false;
     const [transaction, transactionResult] = useOnyx(`${ONYXKEYS.COLLECTION.TRANSACTION_DRAFT}${getNonEmptyStringOnyxID(route?.params.transactionID)}`, {canBeMissing: true});
     const isLoadingTransaction = isLoadingOnyxValue(transactionResult);
@@ -135,6 +137,16 @@ function IOURequestStartPage({
         Performance.markEnd(CONST.TIMING.OPEN_CREATE_EXPENSE);
     }, []);
 
+    useEffect(() => {
+        if (isLoadingSelectedTab || selectedTab) {
+            return;
+        }
+        setSelectedTab(lastSelectedTab);
+        // We only want to set the selected tab when selectedTab is not set yet, don't want to run this effect again when lastSelectedTab changes
+        // eslint-disable-next-line react-compiler/react-compiler
+        // eslint-disable-next-line react-hooks/exhaustive-deps
+    }, [isLoadingSelectedTab, selectedTab]);
+
     const navigateBack = () => {
         Navigation.closeRHPFlow();
     };
@@ -177,6 +189,14 @@ function IOURequestStartPage({
         ],
     );
 
+    const onTabSelected = useCallback(
+        (newIouType: IOURequestType) => {
+            setSelectedTab(newIouType);
+            resetIOUTypeIfChanged(newIouType);
+        },
+        [resetIOUTypeIfChanged],
+    );
+
     // Clear out the temporary expense if the reportID in the URL has changed from the transaction's reportID.
     useFocusEffect(
         useCallback(() => {
@@ -253,7 +273,7 @@ function IOURequestStartPage({
                             <OnyxTabNavigator
                                 id={CONST.TAB.IOU_REQUEST_TYPE}
                                 defaultSelectedTab={defaultSelectedTab}
-                                onTabSelected={resetIOUTypeIfChanged}
+                                onTabSelected={onTabSelected}
                                 tabBar={TabSelector}
                                 onTabBarFocusTrapContainerElementChanged={setTabBarContainerElement}
                                 onActiveTabFocusTrapContainerElementChanged={setActiveTabContainerElement}