diff --git a/src/libs/actions/connections/index.ts b/src/libs/actions/connections/index.ts
index 99b30b127c900..1d2a1865d0442 100644
--- a/src/libs/actions/connections/index.ts
+++ b/src/libs/actions/connections/index.ts
@@ -280,6 +280,14 @@ function isConnectionUnverified(policy: OnyxEntry<Policy>, connectionName: Polic
     return !(policy?.connections?.[connectionName]?.lastSync?.isConnected ?? true);
 }
 
+/**
+ * Determines whether to use updateNetSuiteTokens (preserves config) or connectPolicyToNetSuite (full init)
+ * based on the connection's authentication and verification state.
+ */
+function shouldUseUpdateNetSuiteTokens(policy: OnyxEntry<Policy>): boolean {
+    return isAuthenticationError(policy, CONST.POLICY.CONNECTIONS.NAME.NETSUITE) && !isConnectionUnverified(policy, CONST.POLICY.CONNECTIONS.NAME.NETSUITE);
+}
+
 function setConnectionError(policyID: string, connectionName: PolicyConnectionName, errorMessage?: string) {
     Onyx.merge(`${ONYXKEYS.COLLECTION.POLICY}${policyID}`, {
         connections: {
@@ -359,4 +367,5 @@ export {
     isConnectionInProgress,
     hasSynchronizationErrorMessage,
     setConnectionError,
+    shouldUseUpdateNetSuiteTokens,
 };
diff --git a/src/pages/workspace/accounting/netsuite/NetSuiteTokenInput/subPages/NetSuiteTokenInputForm.tsx b/src/pages/workspace/accounting/netsuite/NetSuiteTokenInput/subPages/NetSuiteTokenInputForm.tsx
index 671722aa583ed..286e34f50e055 100644
--- a/src/pages/workspace/accounting/netsuite/NetSuiteTokenInput/subPages/NetSuiteTokenInputForm.tsx
+++ b/src/pages/workspace/accounting/netsuite/NetSuiteTokenInput/subPages/NetSuiteTokenInputForm.tsx
@@ -10,7 +10,7 @@ import useAutoFocusInput from '@hooks/useAutoFocusInput';
 import useLocalize from '@hooks/useLocalize';
 import usePolicy from '@hooks/usePolicy';
 import useThemeStyles from '@hooks/useThemeStyles';
-import {isAuthenticationError, isConnectionUnverified} from '@libs/actions/connections';
+import {shouldUseUpdateNetSuiteTokens} from '@libs/actions/connections';
 import {connectPolicyToNetSuite, updateNetSuiteTokens} from '@libs/actions/connections/NetSuiteCommands';
 import {isMobileSafari} from '@libs/Browser';
 import {addErrorMessage} from '@libs/ErrorUtils';
@@ -49,7 +49,7 @@ function NetSuiteTokenInputForm({onNext, policyID}: CustomSubPageTokenInputProps
                 return;
             }
 
-            if (isAuthenticationError(policy, CONST.POLICY.CONNECTIONS.NAME.NETSUITE) && !isConnectionUnverified(policy, CONST.POLICY.CONNECTIONS.NAME.NETSUITE)) {
+            if (shouldUseUpdateNetSuiteTokens(policy)) {
                 updateNetSuiteTokens(policyID, formValues);
             } else {
                 connectPolicyToNetSuite(policyID, formValues);
diff --git a/tests/actions/connections/NetSuite.ts b/tests/actions/connections/NetSuite.ts
new file mode 100644
index 0000000000000..eec23cb6d1fe9
--- /dev/null
+++ b/tests/actions/connections/NetSuite.ts
@@ -0,0 +1,160 @@
+import Onyx from 'react-native-onyx';
+import type {OnyxEntry} from 'react-native-onyx';
+import {shouldUseUpdateNetSuiteTokens} from '@libs/actions/connections';
+import {connectPolicyToNetSuite, updateNetSuiteTokens} from '@libs/actions/connections/NetSuiteCommands';
+// eslint-disable-next-line no-restricted-syntax -- this is required to allow mocking
+import * as API from '@libs/API';
+import type {WriteCommand} from '@libs/API/types';
+import {WRITE_COMMANDS} from '@libs/API/types';
+import CONST from '@src/CONST';
+import ONYXKEYS from '@src/ONYXKEYS';
+import type {Policy} from '@src/types/onyx';
+import type {AnyOnyxData} from '@src/types/onyx/Request';
+import waitForBatchedUpdates from '../../utils/waitForBatchedUpdates';
+
+jest.mock('@libs/API');
+
+const writeSpy = jest.spyOn(API, 'write');
+
+const MOCK_POLICY_ID = 'MOCK_POLICY_ID';
+const MOCK_CREDENTIALS = {
+    netSuiteAccountID: 'account-123',
+    netSuiteTokenID: 'token-123',
+    netSuiteTokenSecret: 'secret-123',
+};
+
+function getFirstWriteCall(): {command: WriteCommand; onyxData?: AnyOnyxData} {
+    const call = writeSpy.mock.calls.at(0);
+    if (!call) {
+        throw new Error('API.write was not called');
+    }
+    const [command, , onyxData] = call;
+    return {command, onyxData};
+}
+
+function createPolicy(options: {isAuthError?: boolean; verified?: boolean}): OnyxEntry<Policy> {
+    return {
+        id: MOCK_POLICY_ID,
+        connections: {
+            netsuite: {
+                verified: options.verified ?? false,
+                lastSync: {
+                    isAuthenticationError: options.isAuthError ?? false,
+                },
+            },
+        },
+    } as unknown as Policy;
+}
+
+describe('actions/connections/NetSuite', () => {
+    beforeAll(() => {
+        Onyx.init({
+            keys: ONYXKEYS,
+        });
+    });
+
+    beforeEach(() => {
+        jest.clearAllMocks();
+        return Onyx.clear().then(waitForBatchedUpdates);
+    });
+
+    describe('connectPolicyToNetSuite', () => {
+        it('writes the ConnectPolicyToNetSuite command', () => {
+            connectPolicyToNetSuite(MOCK_POLICY_ID, MOCK_CREDENTIALS);
+
+            const {command} = getFirstWriteCall();
+            expect(command).toBe(WRITE_COMMANDS.CONNECT_POLICY_TO_NETSUITE);
+        });
+
+        it('passes the policyID and credentials as parameters', () => {
+            connectPolicyToNetSuite(MOCK_POLICY_ID, MOCK_CREDENTIALS);
+
+            const call = writeSpy.mock.calls.at(0);
+            expect(call).toBeDefined();
+            const params = call?.[1];
+            expect(params).toEqual({
+                policyID: MOCK_POLICY_ID,
+                ...MOCK_CREDENTIALS,
+            });
+        });
+
+        it('sets optimistic sync progress data', () => {
+            connectPolicyToNetSuite(MOCK_POLICY_ID, MOCK_CREDENTIALS);
+
+            const {onyxData} = getFirstWriteCall();
+            const optimisticUpdate = onyxData?.optimisticData?.at(0);
+
+            expect(optimisticUpdate?.onyxMethod).toBe(Onyx.METHOD.MERGE);
+            expect(optimisticUpdate?.key).toBe(`${ONYXKEYS.COLLECTION.POLICY_CONNECTION_SYNC_PROGRESS}${MOCK_POLICY_ID}`);
+            expect(optimisticUpdate?.value).toEqual(
+                expect.objectContaining({
+                    stageInProgress: CONST.POLICY.CONNECTIONS.SYNC_STAGE_NAME.NETSUITE_SYNC_CONNECTION,
+                    connectionName: CONST.POLICY.CONNECTIONS.NAME.NETSUITE,
+                }),
+            );
+        });
+    });
+
+    describe('updateNetSuiteTokens', () => {
+        it('writes the UpdateNetSuiteTokens command', () => {
+            updateNetSuiteTokens(MOCK_POLICY_ID, MOCK_CREDENTIALS);
+
+            const {command} = getFirstWriteCall();
+            expect(command).toBe(WRITE_COMMANDS.UPDATE_NETSUITE_TOKENS);
+        });
+
+        it('passes the policyID and credentials as parameters', () => {
+            updateNetSuiteTokens(MOCK_POLICY_ID, MOCK_CREDENTIALS);
+
+            const call = writeSpy.mock.calls.at(0);
+            expect(call).toBeDefined();
+            const params = call?.[1];
+            expect(params).toEqual({
+                policyID: MOCK_POLICY_ID,
+                ...MOCK_CREDENTIALS,
+            });
+        });
+
+        it('sets optimistic sync progress data', () => {
+            updateNetSuiteTokens(MOCK_POLICY_ID, MOCK_CREDENTIALS);
+
+            const {onyxData} = getFirstWriteCall();
+            const optimisticUpdate = onyxData?.optimisticData?.at(0);
+
+            expect(optimisticUpdate?.onyxMethod).toBe(Onyx.METHOD.MERGE);
+            expect(optimisticUpdate?.key).toBe(`${ONYXKEYS.COLLECTION.POLICY_CONNECTION_SYNC_PROGRESS}${MOCK_POLICY_ID}`);
+            expect(optimisticUpdate?.value).toEqual(
+                expect.objectContaining({
+                    stageInProgress: CONST.POLICY.CONNECTIONS.SYNC_STAGE_NAME.NETSUITE_SYNC_CONNECTION,
+                    connectionName: CONST.POLICY.CONNECTIONS.NAME.NETSUITE,
+                }),
+            );
+        });
+    });
+
+    describe('shouldUseUpdateNetSuiteTokens', () => {
+        it('returns false for unverified connection with auth error (regression case)', () => {
+            const policy = createPolicy({isAuthError: true, verified: false});
+            expect(shouldUseUpdateNetSuiteTokens(policy)).toBe(false);
+        });
+
+        it('returns true for verified connection with auth error', () => {
+            const policy = createPolicy({isAuthError: true, verified: true});
+            expect(shouldUseUpdateNetSuiteTokens(policy)).toBe(true);
+        });
+
+        it('returns false when there is no auth error', () => {
+            const policy = createPolicy({isAuthError: false, verified: true});
+            expect(shouldUseUpdateNetSuiteTokens(policy)).toBe(false);
+        });
+
+        it('returns false when policy is undefined', () => {
+            expect(shouldUseUpdateNetSuiteTokens(undefined)).toBe(false);
+        });
+
+        it('returns false for unverified connection without auth error', () => {
+            const policy = createPolicy({isAuthError: false, verified: false});
+            expect(shouldUseUpdateNetSuiteTokens(policy)).toBe(false);
+        });
+    });
+});