diff --git a/src/libs/actions/Report.js b/src/libs/actions/Report.js
index a03488429405..f1be266894ad 100644
--- a/src/libs/actions/Report.js
+++ b/src/libs/actions/Report.js
@@ -1540,32 +1540,9 @@ function navigateToConciergeChat(ignoreConciergeReportID = false) {
 /**
  * Add a policy report (workspace room) optimistically and navigate to it.
  *
- * @param {String} policyID
- * @param {String} reportName
- * @param {String} visibility
- * @param {String} writeCapability
- * @param {String} welcomeMessage
- */
-function addPolicyReport(policyID, reportName, visibility, writeCapability = CONST.REPORT.WRITE_CAPABILITIES.ALL, welcomeMessage = '') {
-    const participants = [currentUserAccountID];
-    const parsedWelcomeMessage = ReportUtils.getParsedComment(welcomeMessage);
-    const policyReport = ReportUtils.buildOptimisticChatReport(
-        participants,
-        reportName,
-        CONST.REPORT.CHAT_TYPE.POLICY_ROOM,
-        policyID,
-        CONST.REPORT.OWNER_ACCOUNT_ID_FAKE,
-        false,
-        '',
-        visibility,
-        writeCapability,
-
-        // The room might contain all policy members so notifying always should be opt-in only.
-        CONST.REPORT.NOTIFICATION_PREFERENCE.DAILY,
-        '',
-        '',
-        parsedWelcomeMessage,
-    );
+ * @param {Object} policyReport
+ */
+function addPolicyReport(policyReport) {
     const createdReportAction = ReportUtils.buildOptimisticCreatedReportAction(CONST.POLICY.OWNER_EMAIL_FAKE);
 
     // Onyx.set is used on the optimistic data so that it is present before navigating to the workspace room. With Onyx.merge the workspace room reportID is not present when
@@ -1587,6 +1564,11 @@ function addPolicyReport(policyID, reportName, visibility, writeCapability = CON
             key: `${ONYXKEYS.COLLECTION.REPORT_ACTIONS}${policyReport.reportID}`,
             value: {[createdReportAction.reportActionID]: createdReportAction},
         },
+        {
+            onyxMethod: Onyx.METHOD.MERGE,
+            key: ONYXKEYS.FORMS.NEW_ROOM_FORM,
+            value: {isLoading: true},
+        },
     ];
     const successData = [
         {
@@ -1607,6 +1589,11 @@ function addPolicyReport(policyID, reportName, visibility, writeCapability = CON
                 },
             },
         },
+        {
+            onyxMethod: Onyx.METHOD.MERGE,
+            key: ONYXKEYS.FORMS.NEW_ROOM_FORM,
+            value: {isLoading: false},
+        },
     ];
     const failureData = [
         {
@@ -1618,22 +1605,26 @@ function addPolicyReport(policyID, reportName, visibility, writeCapability = CON
                 },
             },
         },
+        {
+            onyxMethod: Onyx.METHOD.MERGE,
+            key: ONYXKEYS.FORMS.NEW_ROOM_FORM,
+            value: {isLoading: false},
+        },
     ];
 
     API.write(
         'AddWorkspaceRoom',
         {
             policyID: policyReport.policyID,
-            reportName,
-            visibility,
+            reportName: policyReport.reportName,
+            visibility: policyReport.visibility,
             reportID: policyReport.reportID,
             createdReportActionID: createdReportAction.reportActionID,
-            writeCapability,
-            welcomeMessage: parsedWelcomeMessage,
+            writeCapability: policyReport.writeCapability,
+            welcomeMessage: policyReport.welcomeMessage,
         },
         {optimisticData, successData, failureData},
     );
-    Navigation.dismissModal(policyReport.reportID);
 }
 
 /**
@@ -2502,6 +2493,13 @@ function searchInServer(searchInput) {
     debouncedSearchInServer(searchInput);
 }
 
+function clearNewRoomFormError() {
+    Onyx.set(ONYXKEYS.FORMS.NEW_ROOM_FORM, {
+        isLoading: false,
+        errorFields: {},
+    });
+}
+
 export {
     searchInServer,
     addComment,
@@ -2563,4 +2561,5 @@ export {
     openRoomMembersPage,
     savePrivateNotesDraft,
     getDraftPrivateNote,
+    clearNewRoomFormError,
 };
diff --git a/src/pages/workspace/WorkspaceNewRoomPage.js b/src/pages/workspace/WorkspaceNewRoomPage.js
index 2abc6c3d13fa..a7d32a8e54af 100644
--- a/src/pages/workspace/WorkspaceNewRoomPage.js
+++ b/src/pages/workspace/WorkspaceNewRoomPage.js
@@ -17,9 +17,11 @@ import withNavigationFocus from '@components/withNavigationFocus';
 import useAutoFocusInput from '@hooks/useAutoFocusInput';
 import useLocalize from '@hooks/useLocalize';
 import useNetwork from '@hooks/useNetwork';
+import usePrevious from '@hooks/usePrevious';
 import useWindowDimensions from '@hooks/useWindowDimensions';
 import compose from '@libs/compose';
 import * as ErrorUtils from '@libs/ErrorUtils';
+import Navigation from '@libs/Navigation/Navigation';
 import Permissions from '@libs/Permissions';
 import * as PolicyUtils from '@libs/PolicyUtils';
 import * as ReportUtils from '@libs/ReportUtils';
@@ -63,11 +65,33 @@ const propTypes = {
 
     /** Whether navigation is focused */
     isFocused: PropTypes.bool.isRequired,
+
+    /** Form state for NEW_ROOM_FORM */
+    formState: PropTypes.shape({
+        /** Loading state for the form */
+        isLoading: PropTypes.bool,
+
+        /** Field errors in the form */
+        errorFields: PropTypes.objectOf(PropTypes.objectOf(PropTypes.string)),
+    }),
+
+    /** Session details for the user */
+    session: PropTypes.shape({
+        /** accountID of current user */
+        accountID: PropTypes.number,
+    }),
 };
 const defaultProps = {
     betas: [],
     reports: {},
     policies: {},
+    formState: {
+        isLoading: false,
+        errorFields: {},
+    },
+    session: {
+        accountID: 0,
+    },
 };
 
 function WorkspaceNewRoomPage(props) {
@@ -78,6 +102,7 @@ function WorkspaceNewRoomPage(props) {
     const [visibility, setVisibility] = useState(CONST.REPORT.VISIBILITY.RESTRICTED);
     const [policyID, setPolicyID] = useState(null);
     const [writeCapability, setWriteCapability] = useState(CONST.REPORT.WRITE_CAPABILITIES.ALL);
+    const wasLoading = usePrevious(props.formState.isLoading);
     const visibilityDescription = useMemo(() => translate(`newRoomPage.${visibility}Description`), [translate, visibility]);
     const isPolicyAdmin = useMemo(() => {
         if (!policyID) {
@@ -86,14 +111,47 @@ function WorkspaceNewRoomPage(props) {
 
         return ReportUtils.isPolicyAdmin(policyID, props.policies);
     }, [policyID, props.policies]);
+    const [newRoomReportID, setNewRoomReportID] = useState(undefined);
 
     /**
      * @param {Object} values - form input values passed by the Form component
      */
     const submit = (values) => {
-        Report.addPolicyReport(policyID, values.roomName, visibility, writeCapability, values.welcomeMessage);
+        const participants = [props.session.accountID];
+        const parsedWelcomeMessage = ReportUtils.getParsedComment(values.welcomeMessage);
+        const policyReport = ReportUtils.buildOptimisticChatReport(
+            participants,
+            values.roomName,
+            CONST.REPORT.CHAT_TYPE.POLICY_ROOM,
+            policyID,
+            CONST.REPORT.OWNER_ACCOUNT_ID_FAKE,
+            false,
+            '',
+            visibility,
+            writeCapability || CONST.REPORT.WRITE_CAPABILITIES.ALL,
+
+            // The room might contain all policy members so notifying always should be opt-in only.
+            CONST.REPORT.NOTIFICATION_PREFERENCE.DAILY,
+            '',
+            '',
+            parsedWelcomeMessage,
+        );
+        setNewRoomReportID(policyReport.reportID);
+        Report.addPolicyReport(policyReport);
     };
 
+    useEffect(() => {
+        Report.clearNewRoomFormError();
+    }, []);
+
+    useEffect(() => {
+        if (!(((wasLoading && !props.formState.isLoading) || (isOffline && props.formState.isLoading)) && _.isEmpty(props.formState.errorFields))) {
+            return;
+        }
+        Navigation.dismissModal(newRoomReportID);
+        // eslint-disable-next-line react-hooks/exhaustive-deps -- we just want this to update on changing the form State
+    }, [props.formState]);
+
     useEffect(() => {
         if (isPolicyAdmin) {
             return;
@@ -270,5 +328,11 @@ export default compose(
         reports: {
             key: ONYXKEYS.COLLECTION.REPORT,
         },
+        formState: {
+            key: ONYXKEYS.FORMS.NEW_ROOM_FORM,
+        },
+        session: {
+            key: ONYXKEYS.SESSION,
+        },
     }),
 )(WorkspaceNewRoomPage);