diff --git a/src/libs/ReportUtils.js b/src/libs/ReportUtils.js
index 746ecb7e20a4..591656b5c06a 100644
--- a/src/libs/ReportUtils.js
+++ b/src/libs/ReportUtils.js
@@ -3580,6 +3580,15 @@ function getPolicyExpenseChatReportIDByOwner(policyOwner) {
     return expenseChat.reportID;
 }
 
+/**
+ * @param {String} policyID
+ * @param {Array} accountIDs
+ * @returns {Array}
+ */
+function getWorkspaceChats(policyID, accountIDs) {
+    return _.filter(allReports, (report) => isPolicyExpenseChat(report) && lodashGet(report, 'policyID', '') === policyID && _.contains(accountIDs, lodashGet(report, 'ownerAccountID', '')));
+}
+
 /*
  * @param {Object|null} report
  * @returns {Boolean}
@@ -3945,6 +3954,7 @@ export {
     isDM,
     getPolicy,
     getPolicyExpenseChatReportIDByOwner,
+    getWorkspaceChats,
     shouldDisableSettings,
     shouldDisableRename,
     hasSingleParticipant,
diff --git a/src/libs/actions/Policy.js b/src/libs/actions/Policy.js
index 3e5e91a74488..1a73b148e100 100644
--- a/src/libs/actions/Policy.js
+++ b/src/libs/actions/Policy.js
@@ -204,14 +204,37 @@ function removeMembers(accountIDs, policyID) {
     if (accountIDs.length === 0) {
         return;
     }
+
     const membersListKey = `${ONYXKEYS.COLLECTION.POLICY_MEMBERS}${policyID}`;
+    const policy = ReportUtils.getPolicy(policyID);
+    const workspaceChats = ReportUtils.getWorkspaceChats(policyID, accountIDs);
+    const optimisticClosedReportActions = _.map(workspaceChats, () =>
+        ReportUtils.buildOptimisticClosedReportAction(sessionEmail, policy.name, CONST.REPORT.ARCHIVE_REASON.REMOVED_FROM_POLICY),
+    );
+
     const optimisticData = [
         {
             onyxMethod: Onyx.METHOD.MERGE,
             key: membersListKey,
             value: _.object(accountIDs, Array(accountIDs.length).fill({pendingAction: CONST.RED_BRICK_ROAD_PENDING_ACTION.DELETE})),
         },
+        ..._.map(workspaceChats, (report) => ({
+            onyxMethod: Onyx.METHOD.MERGE,
+            key: `${ONYXKEYS.COLLECTION.REPORT}${report.reportID}`,
+            value: {
+                statusNum: CONST.REPORT.STATUS.CLOSED,
+                stateNum: CONST.REPORT.STATE_NUM.SUBMITTED,
+                oldPolicyName: policy.name,
+                hasDraft: false,
+            },
+        })),
+        ..._.map(optimisticClosedReportActions, (reportAction, index) => ({
+            onyxMethod: Onyx.METHOD.MERGE,
+            key: `${ONYXKEYS.COLLECTION.REPORT_ACTIONS}${workspaceChats[index].reportID}`,
+            value: {[reportAction.reportActionID]: reportAction},
+        })),
     ];
+
     const successData = [
         {
             onyxMethod: Onyx.METHOD.MERGE,
@@ -225,6 +248,21 @@ function removeMembers(accountIDs, policyID) {
             key: membersListKey,
             value: _.object(accountIDs, Array(accountIDs.length).fill({errors: ErrorUtils.getMicroSecondOnyxError('workspace.people.error.genericRemove')})),
         },
+        ..._.map(workspaceChats, ({reportID, stateNum, statusNum, hasDraft, oldPolicyName = null}) => ({
+            onyxMethod: Onyx.METHOD.MERGE,
+            key: `${ONYXKEYS.COLLECTION.REPORT}${reportID}`,
+            value: {
+                stateNum,
+                statusNum,
+                hasDraft,
+                oldPolicyName,
+            },
+        })),
+        ..._.map(optimisticClosedReportActions, (reportAction, index) => ({
+            onyxMethod: Onyx.METHOD.MERGE,
+            key: `${ONYXKEYS.COLLECTION.REPORT_ACTIONS}${workspaceChats[index].reportID}`,
+            value: {[reportAction.reportActionID]: null},
+        })),
     ];
     API.write(
         'DeleteMembersFromWorkspace',