diff --git a/src/libs/actions/Report.js b/src/libs/actions/Report.js
index e7e1a82100aa..f33056cdaed0 100644
--- a/src/libs/actions/Report.js
+++ b/src/libs/actions/Report.js
@@ -1200,8 +1200,9 @@ function navigateToConciergeChat() {
  * @param {Array} policyMembers
  */
 function addPolicyReport(policyID, reportName, visibility, policyMembers) {
-    // The participants include the current user (admin) and the employees. Participants must not be empty.
-    const participants = _.unique([currentUserAccountID, ...policyMembers]);
+    // The participants include the current user (admin), and for restricted rooms, the policy members. Participants must not be empty.
+    const members = visibility === CONST.REPORT.VISIBILITY.RESTRICTED ? policyMembers : [];
+    const participants = _.unique([currentUserAccountID, ...members]);
     const policyReport = ReportUtils.buildOptimisticChatReport(
         participants,
         reportName,