diff --git a/src/libs/actions/IOU.ts b/src/libs/actions/IOU.ts
index b9a8a05ba046..d72e7d5c83ba 100644
--- a/src/libs/actions/IOU.ts
+++ b/src/libs/actions/IOU.ts
@@ -322,14 +322,31 @@ function getReportPreviewAction(chatReportID: string, iouReportID: string): Onyx
  * @param policy
  * @param isFromGlobalCreate
  * @param iouRequestType one of manual/scan/distance
- * @param skipConfirmation if true, skip confirmation step
  */
 function initMoneyRequest(reportID: string, policy: OnyxEntry<OnyxTypes.Policy>, isFromGlobalCreate: boolean, iouRequestType: IOURequestType = CONST.IOU.REQUEST_TYPE.MANUAL) {
     // Generate a brand new transactionID
     const newTransactionID = CONST.IOU.OPTIMISTIC_TRANSACTION_ID;
+    const currency = policy?.outputCurrency ?? currentUserPersonalDetails?.localCurrencyCode ?? CONST.CURRENCY.USD;
     // Disabling this line since currentDate can be an empty string
     // eslint-disable-next-line @typescript-eslint/prefer-nullish-coalescing
     const created = currentDate || format(new Date(), 'yyyy-MM-dd');
+
+    const currentTransaction = allTransactionDrafts?.[`${ONYXKEYS.COLLECTION.TRANSACTION_DRAFT}${newTransactionID}`];
+
+    // in case we have to re-init money request, but the IOU request type is the same with the old draft transaction,
+    // we should keep most of the existing data by using the ONYX MERGE operation
+    if (currentTransaction?.iouRequestType === iouRequestType) {
+        // so, we just need to update the reportID, isFromGlobalCreate, created, currency
+        Onyx.merge(`${ONYXKEYS.COLLECTION.TRANSACTION_DRAFT}${newTransactionID}`, {
+            reportID,
+            isFromGlobalCreate,
+            created,
+            currency,
+            transactionID: newTransactionID,
+        });
+        return;
+    }
+
     const comment: Comment = {};
 
     // Add initial empty waypoints when starting a distance expense
@@ -350,7 +367,7 @@ function initMoneyRequest(reportID: string, policy: OnyxEntry<OnyxTypes.Policy>,
         amount: 0,
         comment,
         created,
-        currency: policy?.outputCurrency ?? currentUserPersonalDetails?.localCurrencyCode ?? CONST.CURRENCY.USD,
+        currency,
         iouRequestType,
         reportID,
         transactionID: newTransactionID,
diff --git a/src/pages/iou/request/IOURequestStartPage.tsx b/src/pages/iou/request/IOURequestStartPage.tsx
index 44f3c1b6a1bc..82bb947d1525 100644
--- a/src/pages/iou/request/IOURequestStartPage.tsx
+++ b/src/pages/iou/request/IOURequestStartPage.tsx
@@ -109,9 +109,12 @@ function IOURequestStartPage({
 
     const resetIOUTypeIfChanged = useCallback(
         (newIOUType: IOURequestType) => {
+            if (transaction?.iouRequestType === newIOUType) {
+                return;
+            }
             IOU.initMoneyRequest(reportID, policy, isFromGlobalCreate, newIOUType);
         },
-        [policy, reportID, isFromGlobalCreate],
+        [policy, reportID, isFromGlobalCreate, transaction],
     );
 
     if (!transaction?.transactionID) {
diff --git a/src/pages/iou/request/step/IOURequestStepConfirmation.tsx b/src/pages/iou/request/step/IOURequestStepConfirmation.tsx
index 5fef11fa4b15..db688156a0d7 100644
--- a/src/pages/iou/request/step/IOURequestStepConfirmation.tsx
+++ b/src/pages/iou/request/step/IOURequestStepConfirmation.tsx
@@ -187,7 +187,8 @@ function IOURequestStepConfirmation({
         // If there is not a report attached to the IOU with a reportID, then the participants were manually selected and the user needs taken
         // back to the participants step
         if (!transaction?.participantsAutoAssigned) {
-            Navigation.goBack(ROUTES.MONEY_REQUEST_STEP_PARTICIPANTS.getRoute(iouType, transactionID, reportID, undefined, action));
+            // eslint-disable-next-line @typescript-eslint/prefer-nullish-coalescing
+            Navigation.goBack(ROUTES.MONEY_REQUEST_STEP_PARTICIPANTS.getRoute(iouType, transactionID, transaction?.reportID || reportID, undefined, action));
             return;
         }
         IOUUtils.navigateToStartMoneyRequestStep(requestType, iouType, transactionID, reportID, action);