diff --git a/.changeset/funny-snails-promise.md b/.changeset/funny-snails-promise.md
new file mode 100644
index 000000000000..bdd74a60b1e9
--- /dev/null
+++ b/.changeset/funny-snails-promise.md
@@ -0,0 +1,10 @@
+---
+"@rocket.chat/meteor": patch
+"@rocket.chat/livechat": patch
+---
+
+livechat `setDepartment` livechat api fixes: 
+- Changing department didn't reflect on the registration form in real time
+- Changing the department mid conversation didn't transfer the chat
+- Depending on the state of the department, it couldn't be set as default
+
diff --git a/apps/meteor/tests/e2e/omnichannel/omnichannel-livechat-api.spec.ts b/apps/meteor/tests/e2e/omnichannel/omnichannel-livechat-api.spec.ts
index bf77840446dc..278df11f16cb 100644
--- a/apps/meteor/tests/e2e/omnichannel/omnichannel-livechat-api.spec.ts
+++ b/apps/meteor/tests/e2e/omnichannel/omnichannel-livechat-api.spec.ts
@@ -212,7 +212,6 @@ test.describe('OC - Livechat API', () => {
 		test.skip(!IS_EE, 'Enterprise Only');
 		// Tests that requires interaction from an agent or more
 		let poAuxContext: { page: Page; poHomeOmnichannel: HomeOmnichannel };
-		let poAuxContext2: { page: Page; poHomeOmnichannel: HomeOmnichannel };
 		let poLiveChat: OmnichannelLiveChatEmbedded;
 		let page: Page;
 		let agent: Awaited<ReturnType<typeof createAgent>>;
@@ -247,18 +246,12 @@ test.describe('OC - Livechat API', () => {
 				await poAuxContext.poHomeOmnichannel.sidenav.switchStatus('online');
 			}
 
-			if (testInfo.title === 'OC - Livechat API - setDepartment') {
-				const { page: pageCtx2 } = await createAuxContext(browser, Users.user2);
-				poAuxContext2 = { page: pageCtx2, poHomeOmnichannel: new HomeOmnichannel(pageCtx) };
-			}
-
 			await page.goto('/packages/rocketchat_livechat/assets/demo.html');
 		});
 
 		test.afterEach(async () => {
 			await poAuxContext.page.close();
 			await page.close();
-			await poAuxContext2?.page.close();
 			await pageContext?.close();
 		});
 
@@ -316,41 +309,100 @@ test.describe('OC - Livechat API', () => {
 			});
 		});
 
-		test('OC - Livechat API - setDepartment', async () => {
-			const [departmentA, departmentB] = departments.map(({ data }) => data);
-			const registerGuestVisitor = {
-				name: faker.person.firstName(),
-				email: faker.internet.email(),
-				token: faker.string.uuid(),
-				department: departmentA._id,
-			};
+		test.describe('OC - Livechat API - setDepartment', () => {
+			let poAuxContext2: { page: Page; poHomeOmnichannel: HomeOmnichannel };
 
-			// Start Chat
-			await poLiveChat.page.evaluate(() => window.RocketChat.livechat.maximizeWidget());
-			await expect(page.frameLocator('#rocketchat-iframe').getByText('Start Chat')).toBeVisible();
+			test.beforeEach(async ({ browser }) => {
+				const { page: pageCtx2 } = await createAuxContext(browser, Users.user2);
+				poAuxContext2 = { page: pageCtx2, poHomeOmnichannel: new HomeOmnichannel(pageCtx2) };
+			});
 
-			await poLiveChat.page.evaluate(
-				(registerGuestVisitor) => window.RocketChat.livechat.registerGuest(registerGuestVisitor),
-				registerGuestVisitor,
-			);
+			test.afterEach(async () => {
+				await poAuxContext2.page.close();
+			});
 
-			await expect(page.frameLocator('#rocketchat-iframe').getByText('Start Chat')).not.toBeVisible();
+			test('setDepartment - Called during ongoing conversation', async () => {
+				const [departmentA, departmentB] = departments.map(({ data }) => data);
+				const registerGuestVisitor = {
+					name: faker.person.firstName(),
+					email: faker.internet.email(),
+					token: faker.string.uuid(),
+					department: departmentA._id,
+				};
 
-			await poLiveChat.onlineAgentMessage.type('this_a_test_message_from_visitor');
-			await poLiveChat.btnSendMessageToOnlineAgent.click();
+				// Start Chat
+				await poLiveChat.page.evaluate(() => window.RocketChat.livechat.maximizeWidget());
+				await expect(page.frameLocator('#rocketchat-iframe').getByText('Start Chat')).toBeVisible();
 
-			await test.step('Expect registered guest to be in dep1', async () => {
-				await poAuxContext.poHomeOmnichannel.sidenav.openChat(registerGuestVisitor.name);
+				await poLiveChat.page.evaluate(
+					(registerGuestVisitor) => window.RocketChat.livechat.registerGuest(registerGuestVisitor),
+					registerGuestVisitor,
+				);
+
+				await expect(page.frameLocator('#rocketchat-iframe').getByText('Start Chat')).not.toBeVisible();
+
+				await poLiveChat.onlineAgentMessage.type('this_a_test_message_from_visitor');
+				await poLiveChat.btnSendMessageToOnlineAgent.click();
+
+				await test.step('Expect registered guest to be in dep1', async () => {
+					await poAuxContext.poHomeOmnichannel.sidenav.openChat(registerGuestVisitor.name);
+					await expect(poAuxContext.poHomeOmnichannel.content.channelHeader).toContainText(registerGuestVisitor.name);
+				});
+
+				const depId = departmentB._id;
+
+				await test.step('Expect chat not be transferred', async () => {
+					await poLiveChat.page.evaluate((depId) => window.RocketChat.livechat.setDepartment(depId), depId);
+
+					await poAuxContext2.page.locator('role=navigation >> role=button[name=Search]').click();
+					await poAuxContext2.page.locator('role=search >> role=searchbox').fill(registerGuestVisitor.name);
+					await expect(
+						poAuxContext2.page.locator(`role=search >> role=listbox >> role=link >> text="${registerGuestVisitor.name}"`),
+					).not.toBeVisible();
+				});
+
+				await test.step('Expect registered guest to still be in dep1', async () => {
+					await poAuxContext.poHomeOmnichannel.sidenav.openChat(registerGuestVisitor.name);
+					await expect(poAuxContext.poHomeOmnichannel.content.channelHeader).toContainText(registerGuestVisitor.name);
+				});
 			});
 
-			const depId = departmentB._id;
+			test('setDepartment - Called before conversation', async () => {
+				const departmentB = departments[1].data;
+				const registerGuestVisitor = {
+					name: faker.person.firstName(),
+					email: faker.internet.email(),
+				};
+
+				const depId = departmentB._id;
 
-			await test.step('Expect setDepartment to change a guest department', async () => {
 				await poLiveChat.page.evaluate((depId) => window.RocketChat.livechat.setDepartment(depId), depId);
-			});
 
-			await test.step('Expect registered guest to be in dep2', async () => {
-				await poAuxContext2.poHomeOmnichannel.sidenav.openChat(registerGuestVisitor.name);
+				await poLiveChat.page.evaluate(() => window.RocketChat.livechat.maximizeWidget());
+				await expect(page.frameLocator('#rocketchat-iframe').getByText('Start Chat')).toBeVisible();
+
+				await poLiveChat.sendMessage(registerGuestVisitor, false);
+
+				await poLiveChat.onlineAgentMessage.type('this_a_test_message_from_visitor');
+				await poLiveChat.btnSendMessageToOnlineAgent.click();
+
+				await test.step('Expect registered guest to be in dep2', async () => {
+					await poAuxContext2.page.locator('role=navigation >> role=button[name=Search]').click();
+					await poAuxContext2.page.locator('role=search >> role=searchbox').fill(registerGuestVisitor.name);
+					await poAuxContext2.page.locator(`role=search >> role=listbox >> role=link >> text="${registerGuestVisitor.name}"`).click();
+					await poAuxContext2.page.locator('role=main').waitFor();
+					await poAuxContext2.page.locator('role=main >> role=heading[level=1]').waitFor();
+					await expect(poAuxContext2.page.locator('role=main >> .rcx-skeleton')).toHaveCount(0);
+					await expect(poAuxContext2.page.locator('role=main >> role=list')).not.toHaveAttribute('aria-busy', 'true');
+				});
+
+				await test.step('Expect registered guest not to be in dep1', async () => {
+					await poAuxContext.page.locator('role=navigation >> role=button[name=Search]').click();
+					await poAuxContext.page.locator('role=search >> role=searchbox').fill(registerGuestVisitor.name);
+					await expect(
+						poAuxContext.page.locator(`role=search >> role=listbox >> role=link >> text="${registerGuestVisitor.name}"`),
+					).not.toBeVisible();
+				});
 			});
 		});
 
diff --git a/apps/meteor/tests/e2e/page-objects/omnichannel-livechat-embedded.ts b/apps/meteor/tests/e2e/page-objects/omnichannel-livechat-embedded.ts
index ec7015c4a11b..79d1e9532677 100644
--- a/apps/meteor/tests/e2e/page-objects/omnichannel-livechat-embedded.ts
+++ b/apps/meteor/tests/e2e/page-objects/omnichannel-livechat-embedded.ts
@@ -121,10 +121,10 @@ export class OmnichannelLiveChatEmbedded {
 
 	public async sendMessage(liveChatUser: { name: string; email: string }, isOffline = true): Promise<void> {
 		const buttonLabel = isOffline ? 'Send' : 'Start chat';
-		await this.inputName.type(liveChatUser.name);
-		await this.inputEmail.type(liveChatUser.email);
+		await this.inputName.fill(liveChatUser.name);
+		await this.inputEmail.fill(liveChatUser.email);
 		if (isOffline) {
-			await this.textAreaMessage.type('any_message');
+			await this.textAreaMessage.fill('any_message');
 			await this.btnSendMessage(buttonLabel).click();
 			return this.btnFinishOfflineMessage().click();
 		}
diff --git a/packages/livechat/src/components/Form/CustomFields/index.tsx b/packages/livechat/src/components/Form/CustomFields/index.tsx
index 8c037974e115..3bca3375a972 100644
--- a/packages/livechat/src/components/Form/CustomFields/index.tsx
+++ b/packages/livechat/src/components/Form/CustomFields/index.tsx
@@ -2,6 +2,7 @@ import type { Control, FieldErrors, FieldValues } from 'react-hook-form';
 import { Controller } from 'react-hook-form';
 import { useTranslation } from 'react-i18next';
 
+import type { RegisterFormValues } from '../../../routes/Register';
 import { FormField } from '../FormField';
 import { SelectInput } from '../SelectInput';
 import { TextInput } from '../TextInput';
@@ -19,7 +20,7 @@ export type CustomField = {
 type RenderCustomFieldsProps = {
 	customFields: CustomField[];
 	loading: boolean;
-	control: Control;
+	control: Control<RegisterFormValues>;
 	errors: FieldErrors<FieldValues>;
 };
 
diff --git a/packages/livechat/src/components/Form/SelectInput/index.tsx b/packages/livechat/src/components/Form/SelectInput/index.tsx
index c785445b3021..3646b0147f3f 100644
--- a/packages/livechat/src/components/Form/SelectInput/index.tsx
+++ b/packages/livechat/src/components/Form/SelectInput/index.tsx
@@ -1,6 +1,5 @@
 import type { ComponentChild, Ref } from 'preact';
 import type { TargetedEvent } from 'preact/compat';
-import { useState } from 'preact/hooks';
 import type { JSXInternal } from 'preact/src/jsx';
 
 import { createClassName } from '../../../helpers/createClassName';
@@ -38,38 +37,26 @@ export const SelectInput = ({
 	value,
 	ref,
 }: SelectInputProps) => {
-	const [internalValue, setInternalValue] = useState(value);
-
 	const SelectOptions = Array.from(options).map(({ value, label }, key) => (
 		<option key={key} value={value} className={createClassName(styles, 'select-input__option')}>
 			{label}
 		</option>
 	));
 
-	const handleChange = (event: TargetedEvent<HTMLSelectElement, Event>) => {
-		onChange(event);
-
-		if (event.defaultPrevented) {
-			return;
-		}
-
-		setInternalValue((event.target as HTMLSelectElement)?.value);
-	};
-
 	return (
 		<div className={createClassName(styles, 'select-input', {}, [className])} style={style}>
 			<select
 				name={name}
-				value={internalValue}
+				value={value}
 				disabled={disabled}
-				onChange={handleChange}
+				onChange={onChange}
 				onBlur={onBlur}
 				onInput={onInput}
 				className={createClassName(styles, 'select-input__select', {
 					disabled,
 					error,
 					small,
-					placeholder: !internalValue,
+					placeholder: !value,
 				})}
 				ref={ref}
 			>
diff --git a/packages/livechat/src/lib/hooks.ts b/packages/livechat/src/lib/hooks.ts
index 9ccc597a37e8..480253a49b1e 100644
--- a/packages/livechat/src/lib/hooks.ts
+++ b/packages/livechat/src/lib/hooks.ts
@@ -15,7 +15,6 @@ const evaluateChangesAndLoadConfigByFields = async (fn: () => Promise<void>) =>
 	const oldStore = JSON.parse(
 		JSON.stringify({
 			user: store.state.user || {},
-			department: store.state.department,
 			token: store.state.token,
 		}),
 	);
@@ -37,12 +36,6 @@ const evaluateChangesAndLoadConfigByFields = async (fn: () => Promise<void>) =>
 		return;
 	}
 
-	if (oldStore.department !== store.state.department) {
-		await loadConfig();
-		await loadMessages();
-		return;
-	}
-
 	if (oldStore.token !== store.state.token) {
 		await loadConfig();
 		await loadMessages();
@@ -56,6 +49,14 @@ const createOrUpdateGuest = async (guest: StoreState['guest']) => {
 
 	const { token } = guest;
 	token && (await store.setState({ token }));
+
+	const {
+		iframe: { defaultDepartment },
+	} = store.state;
+	if (defaultDepartment && !guest.department) {
+		guest.department = defaultDepartment;
+	}
+
 	const { visitor: user } = await Livechat.grantVisitor({ visitor: { ...guest } });
 
 	if (!user) {
@@ -135,21 +136,11 @@ const api = {
 	},
 
 	setDepartment: async (value: string) => {
-		await evaluateChangesAndLoadConfigByFields(async () => api._setDepartment(value));
-	},
-
-	_setDepartment: async (value: string) => {
 		const {
-			user,
 			config: { departments = [] },
 			defaultAgent,
 		} = store.state;
 
-		if (!user) {
-			updateIframeData({ defaultDepartment: value });
-			return;
-		}
-
 		const department = departments.find((dep) => dep._id === value || dep.name === value)?._id || '';
 
 		if (!department) {
@@ -158,8 +149,7 @@ const api = {
 			);
 		}
 
-		updateIframeGuestData({ department });
-		store.setState({ department });
+		updateIframeData({ defaultDepartment: department });
 
 		if (defaultAgent && defaultAgent.department !== department) {
 			store.setState({ defaultAgent: undefined });
@@ -243,9 +233,12 @@ const api = {
 			if (!data.token) {
 				data.token = createToken();
 			}
+			const {
+				iframe: { defaultDepartment },
+			} = store.state;
 
-			if (data.department) {
-				await api._setDepartment(data.department);
+			if (defaultDepartment && !data.department) {
+				data.department = defaultDepartment;
 			}
 
 			Livechat.unsubscribeAll();
diff --git a/packages/livechat/src/routes/Chat/container.js b/packages/livechat/src/routes/Chat/container.js
index 506d6ce1e76e..19172cc7fe5a 100644
--- a/packages/livechat/src/routes/Chat/container.js
+++ b/packages/livechat/src/routes/Chat/container.js
@@ -84,6 +84,14 @@ class ChatContainer extends Component {
 			return user;
 		}
 
+		const {
+			iframe: { defaultDepartment },
+		} = store.state;
+
+		if (!guest?.department && defaultDepartment) {
+			guest.department = defaultDepartment;
+		}
+
 		const visitor = { token, ...guest };
 		const { visitor: newUser } = await Livechat.grantVisitor({ visitor });
 		await dispatch({ user: newUser });
diff --git a/packages/livechat/src/routes/Register/index.tsx b/packages/livechat/src/routes/Register/index.tsx
index 2d88c7e1e5ff..dcf2e3f050a6 100644
--- a/packages/livechat/src/routes/Register/index.tsx
+++ b/packages/livechat/src/routes/Register/index.tsx
@@ -1,6 +1,6 @@
 import type { FunctionalComponent } from 'preact';
 import { route } from 'preact-router';
-import { useContext, useEffect, useRef } from 'preact/hooks';
+import { useContext, useEffect, useMemo, useRef } from 'preact/hooks';
 import type { JSXInternal } from 'preact/src/jsx';
 import type { FieldValues, SubmitHandler } from 'react-hook-form';
 import { Controller, useForm } from 'react-hook-form';
@@ -24,18 +24,14 @@ import styles from './styles.scss';
 // Custom field as in the form payload
 type FormPayloadCustomField = { [key: string]: string };
 
+export type RegisterFormValues = { name: string; email: string; department?: string; [key: string]: any };
+
 export const Register: FunctionalComponent<{ path: string }> = () => {
 	const { t } = useTranslation();
 
 	const topRef = useRef<HTMLDivElement>(null);
 	const bottomRef = useRef<HTMLDivElement>(null);
 
-	const {
-		handleSubmit,
-		formState: { errors, isDirty, isValid, isSubmitting },
-		control,
-	} = useForm({ mode: 'onChange' });
-
 	const {
 		config: {
 			departments = [],
@@ -53,6 +49,15 @@ export const Register: FunctionalComponent<{ path: string }> = () => {
 		user,
 	} = useContext(StoreContext);
 
+	const {
+		handleSubmit,
+		formState: { errors, isDirty, isValid, isSubmitting },
+		control,
+		resetField,
+	} = useForm<RegisterFormValues>({
+		mode: 'onChange',
+	});
+
 	const defaultTitle = t('need_help');
 	const defaultMessage = t('please_tell_us_some_information_to_start_the_chat');
 
@@ -77,13 +82,14 @@ export const Register: FunctionalComponent<{ path: string }> = () => {
 		department?: string;
 		customFields: FormPayloadCustomField;
 	}) => {
+		const guestDepartment = department || defaultDepartment;
 		const fields = {
 			name,
 			email,
-			...(department && { department }),
+			...(guestDepartment && { department: guestDepartment }),
 		};
 
-		dispatch({ loading: true, department });
+		dispatch({ loading: true });
 
 		try {
 			const { visitor: user } = await Livechat.grantVisitor({ visitor: { ...fields, token } });
@@ -97,12 +103,14 @@ export const Register: FunctionalComponent<{ path: string }> = () => {
 		}
 	};
 
-	const getDepartmentDefault = () => {
-		const dept = departments.find((dept) => dept._id === defaultDepartment || dept.name === defaultDepartment);
-		if (dept?._id) {
-			return dept._id;
-		}
-	};
+	const defaultDepartmentId = useMemo(
+		() => departments.find((dept) => dept.name === defaultDepartment || dept._id === defaultDepartment)?._id,
+		[defaultDepartment, departments],
+	);
+
+	useEffect(() => {
+		resetField('department', { defaultValue: defaultDepartmentId });
+	}, [departments, defaultDepartment, resetField, defaultDepartmentId]);
 
 	const availableDepartments = departments.filter((dept) => dept.showOnRegistration);
 
@@ -160,7 +168,7 @@ export const Register: FunctionalComponent<{ path: string }> = () => {
 								<Controller
 									name='department'
 									control={control}
-									defaultValue={getDepartmentDefault()}
+									defaultValue={defaultDepartmentId}
 									render={({ field }) => (
 										<SelectInput
 											options={sortArrayByColumn(availableDepartments, 'name').map(({ _id, name }: { _id: string; name: string }) => ({
diff --git a/packages/livechat/src/store/index.tsx b/packages/livechat/src/store/index.tsx
index c2d7c19e7a83..abc05f7101a9 100644
--- a/packages/livechat/src/store/index.tsx
+++ b/packages/livechat/src/store/index.tsx
@@ -113,7 +113,6 @@ export type StoreState = {
 	room?: { _id: string };
 	noMoreMessages?: boolean;
 	loading?: boolean;
-	department?: string;
 	lastReadMessageId?: any;
 	triggerAgent?: any;
 	queueInfo?: any;