diff --git a/src/libs/actions/Policy.js b/src/libs/actions/Policy.js
index f148f27b371..db506adf395 100644
--- a/src/libs/actions/Policy.js
+++ b/src/libs/actions/Policy.js
@@ -1298,7 +1298,7 @@ function createWorkspace(policyOwnerEmail = '', makeMeAdmin = false, policyName
                     onyxMethod: Onyx.METHOD.MERGE,
                     key: `${ONYXKEYS.COLLECTION.REPORT_ACTIONS}${announceChatReportID}`,
                     value: {
-                        [_.keys(announceChatData)[0]]: {
+                        [announceCreatedReportActionID]: {
                             pendingAction: null,
                         },
                     },
@@ -1317,7 +1317,7 @@ function createWorkspace(policyOwnerEmail = '', makeMeAdmin = false, policyName
                     onyxMethod: Onyx.METHOD.MERGE,
                     key: `${ONYXKEYS.COLLECTION.REPORT_ACTIONS}${adminsChatReportID}`,
                     value: {
-                        [_.keys(adminsChatData)[0]]: {
+                        [adminsCreatedReportActionID]: {
                             pendingAction: null,
                         },
                     },
@@ -1336,7 +1336,7 @@ function createWorkspace(policyOwnerEmail = '', makeMeAdmin = false, policyName
                     onyxMethod: Onyx.METHOD.MERGE,
                     key: `${ONYXKEYS.COLLECTION.REPORT_ACTIONS}${expenseChatReportID}`,
                     value: {
-                        [_.keys(expenseChatData)[0]]: {
+                        [expenseCreatedReportActionID]: {
                             pendingAction: null,
                         },
                     },
diff --git a/tests/actions/PolicyTest.js b/tests/actions/PolicyTest.js
new file mode 100644
index 00000000000..5a994aaf600
--- /dev/null
+++ b/tests/actions/PolicyTest.js
@@ -0,0 +1,191 @@
+import _ from 'lodash';
+import Onyx from 'react-native-onyx';
+import CONST from '@src/CONST';
+import OnyxUpdateManager from '../../src/libs/actions/OnyxUpdateManager';
+import * as Policy from '../../src/libs/actions/Policy';
+import ONYXKEYS from '../../src/ONYXKEYS';
+import * as TestHelper from '../utils/TestHelper';
+import waitForBatchedUpdates from '../utils/waitForBatchedUpdates';
+
+const ESH_EMAIL = 'eshgupta1217@gmail.com';
+const ESH_ACCOUNT_ID = 1;
+const WORKSPACE_NAME = "Esh's Workspace";
+
+OnyxUpdateManager();
+describe('actions/Policy', () => {
+    beforeAll(() => {
+        Onyx.init({
+            keys: ONYXKEYS,
+        });
+    });
+
+    beforeEach(() => {
+        global.fetch = TestHelper.getGlobalFetchMock();
+        return Onyx.clear().then(waitForBatchedUpdates);
+    });
+
+    describe('createWorkspace', () => {
+        it('creates a new workspace', async () => {
+            fetch.pause();
+            Onyx.set(ONYXKEYS.SESSION, {email: ESH_EMAIL, accountID: ESH_ACCOUNT_ID});
+            await waitForBatchedUpdates();
+
+            let adminReportID;
+            let announceReportID;
+            let expenseReportID;
+            const policyID = Policy.generatePolicyID();
+
+            Policy.createWorkspace(ESH_EMAIL, true, WORKSPACE_NAME, policyID);
+            await waitForBatchedUpdates();
+
+            let policy = await new Promise((resolve) => {
+                const connectionID = Onyx.connect({
+                    key: `${ONYXKEYS.COLLECTION.POLICY}${policyID}`,
+                    waitForCollectionCallback: true,
+                    callback: (workspace) => {
+                        Onyx.disconnect(connectionID);
+                        resolve(workspace);
+                    },
+                });
+            });
+
+            // check if policy was created with correct values
+            expect(policy.id).toBe(policyID);
+            expect(policy.name).toBe(WORKSPACE_NAME);
+            expect(policy.type).toBe(CONST.POLICY.TYPE.FREE);
+            expect(policy.role).toBe(CONST.POLICY.ROLE.ADMIN);
+            expect(policy.owner).toBe(ESH_EMAIL);
+            expect(policy.isPolicyExpenseChatEnabled).toBe(true);
+            expect(policy.pendingAction).toBe(CONST.RED_BRICK_ROAD_PENDING_ACTION.ADD);
+
+            const policyMembers = await new Promise((resolve) => {
+                const connectionID = Onyx.connect({
+                    key: `${ONYXKEYS.COLLECTION.POLICY_MEMBERS}${policyID}`,
+                    waitForCollectionCallback: true,
+                    callback: (members) => {
+                        Onyx.disconnect(connectionID);
+                        resolve(members);
+                    },
+                });
+            });
+
+            // check if the user was added as an admin to the policy
+            expect(policyMembers[ESH_ACCOUNT_ID].role).toBe(CONST.POLICY.ROLE.ADMIN);
+
+            let allReports = await new Promise((resolve) => {
+                const connectionID = Onyx.connect({
+                    key: ONYXKEYS.COLLECTION.REPORT,
+                    waitForCollectionCallback: true,
+                    callback: (reports) => {
+                        Onyx.disconnect(connectionID);
+                        resolve(reports);
+                    },
+                });
+            });
+
+            // Three reports should be created: #announce, #admins and expense report
+            const workspaceReports = _.filter(allReports, (report) => report.policyID === policyID);
+            expect(_.size(workspaceReports)).toBe(3);
+            _.forEach(workspaceReports, (report) => {
+                expect(report.pendingFields.addWorkspaceRoom).toBe(CONST.RED_BRICK_ROAD_PENDING_ACTION.ADD);
+                expect(report.participantAccountIDs).toEqual([ESH_ACCOUNT_ID]);
+                switch (report.chatType) {
+                    case CONST.REPORT.CHAT_TYPE.POLICY_ADMINS: {
+                        adminReportID = report.reportID;
+                        break;
+                    }
+                    case CONST.REPORT.CHAT_TYPE.POLICY_ANNOUNCE: {
+                        announceReportID = report.reportID;
+                        break;
+                    }
+                    case CONST.REPORT.CHAT_TYPE.POLICY_EXPENSE_CHAT: {
+                        expenseReportID = report.reportID;
+                        break;
+                    }
+                    default:
+                        break;
+                }
+            });
+
+            let reportActions = await new Promise((resolve) => {
+                const connectionID = Onyx.connect({
+                    key: ONYXKEYS.COLLECTION.REPORT_ACTIONS,
+                    waitForCollectionCallback: true,
+                    callback: (actions) => {
+                        Onyx.disconnect(connectionID);
+                        resolve(actions);
+                    },
+                });
+            });
+
+            // Each of the three reports should have a a `CREATED` action.
+            let adminReportActions = _.values(reportActions[`${ONYXKEYS.COLLECTION.REPORT_ACTIONS}${adminReportID}`]);
+            let announceReportActions = _.values(reportActions[`${ONYXKEYS.COLLECTION.REPORT_ACTIONS}${announceReportID}`]);
+            let expenseReportActions = _.values(reportActions[`${ONYXKEYS.COLLECTION.REPORT_ACTIONS}${expenseReportID}`]);
+            let workspaceReportActions = _.concat(adminReportActions, announceReportActions, expenseReportActions);
+            _.forEach([adminReportActions, announceReportActions, expenseReportActions], (actions) => {
+                expect(_.size(actions)).toBe(1);
+            });
+            _.forEach([...adminReportActions, ...announceReportActions, ...expenseReportActions], (reportAction) => {
+                expect(reportAction.actionName).toBe(CONST.REPORT.ACTIONS.TYPE.CREATED);
+                expect(reportAction.pendingAction).toBe(CONST.RED_BRICK_ROAD_PENDING_ACTION.ADD);
+                expect(reportAction.actorAccountID).toBe(ESH_ACCOUNT_ID);
+            });
+
+            // Check for success data
+            fetch.resume();
+            await waitForBatchedUpdates();
+
+            policy = await new Promise((resolve) => {
+                const connectionID = Onyx.connect({
+                    key: ONYXKEYS.COLLECTION.POLICY,
+                    waitForCollectionCallback: true,
+                    callback: (workspace) => {
+                        Onyx.disconnect(connectionID);
+                        resolve(workspace);
+                    },
+                });
+            });
+
+            // Check if the policy pending action was cleared
+            expect(policy.pendingAction).toBeFalsy();
+
+            allReports = await new Promise((resolve) => {
+                const connectionID = Onyx.connect({
+                    key: ONYXKEYS.COLLECTION.REPORT,
+                    waitForCollectionCallback: true,
+                    callback: (reports) => {
+                        Onyx.disconnect(connectionID);
+                        resolve(reports);
+                    },
+                });
+            });
+
+            // Check if the report pending action and fields were cleared
+            _.forEach(allReports, (report) => {
+                expect(report.pendingAction).toBeFalsy();
+                expect(report.pendingFields.addWorkspaceRoom).toBeFalsy();
+            });
+
+            reportActions = await new Promise((resolve) => {
+                const connectionID = Onyx.connect({
+                    key: ONYXKEYS.COLLECTION.REPORT_ACTIONS,
+                    waitForCollectionCallback: true,
+                    callback: (actions) => {
+                        Onyx.disconnect(connectionID);
+                        resolve(actions);
+                    },
+                });
+            });
+
+            // Check if the report action pending action was cleared
+            adminReportActions = _.values(reportActions[`${ONYXKEYS.COLLECTION.REPORT_ACTIONS}${adminReportID}`]);
+            announceReportActions = _.values(reportActions[`${ONYXKEYS.COLLECTION.REPORT_ACTIONS}${announceReportID}`]);
+            expenseReportActions = _.values(reportActions[`${ONYXKEYS.COLLECTION.REPORT_ACTIONS}${expenseReportID}`]);
+            workspaceReportActions = _.concat(adminReportActions, announceReportActions, expenseReportActions);
+            _.forEach(workspaceReportActions, (reportAction) => {
+                expect(reportAction.pendingAction).toBeFalsy();
+            });
+        });
+    });
+});