diff --git a/src/libs/actions/Policy/Tag.ts b/src/libs/actions/Policy/Tag.ts
index d4407015c4ec..69171310f946 100644
--- a/src/libs/actions/Policy/Tag.ts
+++ b/src/libs/actions/Policy/Tag.ts
@@ -490,8 +490,15 @@ function clearPolicyTagErrors({policyID, tagName, tagListIndex, policyTags}: Cle
     });
 }
 
-function clearPolicyTagListErrorField(policyID: string, tagListIndex: number, errorField: string) {
-    const policyTag = PolicyUtils.getTagLists(allPolicyTags?.[`${ONYXKEYS.COLLECTION.POLICY_TAGS}${policyID}`] ?? {})?.at(tagListIndex);
+type ClearPolicyTagListErrorFieldProps = {
+    policyID: string;
+    tagListIndex: number;
+    errorField: string;
+    policyTags: OnyxEntry<PolicyTagLists>;
+};
+
+function clearPolicyTagListErrorField({policyID, tagListIndex, errorField, policyTags}: ClearPolicyTagListErrorFieldProps) {
+    const policyTag = PolicyUtils.getTagLists(policyTags ?? {})?.at(tagListIndex);
 
     if (!policyTag) {
         return;
diff --git a/src/pages/workspace/tags/WorkspaceViewTagsPage.tsx b/src/pages/workspace/tags/WorkspaceViewTagsPage.tsx
index 91a9bb43a431..cad3d7f11255 100644
--- a/src/pages/workspace/tags/WorkspaceViewTagsPage.tsx
+++ b/src/pages/workspace/tags/WorkspaceViewTagsPage.tsx
@@ -379,7 +379,7 @@ function WorkspaceViewTagsPage({route}: WorkspaceViewTagsProps) {
                             }}
                             pendingAction={currentPolicyTag.pendingFields?.required}
                             errors={currentPolicyTag?.errorFields?.required ?? undefined}
-                            onCloseError={() => clearPolicyTagListErrorField(policyID, route.params.orderWeight, 'required')}
+                            onCloseError={() => clearPolicyTagListErrorField({policyID, tagListIndex: route.params.orderWeight, errorField: 'required', policyTags})}
                             disabled={!currentPolicyTag?.required && !Object.values(currentPolicyTag?.tags ?? {}).some((tag) => tag.enabled)}
                             showLockIcon={isMakingLastRequiredTagListOptional(policy, policyTags, [currentPolicyTag])}
                         />
diff --git a/tests/actions/PolicyTagTest.ts b/tests/actions/PolicyTagTest.ts
index c53e6547a3c7..d1aac4939607 100644
--- a/tests/actions/PolicyTagTest.ts
+++ b/tests/actions/PolicyTagTest.ts
@@ -6,6 +6,7 @@ import OnyxUpdateManager from '@libs/actions/OnyxUpdateManager';
 import {
     buildOptimisticPolicyRecentlyUsedTags,
     clearPolicyTagErrors,
+    clearPolicyTagListErrorField,
     createPolicyTag,
     deletePolicyTags,
     renamePolicyTag,
@@ -1022,6 +1023,137 @@ describe('actions/Policy', () => {
         });
     });
 
+    describe('ClearPolicyTagListErrorField', () => {
+        it('should clear specific error field from tag list', async () => {
+            // Given a policy with a tag list that has multiple error fields
+            const fakePolicy = createRandomPolicy(0);
+            const tagListName = 'Test tag list';
+            const fakePolicyTags = createRandomPolicyTags(tagListName, 2);
+
+            fakePolicyTags[tagListName] = {
+                ...fakePolicyTags[tagListName],
+                errorFields: {
+                    name: {genericError: 'Name error'},
+                    required: {genericError: 'Required error'},
+                    maxTagsSelected: {genericError: 'Max tags error'},
+                },
+            };
+
+            await Onyx.set(`${ONYXKEYS.COLLECTION.POLICY_TAGS}${fakePolicy.id}`, fakePolicyTags);
+
+            // When clearing only the 'required' error field from the tag list
+            clearPolicyTagListErrorField({policyID: fakePolicy.id, tagListIndex: 0, errorField: 'required', policyTags: fakePolicyTags});
+            await waitForBatchedUpdates();
+
+            let updatedPolicyTags: PolicyTagLists | undefined;
+            await TestHelper.getOnyxData({
+                key: `${ONYXKEYS.COLLECTION.POLICY_TAGS}${fakePolicy.id}`,
+                callback: (val) => (updatedPolicyTags = val),
+            });
+
+            // Then only the 'required' error field should be cleared while other error fields remain
+            expect(updatedPolicyTags?.[tagListName]).toBeDefined();
+            expect(updatedPolicyTags?.[tagListName].errorFields?.required).toBeUndefined();
+            expect(updatedPolicyTags?.[tagListName].errorFields?.name).toEqual({genericError: 'Name error'});
+            expect(updatedPolicyTags?.[tagListName].errorFields?.maxTagsSelected).toEqual({genericError: 'Max tags error'});
+        });
+
+        it('should not modify Onyx data when tag list does not exist', async () => {
+            // Given a policy with no tag lists
+            const fakePolicy = createRandomPolicy(0);
+            const fakePolicyTags = {};
+
+            await Onyx.set(`${ONYXKEYS.COLLECTION.POLICY_TAGS}${fakePolicy.id}`, fakePolicyTags);
+
+            // When attempting to clear an error field from a non-existent tag list
+            expect(() => {
+                clearPolicyTagListErrorField({policyID: fakePolicy.id, tagListIndex: 0, errorField: 'required', policyTags: fakePolicyTags});
+            }).not.toThrow();
+
+            let updatedPolicyTags: PolicyTagLists | undefined;
+            await TestHelper.getOnyxData({
+                key: `${ONYXKEYS.COLLECTION.POLICY_TAGS}${fakePolicy.id}`,
+                callback: (val) => (updatedPolicyTags = val),
+            });
+
+            // Then the policy tags should remain unchanged because the tag list does not exist
+            expect(updatedPolicyTags).toEqual(fakePolicyTags);
+        });
+
+        it('should not modify Onyx data when tag list has no name', async () => {
+            // Given a policy with a tag list that has an empty name and error fields
+            const fakePolicy = createRandomPolicy(0);
+            const tagListName = 'Test tag list';
+            const fakePolicyTags = createRandomPolicyTags(tagListName, 1);
+
+            fakePolicyTags[tagListName] = {
+                ...fakePolicyTags[tagListName],
+                name: '',
+                errorFields: {
+                    required: {genericError: 'This error should not be cleared'},
+                    name: {genericError: 'This error should also remain'},
+                },
+            };
+
+            await Onyx.set(`${ONYXKEYS.COLLECTION.POLICY_TAGS}${fakePolicy.id}`, fakePolicyTags);
+
+            // When attempting to clear an error field from a tag list with no name
+            expect(() => {
+                clearPolicyTagListErrorField({policyID: fakePolicy.id, tagListIndex: 0, errorField: 'required', policyTags: fakePolicyTags});
+            }).not.toThrow();
+
+            await waitForBatchedUpdates();
+
+            let updatedPolicyTags: PolicyTagLists | undefined;
+            await TestHelper.getOnyxData({
+                key: `${ONYXKEYS.COLLECTION.POLICY_TAGS}${fakePolicy.id}`,
+                callback: (val) => (updatedPolicyTags = val),
+            });
+
+            // Then the error fields should remain unchanged because the tag list name is empty
+            expect(updatedPolicyTags?.[tagListName].errorFields?.required).toEqual({genericError: 'This error should not be cleared'});
+            expect(updatedPolicyTags?.[tagListName].errorFields?.name).toEqual({genericError: 'This error should also remain'});
+            expect(updatedPolicyTags?.[tagListName].name).toBe('');
+        });
+
+        it('should work with data from useOnyx hook', async () => {
+            // Given a policy with a tag list that has error fields and is accessed via useOnyx hook
+            const fakePolicy = createRandomPolicy(0);
+            const tagListName = 'Test tag list';
+            const fakePolicyTags = createRandomPolicyTags(tagListName, 1);
+
+            fakePolicyTags[tagListName] = {
+                ...fakePolicyTags[tagListName],
+                errorFields: {
+                    required: {genericError: 'Required field error'},
+                    name: {genericError: 'Name field error'},
+                },
+            };
+
+            await Onyx.set(`${ONYXKEYS.COLLECTION.POLICY_TAGS}${fakePolicy.id}`, fakePolicyTags);
+
+            const {result} = renderHook(() => useOnyx(`${ONYXKEYS.COLLECTION.POLICY_TAGS}${fakePolicy.id}`));
+
+            await waitFor(() => {
+                expect(result.current[0]).toBeDefined();
+            });
+
+            // When clearing the 'name' error field using data from the useOnyx hook
+            clearPolicyTagListErrorField({policyID: fakePolicy.id, tagListIndex: 0, errorField: 'name', policyTags: result.current[0]});
+            await waitForBatchedUpdates();
+
+            let updatedPolicyTags: PolicyTagLists | undefined;
+            await TestHelper.getOnyxData({
+                key: `${ONYXKEYS.COLLECTION.POLICY_TAGS}${fakePolicy.id}`,
+                callback: (val) => (updatedPolicyTags = val),
+            });
+
+            // Then only the 'name' error field should be cleared while the 'required' error field remains
+            expect(updatedPolicyTags?.[tagListName].errorFields?.name).toBeUndefined();
+            expect(updatedPolicyTags?.[tagListName].errorFields?.required).toEqual({genericError: 'Required field error'});
+        });
+    });
+
     describe('buildOptimisticPolicyRecentlyUsedTags', () => {
         it('should return empty object when transactionTags is undefined', () => {
             const result = buildOptimisticPolicyRecentlyUsedTags({