diff --git a/src/libs/actions/Report.ts b/src/libs/actions/Report.ts
index 9e06930afa7c..cfb1c454a06f 100644
--- a/src/libs/actions/Report.ts
+++ b/src/libs/actions/Report.ts
@@ -4337,24 +4337,27 @@ function completeOnboarding({
 
     // Only add the dismissed state of the test drive modal when the user is not redirected to oldDot,
     // because we don't want the modal to reappear when returning from oldDot.
+    // We should only set testDriveModalDismissed to false if it's not already true (i.e., if the modal hasn't been dismissed yet).
     if (!shouldSkipTestDriveModal && !(engagementChoice === CONST.ONBOARDING_CHOICES.MANAGE_TEAM && willRedirectToOldDotFromOnboarding)) {
-        optimisticData.push({
-            onyxMethod: Onyx.METHOD.MERGE,
-            key: ONYXKEYS.NVP_ONBOARDING,
-            value: {testDriveModalDismissed: false},
-        });
+        if (onboarding?.testDriveModalDismissed !== true) {
+            optimisticData.push({
+                onyxMethod: Onyx.METHOD.MERGE,
+                key: ONYXKEYS.NVP_ONBOARDING,
+                value: {testDriveModalDismissed: false},
+            });
 
-        successData.push({
-            onyxMethod: Onyx.METHOD.MERGE,
-            key: ONYXKEYS.NVP_ONBOARDING,
-            value: {testDriveModalDismissed: false},
-        });
+            successData.push({
+                onyxMethod: Onyx.METHOD.MERGE,
+                key: ONYXKEYS.NVP_ONBOARDING,
+                value: {testDriveModalDismissed: false},
+            });
 
-        failureData.push({
-            onyxMethod: Onyx.METHOD.MERGE,
-            key: ONYXKEYS.NVP_ONBOARDING,
-            value: {testDriveModalDismissed: null},
-        });
+            failureData.push({
+                onyxMethod: Onyx.METHOD.MERGE,
+                key: ONYXKEYS.NVP_ONBOARDING,
+                value: {testDriveModalDismissed: null},
+            });
+        }
     }
 
     API.write(WRITE_COMMANDS.COMPLETE_GUIDED_SETUP, parameters, {optimisticData, successData, failureData});
diff --git a/tests/actions/ReportTest.ts b/tests/actions/ReportTest.ts
index 88b4d946bd0f..fce1db6afa2f 100644
--- a/tests/actions/ReportTest.ts
+++ b/tests/actions/ReportTest.ts
@@ -2298,4 +2298,42 @@ describe('actions/Report', () => {
             expect(upperCaseRequest?.data?.searchInput).toBe(lowerCaseRequest?.data?.searchInput);
         });
     });
+
+    it('should not overwrite testDriveModalDismissed when it is already true', async () => {
+        const TEST_USER_ACCOUNT_ID = 1;
+        const TEST_USER_LOGIN = 'test@test.com';
+
+        await Onyx.set(ONYXKEYS.SESSION, {email: TEST_USER_LOGIN, accountID: TEST_USER_ACCOUNT_ID});
+        await Onyx.set(ONYXKEYS.NVP_ONBOARDING, {testDriveModalDismissed: true});
+        await waitForBatchedUpdates();
+
+        const adminsChatReportID = '7957055873634067';
+        const onboardingPolicyID = 'A70D00C752416807';
+        const engagementChoice = CONST.INTRO_CHOICES.MANAGE_TEAM;
+        const {onboardingMessages} = getOnboardingMessages();
+
+        Report.completeOnboarding({
+            engagementChoice,
+            onboardingMessage: onboardingMessages[engagementChoice],
+            adminsChatReportID,
+            onboardingPolicyID,
+            companySize: CONST.ONBOARDING_COMPANY_SIZE.MICRO,
+            userReportedIntegration: null,
+        });
+
+        await waitForBatchedUpdates();
+
+        const onboarding = await new Promise<OnyxEntry<OnyxTypes.Onboarding>>((resolve) => {
+            const connection = Onyx.connect({
+                key: ONYXKEYS.NVP_ONBOARDING,
+                callback: (data) => {
+                    Onyx.disconnect(connection);
+                    resolve(data);
+                },
+            });
+        });
+
+        // testDriveModalDismissed should remain true and not be overwritten to false
+        expect(onboarding?.testDriveModalDismissed).toBe(true);
+    });
 });