diff --git a/src/ONYXKEYS.js b/src/ONYXKEYS.js
index 947d0aaf0c31..3f4dc215eb16 100755
--- a/src/ONYXKEYS.js
+++ b/src/ONYXKEYS.js
@@ -22,6 +22,9 @@ export default {
     // Boolean flag set whenever the sidebar has loaded
     IS_SIDEBAR_LOADED: 'isSidebarLoaded',
 
+    // Boolean flag set when workspace is being created
+    IS_CREATING_WORKSPACE: 'isCreatingWorkspace',
+
     NETWORK_REQUEST_QUEUE: 'networkRequestQueue',
 
     // What the active route is for our navigator. Global route that determines what views to display.
diff --git a/src/libs/actions/Policy.js b/src/libs/actions/Policy.js
index 23da7c531ab2..e08b5edee9fe 100644
--- a/src/libs/actions/Policy.js
+++ b/src/libs/actions/Policy.js
@@ -94,9 +94,11 @@ function updateAllPolicies(policyCollection) {
  * @returns {Promise}
  */
 function create(name = '') {
+    Onyx.set(ONYXKEYS.IS_CREATING_WORKSPACE, true);
     let res = null;
     return API.Policy_Create({type: CONST.POLICY.TYPE.FREE, policyName: name})
         .then((response) => {
+            Onyx.set(ONYXKEYS.IS_CREATING_WORKSPACE, false);
             if (response.jsonCode !== 200) {
                 // Show the user feedback
                 const errorMessage = translateLocal('workspace.new.genericFailureMessage');
diff --git a/src/pages/home/sidebar/SidebarScreen.js b/src/pages/home/sidebar/SidebarScreen.js
index d89624980029..5a8be3b78039 100755
--- a/src/pages/home/sidebar/SidebarScreen.js
+++ b/src/pages/home/sidebar/SidebarScreen.js
@@ -38,12 +38,16 @@ const propTypes = {
     /* Flag for new users used to open the Global Create menu on first load */
     isFirstTimeNewExpensifyUser: PropTypes.bool,
 
+    /* Is workspace is being created by the user? */
+    isCreatingWorkspace: PropTypes.bool,
+
     ...windowDimensionsPropTypes,
 
     ...withLocalizePropTypes,
 };
 const defaultProps = {
     isFirstTimeNewExpensifyUser: false,
+    isCreatingWorkspace: false,
 };
 
 class SidebarScreen extends Component {
@@ -185,7 +189,7 @@ class SidebarScreen extends Component {
                                         onSelected: () => Navigation.navigate(ROUTES.IOU_BILL),
                                     },
                                 ] : []),
-                                ...(Permissions.canUseFreePlan(this.props.betas) && !Policy.isAdminOfFreePolicy(this.props.allPolicies) ? [
+                                ...(!this.props.isCreatingWorkspace && Permissions.canUseFreePlan(this.props.betas) && !Policy.isAdminOfFreePolicy(this.props.allPolicies) ? [
                                     {
                                         icon: NewWorkspace,
                                         iconWidth: 46,
@@ -221,5 +225,8 @@ export default compose(
         isFirstTimeNewExpensifyUser: {
             key: ONYXKEYS.NVP_IS_FIRST_TIME_NEW_EXPENSIFY_USER,
         },
+        isCreatingWorkspace: {
+            key: ONYXKEYS.IS_CREATING_WORKSPACE,
+        },
     }),
 )(SidebarScreen);