diff --git a/src/components/CategoryPicker/index.js b/src/components/CategoryPicker/index.js
index ef8b1d71ad1d..13abf057e4b1 100644
--- a/src/components/CategoryPicker/index.js
+++ b/src/components/CategoryPicker/index.js
@@ -32,6 +32,7 @@ function CategoryPicker({selectedCategory, policyCategories, policyRecentlyUsedC
     }, [selectedCategory]);
 
     const sections = useMemo(() => {
+        const validPolicyRecentlyUsedCategories = _.filter(policyRecentlyUsedCategories, (p) => !_.isEmpty(p));
         const {categoryOptions} = OptionsListUtils.getFilteredOptions(
             {},
             {},
@@ -43,7 +44,7 @@ function CategoryPicker({selectedCategory, policyCategories, policyRecentlyUsedC
             false,
             true,
             policyCategories,
-            policyRecentlyUsedCategories,
+            validPolicyRecentlyUsedCategories,
             false,
         );
 
diff --git a/src/libs/actions/IOU.js b/src/libs/actions/IOU.js
index 2c046bfc2a24..36277216f87c 100644
--- a/src/libs/actions/IOU.js
+++ b/src/libs/actions/IOU.js
@@ -482,7 +482,10 @@ function getMoneyRequestInformation(
         // For now it only uses the first tag of the policy, since multi-tags are not yet supported
         const tagListKey = _.first(_.keys(policyTags));
         const uniquePolicyRecentlyUsedTags = recentlyUsedPolicyTags ? _.filter(recentlyUsedPolicyTags[tagListKey], (recentlyUsedPolicyTag) => recentlyUsedPolicyTag !== tag) : [];
-        optimisticPolicyRecentlyUsedTags[tagListKey] = [tag, ...uniquePolicyRecentlyUsedTags];
+        if (tag) {
+            uniquePolicyRecentlyUsedTags.unshift(tag);
+        }
+        optimisticPolicyRecentlyUsedTags[tagListKey] = [...uniquePolicyRecentlyUsedTags];
     }
 
     // If there is an existing transaction (which is the case for distance requests), then the data from the existing transaction