diff --git a/src/libs/actions/Policy/Member.ts b/src/libs/actions/Policy/Member.ts
index 25dd8e134aa7..2560e94ad028 100644
--- a/src/libs/actions/Policy/Member.ts
+++ b/src/libs/actions/Policy/Member.ts
@@ -678,7 +678,8 @@ function buildUpdateWorkspaceMembersRoleOnyxData(policy: OnyxEntry<Policy>, sele
         failureData.push(...(preferredExporterOnyxData.failureData ?? []));
     }
 
-    const adminRoom = ReportUtils.getAllPolicyReports(policyID).find(ReportUtils.isAdminRoom);
+    const policyReports = ReportUtils.getAllPolicyReports(policyID);
+    const adminRoom = policyReports.find(ReportUtils.isAdminRoom);
     if (adminRoom) {
         const failureDataParticipants: Record<number, Participant | null> = {...adminRoom.participants};
         const optimisticParticipants: Record<number, Participant | null> = {};
@@ -716,6 +717,48 @@ function buildUpdateWorkspaceMembersRoleOnyxData(policy: OnyxEntry<Policy>, sele
         }
     }
 
+    if (newRole === CONST.POLICY.ROLE.GUEST) {
+        for (const report of policyReports) {
+            if (!ReportUtils.isUserCreatedPolicyRoom(report) || report?.visibility !== CONST.REPORT.VISIBILITY.RESTRICTED) {
+                continue;
+            }
+            const reportActions = allReportActions?.[`${ONYXKEYS.COLLECTION.REPORT_ACTIONS}${report.reportID}`] ?? {};
+            const invitedAccountIDs = new Set<number>();
+            for (const action of Object.values(reportActions)) {
+                if (!ReportActionsUtils.isInviteMemberAction(action)) {
+                    continue;
+                }
+                for (const targetAccountID of ReportActionsUtils.getOriginalMessage(action)?.targetAccountIDs ?? []) {
+                    invitedAccountIDs.add(targetAccountID);
+                }
+            }
+            const optimisticParticipants: Record<number, Participant | null> = {};
+            const failureDataParticipants: Record<number, Participant | null> = {...report.participants};
+            for (const accountID of selectedMemberAccountIDs) {
+                if (!report.participants?.[accountID] || invitedAccountIDs.has(accountID)) {
+                    continue;
+                }
+                optimisticParticipants[accountID] = null;
+            }
+            if (!isEmptyObject(optimisticParticipants)) {
+                optimisticData.push({
+                    onyxMethod: Onyx.METHOD.MERGE,
+                    key: `${ONYXKEYS.COLLECTION.REPORT}${report.reportID}`,
+                    value: {
+                        participants: optimisticParticipants,
+                    },
+                });
+                failureData.push({
+                    onyxMethod: Onyx.METHOD.MERGE,
+                    key: `${ONYXKEYS.COLLECTION.REPORT}${report.reportID}`,
+                    value: {
+                        participants: failureDataParticipants,
+                    },
+                });
+            }
+        }
+    }
+
     return {optimisticData, successData, failureData, memberRoles};
 }
 
diff --git a/tests/actions/PolicyMemberTest.ts b/tests/actions/PolicyMemberTest.ts
index 332f9f26b14e..4eaef413ab53 100644
--- a/tests/actions/PolicyMemberTest.ts
+++ b/tests/actions/PolicyMemberTest.ts
@@ -115,7 +115,36 @@ describe('actions/PolicyMember', () => {
                 },
             };
 
+            const selfJoinedRoom: Report = {
+                ...createRandomReport(10, CONST.REPORT.CHAT_TYPE.POLICY_ROOM),
+                policyID: policy.id,
+                visibility: CONST.REPORT.VISIBILITY.RESTRICTED,
+                participants: {
+                    [member.accountID]: {notificationPreference: CONST.REPORT.NOTIFICATION_PREFERENCE.ALWAYS},
+                },
+            };
+            const invitedRoom: Report = {
+                ...createRandomReport(11, CONST.REPORT.CHAT_TYPE.POLICY_ROOM),
+                policyID: policy.id,
+                visibility: CONST.REPORT.VISIBILITY.RESTRICTED,
+                participants: {
+                    [member.accountID]: {notificationPreference: CONST.REPORT.NOTIFICATION_PREFERENCE.ALWAYS},
+                },
+            };
+
             await Onyx.set(`${ONYXKEYS.COLLECTION.POLICY}${policy.id}`, policy);
+            await Onyx.set(`${ONYXKEYS.COLLECTION.REPORT}${selfJoinedRoom.reportID}`, selfJoinedRoom);
+            await Onyx.set(`${ONYXKEYS.COLLECTION.REPORT}${invitedRoom.reportID}`, invitedRoom);
+            await Onyx.set(`${ONYXKEYS.COLLECTION.REPORT_ACTIONS}${invitedRoom.reportID}`, {
+                inviteAction1: {
+                    reportActionID: 'inviteAction1',
+                    actionName: CONST.REPORT.ACTIONS.TYPE.ROOM_CHANGE_LOG.INVITE_TO_ROOM,
+                    created: '2026-01-01 00:00:00.000',
+                    originalMessage: {
+                        targetAccountIDs: [member.accountID],
+                    },
+                },
+            });
             mockFetch?.pause?.();
             Member.updateWorkspaceMembersRole(policy, [memberLogin], [member.accountID], CONST.POLICY.ROLE.GUEST);
             await waitForBatchedUpdates();
@@ -124,6 +153,12 @@ describe('actions/PolicyMember', () => {
             expect(optimisticPolicy?.employeeList?.[memberLogin]?.role).toBe(CONST.POLICY.ROLE.GUEST);
             expect(optimisticPolicy?.employeeList?.[memberLogin]?.pendingAction).toBe(CONST.RED_BRICK_ROAD_PENDING_ACTION.UPDATE);
 
+            const optimisticSelfJoinedRoom = await getOnyxValue(`${ONYXKEYS.COLLECTION.REPORT}${selfJoinedRoom.reportID}`);
+            expect(optimisticSelfJoinedRoom?.participants?.[member.accountID]).toBeUndefined();
+
+            const optimisticInvitedRoom = await getOnyxValue(`${ONYXKEYS.COLLECTION.REPORT}${invitedRoom.reportID}`);
+            expect(optimisticInvitedRoom?.participants?.[member.accountID]?.notificationPreference).toBe(CONST.REPORT.NOTIFICATION_PREFERENCE.ALWAYS);
+
             await mockFetch?.resume?.();
         });