diff --git a/src/libs/actions/Session/index.ts b/src/libs/actions/Session/index.ts
index 371e60959b70..a71310119ab4 100644
--- a/src/libs/actions/Session/index.ts
+++ b/src/libs/actions/Session/index.ts
@@ -911,7 +911,19 @@ function toggleTwoFactorAuth(enable: boolean) {
     API.write(enable ? WRITE_COMMANDS.ENABLE_TWO_FACTOR_AUTH : WRITE_COMMANDS.DISABLE_TWO_FACTOR_AUTH, null, {optimisticData, successData, failureData});
 }
 
-function validateTwoFactorAuth(twoFactorAuthCode: string) {
+function updateAuthTokenAndOpenApp(authToken?: string, encryptedAuthToken?: string) {
+    // Update authToken in Onyx and in our local variables so that API requests will use the new authToken
+    updateSessionAuthTokens(authToken, encryptedAuthToken);
+
+    // Note: It is important to manually set the authToken that is in the store here since
+    // reconnectApp will immediate post and use the local authToken. Onyx updates subscribers lately so it is not
+    // enough to do the updateSessionAuthTokens() call above.
+    NetworkStore.setAuthToken(authToken ?? null);
+
+    openApp();
+}
+
+function validateTwoFactorAuth(twoFactorAuthCode: string, shouldClearData: boolean) {
     const optimisticData = [
         {
             onyxMethod: Onyx.METHOD.MERGE,
@@ -950,18 +962,14 @@ function validateTwoFactorAuth(twoFactorAuthCode: string) {
             return;
         }
 
-        const keysToPreserveWithPrivatePersonalDetails = [...KEYS_TO_PRESERVE, ONYXKEYS.PRIVATE_PERSONAL_DETAILS];
-        Onyx.clear(keysToPreserveWithPrivatePersonalDetails).then(() => {
-            // Update authToken in Onyx and in our local variables so that API requests will use the new authToken
-            updateSessionAuthTokens(response.authToken, response.encryptedAuthToken);
-
-            // Note: It is important to manually set the authToken that is in the store here since
-            // reconnectApp will immediate post and use the local authToken. Onyx updates subscribers lately so it is not
-            // enough to do the updateSessionAuthTokens() call above.
-            NetworkStore.setAuthToken(response.authToken ?? null);
+        // Clear onyx data if the user has just signed in and is forced to add 2FA
+        if (shouldClearData) {
+            const keysToPreserveWithPrivatePersonalDetails = [...KEYS_TO_PRESERVE, ONYXKEYS.PRIVATE_PERSONAL_DETAILS];
+            Onyx.clear(keysToPreserveWithPrivatePersonalDetails).then(() => updateAuthTokenAndOpenApp(response.authToken, response.encryptedAuthToken));
+            return;
+        }
 
-            openApp();
-        });
+        updateAuthTokenAndOpenApp(response.authToken, response.encryptedAuthToken);
     });
 }
 
diff --git a/src/pages/settings/Security/TwoFactorAuth/TwoFactorAuthForm/BaseTwoFactorAuthForm.tsx b/src/pages/settings/Security/TwoFactorAuth/TwoFactorAuthForm/BaseTwoFactorAuthForm.tsx
index cf226655ce32..ece2e8fdf2f2 100644
--- a/src/pages/settings/Security/TwoFactorAuth/TwoFactorAuthForm/BaseTwoFactorAuthForm.tsx
+++ b/src/pages/settings/Security/TwoFactorAuth/TwoFactorAuthForm/BaseTwoFactorAuthForm.tsx
@@ -19,6 +19,7 @@ function BaseTwoFactorAuthForm({account, autoComplete}: BaseTwoFactorAuthFormPro
     const [formError, setFormError] = useState<{twoFactorAuthCode?: string}>({});
     const [twoFactorAuthCode, setTwoFactorAuthCode] = useState('');
     const inputRef = useRef<MagicCodeInputHandle | null>(null);
+    const shouldClearData = account?.needsTwoFactorAuthSetup ?? false;
 
     /**
      * Handle text input and clear formError upon text change
@@ -53,8 +54,8 @@ function BaseTwoFactorAuthForm({account, autoComplete}: BaseTwoFactorAuthFormPro
         }
 
         setFormError({});
-        Session.validateTwoFactorAuth(twoFactorAuthCode);
-    }, [twoFactorAuthCode, translate]);
+        Session.validateTwoFactorAuth(twoFactorAuthCode, shouldClearData);
+    }, [twoFactorAuthCode, shouldClearData, translate]);
 
     useImperativeHandle(ref, () => ({
         validateAndSubmitForm() {