diff --git a/common/changes/@itwin/appui-layout-react/fix-widget-send-back_2022-05-16-09-29.json b/common/changes/@itwin/appui-layout-react/fix-widget-send-back_2022-05-16-09-29.json
new file mode 100644
index 000000000000..dd8662b2f865
--- /dev/null
+++ b/common/changes/@itwin/appui-layout-react/fix-widget-send-back_2022-05-16-09-29.json
@@ -0,0 +1,10 @@
+{
+  "changes": [
+    {
+      "packageName": "@itwin/appui-layout-react",
+      "comment": "Fix an issue where a widget is not removed correctly in FLOATING_WIDGET_SEND_BACK action.",
+      "type": "none"
+    }
+  ],
+  "packageName": "@itwin/appui-layout-react"
+}
\ No newline at end of file
diff --git a/ui/appui-layout-react/src/appui-layout-react/base/NineZoneState.ts b/ui/appui-layout-react/src/appui-layout-react/base/NineZoneState.ts
index f0699d7d6c88..238c586facb6 100644
--- a/ui/appui-layout-react/src/appui-layout-react/base/NineZoneState.ts
+++ b/ui/appui-layout-react/src/appui-layout-react/base/NineZoneState.ts
@@ -582,29 +582,29 @@ export const NineZoneStateReducer: (state: NineZoneState, action: NineZoneAction
       }
 
       if (homeWidget) {
+        // Add tabs to an existing widget.
         homeWidget.tabs.push(...widget.tabs);
         removeWidget(state, widget.id);
-      } else {
-        const destinationWidgetContainerName = home.widgetId ?? getWidgetPanelSectionId(panel.side, home.widgetIndex);
-        // if widget container was remove because it was empty insert it
-        state.widgets[destinationWidgetContainerName] = {
-          activeTabId: widget.tabs[0],
-          id: destinationWidgetContainerName,
-          minimized: false,
-          tabs: [...widget.tabs],
-        };
-
-        let insertIndex = destinationWidgetContainerName.endsWith("End") ? 1 : 0;
-        // istanbul ignore next
-        if (0 === panel.widgets.length)
-          insertIndex = 0;
-        panel.widgets.splice(insertIndex, 0, destinationWidgetContainerName);
-        widget.minimized = false;
-        if (home.widgetId)
-          removeWidget(state, widget.id);
-        else
-          removeFloatingWidget(state, widget.id);
+        return;
       }
+
+      const destinationWidgetContainerName = home.widgetId ?? getWidgetPanelSectionId(panel.side, home.widgetIndex);
+      // if widget container was removed because it was empty insert it
+      state.widgets[destinationWidgetContainerName] = {
+        activeTabId: widget.tabs[0],
+        id: destinationWidgetContainerName,
+        minimized: false,
+        tabs: [...widget.tabs],
+      };
+
+      let insertIndex = destinationWidgetContainerName.endsWith("End") ? 1 : 0;
+      // istanbul ignore next
+      if (0 === panel.widgets.length)
+        insertIndex = 0;
+      panel.widgets.splice(insertIndex, 0, destinationWidgetContainerName);
+      widget.minimized = false;
+
+      removeWidget(state, widget.id);
       return;
     }
     case "POPOUT_WIDGET_SEND_BACK": {
diff --git a/ui/appui-layout-react/src/test/base/NineZoneState.test.ts b/ui/appui-layout-react/src/test/base/NineZoneState.test.ts
index 67978ece8cff..9fc3d17366ad 100644
--- a/ui/appui-layout-react/src/test/base/NineZoneState.test.ts
+++ b/ui/appui-layout-react/src/test/base/NineZoneState.test.ts
@@ -645,6 +645,7 @@ describe("NineZoneStateReducer", () => {
       newState.widgets.leftStart.tabs.should.eql(["t1"]);
       newState.widgets.leftEnd.tabs.should.eql(["t2", "t3"]);
       should().not.exist(newState.floatingWidgets.byId.fw1);
+      should().not.exist(newState.widgets.fw1);
       newState.floatingWidgets.allIds.indexOf("fw1").should.eq(-1);
     });
 
@@ -694,6 +695,7 @@ describe("NineZoneStateReducer", () => {
       newState.panels.left.widgets.should.eql(["w1", "w2"]);
       newState.widgets.w1.tabs.should.eql(["t1", "t2"]);
       should().not.exist(newState.floatingWidgets.byId.fw1);
+      should().not.exist(newState.widgets.fw1);
       newState.floatingWidgets.allIds.indexOf("fw1").should.eq(-1);
     });