diff --git a/src/libs/Navigation/Navigation.js b/src/libs/Navigation/Navigation.js
index 42c7bcdf206..7b92a91ff7c 100644
--- a/src/libs/Navigation/Navigation.js
+++ b/src/libs/Navigation/Navigation.js
@@ -82,6 +82,19 @@ function navigate(route = ROUTES.HOME, type) {
     linkTo(navigationRef.current, route, type);
 }
 
+/**
+ * Replaces the current route in the main chat pane, without adding the existing route to the stack.
+ * Makes it so that the back button will not return to the previous route.
+ * @param {String} route
+ */
+function replaceCentralPaneScreen(route) {
+    if (!canNavigate('replace', {route})) {
+        return;
+    }
+
+    navigationRef.current.dispatch(StackActions.replace(NAVIGATORS.CENTRAL_PANE_NAVIGATOR, route));
+}
+
 /**
  * @param {String} fallbackRoute - Fallback route if pop/goBack action should, but is not possible within RHP
  * @param {Bool} shouldEnforceFallback - Enforces navigation to fallback route
@@ -224,6 +237,7 @@ function setIsNavigationReady() {
 export default {
     canNavigate,
     navigate,
+    replaceCentralPaneScreen,
     setParams,
     dismissModal,
     isActiveRoute,
diff --git a/src/libs/actions/Report.js b/src/libs/actions/Report.js
index 9027b8fb2f3..52569d8a7be 100644
--- a/src/libs/actions/Report.js
+++ b/src/libs/actions/Report.js
@@ -804,6 +804,19 @@ function handleReportChanged(report) {
         return;
     }
 
+    // It is possible that we optimistically created a DM/group-DM for a set of users for which a report already exists.
+    // In this case, the API will let us know by returning a preexistingReportID.
+    // We should clear out the optimistically created report and re-route the user to the preexisting report.
+    if (report && report.reportID && report.preexistingReportID) {
+        Onyx.set(`${ONYXKEYS.COLLECTION.REPORT}${report.reportID}`, null);
+
+        // Only re-route them if they are still looking at the optimistically created report
+        if (Navigation.getActiveRoute().includes(`/r/${report.reportID}`)) {
+            Navigation.replaceCentralPaneScreen(ROUTES.getReportRoute(report.preexistingReportID));
+        }
+        return;
+    }
+
     if (report && report.reportID) {
         allReports[report.reportID] = report;