diff --git a/src/libs/API/parameters/SetPolicyTagsEnabled.ts b/src/libs/API/parameters/SetPolicyTagsEnabled.ts
index 86720b84bf8b..67928a3227e3 100644
--- a/src/libs/API/parameters/SetPolicyTagsEnabled.ts
+++ b/src/libs/API/parameters/SetPolicyTagsEnabled.ts
@@ -5,6 +5,11 @@ type SetPolicyTagsEnabled = {
      * Array<{name: string; enabled: boolean}>
      */
     tags: string;
+    /**
+     * When the tags are imported as multi level tags, the index of the top
+     * most tag list item
+     */
+    tagListIndex: number;
 };
 
 export default SetPolicyTagsEnabled;
diff --git a/src/libs/actions/Policy.ts b/src/libs/actions/Policy.ts
index 3e09524e1dd1..08499edc7e5d 100644
--- a/src/libs/actions/Policy.ts
+++ b/src/libs/actions/Policy.ts
@@ -54,6 +54,7 @@ import type {
     UpdateWorkspaceGeneralSettingsParams,
     UpdateWorkspaceMembersRoleParams,
 } from '@libs/API/parameters';
+import type SetPolicyTagsEnabled from '@libs/API/parameters/SetPolicyTagsEnabled';
 import type UpdatePolicyAddressParams from '@libs/API/parameters/UpdatePolicyAddressParams';
 import {READ_COMMANDS, WRITE_COMMANDS} from '@libs/API/types';
 import DateUtils from '@libs/DateUtils';
@@ -3466,8 +3467,8 @@ function createPolicyTag(policyID: string, tagName: string) {
     API.write(WRITE_COMMANDS.CREATE_POLICY_TAG, parameters, onyxData);
 }
 
-function setWorkspaceTagEnabled(policyID: string, tagsToUpdate: Record<string, {name: string; enabled: boolean}>) {
-    const policyTag = PolicyUtils.getTagLists(allPolicyTags?.[`${ONYXKEYS.COLLECTION.POLICY_TAGS}${policyID}`] ?? {})?.[0] ?? {};
+function setWorkspaceTagEnabled(policyID: string, tagsToUpdate: Record<string, {name: string; enabled: boolean}>, tagListIndex: number) {
+    const policyTag = PolicyUtils.getTagLists(allPolicyTags?.[`${ONYXKEYS.COLLECTION.POLICY_TAGS}${policyID}`] ?? {})?.[tagListIndex] ?? {};
 
     const onyxData: OnyxData = {
         optimisticData: [
@@ -3547,9 +3548,10 @@ function setWorkspaceTagEnabled(policyID: string, tagsToUpdate: Record<string, {
         ],
     };
 
-    const parameters = {
+    const parameters: SetPolicyTagsEnabled = {
         policyID,
         tags: JSON.stringify(Object.keys(tagsToUpdate).map((key) => tagsToUpdate[key])),
+        tagListIndex,
     };
 
     API.write(WRITE_COMMANDS.SET_POLICY_TAGS_ENABLED, parameters, onyxData);
diff --git a/src/pages/workspace/tags/TagSettingsPage.tsx b/src/pages/workspace/tags/TagSettingsPage.tsx
index 1f9d440108ae..abbccc321827 100644
--- a/src/pages/workspace/tags/TagSettingsPage.tsx
+++ b/src/pages/workspace/tags/TagSettingsPage.tsx
@@ -66,7 +66,7 @@ function TagSettingsPage({route, policyTags, navigation}: TagSettingsPageProps)
     };
 
     const updateWorkspaceTagEnabled = (value: boolean) => {
-        setWorkspaceTagEnabled(route.params.policyID, {[currentPolicyTag.name]: {name: currentPolicyTag.name, enabled: value}});
+        setWorkspaceTagEnabled(route.params.policyID, {[currentPolicyTag.name]: {name: currentPolicyTag.name, enabled: value}}, policyTag.orderWeight);
     };
 
     const navigateToEditTag = () => {
diff --git a/src/pages/workspace/tags/WorkspaceTagsPage.tsx b/src/pages/workspace/tags/WorkspaceTagsPage.tsx
index eca339be0fc4..a1299b6d4406 100644
--- a/src/pages/workspace/tags/WorkspaceTagsPage.tsx
+++ b/src/pages/workspace/tags/WorkspaceTagsPage.tsx
@@ -238,7 +238,7 @@ function WorkspaceTagsPage({route}: WorkspaceTagsPageProps) {
                 value: CONST.POLICY.TAGS_BULK_ACTION_TYPES.DISABLE,
                 onSelected: () => {
                     setSelectedTags({});
-                    Policy.setWorkspaceTagEnabled(policyID, tagsToDisable);
+                    Policy.setWorkspaceTagEnabled(policyID, tagsToDisable, 0);
                 },
             });
         }
@@ -250,7 +250,7 @@ function WorkspaceTagsPage({route}: WorkspaceTagsPageProps) {
                 value: CONST.POLICY.TAGS_BULK_ACTION_TYPES.ENABLE,
                 onSelected: () => {
                     setSelectedTags({});
-                    Policy.setWorkspaceTagEnabled(policyID, tagsToEnable);
+                    Policy.setWorkspaceTagEnabled(policyID, tagsToEnable, 0);
                 },
             });
         }
diff --git a/src/pages/workspace/tags/WorkspaceViewTagsPage.tsx b/src/pages/workspace/tags/WorkspaceViewTagsPage.tsx
index 09ba086e3a14..39485f45f0a8 100644
--- a/src/pages/workspace/tags/WorkspaceViewTagsPage.tsx
+++ b/src/pages/workspace/tags/WorkspaceViewTagsPage.tsx
@@ -174,7 +174,7 @@ function WorkspaceViewTagsPage({route}: WorkspaceViewTagsProps) {
                 value: CONST.POLICY.TAGS_BULK_ACTION_TYPES.DISABLE,
                 onSelected: () => {
                     setSelectedTags({});
-                    Policy.setWorkspaceTagEnabled(policyID, tagsToDisable);
+                    Policy.setWorkspaceTagEnabled(policyID, tagsToDisable, route.params.orderWeight);
                 },
             });
         }
@@ -186,7 +186,7 @@ function WorkspaceViewTagsPage({route}: WorkspaceViewTagsProps) {
                 value: CONST.POLICY.TAGS_BULK_ACTION_TYPES.ENABLE,
                 onSelected: () => {
                     setSelectedTags({});
-                    Policy.setWorkspaceTagEnabled(policyID, tagsToEnable);
+                    Policy.setWorkspaceTagEnabled(policyID, tagsToEnable, route.params.orderWeight);
                 },
             });
         }
diff --git a/tests/actions/PolicyTagTest.ts b/tests/actions/PolicyTagTest.ts
index 74ea13f3d139..a0982a78b70a 100644
--- a/tests/actions/PolicyTagTest.ts
+++ b/tests/actions/PolicyTagTest.ts
@@ -395,7 +395,7 @@ describe('actions/Policy', () => {
                     Onyx.set(`${ONYXKEYS.COLLECTION.POLICY_TAGS}${fakePolicy.id}`, fakePolicyTags);
                 })
                 .then(() => {
-                    Policy.setWorkspaceTagEnabled(fakePolicy.id, tagsToUpdate);
+                    Policy.setWorkspaceTagEnabled(fakePolicy.id, tagsToUpdate, 0);
                     return waitForBatchedUpdates();
                 })
                 .then(
@@ -468,7 +468,7 @@ describe('actions/Policy', () => {
                 .then(() => {
                     mockFetch?.fail?.();
 
-                    Policy.setWorkspaceTagEnabled(fakePolicy.id, tagsToUpdate);
+                    Policy.setWorkspaceTagEnabled(fakePolicy.id, tagsToUpdate, 0);
                     return waitForBatchedUpdates();
                 })
                 .then(mockFetch?.resume)