diff --git a/src/components/SidePanel/SidePanelModal/index.tsx b/src/components/SidePanel/SidePanelModal/index.tsx
index fb85ae00333f9..5ca75c671a859 100644
--- a/src/components/SidePanel/SidePanelModal/index.tsx
+++ b/src/components/SidePanel/SidePanelModal/index.tsx
@@ -51,12 +51,16 @@ function SidePanelModal({children, sidePanelTranslateX, closeSidePanel, shouldHi
 
     // Web back button: push history state and close Side Panel on popstate
     useEffect(() => {
+        // Side Panel is not a normal modal on ExtraLargeScreenWidth.
+        if (isExtraLargeScreenWidth) {
+            return;
+        }
         ComposerFocusManager.resetReadyToFocus(uniqueModalId);
         return () => {
             ComposerFocusManager.setReadyToFocus(uniqueModalId);
         };
         // eslint-disable-next-line react-hooks/exhaustive-deps
-    }, []);
+    }, [isExtraLargeScreenWidth]);
 
     return (
         <ModalPortal>
diff --git a/src/libs/ReportActionComposeFocusManager.ts b/src/libs/ReportActionComposeFocusManager.ts
index 435468cb8a0e4..98e46daf7f80b 100644
--- a/src/libs/ReportActionComposeFocusManager.ts
+++ b/src/libs/ReportActionComposeFocusManager.ts
@@ -12,6 +12,10 @@ type ComposerType = 'main' | 'edit';
 type FocusCallback = (shouldFocusForNonBlurInputOnTapOutside?: boolean) => void;
 
 const composerRef: RefObject<TextInput | null> = React.createRef<TextInput>();
+/**
+ * There can be 2 composers present at the same time. This ref is for the side panel.
+ */
+const sidePanelComposerRef: RefObject<TextInput | null> = React.createRef<TextInput>();
 
 // There are two types of composer: general composer (edit composer) and main composer.
 // The general composer callback will take priority if it exists.
@@ -104,6 +108,7 @@ function preventEditComposerFocusOnFirstResponderOnce() {
 
 export default {
     composerRef,
+    sidePanelComposerRef,
     onComposerFocus,
     focus,
     clear,
diff --git a/src/pages/inbox/report/ReportActionCompose/ComposerWithSuggestions/ComposerWithSuggestions.tsx b/src/pages/inbox/report/ReportActionCompose/ComposerWithSuggestions/ComposerWithSuggestions.tsx
index 5b957d6a45d3d..ff903d77e125e 100644
--- a/src/pages/inbox/report/ReportActionCompose/ComposerWithSuggestions/ComposerWithSuggestions.tsx
+++ b/src/pages/inbox/report/ReportActionCompose/ComposerWithSuggestions/ComposerWithSuggestions.tsx
@@ -22,6 +22,7 @@ import Composer from '@components/Composer';
 import type {CustomSelectionChangeEvent, TextSelection} from '@components/Composer/types';
 import {useWideRHPState} from '@components/WideRHPContextProvider';
 import useCurrentUserPersonalDetails from '@hooks/useCurrentUserPersonalDetails';
+import useIsInSidePanel from '@hooks/useIsInSidePanel';
 import useKeyboardState from '@hooks/useKeyboardState';
 import useLocalize from '@hooks/useLocalize';
 import useOnyx from '@hooks/useOnyx';
@@ -263,6 +264,7 @@ function ComposerWithSuggestions({
     const mobileInputScrollPosition = useRef(0);
     const cursorPositionValue = useSharedValue({x: 0, y: 0});
     const tag = useSharedValue(-1);
+    const isInSidePanel = useIsInSidePanel();
     const [draftComment = ''] = useOnyx(`${ONYXKEYS.COLLECTION.REPORT_DRAFT_COMMENT}${reportID}`);
     const [value, setValue] = useState(() => {
         if (draftComment) {
@@ -683,6 +685,17 @@ function ComposerWithSuggestions({
         };
     }, [focus, route.key, shouldAutoFocus, shouldDelayAutoFocus]);
 
+    /**
+     * Tracks whether there is a composer input inside the side panel on the screen.
+     */
+    const handleSidePanelFocus = useCallback(() => {
+        if (!isInSidePanel) {
+            ReportActionComposeFocusManager.sidePanelComposerRef.current = null;
+        } else {
+            ReportActionComposeFocusManager.sidePanelComposerRef.current = textInputRef.current;
+        }
+    }, [isInSidePanel]);
+
     /**
      * Set focus callback
      * @param shouldTakeOverFocus - Whether this composer should gain focus priority
@@ -690,6 +703,7 @@ function ComposerWithSuggestions({
     const setUpComposeFocusManager = useCallback(
         (shouldTakeOverFocus = false) => {
             ReportActionComposeFocusManager.onComposerFocus((shouldFocusForNonBlurInputOnTapOutside = false) => {
+                handleSidePanelFocus();
                 if ((!willBlurTextInputOnTapOutside && !shouldFocusForNonBlurInputOnTapOutside) || !isFocused || !isSidePanelHiddenOrLargeScreen) {
                     return;
                 }
@@ -697,7 +711,7 @@ function ComposerWithSuggestions({
                 focus(true);
             }, shouldTakeOverFocus);
         },
-        [focus, isFocused, isSidePanelHiddenOrLargeScreen],
+        [focus, isFocused, isSidePanelHiddenOrLargeScreen, handleSidePanelFocus],
     );
 
     /**
@@ -797,6 +811,11 @@ function ComposerWithSuggestions({
             return;
         }
 
+        // Do not focus side panels composer if it wasn't focused before
+        if (isInSidePanel && !ReportActionComposeFocusManager.sidePanelComposerRef.current) {
+            return;
+        }
+
         // Do not focus the composer if the Side Panel is visible
         if (!isSidePanelHiddenOrLargeScreen) {
             return;
@@ -814,7 +833,7 @@ function ComposerWithSuggestions({
             return;
         }
         focus(true);
-    }, [focus, prevIsFocused, editFocused, prevIsModalVisible, isFocused, modal?.isVisible, isNextModalWillOpenRef, shouldAutoFocus, isSidePanelHiddenOrLargeScreen]);
+    }, [focus, prevIsFocused, editFocused, prevIsModalVisible, isFocused, modal?.isVisible, isNextModalWillOpenRef, shouldAutoFocus, isSidePanelHiddenOrLargeScreen, isInSidePanel]);
 
     useEffect(() => {
         // Scrolls the composer to the bottom and sets the selection to the end, so that longer drafts are easier to edit
@@ -913,10 +932,10 @@ function ComposerWithSuggestions({
     );
 
     const handleFocus = useCallback(() => {
-        // The last composer that had focus should re-gain focus
-        setUpComposeFocusManager(true);
+        handleSidePanelFocus();
+        setUpComposeFocusManager(!isInSidePanel);
         onFocus();
-    }, [onFocus, setUpComposeFocusManager]);
+    }, [onFocus, setUpComposeFocusManager, handleSidePanelFocus, isInSidePanel]);
 
     // When using the suggestions box (Suggestions) we need to imperatively
     // set the cursor to the end of the suggestion/mention after it's selected.