diff --git a/webapp/channels/src/actions/websocket_actions.jsx b/webapp/channels/src/actions/websocket_actions.jsx
index adb05f4215..0ee45e48a0 100644
--- a/webapp/channels/src/actions/websocket_actions.jsx
+++ b/webapp/channels/src/actions/websocket_actions.jsx
@@ -1474,7 +1474,8 @@ function handleSidebarCategoryUpdated(msg) {
         }
 
         // Fetch all categories in case any other categories had channels moved out of them.
-        doDispatch(fetchMyCategories(msg.broadcast.team_id));
+        // True indicates it is called from WebSocket
+        doDispatch(fetchMyCategories(msg.broadcast.team_id, true));
     };
 }
 
diff --git a/webapp/channels/src/packages/mattermost-redux/src/actions/channel_categories.test.js b/webapp/channels/src/packages/mattermost-redux/src/actions/channel_categories.test.js
index 0cfcadbdf9..d0c1342510 100644
--- a/webapp/channels/src/packages/mattermost-redux/src/actions/channel_categories.test.js
+++ b/webapp/channels/src/packages/mattermost-redux/src/actions/channel_categories.test.js
@@ -327,6 +327,88 @@ describe('fetchMyCategories', () => {
         expect(state.entities.channelCategories.byId.category2).toEqual(categories[1]);
         expect(state.entities.channelCategories.orderByTeam[teamId]).toEqual(['category1', 'category2']);
     });
+    test('should update collapse state if it\'s not from websocket', async () => {
+        const currentUserId = TestHelper.generateId();
+        const teamId = TestHelper.generateId();
+        const isWebSocket = false;
+
+        const categories = [
+            {
+                id: 'category1',
+                collapsed: false,
+                team_id: teamId,
+            },
+            {
+                id: 'category2',
+                collapsed: true,
+                team_id: teamId,
+            },
+        ];
+
+        const store = configureStore({
+            entities: {
+                users: {
+                    currentUserId,
+                },
+                channelCategories: {
+                    byId: {
+                        category1: {id: 'category1', team_id: teamId, collapsed: true},
+                        category2: {id: 'category2', team_id: teamId, collapsed: false},
+
+                    },
+                },
+            }});
+
+        nock(Client4.getBaseRoute()).
+            get(`/users/${currentUserId}/teams/${teamId}/channels/categories`).
+            reply(200, {categories, order: categories.map((category) => category.id)});
+        await store.dispatch(Actions.fetchMyCategories(teamId, isWebSocket));
+        const categoriesById = getAllCategoriesByIds(store.getState());
+
+        expect(categoriesById.category1.collapsed).toEqual(false);
+        expect(categoriesById.category2.collapsed).toEqual(true);
+    });
+    test('should not update collapse state if it\'s from websocket', async () => {
+        const currentUserId = TestHelper.generateId();
+        const teamId = TestHelper.generateId();
+        const isWebSocket = true;
+
+        const categories = [
+            {
+                id: 'category1',
+                collapsed: false,
+                team_id: teamId,
+            },
+            {
+                id: 'category2',
+                collapsed: true,
+                team_id: teamId,
+            },
+        ];
+
+        const store = configureStore({
+            entities: {
+                users: {
+                    currentUserId,
+                },
+                channelCategories: {
+                    byId: {
+                        category1: {id: 'category1', team_id: teamId, collapsed: true},
+                        category2: {id: 'category2', team_id: teamId, collapsed: false},
+
+                    },
+                },
+            }});
+        nock(Client4.getBaseRoute()).
+            get(`/users/${currentUserId}/teams/${teamId}/channels/categories`).
+            reply(200, {categories, order: categories.map((category) => category.id)});
+
+        await store.dispatch(Actions.fetchMyCategories(teamId, isWebSocket));
+        const categoriesById = getAllCategoriesByIds(store.getState());
+
+        expect(categoriesById.category1.collapsed).toEqual(true);
+        expect(categoriesById.category2.collapsed).toEqual(false);
+    });
 });
 
 describe('addChannelToInitialCategory', () => {
diff --git a/webapp/channels/src/packages/mattermost-redux/src/actions/channel_categories.ts b/webapp/channels/src/packages/mattermost-redux/src/actions/channel_categories.ts
index 0dbddbd4d6..66230f2ae0 100644
--- a/webapp/channels/src/packages/mattermost-redux/src/actions/channel_categories.ts
+++ b/webapp/channels/src/packages/mattermost-redux/src/actions/channel_categories.ts
@@ -137,7 +137,7 @@ function updateCategory(category: ChannelCategory) {
     };
 }
 
-export function fetchMyCategories(teamId: string) {
+export function fetchMyCategories(teamId: string, isWebSocket: boolean) {
     return async (dispatch: DispatchFunc, getState: GetStateFunc) => {
         const currentUserId = getCurrentUserId(getState());
 
@@ -154,6 +154,7 @@ export function fetchMyCategories(teamId: string) {
             {
                 type: ChannelCategoryTypes.RECEIVED_CATEGORIES,
                 data: data.categories,
+                isWebSocket,
             },
             {
                 type: ChannelCategoryTypes.RECEIVED_CATEGORY_ORDER,
diff --git a/webapp/channels/src/packages/mattermost-redux/src/reducers/entities/channel_categories.ts b/webapp/channels/src/packages/mattermost-redux/src/reducers/entities/channel_categories.ts
index 5afd2f4dae..08425c4d69 100644
--- a/webapp/channels/src/packages/mattermost-redux/src/reducers/entities/channel_categories.ts
+++ b/webapp/channels/src/packages/mattermost-redux/src/reducers/entities/channel_categories.ts
@@ -23,6 +23,7 @@ export function byId(state: IDMappedObjects<ChannelCategory> = {}, action: Gener
                 [category.id]: {
                     ...nextState[category.id],
                     ...category,
+                    collapsed: action.isWebSocket ? state[category.id].collapsed : category.collapsed,
                 },
             };
         }, state);
diff --git a/webapp/playbooks/src/components/backstage/playbook_editor/playbook_editor.tsx b/webapp/playbooks/src/components/backstage/playbook_editor/playbook_editor.tsx
index f486f115e4..4be848a6f0 100644
--- a/webapp/playbooks/src/components/backstage/playbook_editor/playbook_editor.tsx
+++ b/webapp/playbooks/src/components/backstage/playbook_editor/playbook_editor.tsx
@@ -66,7 +66,7 @@ const PlaybookEditor = () => {
 
         dispatch(selectTeam(teamId));
         dispatch(fetchMyChannelsAndMembersREST(teamId));
-        dispatch(fetchMyCategories(teamId));
+        dispatch(fetchMyCategories(teamId, false));
     }, [dispatch, playbook?.team_id, playbookId]);
 
     useDefaultRedirectOnTeamChange(playbook?.team_id);