diff --git a/src/libs/CategoryUtils.ts b/src/libs/CategoryUtils.ts
index 789026f91af6..207977ddb000 100644
--- a/src/libs/CategoryUtils.ts
+++ b/src/libs/CategoryUtils.ts
@@ -1,7 +1,7 @@
 import type {LocaleContextProps} from '@components/LocaleContextProvider';
 import CONST from '@src/CONST';
 import type {Policy, TaxRate, TaxRatesWithDefault} from '@src/types/onyx';
-import type {ApprovalRule, ExpenseRule} from '@src/types/onyx/Policy';
+import type {ApprovalRule, ExpenseRule, MccGroup} from '@src/types/onyx/Policy';
 import * as CurrencyUtils from './CurrencyUtils';
 
 function formatDefaultTaxRateText(translate: LocaleContextProps['translate'], taxID: string, taxRate: TaxRate, policyTaxRates?: TaxRatesWithDefault) {
@@ -68,4 +68,19 @@ function getCategoryDefaultTaxRate(expenseRules: ExpenseRule[], categoryName: st
     return categoryDefaultTaxRate;
 }
 
-export {formatDefaultTaxRateText, formatRequireReceiptsOverText, getCategoryApproverRule, getCategoryExpenseRule, getCategoryDefaultTaxRate};
+function updateCategoryInMccGroup(mccGroups: Record<string, MccGroup>, oldCategoryName: string, newCategoryName: string, shouldClearPendingAction?: boolean) {
+    if (oldCategoryName === newCategoryName) {
+        return mccGroups;
+    }
+
+    const updatedGroups: Record<string, MccGroup> = {};
+
+    for (const [key, group] of Object.entries(mccGroups || {})) {
+        updatedGroups[key] =
+            group.category === oldCategoryName ? {...group, category: newCategoryName, pendingAction: shouldClearPendingAction ? null : CONST.RED_BRICK_ROAD_PENDING_ACTION.UPDATE} : group;
+    }
+
+    return updatedGroups;
+}
+
+export {formatDefaultTaxRateText, formatRequireReceiptsOverText, getCategoryApproverRule, getCategoryExpenseRule, getCategoryDefaultTaxRate, updateCategoryInMccGroup};
diff --git a/src/libs/actions/Policy/Category.ts b/src/libs/actions/Policy/Category.ts
index 186cd4672d03..0115a62aa167 100644
--- a/src/libs/actions/Policy/Category.ts
+++ b/src/libs/actions/Policy/Category.ts
@@ -33,7 +33,7 @@ import * as ReportUtils from '@libs/ReportUtils';
 import CONST from '@src/CONST';
 import ONYXKEYS from '@src/ONYXKEYS';
 import type {Policy, PolicyCategories, PolicyCategory, RecentlyUsedCategories, Report} from '@src/types/onyx';
-import type {ApprovalRule, ExpenseRule} from '@src/types/onyx/Policy';
+import type {ApprovalRule, ExpenseRule, MccGroup} from '@src/types/onyx/Policy';
 import type {PolicyCategoryExpenseLimitType} from '@src/types/onyx/PolicyCategory';
 import type {OnyxData} from '@src/types/onyx/Request';
 
@@ -549,8 +549,12 @@ function renamePolicyCategory(policyID: string, policyCategory: {oldName: string
     const policyCategoryExpenseRule = CategoryUtils.getCategoryExpenseRule(policy?.rules?.expenseRules ?? [], policyCategory.oldName);
     const approvalRules = policy?.rules?.approvalRules ?? [];
     const expenseRules = policy?.rules?.expenseRules ?? [];
+    const mccGroup = policy?.mccGroup ?? {};
     const updatedApprovalRules: ApprovalRule[] = lodashCloneDeep(approvalRules);
     const updatedExpenseRules: ExpenseRule[] = lodashCloneDeep(expenseRules);
+    const clonedMccGroup: Record<string, MccGroup> = lodashCloneDeep(mccGroup);
+    const updatedMccGroup = CategoryUtils.updateCategoryInMccGroup(clonedMccGroup, policyCategory.oldName, policyCategory.newName);
+    const updatedMccGroupWithClearedPendingAction = CategoryUtils.updateCategoryInMccGroup(clonedMccGroup, policyCategory.oldName, policyCategory.newName, true);
 
     if (policyCategoryExpenseRule) {
         const ruleIndex = updatedExpenseRules.findIndex((rule) => rule.id === policyCategoryExpenseRule.id);
@@ -603,10 +607,18 @@ function renamePolicyCategory(policyID: string, policyCategory: {oldName: string
                         approvalRules: updatedApprovalRules,
                         expenseRules: updatedExpenseRules,
                     },
+                    mccGroup: updatedMccGroup,
                 },
             },
         ],
         successData: [
+            {
+                onyxMethod: Onyx.METHOD.MERGE,
+                key: `${ONYXKEYS.COLLECTION.POLICY}${policyID}`,
+                value: {
+                    mccGroup: updatedMccGroupWithClearedPendingAction,
+                },
+            },
             {
                 onyxMethod: Onyx.METHOD.MERGE,
                 key: `${ONYXKEYS.COLLECTION.POLICY_CATEGORIES}${policyID}`,
@@ -646,6 +658,7 @@ function renamePolicyCategory(policyID: string, policyCategory: {oldName: string
                     rules: {
                         approvalRules,
                     },
+                    mccGroup,
                 },
             },
         ],
diff --git a/src/types/onyx/Policy.ts b/src/types/onyx/Policy.ts
index 88e41aed5bb4..42dbbeb16dd8 100644
--- a/src/types/onyx/Policy.ts
+++ b/src/types/onyx/Policy.ts
@@ -1923,4 +1923,5 @@ export type {
     ApprovalRule,
     ExpenseRule,
     NetSuiteConnectionConfig,
+    MccGroup,
 };