diff --git a/packages/hoppscotch-common/src/components/new-collections/rest/index.vue b/packages/hoppscotch-common/src/components/new-collections/rest/index.vue
index dfdbf57f1..b7b043d3e 100644
--- a/packages/hoppscotch-common/src/components/new-collections/rest/index.vue
+++ b/packages/hoppscotch-common/src/components/new-collections/rest/index.vue
@@ -1812,18 +1812,15 @@ const dropCollection = async (payload: {
         : resolvedDestinationCollectionIndex
   }
 
-  resolveSaveContextOnCollectionReorder(
-    {
-      lastIndex: pathToLastIndex(draggedCollectionIndex),
-      newIndex: -1,
-      folderPath: draggedParentCollectionIndex,
-      length: getFoldersByPath(
-        restCollectionState.value,
-        draggedParentCollectionIndex
-      ).length,
-    },
-    "drop"
-  )
+  resolveSaveContextOnCollectionReorder({
+    lastIndex: pathToLastIndex(draggedCollectionIndex),
+    newIndex: -1,
+    folderPath: draggedParentCollectionIndex,
+    length: getFoldersByPath(
+      restCollectionState.value,
+      draggedParentCollectionIndex
+    ).length,
+  })
 
   updateSaveContextForAffectedRequests(
     draggedCollectionIndex,
diff --git a/packages/hoppscotch-common/src/helpers/collection/collection.ts b/packages/hoppscotch-common/src/helpers/collection/collection.ts
index 21b7035c6..c9cea6913 100644
--- a/packages/hoppscotch-common/src/helpers/collection/collection.ts
+++ b/packages/hoppscotch-common/src/helpers/collection/collection.ts
@@ -22,15 +22,12 @@ import { HandleRef } from "~/services/new-workspace/handle"
  * @returns
  */
 
-export function resolveSaveContextOnCollectionReorder(
-  payload: {
-    lastIndex: number
-    newIndex: number
-    folderPath: string
-    length?: number // better way to do this? now it could be undefined
-  },
-  type: "remove" | "drop" = "remove"
-) {
+export function resolveSaveContextOnCollectionReorder(payload: {
+  lastIndex: number
+  newIndex: number
+  folderPath: string
+  length?: number // better way to do this? now it could be undefined
+}) {
   const { lastIndex, folderPath, length } = payload
   let { newIndex } = payload
 
@@ -45,12 +42,6 @@ export function resolveSaveContextOnCollectionReorder(
   if (newIndex === -1) {
     // if (newIndex === -1) remove it from the map because it will be deleted
     affectedIndexes.delete(lastIndex)
-    // when collection deleted opended requests from that collection be affected
-    if (type === "remove") {
-      resetSaveContextForAffectedRequests(
-        folderPath ? `${folderPath}/${lastIndex}` : lastIndex.toString()
-      )
-    }
   }
 
   // add folder path as prefix to the affected indexes
diff --git a/packages/hoppscotch-common/src/services/new-workspace/providers/personal.workspace.ts b/packages/hoppscotch-common/src/services/new-workspace/providers/personal.workspace.ts
index a1f169909..a20d05025 100644
--- a/packages/hoppscotch-common/src/services/new-workspace/providers/personal.workspace.ts
+++ b/packages/hoppscotch-common/src/services/new-workspace/providers/personal.workspace.ts
@@ -59,6 +59,10 @@ import {
   WorkspaceRequest,
 } from "~/services/new-workspace/workspace"
 
+import {
+  getFoldersByPath,
+  resolveSaveContextOnCollectionReorder,
+} from "~/helpers/collection/collection"
 import {
   getRequestsByPath,
   resolveSaveContextOnRequestReorder,
@@ -279,10 +283,9 @@ export class PersonalWorkspaceProviderService
     const { collectionID } = collectionHandle.value.data
 
     const isRootCollection = collectionID.split("/").length === 1
+    const collectionIndex = parseInt(collectionID)
 
     if (isRootCollection) {
-      const collectionIndex = parseInt(collectionID)
-
       const collectionToRemove = navigateToFolderWithIndexPath(
         restCollectionStore.value.state,
         [collectionIndex]
@@ -322,6 +325,26 @@ export class PersonalWorkspaceProviderService
       }
     }
 
+    if (isRootCollection) {
+      resolveSaveContextOnCollectionReorder({
+        lastIndex: collectionIndex,
+        newIndex: -1,
+        folderPath: "", // root folder
+        length: restCollectionStore.value.state.length,
+      })
+    } else {
+      const parentCollectionID = collectionID.split("/").slice(0, -1).join("/") // remove last folder to get parent folder
+      resolveSaveContextOnCollectionReorder({
+        lastIndex: this.pathToLastIndex(collectionID),
+        newIndex: -1,
+        folderPath: parentCollectionID,
+        length: getFoldersByPath(
+          restCollectionStore.value.state,
+          parentCollectionID
+        ).length,
+      })
+    }
+
     return Promise.resolve(E.right(undefined))
   }