diff --git a/webapp/channels/src/components/root/root_redirect/index.ts b/webapp/channels/src/components/root/root_redirect/index.ts
index d361a82c98ec2..1309717653c09 100644
--- a/webapp/channels/src/components/root/root_redirect/index.ts
+++ b/webapp/channels/src/components/root/root_redirect/index.ts
@@ -7,6 +7,7 @@ import type {Dispatch} from 'redux';
 
 import {getFirstAdminSetupComplete} from 'mattermost-redux/actions/general';
 import {getIsOnboardingFlowEnabled} from 'mattermost-redux/selectors/entities/preferences';
+import {getActiveTeamsList} from 'mattermost-redux/selectors/entities/teams';
 import {getCurrentUserId, isCurrentUserSystemAdmin, isFirstAdmin} from 'mattermost-redux/selectors/entities/users';
 
 import type {GlobalState} from 'types/store';
@@ -15,6 +16,7 @@ import RootRedirect from './root_redirect';
 
 function mapStateToProps(state: GlobalState) {
     const onboardingFlowEnabled = getIsOnboardingFlowEnabled(state);
+    const teams = getActiveTeamsList(state);
     let isElegibleForFirstAdmingOnboarding = onboardingFlowEnabled;
     if (isElegibleForFirstAdmingOnboarding) {
         isElegibleForFirstAdmingOnboarding = isCurrentUserSystemAdmin(state);
@@ -23,6 +25,7 @@ function mapStateToProps(state: GlobalState) {
         currentUserId: getCurrentUserId(state),
         isElegibleForFirstAdmingOnboarding,
         isFirstAdmin: isFirstAdmin(state),
+        areThereTeams: Boolean(teams.length),
     };
 }
 
diff --git a/webapp/channels/src/components/root/root_redirect/root_redirect.test.tsx b/webapp/channels/src/components/root/root_redirect/root_redirect.test.tsx
new file mode 100644
index 0000000000000..8bb5278ec9647
--- /dev/null
+++ b/webapp/channels/src/components/root/root_redirect/root_redirect.test.tsx
@@ -0,0 +1,173 @@
+// Copyright (c) 2015-present Mattermost, Inc. All Rights Reserved.
+// See LICENSE.txt for license information.
+
+import {createMemoryHistory} from 'history';
+import React from 'react';
+import type {RouteComponentProps} from 'react-router-dom';
+import {Redirect} from 'react-router-dom';
+
+import {getFirstAdminSetupComplete as getFirstAdminSetupCompleteAction} from 'mattermost-redux/actions/general';
+
+import * as GlobalActions from 'actions/global_actions';
+
+import {renderWithContext, waitFor} from 'tests/react_testing_utils';
+
+import RootRedirect from './root_redirect';
+import type {Props} from './root_redirect';
+
+jest.mock('actions/global_actions', () => ({
+    redirectUserToDefaultTeam: jest.fn(),
+}));
+
+jest.mock('mattermost-redux/actions/general', () => ({
+    getFirstAdminSetupComplete: jest.fn(() =>
+        Promise.resolve({
+            data: true,
+        }),
+    ),
+}));
+
+jest.mock('react-router-dom', () => {
+    const actual = jest.requireActual('react-router-dom');
+    return {
+        ...actual,
+        Redirect: jest.fn(() => null),
+    };
+});
+
+describe('components/RootRedirect', () => {
+    const baseProps: Props = {
+        currentUserId: '',
+        isElegibleForFirstAdmingOnboarding: false,
+        isFirstAdmin: false,
+        areThereTeams: false,
+        actions: {
+            getFirstAdminSetupComplete: getFirstAdminSetupCompleteAction as jest.Mock,
+        },
+    };
+
+    const defaultProps = {
+        ...baseProps,
+        location: {
+            pathname: '/',
+        },
+    } as Props & RouteComponentProps;
+
+    afterEach(() => {
+        jest.clearAllMocks();
+    });
+
+    test('should redirect to /login when currentUserId is empty', () => {
+        renderWithContext(<RootRedirect {...defaultProps}/>);
+
+        expect(Redirect).toHaveBeenCalledTimes(1);
+        expect(Redirect).toHaveBeenCalledWith(
+            expect.objectContaining({
+                to: expect.objectContaining({
+                    pathname: '/login',
+                }),
+            }),
+            {},
+        );
+    });
+
+    test('should call GlobalActions.redirectUserToDefaultTeam when user is logged in and not eligible for first admin onboarding', () => {
+        const props = {
+            ...defaultProps,
+            currentUserId: 'test-user-id',
+            isElegibleForFirstAdmingOnboarding: false,
+        };
+
+        renderWithContext(<RootRedirect {...props}/>);
+
+        expect(GlobalActions.redirectUserToDefaultTeam).toHaveBeenCalledTimes(1);
+    });
+
+    test('should redirect to preparing-workspace when eligible for first admin onboarding and no teams created', async () => {
+        const history = createMemoryHistory({initialEntries: ['/']});
+        const mockHistoryPush = jest.spyOn(history, 'push');
+
+        const props = {
+            currentUserId: 'test-user-id',
+            isElegibleForFirstAdmingOnboarding: true,
+            isFirstAdmin: true,
+            areThereTeams: false,
+            actions: {
+                getFirstAdminSetupComplete: jest.fn().mockResolvedValue({data: false}),
+            },
+        };
+
+        renderWithContext(<RootRedirect {...props}/>, {}, {history});
+
+        expect(props.actions.getFirstAdminSetupComplete).toHaveBeenCalledTimes(1);
+
+        await waitFor(() => {
+            expect(mockHistoryPush).toHaveBeenCalledWith('/preparing-workspace');
+        });
+    });
+
+    test('should NOT redirect to preparing-workspace when there are teams created, even if system value for first admin onboarding complete is false', async () => {
+        const history = createMemoryHistory({initialEntries: ['/']});
+
+        const props = {
+            ...defaultProps,
+            currentUserId: 'test-user-id',
+            isElegibleForFirstAdmingOnboarding: true,
+            isFirstAdmin: true,
+            areThereTeams: true,
+            actions: {
+                getFirstAdminSetupComplete: jest.fn().mockResolvedValue({data: false}),
+            },
+        };
+
+        renderWithContext(<RootRedirect {...props}/>, {}, {history});
+
+        expect(props.actions.getFirstAdminSetupComplete).toHaveBeenCalledTimes(1);
+
+        await waitFor(() => {
+            expect(GlobalActions.redirectUserToDefaultTeam).toHaveBeenCalledTimes(1);
+        });
+    });
+
+    test('should redirect to default team when first admin setup is complete', async () => {
+        const props = {
+            ...defaultProps,
+            currentUserId: 'test-user-id',
+            isElegibleForFirstAdmingOnboarding: true,
+            isFirstAdmin: true,
+            areThereTeams: false,
+            actions: {
+                getFirstAdminSetupComplete: jest.fn().mockResolvedValue({data: true}),
+            },
+        };
+
+        renderWithContext(<RootRedirect {...props}/>);
+
+        expect(props.actions.getFirstAdminSetupComplete).toHaveBeenCalledTimes(1);
+
+        await waitFor(() => {
+            expect(GlobalActions.redirectUserToDefaultTeam).toHaveBeenCalledTimes(1);
+        });
+    });
+
+    test('should redirect to default team when not first admin or teams exist', async () => {
+        const props = {
+            ...defaultProps,
+            currentUserId: 'test-user-id',
+            isElegibleForFirstAdmingOnboarding: true,
+            isFirstAdmin: false,
+            areThereTeams: true,
+            actions: {
+                getFirstAdminSetupComplete: jest.fn().mockResolvedValue({data: false}),
+            },
+        };
+
+        renderWithContext(<RootRedirect {...props}/>);
+
+        expect(props.actions.getFirstAdminSetupComplete).toHaveBeenCalledTimes(1);
+
+        await waitFor(() => {
+            expect(GlobalActions.redirectUserToDefaultTeam).toHaveBeenCalledTimes(1);
+        });
+    });
+});
diff --git a/webapp/channels/src/components/root/root_redirect/root_redirect.tsx b/webapp/channels/src/components/root/root_redirect/root_redirect.tsx
index c528a91c3aeb9..3a1db8624e92c 100644
--- a/webapp/channels/src/components/root/root_redirect/root_redirect.tsx
+++ b/webapp/channels/src/components/root/root_redirect/root_redirect.tsx
@@ -13,6 +13,7 @@ export type Props = {
     currentUserId: string;
     location?: Location;
     isFirstAdmin: boolean;
+    areThereTeams: boolean;
     actions: {
         getFirstAdminSetupComplete: () => Promise<ActionResult>;
     };
@@ -26,7 +27,7 @@ export default function RootRedirect(props: Props) {
             if (props.isElegibleForFirstAdmingOnboarding) {
                 props.actions.getFirstAdminSetupComplete().then((firstAdminCompletedSignup) => {
                     // root.tsx ensures admin profiles are eventually loaded
-                    if (firstAdminCompletedSignup.data === false && props.isFirstAdmin) {
+                    if (firstAdminCompletedSignup.data === false && props.isFirstAdmin && !props.areThereTeams) {
                         history.push('/preparing-workspace');
                     } else {
                         GlobalActions.redirectUserToDefaultTeam();