diff --git a/RELEASE-NOTES.txt b/RELEASE-NOTES.txt
index 2903efb4179..20facef344c 100644
--- a/RELEASE-NOTES.txt
+++ b/RELEASE-NOTES.txt
@@ -15,6 +15,7 @@
 - [*] Shipping Labels: Show UPS TOS modal in full length for better accessibility. [https://github.com/woocommerce/woocommerce-ios/pull/15926]
 - [*] Shipping Labels: Optimize data loading on purchase form [https://github.com/woocommerce/woocommerce-ios/pull/15919]
 - [*] Shipping Labels: Cache settings and origin addresses to improve loading experience for purchase form [https://github.com/woocommerce/woocommerce-ios/pull/15935]
+- [*] Shipping Labels: Fixed UI glitch on the bottom sheet of the purchase form. [https://github.com/woocommerce/woocommerce-ios/pull/15940]
 - [internal] Optimized assets for app size reduction [https://github.com/woocommerce/woocommerce-ios/pull/15881]
 - [*] Shipping Labels: Allow dots in HS tariff number input field for customs settings [https://github.com/woocommerce/woocommerce-ios/pull/15933]
 
diff --git a/WooCommerce/Classes/ViewRelated/ReusableViews/SwiftUI Components/ExpandableBottomSheet.swift b/WooCommerce/Classes/ViewRelated/ReusableViews/SwiftUI Components/ExpandableBottomSheet.swift
index a0ea852b890..7366a6c5988 100644
--- a/WooCommerce/Classes/ViewRelated/ReusableViews/SwiftUI Components/ExpandableBottomSheet.swift	
+++ b/WooCommerce/Classes/ViewRelated/ReusableViews/SwiftUI Components/ExpandableBottomSheet.swift	
@@ -158,6 +158,12 @@ struct ExpandableBottomSheet<AlwaysVisibleContent, ExpandableContent>: View wher
                 }
         )
         .background(Color(.listForeground(modal: false)))
+        .onReceive(NotificationCenter.default.publisher(for: UIApplication.didBecomeActiveNotification)) { _ in
+            /// When user swipes to move the app to the background, the drag gesture is started but never finishes.
+            /// This workaround cancels the dragging when the app re-enters the foreground
+            /// and fixes the glitch caused by the divider at the bottom of the scroll view.
+            revealContentDuringDrag = false
+        }
     }
 
     private func calculateHeight(offsetBy dragAmount: CGFloat = 0) -> CGFloat {