diff --git a/hypha/apply/funds/models/submissions.py b/hypha/apply/funds/models/submissions.py
index f1215be4f5..503c6843b0 100644
--- a/hypha/apply/funds/models/submissions.py
+++ b/hypha/apply/funds/models/submissions.py
@@ -1054,6 +1054,7 @@ def log_status_update(self, descriptor, source, target, **kwargs):
                     code=SUBMISSION_DRAFT, user=by, related_obj=instance
                 )
                 # notify for a new submission
+                instance.status = target
                 messenger(
                     MESSAGES.NEW_SUBMISSION,
                     request=request,
diff --git a/hypha/apply/funds/tests/test_views.py b/hypha/apply/funds/tests/test_views.py
index b3289601d8..f390563fcb 100644
--- a/hypha/apply/funds/tests/test_views.py
+++ b/hypha/apply/funds/tests/test_views.py
@@ -5,6 +5,7 @@
 from bs4 import BeautifulSoup
 from django.conf import settings
 from django.contrib.auth.models import AnonymousUser
+from django.core import mail
 from django.http import Http404
 from django.test import RequestFactory, TestCase, override_settings
 from django.urls import reverse
@@ -26,7 +27,7 @@
     SealedSubmissionFactory,
 )
 from hypha.apply.funds.views.submission_detail import SubmissionDetailView
-from hypha.apply.funds.workflows import INITIAL_STATE
+from hypha.apply.funds.workflows import DRAFT_STATE, INITIAL_STATE
 from hypha.apply.projects.models import Project
 from hypha.apply.projects.models.project import CONTRACTING
 from hypha.apply.projects.tests.factories import ProjectFactory
@@ -1252,6 +1253,25 @@ def test_can_submit_submission(self):
         submission = self.refresh(self.draft_proposal_submission)
         self.assertNotEqual(old_status, submission.status)
 
+    @override_settings(SEND_MESSAGES=True)
+    def test_submitting_application_in_draft_state_sends_correct_email(self):
+        draft_submission = ApplicationSubmissionFactory(
+            user=self.user, status=DRAFT_STATE
+        )
+        data = {**prepare_form_data(draft_submission), "submit": True}
+
+        self.post_page(draft_submission, {"submit": True, **data}, "edit")
+
+        self.assertEqual(len(mail.outbox), 1)
+        self.assertIn(
+            "We will review and reply to your submission as quickly as possible.",
+            mail.outbox[0].body,
+        )
+        self.assertNotIn(
+            "Please note that it is not submitted for review because it's still in draft.",
+            mail.outbox[0].body,
+        )
+
     def test_gets_draft_on_edit_submission(self):
         draft_revision = ApplicationRevisionFactory(
             submission=self.draft_proposal_submission