diff --git a/projects/packages/backup/changelog/fix-backup-discarded-as-successful b/projects/packages/backup/changelog/fix-backup-discarded-as-successful
new file mode 100644
index 0000000000000..ab7cac4e82011
--- /dev/null
+++ b/projects/packages/backup/changelog/fix-backup-discarded-as-successful
@@ -0,0 +1,4 @@
+Significance: patch
+Type: fixed
+
+Stop considering discarded backups as successful backups on the admin page
diff --git a/projects/packages/backup/src/js/hooks/test/useBackupsState.js b/projects/packages/backup/src/js/hooks/test/useBackupsState.js
index 91cdc18da682e..0df42c2b6a28c 100644
--- a/projects/packages/backup/src/js/hooks/test/useBackupsState.js
+++ b/projects/packages/backup/src/js/hooks/test/useBackupsState.js
@@ -17,6 +17,31 @@ const fixtures = {
 			is_scan: 0,
 		},
 	],
+	discarded: [
+		{
+			id: 381971090,
+			started: '2023-01-01 02:16:32',
+			last_updated: '2023-01-01 02:16:34',
+			status: 'finished',
+			period: 1672530000,
+			percent: 100,
+			is_backup: 1,
+			is_scan: 0,
+			has_warnings: false,
+			discarded: '1',
+			stats: {
+				prefix: 'wp_',
+				plugins: { count: 100 },
+				themes: { count: 100 },
+				uploads: { count: 100 },
+				tables: {
+					wp_posts: {
+						post_published: 100,
+					},
+				},
+			}, // full stats details are not required currently
+		},
+	],
 	complete: [
 		{
 			id: 381971090,
@@ -28,6 +53,7 @@ const fixtures = {
 			is_backup: 1,
 			is_scan: 0,
 			has_warnings: false,
+			discarded: '0',
 			stats: {
 				prefix: 'wp_',
 				plugins: { count: 100 },
@@ -53,6 +79,54 @@ const fixtures = {
 			is_scan: 0,
 		},
 	],
+	complete_and_discarded: [
+		{
+			id: 234567,
+			started: '2024-01-02 01:00:00',
+			last_updated: '2024-01-02 01:05:00',
+			status: 'finished',
+			period: 1704157200,
+			percent: 100,
+			is_backup: 1,
+			is_scan: 0,
+			has_warnings: false,
+			discarded: '1', // Discarded backup
+			stats: {
+				prefix: 'wp_',
+				plugins: { count: 100 },
+				themes: { count: 100 },
+				uploads: { count: 100 },
+				tables: {
+					wp_posts: {
+						post_published: 100,
+					},
+				},
+			},
+		},
+		{
+			id: 123456,
+			started: '2024-01-01 01:00:00',
+			last_updated: '2024-01-01 01:05:00',
+			status: 'finished',
+			period: 1704070800,
+			percent: 100,
+			is_backup: 1,
+			is_scan: 0,
+			has_warnings: false,
+			discarded: '0', // Complete backup
+			stats: {
+				prefix: 'wp_',
+				plugins: { count: 100 },
+				themes: { count: 100 },
+				uploads: { count: 100 },
+				tables: {
+					wp_posts: {
+						post_published: 100,
+					},
+				},
+			},
+		},
+	],
 };
 
 jest.mock( '@wordpress/data', () => ( {
@@ -151,4 +225,42 @@ describe( 'useBackupsState', () => {
 			expect( result.current.backupState ).toBe( BACKUP_STATE.NO_GOOD_BACKUPS );
 		} );
 	} );
+
+	it( 'backupState should be NO_GOOD_BACKUPS when last backup finished as discarded', async () => {
+		useSelect.mockImplementation( selector => {
+			if ( typeof selector === 'function' ) {
+				return selector( () => ( {
+					getBackups: () => fixtures.discarded,
+					isFetchingBackups: () => false,
+					hasLoadedBackups: () => true,
+				} ) );
+			}
+			return [];
+		} );
+
+		const { result } = renderHook( () => useBackupsState() );
+
+		await waitFor( () => {
+			expect( result.current.backupState ).toBe( BACKUP_STATE.NO_GOOD_BACKUPS );
+		} );
+	} );
+
+	it( 'backupState should be COMPLETE by selecting the latest non-discarded finished backup', async () => {
+		useSelect.mockImplementation( selector => {
+			if ( typeof selector === 'function' ) {
+				return selector( () => ( {
+					getBackups: () => fixtures.complete_and_discarded,
+					isFetchingBackups: () => false,
+					hasLoadedBackups: () => true,
+				} ) );
+			}
+			return [];
+		} );
+
+		const { result } = renderHook( () => useBackupsState() );
+
+		await waitFor( () => {
+			expect( result.current.backupState ).toBe( BACKUP_STATE.COMPLETE );
+		} );
+	} );
 } );
diff --git a/projects/packages/backup/src/js/hooks/useBackupsState.js b/projects/packages/backup/src/js/hooks/useBackupsState.js
index 2f9f4b09604c6..0307eb36f3045 100644
--- a/projects/packages/backup/src/js/hooks/useBackupsState.js
+++ b/projects/packages/backup/src/js/hooks/useBackupsState.js
@@ -59,7 +59,7 @@ const useBackupsState = ( shouldPoll = false ) => {
 						return;
 					}
 
-					if ( 'finished' === backup.status && backup.stats ) {
+					if ( 'finished' === backup.status && backup.stats && '0' === backup.discarded ) {
 						latestBackup = backup;
 						setBackupState( BACKUP_STATE.COMPLETE );
 					}