diff --git a/changelog.d/5081.bugfix b/changelog.d/5081.bugfix
new file mode 100644
index 0000000000..6ec6dcc43e
--- /dev/null
+++ b/changelog.d/5081.bugfix
@@ -0,0 +1 @@
+Selecting Transfer in a call should immediately put the other person on hold until the call connects or the Transfer is cancelled.
\ No newline at end of file
diff --git a/vector/src/main/java/im/vector/app/features/call/VectorCallActivity.kt b/vector/src/main/java/im/vector/app/features/call/VectorCallActivity.kt
index 22f1fc40a2..642d259723 100644
--- a/vector/src/main/java/im/vector/app/features/call/VectorCallActivity.kt
+++ b/vector/src/main/java/im/vector/app/features/call/VectorCallActivity.kt
@@ -16,6 +16,7 @@
 
 package im.vector.app.features.call
 
+import android.app.Activity
 import android.app.KeyguardManager
 import android.app.PictureInPictureParams
 import android.content.Context
@@ -43,6 +44,7 @@ import com.google.android.material.card.MaterialCardView
 import com.google.android.material.dialog.MaterialAlertDialogBuilder
 import dagger.hilt.android.AndroidEntryPoint
 import im.vector.app.R
+import im.vector.app.core.extensions.registerStartForActivityResult
 import im.vector.app.core.extensions.setTextOrHide
 import im.vector.app.core.platform.VectorBaseActivity
 import im.vector.app.core.utils.PERMISSIONS_FOR_AUDIO_IP_CALL
@@ -518,13 +520,19 @@ class VectorCallActivity : VectorBaseActivity<ActivityCallBinding>(), CallContro
             }
             is VectorCallViewEvents.ShowCallTransferScreen -> {
                 val callId = withState(callViewModel) { it.callId }
-                navigator.openCallTransfer(this, callId)
+                navigator.openCallTransfer(this, callTransferActivityResultLauncher, callId)
             }
             null                                           -> {
             }
         }
     }
 
+    private val callTransferActivityResultLauncher = registerStartForActivityResult { activityResult ->
+        if (activityResult.resultCode == Activity.RESULT_CANCELED) {
+            callViewModel.handle(VectorCallViewActions.CallTransferSelectionCancelled)
+        }
+    }
+
     private fun onErrorTimoutConnect(turn: TurnServerResponse?) {
         Timber.tag(loggerTag.value).d("onErrorTimoutConnect $turn")
         // TODO ask to use default stun, etc...
diff --git a/vector/src/main/java/im/vector/app/features/call/VectorCallViewActions.kt b/vector/src/main/java/im/vector/app/features/call/VectorCallViewActions.kt
index 67aa7bede2..fb39660282 100644
--- a/vector/src/main/java/im/vector/app/features/call/VectorCallViewActions.kt
+++ b/vector/src/main/java/im/vector/app/features/call/VectorCallViewActions.kt
@@ -36,5 +36,6 @@ sealed class VectorCallViewActions : VectorViewModelAction {
     object ToggleCamera : VectorCallViewActions()
     object ToggleHDSD : VectorCallViewActions()
     object InitiateCallTransfer : VectorCallViewActions()
+    object CallTransferSelectionCancelled : VectorCallViewActions()
     object TransferCall : VectorCallViewActions()
 }
diff --git a/vector/src/main/java/im/vector/app/features/call/VectorCallViewModel.kt b/vector/src/main/java/im/vector/app/features/call/VectorCallViewModel.kt
index 5af2b826af..4aca0ea499 100644
--- a/vector/src/main/java/im/vector/app/features/call/VectorCallViewModel.kt
+++ b/vector/src/main/java/im/vector/app/features/call/VectorCallViewModel.kt
@@ -319,10 +319,14 @@ class VectorCallViewModel @AssistedInject constructor(
                 call?.sendDtmfDigit(action.digit)
             }
             VectorCallViewActions.InitiateCallTransfer -> {
+                call?.updateRemoteOnHold(true)
                 _viewEvents.post(
                         VectorCallViewEvents.ShowCallTransferScreen
                 )
             }
+            VectorCallViewActions.CallTransferSelectionCancelled -> {
+                call?.updateRemoteOnHold(false)
+            }
             VectorCallViewActions.TransferCall         -> {
                 handleCallTransfer()
             }
diff --git a/vector/src/main/java/im/vector/app/features/call/transfer/CallTransferActivity.kt b/vector/src/main/java/im/vector/app/features/call/transfer/CallTransferActivity.kt
index 959e96cc4c..0e63316bbe 100644
--- a/vector/src/main/java/im/vector/app/features/call/transfer/CallTransferActivity.kt
+++ b/vector/src/main/java/im/vector/app/features/call/transfer/CallTransferActivity.kt
@@ -16,6 +16,7 @@
 
 package im.vector.app.features.call.transfer
 
+import android.app.Activity
 import android.content.Context
 import android.content.Intent
 import android.os.Bundle
@@ -55,7 +56,7 @@ class CallTransferActivity : VectorBaseActivity<ActivityCallTransferBinding>() {
 
         callTransferViewModel.observeViewEvents {
             when (it) {
-                is CallTransferViewEvents.Dismiss        -> finish()
+                is CallTransferViewEvents.Complete        -> handleComplete()
                 CallTransferViewEvents.Loading           -> showWaitingView()
                 is CallTransferViewEvents.FailToTransfer -> showSnackbar(getString(R.string.call_transfer_failure))
             }
@@ -93,6 +94,11 @@ class CallTransferActivity : VectorBaseActivity<ActivityCallTransferBinding>() {
         }
     }
 
+    private fun handleComplete() {
+        setResult(Activity.RESULT_OK)
+        finish()
+    }
+
     companion object {
 
         fun newIntent(context: Context, callId: String): Intent {
diff --git a/vector/src/main/java/im/vector/app/features/call/transfer/CallTransferViewEvents.kt b/vector/src/main/java/im/vector/app/features/call/transfer/CallTransferViewEvents.kt
index fd4c9d672d..a8451e4fb5 100644
--- a/vector/src/main/java/im/vector/app/features/call/transfer/CallTransferViewEvents.kt
+++ b/vector/src/main/java/im/vector/app/features/call/transfer/CallTransferViewEvents.kt
@@ -19,7 +19,7 @@ package im.vector.app.features.call.transfer
 import im.vector.app.core.platform.VectorViewEvents
 
 sealed class CallTransferViewEvents : VectorViewEvents {
-    object Dismiss : CallTransferViewEvents()
+    object Complete : CallTransferViewEvents()
     object Loading : CallTransferViewEvents()
     object FailToTransfer : CallTransferViewEvents()
 }
diff --git a/vector/src/main/java/im/vector/app/features/call/transfer/CallTransferViewModel.kt b/vector/src/main/java/im/vector/app/features/call/transfer/CallTransferViewModel.kt
index ffc6ff9bc3..de6a5de539 100644
--- a/vector/src/main/java/im/vector/app/features/call/transfer/CallTransferViewModel.kt
+++ b/vector/src/main/java/im/vector/app/features/call/transfer/CallTransferViewModel.kt
@@ -50,14 +50,14 @@ class CallTransferViewModel @AssistedInject constructor(@Assisted initialState:
     private val callListener = object : WebRtcCall.Listener {
         override fun onStateUpdate(call: MxCall) {
             if (call.state is CallState.Ended) {
-                _viewEvents.post(CallTransferViewEvents.Dismiss)
+                _viewEvents.post(CallTransferViewEvents.Complete)
             }
         }
     }
 
     init {
         if (call == null) {
-            _viewEvents.post(CallTransferViewEvents.Dismiss)
+            _viewEvents.post(CallTransferViewEvents.Complete)
         } else {
             call.addListener(callListener)
         }
@@ -89,7 +89,7 @@ class CallTransferViewModel @AssistedInject constructor(@Assisted initialState:
                 } else {
                     call?.transferToUser(action.selectedUserId, null)
                 }
-                _viewEvents.post(CallTransferViewEvents.Dismiss)
+                _viewEvents.post(CallTransferViewEvents.Complete)
             } catch (failure: Throwable) {
                 _viewEvents.post(CallTransferViewEvents.FailToTransfer)
             }
@@ -111,7 +111,7 @@ class CallTransferViewModel @AssistedInject constructor(@Assisted initialState:
                 } else {
                     call?.transferToUser(result.userId, result.roomId)
                 }
-                _viewEvents.post(CallTransferViewEvents.Dismiss)
+                _viewEvents.post(CallTransferViewEvents.Complete)
             } catch (failure: Throwable) {
                 _viewEvents.post(CallTransferViewEvents.FailToTransfer)
             }
diff --git a/vector/src/main/java/im/vector/app/features/navigation/DefaultNavigator.kt b/vector/src/main/java/im/vector/app/features/navigation/DefaultNavigator.kt
index f66ced3299..8f0b1723a0 100644
--- a/vector/src/main/java/im/vector/app/features/navigation/DefaultNavigator.kt
+++ b/vector/src/main/java/im/vector/app/features/navigation/DefaultNavigator.kt
@@ -524,9 +524,13 @@ class DefaultNavigator @Inject constructor(
         context.startActivity(RoomDevToolActivity.intent(context, roomId))
     }
 
-    override fun openCallTransfer(context: Context, callId: String) {
+    override fun openCallTransfer(
+            context: Context,
+            activityResultLauncher: ActivityResultLauncher<Intent>,
+            callId: String
+    ) {
         val intent = CallTransferActivity.newIntent(context, callId)
-        context.startActivity(intent)
+        activityResultLauncher.launch(intent)
     }
 
     override fun openCreatePoll(context: Context, roomId: String, editedEventId: String?, mode: PollMode) {
diff --git a/vector/src/main/java/im/vector/app/features/navigation/Navigator.kt b/vector/src/main/java/im/vector/app/features/navigation/Navigator.kt
index 775272bd33..d6ca83a8a3 100644
--- a/vector/src/main/java/im/vector/app/features/navigation/Navigator.kt
+++ b/vector/src/main/java/im/vector/app/features/navigation/Navigator.kt
@@ -149,7 +149,11 @@ interface Navigator {
 
     fun openDevTools(context: Context, roomId: String)
 
-    fun openCallTransfer(context: Context, callId: String)
+    fun openCallTransfer(
+            context: Context,
+            activityResultLauncher: ActivityResultLauncher<Intent>,
+            callId: String
+    )
 
     fun openCreatePoll(context: Context, roomId: String, editedEventId: String?, mode: PollMode)