diff --git a/src/libs/ReportUtils.ts b/src/libs/ReportUtils.ts
index 9c5e437a874e..ebfde73151e5 100644
--- a/src/libs/ReportUtils.ts
+++ b/src/libs/ReportUtils.ts
@@ -3552,9 +3552,18 @@ function buildOptimisticTaskCommentReportAction(
  * @param chatReportID - Report ID of the chat where the IOU is.
  * @param currency - IOU currency.
  * @param isSendingMoney - If we pay someone the IOU should be created as settled
+ * @param created - The creation time for IOU action
  */
 
-function buildOptimisticIOUReport(payeeAccountID: number, payerAccountID: number, total: number, chatReportID: string, currency: string, isSendingMoney = false): OptimisticIOUReport {
+function buildOptimisticIOUReport(
+    payeeAccountID: number,
+    payerAccountID: number,
+    total: number,
+    chatReportID: string,
+    currency: string,
+    isSendingMoney = false,
+    created: string = DateUtils.getDBTime(),
+): OptimisticIOUReport {
     const formattedTotal = CurrencyUtils.convertToDisplayString(total, currency);
     const personalDetails = getPersonalDetailsForAccountID(payerAccountID);
     const payerEmail = 'login' in personalDetails ? personalDetails.login : '';
@@ -3580,7 +3589,7 @@ function buildOptimisticIOUReport(payeeAccountID: number, payerAccountID: number
         reportName: `${payerEmail} owes ${formattedTotal}`,
         notificationPreference: CONST.REPORT.NOTIFICATION_PREFERENCE.HIDDEN,
         parentReportID: chatReportID,
-        lastVisibleActionCreated: DateUtils.getDBTime(),
+        lastVisibleActionCreated: created,
     };
 }
 
@@ -4049,7 +4058,7 @@ function buildOptimisticReportPreview(chatReport: OnyxEntry<Report>, iouReport:
     const hasReceipt = TransactionUtils.hasReceipt(transaction);
     const isReceiptBeingScanned = hasReceipt && TransactionUtils.isReceiptBeingScanned(transaction);
     const message = getReportPreviewMessage(iouReport);
-    const created = DateUtils.getDBTime();
+    const created = iouReport.lastVisibleActionCreated ?? DateUtils.getDBTime();
     return {
         reportActionID: NumberUtils.rand64(),
         reportID: chatReport?.reportID,
@@ -4797,10 +4806,10 @@ function buildOptimisticMoneyRequestEntities(
     existingTransactionThreadReportID?: string,
     linkedTrackedExpenseReportAction?: ReportAction,
 ): [OptimisticCreatedReportAction, OptimisticCreatedReportAction, OptimisticIOUReportAction, OptimisticChatReport, OptimisticCreatedReportAction | EmptyObject] {
-    const createdActionForChat = buildOptimisticCreatedReportAction(payeeEmail);
+    const createdActionForChat = buildOptimisticCreatedReportAction(payeeEmail, iouReport.lastVisibleActionCreated);
 
     // The `CREATED` action must be optimistically generated before the IOU action so that it won't appear after the IOU action in the chat.
-    const iouActionCreationTime = DateUtils.getDBTime();
+    const iouActionCreationTime = !iouReport.lastVisibleActionCreated || isEmpty(iouReport.lastVisibleActionCreated) ? DateUtils.getDBTime() : iouReport.lastVisibleActionCreated;
     const createdActionForIOUReport = buildOptimisticCreatedReportAction(payeeEmail, DateUtils.subtractMillisecondsFromDateTime(iouActionCreationTime, 1));
 
     const iouAction = buildOptimisticIOUReportAction(
diff --git a/src/libs/actions/IOU.ts b/src/libs/actions/IOU.ts
index e0b406ad9c45..4e54124596e6 100644
--- a/src/libs/actions/IOU.ts
+++ b/src/libs/actions/IOU.ts
@@ -463,7 +463,6 @@ function buildOnyxDataForMoneyRequest(
         newQuickAction = CONST.QUICK_ACTIONS.REQUEST_DISTANCE;
     }
     const existingTransactionThreadReport = allReports?.[`${ONYXKEYS.COLLECTION.REPORT}${existingTransactionThreadReportID}`] ?? null;
-
     if (chatReport) {
         optimisticData.push({
             // Use SET for new reports because it doesn't exist yet, is faster and we need the data to be available when we navigate to the chat page
@@ -471,6 +470,8 @@ function buildOnyxDataForMoneyRequest(
             key: `${ONYXKEYS.COLLECTION.REPORT}${chatReport.reportID}`,
             value: {
                 ...chatReport,
+                // if it is a new money request then that becomes the most recent visible action
+                lastVisibleActionCreated: shouldCreateNewMoneyRequestReport ? iouReport.lastVisibleActionCreated : undefined,
                 lastReadTime: DateUtils.getDBTime(),
                 lastMessageTranslationKey: '',
                 iouReportID: iouReport.reportID,
@@ -1794,7 +1795,7 @@ function getMoneyRequestInformation(
     if (!iouReport || shouldCreateNewMoneyRequestReport) {
         iouReport = isPolicyExpenseChat
             ? ReportUtils.buildOptimisticExpenseReport(chatReport.reportID, chatReport.policyID ?? '', payeeAccountID, amount, currency)
-            : ReportUtils.buildOptimisticIOUReport(payeeAccountID, payerAccountID, amount, chatReport.reportID, currency);
+            : ReportUtils.buildOptimisticIOUReport(payeeAccountID, payerAccountID, amount, chatReport.reportID, currency, false, created);
     } else if (isPolicyExpenseChat) {
         iouReport = {...iouReport};
         if (iouReport?.currency === currency && typeof iouReport.total === 'number') {
@@ -1804,6 +1805,7 @@ function getMoneyRequestInformation(
     } else {
         iouReport = IOUUtils.updateIOUOwnerAndTotal(iouReport, payeeAccountID, amount, currency);
     }
+
     // STEP 3: Build optimistic receipt and transaction
     const receiptObject: Receipt = {};
     let filename;
diff --git a/src/pages/home/report/ReportActionsList.tsx b/src/pages/home/report/ReportActionsList.tsx
index 7d95d3555502..8ec82bed7a4e 100644
--- a/src/pages/home/report/ReportActionsList.tsx
+++ b/src/pages/home/report/ReportActionsList.tsx
@@ -200,7 +200,8 @@ function ReportActionsList({
     );
     const lastActionIndex = sortedVisibleReportActions[0]?.reportActionID;
     const reportActionSize = useRef(sortedVisibleReportActions.length);
-    const hasNewestReportAction = sortedReportActions?.[0].created === report.lastVisibleActionCreated;
+    const hasNewestReportAction =
+        sortedReportActions?.[0].created === report.lastVisibleActionCreated || sortedReportActions?.[0].created === transactionThreadReport?.lastVisibleActionCreated || sortedReportActions.some((reportAction) => reportAction.created === report.lastVisibleActionCreated);
     const hasNewestReportActionRef = useRef(hasNewestReportAction);
     hasNewestReportActionRef.current = hasNewestReportAction;
     const previousLastIndex = useRef(lastActionIndex);
diff --git a/tests/actions/IOUTest.ts b/tests/actions/IOUTest.ts
index 45bdc5fe743a..161cc30e8fce 100644
--- a/tests/actions/IOUTest.ts
+++ b/tests/actions/IOUTest.ts
@@ -246,6 +246,7 @@ describe('actions/IOU', () => {
         it('updates existing chat report if there is one', () => {
             const amount = 10000;
             const comment = 'Giv money plz';
+            const created = DateUtils.getDBTime();
             let chatReport: OnyxTypes.Report = {
                 reportID: '1234',
                 type: CONST.REPORT.TYPE.CHAT,
@@ -254,7 +255,7 @@ describe('actions/IOU', () => {
             const createdAction: OnyxTypes.ReportAction = {
                 reportActionID: NumberUtils.rand64(),
                 actionName: CONST.REPORT.ACTIONS.TYPE.CREATED,
-                created: DateUtils.getDBTime(),
+                created,
             };
             let iouReportID: string | undefined;
             let iouAction: OnyxEntry<OnyxTypes.ReportAction>;
@@ -270,7 +271,7 @@ describe('actions/IOU', () => {
                         }),
                     )
                     .then(() => {
-                        IOU.requestMoney(chatReport, amount, CONST.CURRENCY.USD, '', '', RORY_EMAIL, RORY_ACCOUNT_ID, {login: CARLOS_EMAIL, accountID: CARLOS_ACCOUNT_ID}, comment, {});
+                        IOU.requestMoney(chatReport, amount, CONST.CURRENCY.USD, created, '', RORY_EMAIL, RORY_ACCOUNT_ID, {login: CARLOS_EMAIL, accountID: CARLOS_ACCOUNT_ID}, comment, {});
                         return waitForBatchedUpdates();
                     })
                     .then(
@@ -318,6 +319,10 @@ describe('actions/IOU', () => {
                                         // The CREATED action should not be created after the IOU action
                                         expect(Date.parse(iouCreatedAction?.created ?? '')).toBeLessThan(Date.parse(iouAction?.created ?? ''));
 
+                                        // The iouAction created time should be same as lastVisibleActionCreated
+                                        // To prevent the "New message" from showing up in the report list
+                                        expect(iouAction?.created).toBe(chatReport.lastVisibleActionCreated);
+
                                         // The IOUReportID should be correct
                                         expect(iouAction?.originalMessage?.IOUReportID).toBe(iouReportID);