diff --git a/src/components/UnreadActionIndicator.js b/src/components/UnreadActionIndicator.js
index 0a3fa8d3d95d..7c6789c0a66a 100644
--- a/src/components/UnreadActionIndicator.js
+++ b/src/components/UnreadActionIndicator.js
@@ -1,29 +1,16 @@
 import React from 'react';
-import {Animated, View} from 'react-native';
-import PropTypes from 'prop-types';
-import styles, {getOpacityStyle} from '../styles/styles';
+import {View} from 'react-native';
+import styles from '../styles/styles';
 import Text from './Text';
 
-const propTypes = {
-    // Animated opacity
-    // eslint-disable-next-line react/forbid-prop-types
-    animatedOpacity: PropTypes.object.isRequired,
-};
-
-const UnreadActionIndicator = props => (
-    <Animated.View style={[
-        styles.unreadIndicatorContainer,
-        getOpacityStyle(props.animatedOpacity),
-    ]}
-    >
+const UnreadActionIndicator = () => (
+    <View style={styles.unreadIndicatorContainer}>
         <View style={styles.unreadIndicatorLine} />
         <Text style={styles.unreadIndicatorText}>
             NEW
         </Text>
-    </Animated.View>
+    </View>
 );
 
-UnreadActionIndicator.propTypes = propTypes;
 UnreadActionIndicator.displayName = 'UnreadActionIndicator';
-
 export default UnreadActionIndicator;
diff --git a/src/pages/home/report/ReportActionItem.js b/src/pages/home/report/ReportActionItem.js
index 060f99c8770a..7d0608ce4aa2 100644
--- a/src/pages/home/report/ReportActionItem.js
+++ b/src/pages/home/report/ReportActionItem.js
@@ -13,6 +13,7 @@ import PopoverWithMeasuredContent from '../../../components/PopoverWithMeasuredC
 import ReportActionItemSingle from './ReportActionItemSingle';
 import ReportActionItemGrouped from './ReportActionItemGrouped';
 import ReportActionContextMenu from './ReportActionContextMenu';
+import UnreadActionIndicator from '../../../components/UnreadActionIndicator';
 
 const propTypes = {
     // The ID of the report this action is on.
@@ -23,6 +24,9 @@ const propTypes = {
 
     // Should the comment have the appearance of being grouped with the previous comment?
     displayAsGroup: PropTypes.bool.isRequired,
+
+    // Should we display the new indicator on top of the comment?
+    shouldDisplayNewIndicator: PropTypes.bool.isRequired,
 };
 
 class ReportActionItem extends Component {
@@ -46,6 +50,7 @@ class ReportActionItem extends Component {
     shouldComponentUpdate(nextProps, nextState) {
         return this.state.isPopoverVisible !== nextState.isPopoverVisible
             || this.props.displayAsGroup !== nextProps.displayAsGroup
+            || (this.props.shouldDisplayNewIndicator !== nextProps.shouldDisplayNewIndicator)
             || !_.isEqual(this.props.action, nextProps.action);
     }
 
@@ -85,6 +90,9 @@ class ReportActionItem extends Component {
                 <Hoverable>
                     {hovered => (
                         <View>
+                            {!hovered && this.props.shouldDisplayNewIndicator && (
+                                <UnreadActionIndicator />
+                            )}
                             <View style={getReportActionItemStyle(hovered)}>
                                 {!this.props.displayAsGroup
                                     ? <ReportActionItemSingle action={this.props.action} />
diff --git a/src/pages/home/report/ReportActionsView.js b/src/pages/home/report/ReportActionsView.js
index d41e7a3c0d86..347dd3d5ee48 100644
--- a/src/pages/home/report/ReportActionsView.js
+++ b/src/pages/home/report/ReportActionsView.js
@@ -1,6 +1,5 @@
 import React from 'react';
 import {
-    Animated,
     View,
     Keyboard,
     AppState,
@@ -11,7 +10,6 @@ import _ from 'underscore';
 import lodashGet from 'lodash/get';
 import {withOnyx} from 'react-native-onyx';
 import Text from '../../../components/Text';
-import UnreadActionIndicator from '../../../components/UnreadActionIndicator';
 import {
     fetchActions,
     updateLastReadActionID,
@@ -39,6 +37,9 @@ const propTypes = {
     report: PropTypes.shape({
         // Number of actions unread
         unreadActionCount: PropTypes.number,
+
+        // The largest sequenceNumber on this report
+        maxSequenceNumber: PropTypes.number,
     }),
 
     // Array of report actions for this report
@@ -54,6 +55,7 @@ const propTypes = {
 const defaultProps = {
     report: {
         unreadActionCount: 0,
+        maxSequenceNumber: 0,
     },
     reportActions: {},
     session: {},
@@ -71,10 +73,10 @@ class ReportActionsView extends React.Component {
         this.loadMoreChats = this.loadMoreChats.bind(this);
         this.sortedReportActions = [];
         this.timers = [];
-        this.unreadIndicatorOpacity = new Animated.Value(1);
 
-        // Helper variable that keeps track of the unread action count before it updates to zero
-        this.unreadActionCount = 0;
+        this.initialNewMarkerPosition = props.report.unreadActionCount === 0
+            ? 0
+            : (props.report.maxSequenceNumber + 1) - props.report.unreadActionCount;
 
         this.state = {
             isLoadingMoreChats: false,
@@ -89,7 +91,6 @@ class ReportActionsView extends React.Component {
         this.keyboardEvent = Keyboard.addListener('keyboardDidShow', this.scrollToListBottom);
         this.recordMaxAction();
         fetchActions(this.props.reportID);
-        this.setUpUnreadActionIndicator();
         Timing.end(CONST.TIMING.SWITCH_REPORT, CONST.TIMING.COLD);
     }
 
@@ -146,25 +147,6 @@ class ReportActionsView extends React.Component {
         }
     }
 
-    /**
-     * Checks if the unreadActionIndicator should be shown.
-     * If it does, starts a timeout for the fading out animation and creates
-     * a flag to not show it again if the report is still open
-     */
-    setUpUnreadActionIndicator() {
-        this.unreadActionCount = this.props.report.unreadActionCount;
-
-        if (this.unreadActionCount > 0) {
-            this.unreadIndicatorOpacity = new Animated.Value(1);
-            this.timers.push(setTimeout(() => {
-                Animated.timing(this.unreadIndicatorOpacity, {
-                    toValue: 0,
-                    useNativeDriver: false,
-                }).start();
-            }, 3000));
-        }
-    }
-
     /**
      * Retrieves the next set of report actions for the chat once we are nearing the end of what we are currently
      * displaying.
@@ -232,8 +214,7 @@ class ReportActionsView extends React.Component {
     }
 
     /**
-     * When the bottom of the list is reached, this is triggered, so it's a little different than recording the max
-     * action when scrolled
+     * Recorded when the report first opens and when the list is scrolled to the bottom
      */
     recordMaxAction() {
         const reportActions = lodashGet(this.props, 'reportActions', {});
@@ -265,8 +246,8 @@ class ReportActionsView extends React.Component {
 
     /**
      * This function overrides the CellRendererComponent (defaults to a plain View), giving each ReportActionItem a
-     *  higher z-index than the one below it. This prevents issues where the ReportActionContextMenu overlapping between
-     *  rows is hidden beneath other rows.
+     * higher z-index than the one below it. This prevents issues where the ReportActionContextMenu overlapping between
+     * rows is hidden beneath other rows.
      *
      * @param {Object} index - The ReportAction item in the FlatList.
      * @param {Object|Array} style – The default styles of the CellRendererComponent provided by the CellRenderer.
@@ -291,31 +272,21 @@ class ReportActionsView extends React.Component {
      * @param {Object} args
      * @param {Object} args.item
      * @param {Number} args.index
-     * @param {Function} args.onLayout
      *
      * @returns {React.Component}
      */
     renderItem({
         item,
         index,
-        onLayout,
     }) {
         return (
-
-        // Using <View /> instead of a Fragment because there is a difference between how
-        // <InvertedFlatList /> are implemented on native and web/desktop which leads to
-        // the unread indicator on native to render below the message instead of above it.
-            <View>
-                {this.unreadActionCount > 0 && index === this.unreadActionCount - 1 && (
-                    <UnreadActionIndicator animatedOpacity={this.unreadIndicatorOpacity} />
-                )}
-                <ReportActionItem
-                    reportID={this.props.reportID}
-                    action={item.action}
-                    displayAsGroup={this.isConsecutiveActionMadeByPreviousActor(index)}
-                    onLayout={onLayout}
-                />
-            </View>
+            <ReportActionItem
+                reportID={this.props.reportID}
+                action={item.action}
+                displayAsGroup={this.isConsecutiveActionMadeByPreviousActor(index)}
+                shouldDisplayNewIndicator={this.initialNewMarkerPosition > 0
+                    && item.action.sequenceNumber === this.initialNewMarkerPosition}
+            />
         );
     }
 
@@ -334,7 +305,6 @@ class ReportActionsView extends React.Component {
             );
         }
 
-        this.setUpUnreadActionIndicator();
         return (
             <InvertedFlatList
                 ref={el => this.actionListElement = el}
diff --git a/src/styles/getReportActionItemStyles.js b/src/styles/getReportActionItemStyles.js
index 20054eb0eef0..7923c085b536 100644
--- a/src/styles/getReportActionItemStyles.js
+++ b/src/styles/getReportActionItemStyles.js
@@ -1,3 +1,4 @@
+import colors from './colors';
 import themeColors from './themes/default';
 import positioning from './utilities/positioning';
 
@@ -11,7 +12,11 @@ export function getReportActionItemStyle(isHovered = false) {
     return {
         display: 'flex',
         justifyContent: 'space-between',
-        backgroundColor: isHovered ? themeColors.hoverComponentBG : themeColors.componentBG,
+        backgroundColor: isHovered
+            ? themeColors.hoverComponentBG
+
+            // Warning: Setting this to a non-transparent color will cause unread indicator to break on Android
+            : colors.transparent,
         cursor: 'default',
     };
 }
diff --git a/src/styles/styles.js b/src/styles/styles.js
index 0ea54b06c18b..f50e34339a47 100644
--- a/src/styles/styles.js
+++ b/src/styles/styles.js
@@ -828,14 +828,6 @@ const styles = {
         marginRight: 4,
     },
 
-    navigationMenuOpenAbsolute: {
-        position: 'absolute',
-        left: 0,
-        top: 0,
-        bottom: 0,
-        zIndex: 2,
-    },
-
     navigationModalOverlay: {
         position: 'absolute',
         width: '100%',
@@ -1151,6 +1143,7 @@ const styles = {
         paddingHorizontal: 20,
         flexDirection: 'row',
         alignItems: 'center',
+        zIndex: 1,
     },
 
     unreadIndicatorLine: {
@@ -1518,14 +1511,6 @@ function getWidthAndHeightStyle(width, height) {
     };
 }
 
-/**
- * @param {Number} opacity
- * @returns {Object}
- */
-function getOpacityStyle(opacity) {
-    return {opacity};
-}
-
 /**
  * @param {Object} params
  * @returns {Object}
@@ -1564,6 +1549,5 @@ export {
     getIconFillColor,
     getAnimatedFABStyle,
     getWidthAndHeightStyle,
-    getOpacityStyle,
     getModalPaddingStyles,
 };