diff --git a/src/libs/ReportUtils.js b/src/libs/ReportUtils.js
index 8d24d98b19e8..f8cd86bd235d 100644
--- a/src/libs/ReportUtils.js
+++ b/src/libs/ReportUtils.js
@@ -822,6 +822,16 @@ function getReport(reportID) {
     return lodashGet(allReports, `${ONYXKEYS.COLLECTION.REPORT}${reportID}`, {}) || {};
 }
 
+/**
+ * Get the notification preference given a report
+ *
+ * @param {Object} report
+ * @returns {String}
+ */
+function getReportNotificationPreference(report) {
+    return lodashGet(report, 'notificationPreference', '');
+}
+
 /**
  * Returns whether or not the author of the action is this user
  *
@@ -2420,7 +2430,7 @@ function buildOptimisticIOUReport(payeeAccountID, payerAccountID, total, chatRep
 
         // We don't translate reportName because the server response is always in English
         reportName: `${payerEmail} owes ${formattedTotal}`,
-        notificationPreference: CONST.REPORT.NOTIFICATION_PREFERENCE.ALWAYS,
+        notificationPreference: CONST.REPORT.NOTIFICATION_PREFERENCE.HIDDEN,
         parentReportID: chatReportID,
     };
 }
@@ -2459,7 +2469,7 @@ function buildOptimisticExpenseReport(chatReportID, policyID, payeeAccountID, to
         state: CONST.REPORT.STATE.SUBMITTED,
         stateNum: CONST.REPORT.STATE_NUM.PROCESSING,
         total: storedTotal,
-        notificationPreference: CONST.REPORT.NOTIFICATION_PREFERENCE.ALWAYS,
+        notificationPreference: CONST.REPORT.NOTIFICATION_PREFERENCE.HIDDEN,
         parentReportID: chatReportID,
     };
 }
@@ -3156,7 +3166,7 @@ function buildTransactionThread(reportAction, moneyRequestReportID) {
         '',
         undefined,
         undefined,
-        CONST.REPORT.NOTIFICATION_PREFERENCE.ALWAYS,
+        CONST.REPORT.NOTIFICATION_PREFERENCE.HIDDEN,
         reportAction.reportActionID,
         moneyRequestReportID,
     );
@@ -4217,6 +4227,7 @@ export {
     getDisplayNamesStringFromTooltips,
     getReportName,
     getReport,
+    getReportNotificationPreference,
     getReportIDFromLink,
     getRouteFromLink,
     getDeletedParentActionMessageForChatReport,
diff --git a/src/libs/actions/Report.js b/src/libs/actions/Report.js
index 1de15c1184cb..181ed359db05 100644
--- a/src/libs/actions/Report.js
+++ b/src/libs/actions/Report.js
@@ -328,6 +328,10 @@ function addActions(reportID, text = '', file) {
         lastReadTime: currentTime,
     };
 
+    if (ReportUtils.getReportNotificationPreference(ReportUtils.getReport(reportID)) === CONST.REPORT.NOTIFICATION_PREFERENCE.HIDDEN) {
+        optimisticReport.notificationPreference = CONST.REPORT.NOTIFICATION_PREFERENCE.ALWAYS;
+    }
+
     // Optimistically add the new actions to the store before waiting to save them to the server
     const optimisticReportActions = {};
     if (text) {
diff --git a/tests/actions/IOUTest.js b/tests/actions/IOUTest.js
index 48d3e8c558af..76098d72f52e 100644
--- a/tests/actions/IOUTest.js
+++ b/tests/actions/IOUTest.js
@@ -78,6 +78,8 @@ describe('actions/IOU', () => {
                                     const iouReport = iouReports[0];
                                     iouReportID = iouReport.reportID;
 
+                                    expect(iouReport.notificationPreference).toBe(CONST.REPORT.NOTIFICATION_PREFERENCE.HIDDEN);
+
                                     // They should be linked together
                                     expect(chatReport.participantAccountIDs).toEqual([CARLOS_ACCOUNT_ID]);
                                     expect(chatReport.iouReportID).toBe(iouReport.reportID);
@@ -243,6 +245,8 @@ describe('actions/IOU', () => {
                                     const iouReport = _.find(allReports, (report) => report.type === CONST.REPORT.TYPE.IOU);
                                     iouReportID = iouReport.reportID;
 
+                                    expect(iouReport.notificationPreference).toBe(CONST.REPORT.NOTIFICATION_PREFERENCE.HIDDEN);
+
                                     // They should be linked together
                                     expect(chatReport.iouReportID).toBe(iouReportID);
                                     expect(chatReport.hasOutstandingIOU).toBe(true);
@@ -572,6 +576,8 @@ describe('actions/IOU', () => {
                                         const iouReport = iouReports[0];
                                         iouReportID = iouReport.reportID;
 
+                                        expect(iouReport.notificationPreference).toBe(CONST.REPORT.NOTIFICATION_PREFERENCE.HIDDEN);
+
                                         // They should be linked together
                                         expect(chatReport.participantAccountIDs).toEqual([CARLOS_ACCOUNT_ID]);
                                         expect(chatReport.iouReportID).toBe(iouReport.reportID);
@@ -982,6 +988,7 @@ describe('actions/IOU', () => {
                                     expect(carlosChatReport.hasOutstandingIOU).toBe(true);
                                     expect(carlosChatReport.iouReportID).toBe(carlosIOUReport.reportID);
                                     expect(carlosIOUReport.chatReportID).toBe(carlosChatReport.reportID);
+                                    expect(carlosIOUReport.notificationPreference).toBe(CONST.REPORT.NOTIFICATION_PREFERENCE.HIDDEN);
 
                                     expect(julesChatReport.hasOutstandingIOU).toBe(true);
                                     expect(julesChatReport.iouReportID).toBe(julesIOUReport.reportID);
@@ -990,6 +997,7 @@ describe('actions/IOU', () => {
                                     expect(vitChatReport.hasOutstandingIOU).toBe(true);
                                     expect(vitChatReport.iouReportID).toBe(vitIOUReport.reportID);
                                     expect(vitIOUReport.chatReportID).toBe(vitChatReport.reportID);
+                                    expect(carlosIOUReport.notificationPreference).toBe(CONST.REPORT.NOTIFICATION_PREFERENCE.HIDDEN);
 
                                     resolve();
                                 },
@@ -2171,6 +2179,8 @@ describe('actions/IOU', () => {
             // Given a transaction thread
             thread = ReportUtils.buildTransactionThread(createIOUAction, IOU_REPORT_ID);
 
+            expect(thread.notificationPreference).toBe(CONST.REPORT.NOTIFICATION_PREFERENCE.HIDDEN);
+
             Onyx.connect({
                 key: `${ONYXKEYS.COLLECTION.REPORT_ACTIONS}${thread.reportID}`,
                 callback: (val) => (reportActions = val),
@@ -2248,6 +2258,9 @@ describe('actions/IOU', () => {
 
             // Given a transaction thread
             thread = ReportUtils.buildTransactionThread(createIOUAction);
+
+            expect(thread.notificationPreference).toBe(CONST.REPORT.NOTIFICATION_PREFERENCE.HIDDEN);
+
             const userLogins = PersonalDetailsUtils.getLoginsByAccountIDs(thread.participantAccountIDs);
             jest.advanceTimersByTime(10);
             Report.openReport(thread.reportID, userLogins, thread, createIOUAction.reportActionID);
@@ -2332,6 +2345,8 @@ describe('actions/IOU', () => {
             jest.advanceTimersByTime(10);
             thread = ReportUtils.buildTransactionThread(createIOUAction, IOU_REPORT_ID);
 
+            expect(thread.notificationPreference).toBe(CONST.REPORT.NOTIFICATION_PREFERENCE.HIDDEN);
+
             Onyx.connect({
                 key: `${ONYXKEYS.COLLECTION.REPORT_ACTIONS}${thread.reportID}`,
                 callback: (val) => (reportActions = val),
@@ -2545,6 +2560,8 @@ describe('actions/IOU', () => {
             jest.advanceTimersByTime(10);
             thread = ReportUtils.buildTransactionThread(createIOUAction, IOU_REPORT_ID);
 
+            expect(thread.notificationPreference).toBe(CONST.REPORT.NOTIFICATION_PREFERENCE.HIDDEN);
+
             Onyx.connect({
                 key: `${ONYXKEYS.COLLECTION.REPORT_ACTIONS}${thread.reportID}`,
                 callback: (val) => (reportActions = val),