diff --git a/src/components/LHNOptionsList/LHNOptionsList.tsx b/src/components/LHNOptionsList/LHNOptionsList.tsx
index 8c43ae542932..469f17258a7f 100644
--- a/src/components/LHNOptionsList/LHNOptionsList.tsx
+++ b/src/components/LHNOptionsList/LHNOptionsList.tsx
@@ -116,6 +116,8 @@ function LHNOptionsList({
             const hasDraftComment = DraftCommentUtils.isValidDraftComment(draftComments?.[`${ONYXKEYS.COLLECTION.REPORT_DRAFT_COMMENT}${reportID}`]);
             const sortedReportActions = ReportActionsUtils.getSortedReportActionsForDisplay(itemReportActions);
             const lastReportAction = sortedReportActions[0];
+            const transactionThreadReportID = ReportActionsUtils.getOneTransactionThreadReportID(reportID, itemReportActions);
+            const transactionThreadReport = reports?.[`${ONYXKEYS.COLLECTION.REPORT}${transactionThreadReportID}`] ?? null;
 
             // Get the transaction for the last report action
             let lastReportActionTransactionID = '';
@@ -129,6 +131,7 @@ function LHNOptionsList({
                 <OptionRowLHNData
                     reportID={reportID}
                     fullReport={itemFullReport}
+                    transactionThreadReport={transactionThreadReport}
                     reportActions={itemReportActions}
                     parentReportAction={itemParentReportAction}
                     policy={itemPolicy}
diff --git a/src/components/LHNOptionsList/OptionRowLHN.tsx b/src/components/LHNOptionsList/OptionRowLHN.tsx
index 9946dea9d5a7..2eba8b62dfd7 100644
--- a/src/components/LHNOptionsList/OptionRowLHN.tsx
+++ b/src/components/LHNOptionsList/OptionRowLHN.tsx
@@ -96,6 +96,11 @@ function OptionRowLHN({reportID, isFocused = false, onSelectRow = () => {}, opti
             false,
             optionItem.isPinned,
             !!optionItem.isUnread,
+            [],
+            false,
+            () => {},
+            false,
+            optionItem.transactionThreadReportID,
         );
     };
 
diff --git a/src/components/LHNOptionsList/OptionRowLHNData.tsx b/src/components/LHNOptionsList/OptionRowLHNData.tsx
index c80017c39a3d..1d6cc636f939 100644
--- a/src/components/LHNOptionsList/OptionRowLHNData.tsx
+++ b/src/components/LHNOptionsList/OptionRowLHNData.tsx
@@ -27,6 +27,7 @@ function OptionRowLHNData({
     lastReportActionTransaction = {},
     transactionViolations,
     canUseViolations,
+    transactionThreadReport,
     ...propsToForward
 }: OptionRowLHNDataProps) {
     const reportID = propsToForward.reportID;
@@ -47,6 +48,7 @@ function OptionRowLHNData({
             policy,
             parentReportAction,
             hasViolations: !!shouldDisplayViolations,
+            transactionThreadReport,
         });
         if (deepEqual(item, optionItemRef.current)) {
             return optionItemRef.current;
@@ -70,6 +72,7 @@ function OptionRowLHNData({
         transactionViolations,
         canUseViolations,
         receiptTransactions,
+        transactionThreadReport,
     ]);
 
     return (
diff --git a/src/components/LHNOptionsList/types.ts b/src/components/LHNOptionsList/types.ts
index 0f0c921747b4..79b5f5ad3889 100644
--- a/src/components/LHNOptionsList/types.ts
+++ b/src/components/LHNOptionsList/types.ts
@@ -74,6 +74,9 @@ type OptionRowLHNDataProps = {
     /** The full data of the report */
     fullReport: OnyxEntry<Report>;
 
+    /** The transaction thread report associated with the current report – applicable only for one-transaction money reports */
+    transactionThreadReport: OnyxEntry<Report>;
+
     /** The policy which the user has access to and which the report could be tied to */
     policy?: OnyxEntry<Policy>;
 
diff --git a/src/libs/ReportUtils.ts b/src/libs/ReportUtils.ts
index c6d70a9da71c..4faafab2950f 100644
--- a/src/libs/ReportUtils.ts
+++ b/src/libs/ReportUtils.ts
@@ -440,6 +440,7 @@ type OptionData = {
     reportID?: string;
     enabled?: boolean;
     data?: Partial<TaxRate>;
+    transactionThreadReportID?: string | null;
 } & Report;
 
 type OnyxDataTaskAssigneeChat = {
diff --git a/src/libs/SidebarUtils.ts b/src/libs/SidebarUtils.ts
index a218534e6b16..c86d91c44ff9 100644
--- a/src/libs/SidebarUtils.ts
+++ b/src/libs/SidebarUtils.ts
@@ -190,6 +190,7 @@ function getOptionData({
     policy,
     parentReportAction,
     hasViolations,
+    transactionThreadReport,
 }: {
     report: OnyxEntry<Report>;
     reportActions: OnyxEntry<ReportActions>;
@@ -198,6 +199,7 @@ function getOptionData({
     policy: OnyxEntry<Policy> | undefined;
     parentReportAction: OnyxEntry<ReportAction> | undefined;
     hasViolations: boolean;
+    transactionThreadReport: OnyxEntry<Report>;
 }): ReportUtils.OptionData | undefined {
     // When a user signs out, Onyx is cleared. Due to the lazy rendering with a virtual list, it's possible for
     // this method to be called after the Onyx data has been cleared out. In that case, it's fine to do
@@ -234,6 +236,7 @@ function getOptionData({
         isWaitingOnBankAccount: false,
         isAllowedToComment: true,
         isDeletedParentAction: false,
+        transactionThreadReportID: transactionThreadReport?.reportID,
     };
 
     let participantAccountIDs = report.participantAccountIDs ?? [];
@@ -266,7 +269,7 @@ function getOptionData({
     result.statusNum = report.statusNum;
     // When the only message of a report is deleted lastVisibileActionCreated is not reset leading to wrongly
     // setting it Unread so we add additional condition here to avoid empty chat LHN from being bold.
-    result.isUnread = ReportUtils.isUnread(report) && !!report.lastActorAccountID;
+    result.isUnread = (ReportUtils.isUnread(report) && !!report.lastActorAccountID) || (ReportUtils.isUnread(transactionThreadReport) && !!transactionThreadReport?.lastActorAccountID);
     result.isUnreadWithMention = ReportUtils.isUnreadWithMention(report);
     result.isPinned = report.isPinned;
     result.iouReportID = report.iouReportID;
diff --git a/src/pages/home/report/ContextMenu/BaseReportActionContextMenu.tsx b/src/pages/home/report/ContextMenu/BaseReportActionContextMenu.tsx
index 46ebdd751762..8e2c9d6f09b3 100755
--- a/src/pages/home/report/ContextMenu/BaseReportActionContextMenu.tsx
+++ b/src/pages/home/report/ContextMenu/BaseReportActionContextMenu.tsx
@@ -49,6 +49,9 @@ type BaseReportActionContextMenuProps = BaseReportActionContextMenuOnyxProps & {
     // eslint-disable-next-line react/no-unused-prop-types
     originalReportID: string;
 
+    /** The ID of transaction thread report associated with the current report, if any */
+    transactionThreadReportID: string;
+
     /**
      * If true, this component will be a small, row-oriented menu that displays icons but not text.
      * If false, this component will be a larger, column-oriented menu that displays icons alongside text in each row.
@@ -117,6 +120,7 @@ function BaseReportActionContextMenu({
     checkIfContextMenuActive,
     disabledActions = [],
     setIsEmojiPickerActive,
+    transactionThreadReportID,
 }: BaseReportActionContextMenuProps) {
     const StyleUtils = useStyleUtils();
     const {translate} = useLocalize();
@@ -245,6 +249,7 @@ function BaseReportActionContextMenu({
                         interceptAnonymousUser,
                         openOverflowMenu,
                         setIsEmojiPickerActive,
+                        transactionThreadReportID,
                     };
 
                     if ('renderContent' in contextAction) {
diff --git a/src/pages/home/report/ContextMenu/ContextMenuActions.tsx b/src/pages/home/report/ContextMenu/ContextMenuActions.tsx
index 438d09e778b4..a09f0355b996 100644
--- a/src/pages/home/report/ContextMenu/ContextMenuActions.tsx
+++ b/src/pages/home/report/ContextMenu/ContextMenuActions.tsx
@@ -79,6 +79,7 @@ type ContextMenuActionPayload = {
     event?: GestureResponderEvent | MouseEvent | KeyboardEvent;
     setIsEmojiPickerActive?: (state: boolean) => void;
     anchorRef?: MutableRefObject<View | null>;
+    transactionThreadReportID?: string;
 };
 
 type OnPress = (closePopover: boolean, payload: ContextMenuActionPayload, selection?: string, reportID?: string, draftMessage?: string) => void;
@@ -213,8 +214,11 @@ const ContextMenuActions: ContextMenuAction[] = [
         successIcon: Expensicons.Checkmark,
         shouldShow: (type, reportAction, isArchivedRoom, betas, menuTarget, isChronosReport, reportID, isPinnedChat, isUnreadChat) =>
             type === CONST.CONTEXT_MENU_TYPES.REPORT && isUnreadChat,
-        onPress: (closePopover, {reportID}) => {
+        onPress: (closePopover, {reportID, transactionThreadReportID}) => {
             Report.readNewestAction(reportID);
+            if (transactionThreadReportID && transactionThreadReportID !== '0') {
+                Report.readNewestAction(transactionThreadReportID);
+            }
             if (closePopover) {
                 hideContextMenu(true, ReportActionComposeFocusManager.focus);
             }
diff --git a/src/pages/home/report/ContextMenu/PopoverReportActionContextMenu.tsx b/src/pages/home/report/ContextMenu/PopoverReportActionContextMenu.tsx
index 6cb688ff2558..38fd37ee4d26 100644
--- a/src/pages/home/report/ContextMenu/PopoverReportActionContextMenu.tsx
+++ b/src/pages/home/report/ContextMenu/PopoverReportActionContextMenu.tsx
@@ -37,6 +37,7 @@ function PopoverReportActionContextMenu(_props: unknown, ref: ForwardedRef<Repor
     const reportActionRef = useRef<OnyxEntry<ReportAction>>(null);
     const reportActionIDRef = useRef('0');
     const originalReportIDRef = useRef('0');
+    const transactionThreadReportIDRef = useRef('0');
     const selectionRef = useRef('');
     const reportActionDraftMessageRef = useRef<string>();
 
@@ -171,6 +172,7 @@ function PopoverReportActionContextMenu(_props: unknown, ref: ForwardedRef<Repor
         shouldCloseOnTarget = false,
         setIsEmojiPickerActive = () => {},
         isOverflowMenu = false,
+        transactionThreadReportID = undefined,
     ) => {
         const {pageX = 0, pageY = 0} = extractPointerEvent(event);
         contextMenuAnchorRef.current = contextMenuAnchor;
@@ -212,6 +214,7 @@ function PopoverReportActionContextMenu(_props: unknown, ref: ForwardedRef<Repor
             reportIDRef.current = reportID ?? '0';
             reportActionIDRef.current = reportActionID ?? '0';
             originalReportIDRef.current = originalReportID ?? '0';
+            transactionThreadReportIDRef.current = transactionThreadReportID ?? '0';
             selectionRef.current = selection;
             setIsPopoverVisible(true);
             reportActionDraftMessageRef.current = draftMessage;
@@ -337,6 +340,7 @@ function PopoverReportActionContextMenu(_props: unknown, ref: ForwardedRef<Repor
                     type={typeRef.current}
                     reportID={reportIDRef.current}
                     reportActionID={reportActionIDRef.current}
+                    transactionThreadReportID={transactionThreadReportIDRef.current}
                     draftMessage={reportActionDraftMessageRef.current}
                     selection={selectionRef.current}
                     isArchivedRoom={isRoomArchived}
diff --git a/src/pages/home/report/ContextMenu/ReportActionContextMenu.ts b/src/pages/home/report/ContextMenu/ReportActionContextMenu.ts
index f984e88b85b2..0d2c6a857909 100644
--- a/src/pages/home/report/ContextMenu/ReportActionContextMenu.ts
+++ b/src/pages/home/report/ContextMenu/ReportActionContextMenu.ts
@@ -37,6 +37,7 @@ type ShowContextMenu = (
     shouldCloseOnTarget?: boolean,
     setIsEmojiPickerActive?: (state: boolean) => void,
     isOverflowMenu?: boolean,
+    transactionThreadReportID?: string,
 ) => void;
 
 type ReportActionContextMenu = {
@@ -119,6 +120,7 @@ function showContextMenu(
     shouldCloseOnTarget = false,
     setIsEmojiPickerActive = () => {},
     isOverflowMenu = false,
+    transactionThreadReportID = '0',
 ) {
     if (!contextMenuRef.current) {
         return;
@@ -149,6 +151,7 @@ function showContextMenu(
         shouldCloseOnTarget,
         setIsEmojiPickerActive,
         isOverflowMenu,
+        transactionThreadReportID,
     );
 }
 
diff --git a/src/pages/home/report/ReportActionItem.tsx b/src/pages/home/report/ReportActionItem.tsx
index efb2d8ba73fb..57139dda6d50 100644
--- a/src/pages/home/report/ReportActionItem.tsx
+++ b/src/pages/home/report/ReportActionItem.tsx
@@ -920,6 +920,7 @@ function ReportActionItem({
                             isChronosReport={ReportUtils.chatIncludesChronos(originalReport)}
                             checkIfContextMenuActive={toggleContextMenuFromActiveReportAction}
                             setIsEmojiPickerActive={setIsEmojiPickerActive}
+                            transactionThreadReportID={transactionThreadReport?.reportID ?? '0'}
                         />
                         <View style={StyleUtils.getReportActionItemStyle(hovered || isWhisper || isContextMenuActive || !!isEmojiPickerActive || draftMessage !== undefined, !!onPress)}>
                             <OfflineWithFeedback
diff --git a/src/pages/home/report/ReportActionsList.tsx b/src/pages/home/report/ReportActionsList.tsx
index 8549af3ee483..335737dbe8a3 100644
--- a/src/pages/home/report/ReportActionsList.tsx
+++ b/src/pages/home/report/ReportActionsList.tsx
@@ -4,7 +4,7 @@ import type {RouteProp} from '@react-navigation/native';
 import type {DebouncedFunc} from 'lodash';
 import React, {memo, useCallback, useEffect, useMemo, useRef, useState} from 'react';
 import {DeviceEventEmitter, InteractionManager} from 'react-native';
-import type {LayoutChangeEvent, NativeScrollEvent, NativeSyntheticEvent, StyleProp, ViewStyle} from 'react-native';
+import type {EmitterSubscription, LayoutChangeEvent, NativeScrollEvent, NativeSyntheticEvent, StyleProp, ViewStyle} from 'react-native';
 import type {OnyxEntry} from 'react-native-onyx';
 import Animated, {useAnimatedStyle, useSharedValue, withTiming} from 'react-native-reanimated';
 import InvertedFlatList from '@components/InvertedFlatList';
@@ -202,7 +202,8 @@ 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;
     const hasNewestReportActionRef = useRef(hasNewestReportAction);
     hasNewestReportActionRef.current = hasNewestReportAction;
     const previousLastIndex = useRef(lastActionIndex);
@@ -308,12 +309,28 @@ function ReportActionsList({
             setMessageManuallyMarkedUnread(new Date().getTime());
         });
 
+        let unreadActionSubscriptionForTransactionThread: EmitterSubscription | undefined;
+        let readNewestActionSubscriptionForTransactionThread: EmitterSubscription | undefined;
+        if (transactionThreadReport?.reportID) {
+            unreadActionSubscriptionForTransactionThread = DeviceEventEmitter.addListener(`unreadAction_${transactionThreadReport?.reportID}`, (newLastReadTime) => {
+                resetUnreadMarker(newLastReadTime);
+                setMessageManuallyMarkedUnread(new Date().getTime());
+            });
+
+            readNewestActionSubscriptionForTransactionThread = DeviceEventEmitter.addListener(`readNewestAction_${transactionThreadReport?.reportID}`, (newLastReadTime) => {
+                resetUnreadMarker(newLastReadTime);
+                setMessageManuallyMarkedUnread(0);
+            });
+        }
+
         return () => {
             unreadActionSubscription.remove();
             readNewestActionSubscription.remove();
             deletedReportActionSubscription.remove();
+            unreadActionSubscriptionForTransactionThread?.remove();
+            readNewestActionSubscriptionForTransactionThread?.remove();
         };
-    }, [report.reportID]);
+    }, [report.reportID, transactionThreadReport?.reportID]);
 
     useEffect(() => {
         if (linkedReportActionID) {
@@ -401,6 +418,9 @@ function ReportActionsList({
         reportScrollManager.scrollToBottom();
         readActionSkipped.current = false;
         Report.readNewestAction(report.reportID);
+        if (transactionThreadReport?.reportID) {
+            Report.readNewestAction(transactionThreadReport?.reportID);
+        }
     };
 
     /**
diff --git a/tests/perf-test/SidebarUtils.perf-test.ts b/tests/perf-test/SidebarUtils.perf-test.ts
index 8566abb97c7f..b19e59dbdcc0 100644
--- a/tests/perf-test/SidebarUtils.perf-test.ts
+++ b/tests/perf-test/SidebarUtils.perf-test.ts
@@ -106,6 +106,7 @@ describe('SidebarUtils', () => {
                 policy,
                 parentReportAction,
                 hasViolations: false,
+                transactionThreadReport: null,
             }),
         );
     });