diff --git a/src/libs/ReportUtils.ts b/src/libs/ReportUtils.ts
index bf687c973abb..e44777a5096d 100644
--- a/src/libs/ReportUtils.ts
+++ b/src/libs/ReportUtils.ts
@@ -1284,6 +1284,16 @@ function isProcessingReport(report: OnyxEntry<Report>): boolean {
     return report?.stateNum === CONST.REPORT.STATE_NUM.SUBMITTED && report?.statusNum === CONST.REPORT.STATUS_NUM.SUBMITTED;
 }
 
+function isAwaitingFirstLevelApproval(report: OnyxEntry<Report>): boolean {
+    if (!report) {
+        return false;
+    }
+
+    const submitsToAccountID = PolicyUtils.getSubmitToAccountID(getPolicy(report.policyID), report.ownerAccountID ?? -1);
+
+    return isProcessingReport(report) && submitsToAccountID === report.managerID;
+}
+
 /**
  * Check if the report is a single chat report that isn't a thread
  * and personal detail of participant is optimistic data
@@ -1739,6 +1749,10 @@ function canAddOrDeleteTransactions(moneyRequestReport: OnyxEntry<Report>): bool
         return false;
     }
 
+    if (PolicyUtils.isInstantSubmitEnabled(policy) && isProcessingReport(moneyRequestReport)) {
+        return isAwaitingFirstLevelApproval(moneyRequestReport);
+    }
+
     if (isReportApproved(moneyRequestReport) || isSettled(moneyRequestReport?.reportID)) {
         return false;
     }
@@ -8492,6 +8506,7 @@ export {
     isPolicyExpenseChat,
     isPolicyExpenseChatAdmin,
     isProcessingReport,
+    isAwaitingFirstLevelApproval,
     isPublicAnnounceRoom,
     isPublicRoom,
     isReportApproved,
diff --git a/tests/unit/ReportUtilsTest.ts b/tests/unit/ReportUtilsTest.ts
index e4eee7241d80..81101b74f4d7 100644
--- a/tests/unit/ReportUtilsTest.ts
+++ b/tests/unit/ReportUtilsTest.ts
@@ -691,6 +691,12 @@ describe('ReportUtils', () => {
                     owner: '',
                     outputCurrency: '',
                     isPolicyExpenseChatEnabled: false,
+                    employeeList: {
+                        [currentUserEmail]: {
+                            email: currentUserEmail,
+                            submitsTo: currentUserEmail,
+                        },
+                    },
                 };
                 Promise.all([
                     Onyx.merge(`${ONYXKEYS.COLLECTION.POLICY}${paidPolicy.id}`, paidPolicy),
@@ -698,6 +704,8 @@ describe('ReportUtils', () => {
                         reportID: '101',
                         chatType: CONST.REPORT.CHAT_TYPE.POLICY_EXPENSE_CHAT,
                         isOwnPolicyExpenseChat: true,
+                        policyID: paidPolicy.id,
+                        ownerAccountID: currentUserAccountID,
                     }),
                 ]).then(() => {
                     const report = {
@@ -708,6 +716,7 @@ describe('ReportUtils', () => {
                         parentReportID: '101',
                         policyID: paidPolicy.id,
                         managerID: currentUserAccountID,
+                        ownerAccountID: currentUserAccountID,
                     };
                     const moneyRequestOptions = ReportUtils.temporary_getMoneyRequestOptions(report, paidPolicy, [currentUserAccountID, participantsAccountIDs.at(0) ?? -1]);
                     expect(moneyRequestOptions.length).toBe(2);