diff --git a/src/libs/ReportUtils.ts b/src/libs/ReportUtils.ts
index a304ee800131..26d1c4ef5ec8 100644
--- a/src/libs/ReportUtils.ts
+++ b/src/libs/ReportUtils.ts
@@ -2794,11 +2794,16 @@ function getReasonAndReportActionThatRequiresAttention(
         };
     }
 
+    const iouReportActionToApproveOrPay = IOU.getIOUReportActionToApproveOrPay(optionOrReport, optionOrReport.reportID);
+    const iouReportID = ReportActionsUtils.getIOUReportIDFromReportActionPreview(iouReportActionToApproveOrPay);
+    const transactions = TransactionUtils.getAllReportTransactions(iouReportID);
+    const hasOnlyPendingTransactions = transactions.length > 0 && transactions.every((t) => TransactionUtils.isExpensifyCardTransaction(t) && TransactionUtils.isPending(t));
+
     // Has a child report that is awaiting action (e.g. approve, pay, add bank account) from current user
-    if (optionOrReport.hasOutstandingChildRequest) {
+    if (optionOrReport.hasOutstandingChildRequest && !hasOnlyPendingTransactions) {
         return {
             reason: CONST.REQUIRES_ATTENTION_REASONS.HAS_CHILD_REPORT_AWAITING_ACTION,
-            reportAction: IOU.getIOUReportActionToApproveOrPay(optionOrReport, optionOrReport.reportID),
+            reportAction: iouReportActionToApproveOrPay,
         };
     }