diff --git a/src/ONYXKEYS.js b/src/ONYXKEYS.js
index 947d0aaf0c31..6cc10430cea6 100755
--- a/src/ONYXKEYS.js
+++ b/src/ONYXKEYS.js
@@ -147,4 +147,7 @@ export default {
 
     // Are report actions loading?
     IS_LOADING_REPORT_ACTIONS: 'isLoadingReportActions',
+
+    // Is report data loading?
+    IS_LOADING_REPORT_DATA: 'isLoadingReportData',
 };
diff --git a/src/libs/actions/Report.js b/src/libs/actions/Report.js
index 438618944270..8e6947466540 100644
--- a/src/libs/actions/Report.js
+++ b/src/libs/actions/Report.js
@@ -80,6 +80,13 @@ const lastReadSequenceNumbers = {};
 // since we will then be up to date and any optimistic actions that are still waiting to be replaced can be removed.
 const optimisticReportActionIDs = {};
 
+// Boolean to indicate if report data is loading from the API or not.
+let isReportDataLoading = true;
+Onyx.connect({
+    key: ONYXKEYS.IS_LOADING_REPORT_DATA,
+    callback: val => isReportDataLoading = val,
+});
+
 /**
  * Checks the report to see if there are any unread action items
  *
@@ -936,6 +943,7 @@ function fetchAllReports(
     shouldRecordHomePageTiming = false,
     shouldDelayActionsFetch = false,
 ) {
+    Onyx.set(ONYXKEYS.IS_LOADING_REPORT_DATA, true);
     return API.Get({
         returnValueList: 'chatList',
     })
@@ -956,6 +964,7 @@ function fetchAllReports(
         })
         .then((returnedReports) => {
             Onyx.set(ONYXKEYS.INITIAL_REPORT_DATA_LOADED, true);
+            Onyx.set(ONYXKEYS.IS_LOADING_REPORT_DATA, false);
 
             // If at this point the user still doesn't have a Concierge report, create it for them.
             // This means they were a participant in reports before their account was created (e.g. default rooms)
@@ -1173,6 +1182,11 @@ function deleteReportComment(reportID, reportAction) {
  *  is last read (meaning that the entire report history has been read)
  */
 function updateLastReadActionID(reportID, sequenceNumber) {
+    // If report data is loading, we can't update the last read sequence number because it is obsolete
+    if (isReportDataLoading) {
+        return;
+    }
+
     // If we aren't specifying a sequenceNumber and have no valid maxSequenceNumber for this report then we should not
     // update the last read. Most likely, we have just created the report and it has no comments. But we should err on
     // the side of caution and do nothing in this case.