diff --git a/src/ROUTES.ts b/src/ROUTES.ts
index 43da6f6c7cb6..2109a050227f 100644
--- a/src/ROUTES.ts
+++ b/src/ROUTES.ts
@@ -1005,6 +1005,16 @@ const ROUTES = {
             return getUrlWithBackToParam(`${action as string}/${iouType as string}/distance/${transactionID}/${reportID}${reportActionID ? `/${reportActionID}` : ''}`, backTo);
         },
     },
+    MONEY_REQUEST_STEP_DISTANCE_MANUAL: {
+        route: ':action/:iouType/distance-manual/:transactionID/:reportID/:reportActionID?',
+        getRoute: (action: IOUAction, iouType: IOUType, transactionID: string | undefined, reportID: string | undefined, backTo = '', reportActionID?: string) => {
+            if (!transactionID || !reportID) {
+                Log.warn('Invalid transactionID or reportID is used to build the MONEY_REQUEST_STEP_DISTANCE_MANUAL route');
+            }
+            // eslint-disable-next-line no-restricted-syntax -- Legacy route generation
+            return getUrlWithBackToParam(`${action as string}/${iouType as string}/distance-manual/${transactionID}/${reportID}${reportActionID ? `/${reportActionID}` : ''}`, backTo);
+        },
+    },
     MONEY_REQUEST_STEP_DISTANCE_RATE: {
         route: ':action/:iouType/distanceRate/:transactionID/:reportID/:reportActionID?',
         getRoute: (action: IOUAction, iouType: IOUType, transactionID: string | undefined, reportID: string | undefined, backTo = '', reportActionID?: string) => {
diff --git a/src/components/MoneyRequestConfirmationListFooter.tsx b/src/components/MoneyRequestConfirmationListFooter.tsx
index 4faf714176a4..6d01676b87b7 100644
--- a/src/components/MoneyRequestConfirmationListFooter.tsx
+++ b/src/components/MoneyRequestConfirmationListFooter.tsx
@@ -473,6 +473,11 @@ function MoneyRequestConfirmationListFooter({
                             return;
                         }
 
+                        if (isManualDistanceRequest) {
+                            Navigation.navigate(ROUTES.MONEY_REQUEST_STEP_DISTANCE_MANUAL.getRoute(action, iouType, transactionID, reportID, Navigation.getActiveRoute(), reportActionID));
+                            return;
+                        }
+
                         Navigation.navigate(ROUTES.MONEY_REQUEST_STEP_DISTANCE.getRoute(action, iouType, transactionID, reportID, Navigation.getActiveRoute(), reportActionID));
                     }}
                     disabled={didConfirm}
diff --git a/src/components/ReportActionItem/MoneyRequestView.tsx b/src/components/ReportActionItem/MoneyRequestView.tsx
index 64a4867ef2d3..3e150155be73 100644
--- a/src/components/ReportActionItem/MoneyRequestView.tsx
+++ b/src/components/ReportActionItem/MoneyRequestView.tsx
@@ -434,6 +434,14 @@ function MoneyRequestView({
                         if (!transaction?.transactionID || !report?.reportID) {
                             return;
                         }
+
+                        if (isManualDistanceRequest) {
+                            Navigation.navigate(
+                                ROUTES.MONEY_REQUEST_STEP_DISTANCE_MANUAL.getRoute(CONST.IOU.ACTION.EDIT, iouType, transaction.transactionID, report.reportID, getReportRHPActiveRoute()),
+                            );
+                            return;
+                        }
+
                         Navigation.navigate(
                             ROUTES.MONEY_REQUEST_STEP_DISTANCE.getRoute(CONST.IOU.ACTION.EDIT, iouType, transaction.transactionID, report.reportID, getReportRHPActiveRoute()),
                         );
diff --git a/src/libs/Navigation/linkingConfig/config.ts b/src/libs/Navigation/linkingConfig/config.ts
index 9b229efdabcd..024bdfa1e3b7 100644
--- a/src/libs/Navigation/linkingConfig/config.ts
+++ b/src/libs/Navigation/linkingConfig/config.ts
@@ -1326,6 +1326,7 @@ const config: LinkingOptions<RootNavigatorParamList>['config'] = {
                         [SCREENS.MONEY_REQUEST.STEP_DATE]: ROUTES.MONEY_REQUEST_STEP_DATE.route,
                         [SCREENS.MONEY_REQUEST.STEP_DESCRIPTION]: ROUTES.MONEY_REQUEST_STEP_DESCRIPTION.route,
                         [SCREENS.MONEY_REQUEST.STEP_DISTANCE]: ROUTES.MONEY_REQUEST_STEP_DISTANCE.route,
+                        [SCREENS.MONEY_REQUEST.STEP_DISTANCE_MANUAL]: ROUTES.MONEY_REQUEST_STEP_DISTANCE_MANUAL.route,
                         [SCREENS.MONEY_REQUEST.STEP_DISTANCE_RATE]: ROUTES.MONEY_REQUEST_STEP_DISTANCE_RATE.route,
                         [SCREENS.MONEY_REQUEST.HOLD]: ROUTES.MONEY_REQUEST_HOLD_REASON.route,
                         [SCREENS.MONEY_REQUEST.REJECT]: ROUTES.REJECT_MONEY_REQUEST_REASON.route,
diff --git a/src/libs/Navigation/types.ts b/src/libs/Navigation/types.ts
index 73a470784caf..9647a423aa27 100644
--- a/src/libs/Navigation/types.ts
+++ b/src/libs/Navigation/types.ts
@@ -1396,6 +1396,24 @@ type MoneyRequestNavigatorParamList = {
         backToReport?: string;
         reportActionID?: string;
     };
+    [SCREENS.MONEY_REQUEST.STEP_DISTANCE_MAP]: {
+        action: IOUAction;
+        iouType: IOUType;
+        transactionID: string;
+        reportID: string;
+        backTo: Routes;
+        backToReport?: string;
+        reportActionID?: string;
+    };
+    [SCREENS.MONEY_REQUEST.STEP_DISTANCE_MANUAL]: {
+        action: IOUAction;
+        iouType: IOUType;
+        transactionID: string;
+        reportID: string;
+        backTo: Routes;
+        backToReport?: string;
+        reportActionID?: string;
+    };
     [SCREENS.MONEY_REQUEST.CREATE]: {
         iouType: IOUType;
         reportID: string;
@@ -1569,23 +1587,6 @@ type MoneyRequestNavigatorParamList = {
         backToReport?: string;
         reportActionID?: string;
     };
-    [SCREENS.MONEY_REQUEST.STEP_DISTANCE_MANUAL]: {
-        action: IOUAction;
-        iouType: IOUType;
-        transactionID: string;
-        reportID: string;
-        backTo: Routes;
-        backToReport?: string;
-    };
-    [SCREENS.MONEY_REQUEST.STEP_DISTANCE_MAP]: {
-        action: IOUAction;
-        iouType: IOUType;
-        transactionID: string;
-        reportID: string;
-        backTo: Routes;
-        backToReport?: string;
-        reportActionID?: string;
-    };
 };
 
 type WorkspaceConfirmationNavigatorParamList = {
diff --git a/src/libs/ReportUtils.ts b/src/libs/ReportUtils.ts
index c0a0c0c26c78..4ec6be04b2c1 100644
--- a/src/libs/ReportUtils.ts
+++ b/src/libs/ReportUtils.ts
@@ -257,7 +257,7 @@ import {
     isDistanceRequest,
     isExpensifyCardTransaction,
     isFetchingWaypointsFromServer,
-    isManualDistanceRequest,
+    isManualDistanceRequest as isManualDistanceRequestTransactionUtils,
     isOnHold as isOnHoldTransactionUtils,
     isPayAtEndExpense,
     isPending,
@@ -717,6 +717,7 @@ type TransactionDetails = {
     originalAmount: number;
     originalCurrency: string;
     postedDate: string;
+    distance?: number;
 };
 
 type OptimisticIOUReport = Pick<
@@ -4022,6 +4023,8 @@ function getTransactionDetails(
         return;
     }
     const report = getReportOrDraftReport(transaction?.reportID);
+    const isManualDistanceRequest = isManualDistanceRequestTransactionUtils(transaction);
+
     return {
         created: getFormattedCreated(transaction, createdDateFormat),
         amount: getTransactionAmount(transaction, !isEmptyObject(report) && isExpenseReport(report), transaction?.reportID === CONST.REPORT.UNREPORTED_REPORT_ID),
@@ -4043,6 +4046,7 @@ function getTransactionDetails(
         originalAmount: getOriginalAmount(transaction),
         originalCurrency: getOriginalCurrency(transaction),
         postedDate: getFormattedPostedDate(transaction),
+        ...(isManualDistanceRequest && {distance: transaction.comment?.customUnit?.quantity ?? undefined}),
     };
 }
 
@@ -4291,7 +4295,7 @@ function canEditFieldOfMoneyRequest(
             !isInvoiceReport(moneyRequestReport) &&
             !isReceiptBeingScanned(transaction) &&
             !isPerDiemRequest(transaction) &&
-            (!isDistanceRequest(transaction) || isManualDistanceRequest(transaction)) &&
+            (!isDistanceRequest(transaction) || isManualDistanceRequestTransactionUtils(transaction)) &&
             (isAdmin || isManager || isRequestor) &&
             (isDeleteAction ? isRequestor : true)
         );
@@ -4877,15 +4881,19 @@ function getModifiedExpenseOriginalMessage(
         originalMessage.billable = transactionChanges?.billable ? translateLocal('common.billable').toLowerCase() : translateLocal('common.nonBillable').toLowerCase();
     }
 
-    if ('customUnitRateID' in transactionChanges && updatedTransaction?.comment?.customUnit?.customUnitRateID) {
+    if (
+        // eslint-disable-next-line @typescript-eslint/prefer-nullish-coalescing
+        ('customUnitRateID' in transactionChanges && updatedTransaction?.comment?.customUnit?.customUnitRateID) ||
+        ('distance' in transactionChanges && updatedTransaction?.comment?.customUnit?.quantity)
+    ) {
         originalMessage.oldAmount = getTransactionAmount(oldTransaction, isFromExpenseReport);
         originalMessage.oldCurrency = getCurrency(oldTransaction);
         originalMessage.oldMerchant = getMerchant(oldTransaction);
 
         // For the originalMessage, we should use the non-negative amount, similar to what getAmount does for oldAmount
-        originalMessage.amount = Math.abs(updatedTransaction.modifiedAmount ?? 0);
-        originalMessage.currency = updatedTransaction.modifiedCurrency ?? CONST.CURRENCY.USD;
-        originalMessage.merchant = updatedTransaction.modifiedMerchant;
+        originalMessage.amount = Math.abs(updatedTransaction?.modifiedAmount ?? 0);
+        originalMessage.currency = updatedTransaction?.modifiedCurrency ?? CONST.CURRENCY.USD;
+        originalMessage.merchant = updatedTransaction?.modifiedMerchant;
     }
 
     return originalMessage;
diff --git a/src/libs/TransactionUtils/index.ts b/src/libs/TransactionUtils/index.ts
index 04ac998a548a..db552ff1f987 100644
--- a/src/libs/TransactionUtils/index.ts
+++ b/src/libs/TransactionUtils/index.ts
@@ -589,6 +589,28 @@ function getUpdatedTransaction({
         updatedTransaction.receipt.state = CONST.IOU.RECEIPT_STATE.OPEN;
     }
 
+    if (Object.hasOwn(transactionChanges, 'distance') && typeof transactionChanges.distance === 'number') {
+        const distance = roundToTwoDecimalPlaces(transactionChanges.distance ?? 0);
+
+        lodashSet(updatedTransaction, 'comment.customUnit.quantity', distance);
+        shouldStopSmartscan = true;
+
+        const updatedMileageRate = DistanceRequestUtils.getRate({transaction: updatedTransaction, policy, useTransactionDistanceUnit: false});
+        const {unit, rate} = updatedMileageRate;
+
+        const distanceInMeters = getDistanceInMeters(updatedTransaction, unit);
+        let amount = DistanceRequestUtils.getDistanceRequestAmount(distanceInMeters, unit, rate ?? 0);
+        amount = isFromExpenseReport || isUnReportedExpense ? -amount : amount;
+        const updatedCurrency = updatedMileageRate.currency ?? CONST.CURRENCY.USD;
+        const updatedMerchant = DistanceRequestUtils.getDistanceMerchant(true, distanceInMeters, unit, rate, updatedCurrency, translateLocal, (digit) =>
+            toLocaleDigit(IntlStore.getCurrentLocale(), digit),
+        );
+
+        updatedTransaction.modifiedAmount = amount;
+        updatedTransaction.modifiedMerchant = updatedMerchant;
+        updatedTransaction.modifiedCurrency = updatedCurrency;
+    }
+
     updatedTransaction.pendingFields = {
         ...(updatedTransaction?.pendingFields ?? {}),
         ...(Object.hasOwn(transactionChanges, 'comment') && {comment: CONST.RED_BRICK_ROAD_PENDING_ACTION.UPDATE}),
@@ -604,6 +626,11 @@ function getUpdatedTransaction({
         ...(Object.hasOwn(transactionChanges, 'taxAmount') && {taxAmount: CONST.RED_BRICK_ROAD_PENDING_ACTION.UPDATE}),
         ...(Object.hasOwn(transactionChanges, 'taxCode') && {taxCode: CONST.RED_BRICK_ROAD_PENDING_ACTION.UPDATE}),
         ...(Object.hasOwn(transactionChanges, 'attendees') && {attendees: CONST.RED_BRICK_ROAD_PENDING_ACTION.UPDATE}),
+        ...(Object.hasOwn(transactionChanges, 'distance') && {
+            quantity: CONST.RED_BRICK_ROAD_PENDING_ACTION.UPDATE,
+            amount: CONST.RED_BRICK_ROAD_PENDING_ACTION.UPDATE,
+            merchant: CONST.RED_BRICK_ROAD_PENDING_ACTION.UPDATE,
+        }),
     };
 
     return updatedTransaction;
diff --git a/src/libs/actions/IOU.ts b/src/libs/actions/IOU.ts
index 81fc9031992d..db47f9d3a6bf 100644
--- a/src/libs/actions/IOU.ts
+++ b/src/libs/actions/IOU.ts
@@ -4306,7 +4306,6 @@ function getUpdateMoneyRequestParams(
         key: `${ONYXKEYS.COLLECTION.TRANSACTION}${transactionID}`,
         value: {
             ...updatedTransaction,
-            pendingFields,
             errorFields: null,
         },
     });
@@ -4869,7 +4868,8 @@ function updateMoneyRequestTaxRate({transactionID, optimisticReportActionID, tax
 type UpdateMoneyRequestDistanceParams = {
     transactionID: string | undefined;
     transactionThreadReportID: string | undefined;
-    waypoints: WaypointCollection;
+    waypoints?: WaypointCollection;
+    distance?: number;
     routes?: Routes;
     policy?: OnyxEntry<OnyxTypes.Policy>;
     policyTagList?: OnyxEntry<OnyxTypes.PolicyTagLists>;
@@ -4882,6 +4882,7 @@ function updateMoneyRequestDistance({
     transactionID,
     transactionThreadReportID,
     waypoints,
+    distance,
     routes = undefined,
     policy = {} as OnyxTypes.Policy,
     policyTagList = {},
@@ -4889,8 +4890,9 @@ function updateMoneyRequestDistance({
     transactionBackup,
 }: UpdateMoneyRequestDistanceParams) {
     const transactionChanges: TransactionChanges = {
-        waypoints: sanitizeRecentWaypoints(waypoints),
+        ...(waypoints && {waypoints: sanitizeRecentWaypoints(waypoints)}),
         routes,
+        ...(distance && {distance}),
     };
     const transactionThreadReport = allReports?.[`${ONYXKEYS.COLLECTION.REPORT}${transactionThreadReportID}`] ?? null;
     const parentReport = allReports?.[`${ONYXKEYS.COLLECTION.REPORT}${transactionThreadReport?.parentReportID}`] ?? null;
@@ -4902,12 +4904,14 @@ function updateMoneyRequestDistance({
     }
     const {params, onyxData} = data;
 
-    const recentServerValidatedWaypoints = getRecentWaypoints().filter((item) => !item.pendingAction);
-    onyxData?.failureData?.push({
-        onyxMethod: Onyx.METHOD.SET,
-        key: `${ONYXKEYS.NVP_RECENT_WAYPOINTS}`,
-        value: recentServerValidatedWaypoints,
-    });
+    if (!distance) {
+        const recentServerValidatedWaypoints = getRecentWaypoints().filter((item) => !item.pendingAction);
+        onyxData?.failureData?.push({
+            onyxMethod: Onyx.METHOD.SET,
+            key: `${ONYXKEYS.NVP_RECENT_WAYPOINTS}`,
+            value: recentServerValidatedWaypoints,
+        });
+    }
 
     if (transactionBackup) {
         const transaction = allTransactions?.[`${ONYXKEYS.COLLECTION.TRANSACTION}${transactionID}`];
diff --git a/src/pages/iou/request/step/IOURequestStepConfirmation.tsx b/src/pages/iou/request/step/IOURequestStepConfirmation.tsx
index 5bce9133b576..dd6f941cdddc 100644
--- a/src/pages/iou/request/step/IOURequestStepConfirmation.tsx
+++ b/src/pages/iou/request/step/IOURequestStepConfirmation.tsx
@@ -43,7 +43,17 @@ import {getParticipantsOption, getReportOption} from '@libs/OptionsListUtils';
 import Performance from '@libs/Performance';
 import {isPaidGroupPolicy} from '@libs/PolicyUtils';
 import {generateReportID, getReportOrDraftReport, isProcessingReport, isReportOutstanding, isSelectedManagerMcTest} from '@libs/ReportUtils';
-import {getAttendees, getDefaultTaxCode, getRateID, getRequestType, getValidWaypoints, hasReceipt, isScanRequest} from '@libs/TransactionUtils';
+import {
+    getAttendees,
+    getDefaultTaxCode,
+    getRateID,
+    getRequestType,
+    getValidWaypoints,
+    hasReceipt,
+    isDistanceRequest as isDistanceRequestTransactionUtils,
+    isManualDistanceRequest as isManualDistanceRequestTransactionUtils,
+    isScanRequest,
+} from '@libs/TransactionUtils';
 import type {FileObject} from '@pages/media/AttachmentModalScreen/types';
 import type {GpsPoint} from '@userActions/IOU';
 import {
@@ -174,9 +184,8 @@ function IOURequestStepConfirmation({
 
     const [receiptFiles, setReceiptFiles] = useState<Record<string, Receipt>>({});
     const requestType = getRequestType(transaction, isBetaEnabled(CONST.BETAS.MANUAL_DISTANCE));
-    const isDistanceRequest =
-        requestType === CONST.IOU.REQUEST_TYPE.DISTANCE || requestType === CONST.IOU.REQUEST_TYPE.DISTANCE_MAP || requestType === CONST.IOU.REQUEST_TYPE.DISTANCE_MANUAL;
-    const isManualDistanceRequest = requestType === CONST.IOU.REQUEST_TYPE.DISTANCE_MANUAL;
+    const isDistanceRequest = isDistanceRequestTransactionUtils(transaction);
+    const isManualDistanceRequest = isManualDistanceRequestTransactionUtils(transaction);
     const isPerDiemRequest = requestType === CONST.IOU.REQUEST_TYPE.PER_DIEM;
     const [lastLocationPermissionPrompt] = useOnyx(ONYXKEYS.NVP_LAST_LOCATION_PERMISSION_PROMPT, {canBeMissing: true});
 
diff --git a/src/pages/iou/request/step/IOURequestStepDistanceManual.tsx b/src/pages/iou/request/step/IOURequestStepDistanceManual.tsx
index 0d09f55ab550..fb9bc98ef5b6 100644
--- a/src/pages/iou/request/step/IOURequestStepDistanceManual.tsx
+++ b/src/pages/iou/request/step/IOURequestStepDistanceManual.tsx
@@ -22,10 +22,11 @@ import {
     setMoneyRequestParticipantsFromReport,
     setMoneyRequestPendingFields,
     trackExpense,
+    updateMoneyRequestDistance,
 } from '@libs/actions/IOU';
 import {canUseTouchScreen} from '@libs/DeviceCapabilities';
 import DistanceRequestUtils from '@libs/DistanceRequestUtils';
-import {navigateToParticipantPage} from '@libs/IOUUtils';
+import {navigateToParticipantPage, shouldUseTransactionDraft} from '@libs/IOUUtils';
 import Navigation from '@libs/Navigation/Navigation';
 import {roundToTwoDecimalPlaces} from '@libs/NumberUtils';
 import {getParticipantsOption, getReportOption} from '@libs/OptionsListUtils';
@@ -80,9 +81,10 @@ function IOURequestStepDistanceManual({
     const [reportAttributesDerived] = useOnyx(ONYXKEYS.DERIVED.REPORT_ATTRIBUTES, {canBeMissing: true, selector: (val) => val?.reports});
 
     const isEditing = action === CONST.IOU.ACTION.EDIT;
-    const isSplitBill = iouType === CONST.IOU.TYPE.SPLIT;
     const isCreatingNewRequest = !(backTo || isEditing);
 
+    const isTransactionDraft = shouldUseTransactionDraft(action, iouType);
+
     const customUnitRateID = getRateID(transaction);
     const unit = DistanceRequestUtils.getRate({transaction, policy}).unit;
     const distance = transaction?.comment?.customUnit?.quantity ? roundToTwoDecimalPlaces(transaction.comment.customUnit.quantity) : undefined;
@@ -95,12 +97,12 @@ function IOURequestStepDistanceManual({
     }, [distance]);
 
     const shouldSkipConfirmation: boolean = useMemo(() => {
-        if (isSplitBill || !skipConfirmation || !report?.reportID) {
+        if (!skipConfirmation || !report?.reportID) {
             return false;
         }
 
         return !(isArchivedReport(reportNameValuePairs) || isPolicyExpenseChatUtils(report));
-    }, [report, isSplitBill, skipConfirmation, reportNameValuePairs]);
+    }, [report, skipConfirmation, reportNameValuePairs]);
 
     useFocusEffect(
         useCallback(() => {
@@ -120,14 +122,11 @@ function IOURequestStepDistanceManual({
 
     const buttonText = useMemo(() => {
         if (shouldSkipConfirmation) {
-            if (iouType === CONST.IOU.TYPE.SPLIT) {
-                return translate('iou.split');
-            }
             return translate('iou.createExpense');
         }
 
         return isCreatingNewRequest ? translate('common.next') : translate('common.save');
-    }, [shouldSkipConfirmation, translate, isCreatingNewRequest, iouType]);
+    }, [shouldSkipConfirmation, translate, isCreatingNewRequest]);
 
     const navigateToConfirmationPage = useCallback(() => {
         switch (iouType) {
@@ -142,7 +141,22 @@ function IOURequestStepDistanceManual({
     const navigateToNextPage = useCallback(
         (amount: string) => {
             const distanceAsFloat = roundToTwoDecimalPlaces(parseFloat(amount));
-            setMoneyRequestDistance(transactionID, distanceAsFloat, isCreatingNewRequest);
+            setMoneyRequestDistance(transactionID, distanceAsFloat, isTransactionDraft);
+
+            if (action === CONST.IOU.ACTION.EDIT) {
+                if (distance !== distanceAsFloat) {
+                    updateMoneyRequestDistance({
+                        transactionID: transaction?.transactionID,
+                        transactionThreadReportID: reportID,
+                        distance: distanceAsFloat,
+                        // Not required for manual distance request
+                        transactionBackup: undefined,
+                        policy,
+                    });
+                }
+                Navigation.goBack(backTo);
+                return;
+            }
 
             if (backTo) {
                 Navigation.goBack(backTo);
@@ -253,7 +267,7 @@ function IOURequestStepDistanceManual({
             currentUserPersonalDetails.login,
             currentUserPersonalDetails.accountID,
             reportNameValuePairs,
-            isCreatingNewRequest,
+            isTransactionDraft,
             activePolicy,
             shouldSkipConfirmation,
             personalDetails,
@@ -263,6 +277,8 @@ function IOURequestStepDistanceManual({
             customUnitRateID,
             translate,
             navigateToConfirmationPage,
+            action,
+            distance,
         ],
     );
 
diff --git a/src/types/onyx/Transaction.ts b/src/types/onyx/Transaction.ts
index a2200bae432a..83a414802ed0 100644
--- a/src/types/onyx/Transaction.ts
+++ b/src/types/onyx/Transaction.ts
@@ -583,6 +583,9 @@ type AdditionalTransactionChanges = {
 
     /** Previous currency before changes */
     oldCurrency?: string;
+
+    /** Previous distance before changes */
+    distance?: number;
 };
 
 /** Model of transaction changes  */
diff --git a/tests/unit/TransactionUtilsTest.ts b/tests/unit/TransactionUtilsTest.ts
index 09689eedbec5..02586c40a4cb 100644
--- a/tests/unit/TransactionUtilsTest.ts
+++ b/tests/unit/TransactionUtilsTest.ts
@@ -335,6 +335,67 @@ describe('TransactionUtils', () => {
             expect(updatedTransaction.taxCode).toBe(taxCode);
             expect(updatedTransaction.taxAmount).toBe(5);
         });
+
+        it('should update transaction when distance is changed', () => {
+            // Given: a policy with a mileage rate
+            const fakePolicy: Policy = {
+                ...createRandomPolicy(0),
+                customUnits: {
+                    distance: {
+                        name: CONST.CUSTOM_UNITS.NAME_DISTANCE,
+                        customUnitID: 'distance',
+                        rates: {
+                            default: {
+                                customUnitRateID: '1',
+                                currency: CONST.CURRENCY.USD,
+                                rate: 1, // 1 USD per mile
+                            },
+                        },
+                        attributes: {
+                            unit: CONST.CUSTOM_UNITS.DISTANCE_UNIT_MILES,
+                        },
+                    },
+                },
+            };
+            const transaction = generateTransaction({
+                comment: {
+                    customUnit: {
+                        distanceUnit: CONST.CUSTOM_UNITS.DISTANCE_UNIT_MILES,
+                        quantity: 10, // original distance
+                    },
+                },
+                currency: CONST.CURRENCY.USD,
+            });
+
+            const newDistance = 20; // change distance to 20 miles
+
+            // When: updating the transaction with a new distance
+            const updatedTransaction = TransactionUtils.getUpdatedTransaction({
+                transaction,
+                isFromExpenseReport: false,
+                policy: fakePolicy,
+                transactionChanges: {distance: newDistance},
+            });
+
+            // Then: quantity should be updated
+            expect(updatedTransaction.comment?.customUnit?.quantity).toBe(newDistance);
+
+            // And: amount should be recalculated (20 miles × 1 USD = 20)
+            expect(updatedTransaction.modifiedAmount).toBe(20);
+
+            // And: merchant should be updated with mileage description
+            expect(updatedTransaction.modifiedMerchant).toContain('20');
+
+            // And: currency should be set from policy mileage rate
+            expect(updatedTransaction.modifiedCurrency).toBe(CONST.CURRENCY.USD);
+
+            // And: pending fields should mark distance-related updates
+            expect(updatedTransaction.pendingFields).toMatchObject({
+                quantity: CONST.RED_BRICK_ROAD_PENDING_ACTION.UPDATE,
+                amount: CONST.RED_BRICK_ROAD_PENDING_ACTION.UPDATE,
+                merchant: CONST.RED_BRICK_ROAD_PENDING_ACTION.UPDATE,
+            });
+        });
     });
 
     describe('shouldShowRTERViolationMessage', () => {