diff --git a/src/libs/SearchUIUtils.ts b/src/libs/SearchUIUtils.ts
index 1cc5c295ac06..0c34f301f3ef 100644
--- a/src/libs/SearchUIUtils.ts
+++ b/src/libs/SearchUIUtils.ts
@@ -1622,9 +1622,14 @@ function createAndOpenSearchTransactionThread(
         // For legacy transactions without an IOU action in the backend, pass transaction data
         // This allows OpenReport to create the IOU action and transaction thread on the backend
         const reportActionID = moneyRequestReportActionID ?? iouReportAction?.reportActionID;
-        const transaction = !reportActionID ? getTransactionFromTransactionListItem(item) : undefined;
-        const transactionViolations = !reportActionID ? item.violations : undefined;
-        transactionThreadReport = createTransactionThreadReport(item.report, {reportActionID} as OnyxTypes.ReportAction, transaction, transactionViolations);
+        // Pass transaction data when there's no reportActionID OR when the item is from self DM
+        // (unreported transactions have a valid reportActionID but still need transaction data for proper detection)
+        const shouldPassTransactionData = !reportActionID || isFromSelfDM;
+        const transaction = shouldPassTransactionData ? getTransactionFromTransactionListItem(item) : undefined;
+        const transactionViolations = shouldPassTransactionData ? item.violations : undefined;
+        // Use the full reportAction to preserve originalMessage.type (e.g., "track") for proper expense type detection
+        const reportActionToPass = iouReportAction ?? item.reportAction ?? ({reportActionID} as OnyxTypes.ReportAction);
+        transactionThreadReport = createTransactionThreadReport(item.report, reportActionToPass, transaction, transactionViolations);
     }
 
     if (shouldNavigate) {
diff --git a/tests/unit/Search/SearchUIUtilsTest.ts b/tests/unit/Search/SearchUIUtilsTest.ts
index 8b8f79a025b8..dd885cd8b4ef 100644
--- a/tests/unit/Search/SearchUIUtilsTest.ts
+++ b/tests/unit/Search/SearchUIUtilsTest.ts
@@ -3249,7 +3249,8 @@ describe('SearchUIUtils', () => {
             SearchUIUtils.createAndOpenSearchTransactionThread(transactionListItem, backTo, threadReportID, undefined, false);
 
             expect(setOptimisticDataForTransactionThreadPreview).toHaveBeenCalled();
-            expect(createTransactionThreadReport).toHaveBeenCalledWith(report1, {reportActionID: '11111111'}, undefined, undefined);
+            // The full reportAction is passed to preserve originalMessage.type for proper expense type detection
+            expect(createTransactionThreadReport).toHaveBeenCalledWith(report1, reportAction1, undefined, undefined);
         });
 
         test('Should not navigate if shouldNavigate = false', () => {