diff --git a/src/components/MoneyReportHeaderPrimaryAction/useConfirmApproval.ts b/src/components/MoneyReportHeaderPrimaryAction/useConfirmApproval.ts
index 8b58f2baf574..5e2129a52dd9 100644
--- a/src/components/MoneyReportHeaderPrimaryAction/useConfirmApproval.ts
+++ b/src/components/MoneyReportHeaderPrimaryAction/useConfirmApproval.ts
@@ -4,8 +4,9 @@ import {useMoneyReportHeaderModals} from '@components/MoneyReportHeaderModalsCon
 import useCurrentUserPersonalDetails from '@hooks/useCurrentUserPersonalDetails';
 import useOnyx from '@hooks/useOnyx';
 import usePermissions from '@hooks/usePermissions';
+import useTransactionsAndViolationsForReport from '@hooks/useTransactionsAndViolationsForReport';
 import getNonEmptyStringOnyxID from '@libs/getNonEmptyStringOnyxID';
-import {hasHeldExpenses as hasHeldExpensesReportUtils, hasViolations as hasViolationsReportUtils} from '@libs/ReportUtils';
+import {hasHeldExpensesFromTransactions as hasHeldExpensesReportUtils, hasViolations as hasViolationsReportUtils} from '@libs/ReportUtils';
 import {approveMoneyRequest} from '@userActions/IOU/ReportWorkflow';
 import CONST from '@src/CONST';
 import ONYXKEYS from '@src/ONYXKEYS';
@@ -26,10 +27,11 @@ function useConfirmApproval(reportID: string | undefined, startApprovedAnimation
     const [ownerBillingGracePeriodEnd] = useOnyx(ONYXKEYS.NVP_PRIVATE_OWNER_BILLING_GRACE_PERIOD_END);
     const [allTransactionViolations] = useOnyx(ONYXKEYS.COLLECTION.TRANSACTION_VIOLATIONS);
     const [delegateEmail] = useOnyx(ONYXKEYS.ACCOUNT, {selector: delegateEmailSelector});
+    const {transactions: reportTransactions} = useTransactionsAndViolationsForReport(moneyRequestReport?.reportID);
 
     const isASAPSubmitBetaEnabled = isBetaEnabled(CONST.BETAS.ASAP_SUBMIT);
     const hasViolations = hasViolationsReportUtils(moneyRequestReport?.reportID, allTransactionViolations, accountID, email ?? '');
-    const isAnyTransactionOnHold = hasHeldExpensesReportUtils(moneyRequestReport?.reportID);
+    const isAnyTransactionOnHold = hasHeldExpensesReportUtils(Object.values(reportTransactions));
 
     const confirmApproval = () => {
         if (isDelegateAccessRestricted) {
diff --git a/src/libs/actions/Transaction.ts b/src/libs/actions/Transaction.ts
index 39564b8985a7..c9b11553fb4b 100644
--- a/src/libs/actions/Transaction.ts
+++ b/src/libs/actions/Transaction.ts
@@ -611,11 +611,9 @@ function dismissDuplicateTransactionViolation({
         onyxMethod: Onyx.METHOD.MERGE,
         key: `${ONYXKEYS.COLLECTION.TRANSACTION}${transaction?.transactionID}`,
         value: {
-            ...transaction,
             comment: {
-                ...transaction?.comment,
                 dismissedViolations: {
-                    duplicatedTransaction: {
+                    [CONST.VIOLATIONS.DUPLICATED_TRANSACTION]: {
                         [dismissedPersonalDetails.login ?? '']: getUnixTime(new Date()),
                     },
                 },
@@ -635,7 +633,11 @@ function dismissDuplicateTransactionViolation({
         onyxMethod: Onyx.METHOD.MERGE,
         key: `${ONYXKEYS.COLLECTION.TRANSACTION}${transaction?.transactionID}`,
         value: {
-            ...transaction,
+            comment: {
+                dismissedViolations: {
+                    [CONST.VIOLATIONS.DUPLICATED_TRANSACTION]: transaction?.comment?.dismissedViolations?.[CONST.VIOLATIONS.DUPLICATED_TRANSACTION] ?? null,
+                },
+            },
         },
     }));
 
diff --git a/tests/unit/TransactionTest.ts b/tests/unit/TransactionTest.ts
index b915b776f75e..c95ecf6730d9 100644
--- a/tests/unit/TransactionTest.ts
+++ b/tests/unit/TransactionTest.ts
@@ -1784,6 +1784,87 @@ describe('Transaction', () => {
             expect(Object.keys(reportActions ?? {}).length).toBe(0);
         });
 
+        it('should preserve an existing hold when optimistic dismissal is built from a stale transaction snapshot', async () => {
+            const transactionID = 'dismissTxnHold';
+            const threadReportID = 'threadDismissHold';
+            const transactionKey = `${ONYXKEYS.COLLECTION.TRANSACTION}${transactionID}` as const;
+            const testerEmail = 'tester@example.com';
+            const mockViolations: TransactionViolation[] = [{name: CONST.VIOLATIONS.DUPLICATED_TRANSACTION, type: 'warning'}];
+
+            mockFetch.pause();
+
+            await Onyx.merge(`${ONYXKEYS.COLLECTION.TRANSACTION_VIOLATIONS}${transactionID}`, mockViolations);
+
+            const transactionInOnyx = generateTransaction({
+                transactionID,
+                reportID: FAKE_OLD_REPORT_ID,
+                comment: {
+                    hold: 'holdReportActionID',
+                    dismissedViolations: {
+                        [CONST.VIOLATIONS.SMARTSCAN_FAILED]: {
+                            owner: 123,
+                        },
+                    },
+                },
+            });
+            await Onyx.merge(transactionKey, transactionInOnyx);
+
+            const staleTransaction = {
+                ...transactionInOnyx,
+                comment: {
+                    dismissedViolations: {
+                        [CONST.VIOLATIONS.SMARTSCAN_FAILED]: {
+                            owner: 123,
+                        },
+                    },
+                    hold: undefined,
+                },
+            } as Transaction;
+
+            const iouAction = {
+                reportActionID: rand64(),
+                actionName: CONST.REPORT.ACTIONS.TYPE.IOU,
+                childReportID: threadReportID,
+                actorAccountID: CURRENT_USER_ID,
+                created: DateUtils.getDBTime(),
+                originalMessage: {
+                    IOUReportID: FAKE_OLD_REPORT_ID,
+                    IOUTransactionID: transactionID,
+                    amount: transactionInOnyx.amount,
+                    currency: transactionInOnyx.currency,
+                    type: CONST.IOU.REPORT_ACTION_TYPE.CREATE,
+                },
+            };
+            await Onyx.merge(`${ONYXKEYS.COLLECTION.REPORT_ACTIONS}${FAKE_OLD_REPORT_ID}`, {[iouAction.reportActionID]: iouAction});
+            await Onyx.merge(`${ONYXKEYS.COLLECTION.REPORT_ACTIONS}${threadReportID}`, {});
+
+            mockFetch.fail();
+
+            dismissDuplicateTransactionViolation({
+                transactionIDs: [transactionID],
+                dismissedPersonalDetails: {login: testerEmail, accountID: CURRENT_USER_ID},
+                expenseReport: newReport,
+                policy: undefined,
+                isASAPSubmitBetaEnabled: false,
+                allTransactions: {[transactionKey]: staleTransaction},
+            });
+            await waitForBatchedUpdates();
+
+            const optimisticTransaction = await getOnyxValue(transactionKey);
+            const duplicateDismissals = optimisticTransaction?.comment?.dismissedViolations?.[CONST.VIOLATIONS.DUPLICATED_TRANSACTION];
+            expect(optimisticTransaction?.comment?.hold).toBe('holdReportActionID');
+            expect(optimisticTransaction?.comment?.dismissedViolations?.[CONST.VIOLATIONS.SMARTSCAN_FAILED]).toEqual({owner: 123});
+            expect(duplicateDismissals?.[testerEmail]).toEqual(expect.any(Number));
+
+            await mockFetch.resume();
+            await waitForBatchedUpdates();
+
+            const revertedTransaction = await getOnyxValue(transactionKey);
+            expect(revertedTransaction?.comment?.hold).toBe('holdReportActionID');
+            expect(revertedTransaction?.comment?.dismissedViolations?.[CONST.VIOLATIONS.SMARTSCAN_FAILED]).toEqual({owner: 123});
+            expect(revertedTransaction?.comment?.dismissedViolations?.[CONST.VIOLATIONS.DUPLICATED_TRANSACTION]).toBeUndefined();
+        });
+
         it('should not modify Onyx data when tag list does not exist at given index (empty violations array)', async () => {
             const transactionID = 'dismissTxn3';
             const threadReportID = 'threadDismiss3';