diff --git a/src/libs/actions/IOU.ts b/src/libs/actions/IOU.ts
index 1842a2755c1e..3ab2a310008c 100644
--- a/src/libs/actions/IOU.ts
+++ b/src/libs/actions/IOU.ts
@@ -96,6 +96,7 @@ import {
     getTrackExpenseActionableWhisper,
     isActionableTrackExpense,
     isCreatedAction,
+    isDeletedAction,
     isMoneyRequestAction,
     isReportPreviewAction,
 } from '@libs/ReportActionsUtils';
@@ -9239,7 +9240,12 @@ function getIOUReportActionToApproveOrPay(chatReport: OnyxEntry<OnyxTypes.Report
         // eslint-disable-next-line deprecation/deprecation
         const policy = getPolicy(iouReport?.policyID);
         const shouldShowSettlementButton = canIOUBePaid(iouReport, chatReport, policy) || canApproveIOU(iouReport, policy);
-        return action.childReportID?.toString() !== excludedIOUReportID && action.actionName === CONST.REPORT.ACTIONS.TYPE.REPORT_PREVIEW && shouldShowSettlementButton;
+        return (
+            action.childReportID?.toString() !== excludedIOUReportID &&
+            action.actionName === CONST.REPORT.ACTIONS.TYPE.REPORT_PREVIEW &&
+            shouldShowSettlementButton &&
+            !isDeletedAction(action)
+        );
     });
 }
 
diff --git a/tests/actions/IOUTest.ts b/tests/actions/IOUTest.ts
index 37d9cea4c6a0..1e1dfeae924c 100644
--- a/tests/actions/IOUTest.ts
+++ b/tests/actions/IOUTest.ts
@@ -14,6 +14,7 @@ import {
     canUnapproveIOU,
     createDistanceRequest,
     deleteMoneyRequest,
+    getIOUReportActionToApproveOrPay,
     initMoneyRequest,
     initSplitExpense,
     payMoneyRequest,
@@ -6398,4 +6399,82 @@ describe('actions/IOU', () => {
             });
         });
     });
+
+    describe('getIOUReportActionToApproveOrPay', () => {
+        it('should exclude deleted actions', async () => {
+            const reportID = '1';
+            const policyID = '2';
+            const fakePolicy: Policy = {
+                ...createRandomPolicy(Number(policyID)),
+                approvalMode: CONST.POLICY.APPROVAL_MODE.BASIC,
+                type: CONST.POLICY.TYPE.TEAM,
+            };
+
+            const fakeReport: Report = {
+                ...createRandomReport(Number(reportID)),
+                type: CONST.REPORT.TYPE.EXPENSE,
+                policyID,
+                stateNum: CONST.REPORT.STATE_NUM.SUBMITTED,
+                statusNum: CONST.REPORT.STATUS_NUM.SUBMITTED,
+                managerID: RORY_ACCOUNT_ID,
+                chatType: CONST.REPORT.CHAT_TYPE.POLICY_EXPENSE_CHAT,
+            };
+            const fakeTransaction1: Transaction = {
+                ...createRandomTransaction(0),
+                reportID,
+                bank: CONST.EXPENSIFY_CARD.BANK,
+                status: CONST.TRANSACTION.STATUS.PENDING,
+            };
+            const fakeTransaction2: Transaction = {
+                ...createRandomTransaction(1),
+                reportID,
+                amount: 27,
+                receipt: {
+                    source: 'test',
+                    state: CONST.IOU.RECEIPT_STATE.SCAN_FAILED,
+                },
+                merchant: CONST.TRANSACTION.PARTIAL_TRANSACTION_MERCHANT,
+                modifiedMerchant: undefined,
+            };
+            const fakeTransaction3: Transaction = {
+                ...createRandomTransaction(2),
+                reportID,
+                amount: 100,
+            };
+
+            await Onyx.set(`${ONYXKEYS.COLLECTION.REPORT}${fakeReport.reportID}`, fakeReport);
+            await Onyx.set(`${ONYXKEYS.COLLECTION.TRANSACTION}${fakeTransaction1.transactionID}`, fakeTransaction1);
+            await Onyx.set(`${ONYXKEYS.COLLECTION.TRANSACTION}${fakeTransaction2.transactionID}`, fakeTransaction2);
+            await Onyx.set(`${ONYXKEYS.COLLECTION.TRANSACTION}${fakeTransaction3.transactionID}`, fakeTransaction3);
+            await Onyx.set(`${ONYXKEYS.COLLECTION.POLICY}${policyID}`, fakePolicy);
+            await waitForBatchedUpdates();
+
+            const deletedReportAction = {
+                reportActionID: '0',
+                actionName: CONST.REPORT.ACTIONS.TYPE.REPORT_PREVIEW,
+                created: '2024-08-08 18:70:44.171',
+                childReportID: reportID,
+            };
+
+            const MOCK_REPORT_ACTIONS: ReportActions = {
+                [deletedReportAction.reportActionID]: deletedReportAction,
+                [reportID]: {
+                    reportActionID: reportID,
+                    actionName: CONST.REPORT.ACTIONS.TYPE.REPORT_PREVIEW,
+                    created: '2024-08-08 19:70:44.171',
+                    childReportID: reportID,
+                    message: [
+                        {
+                            type: 'TEXT',
+                            text: 'Hello world!',
+                        },
+                    ],
+                },
+            };
+
+            await Onyx.set(`${ONYXKEYS.COLLECTION.REPORT_ACTIONS}${fakeReport.reportID}`, MOCK_REPORT_ACTIONS);
+
+            expect(getIOUReportActionToApproveOrPay(fakeReport, undefined)).toMatchObject(MOCK_REPORT_ACTIONS[reportID]);
+        });
+    });
 });
diff --git a/tests/unit/DebugUtilsTest.ts b/tests/unit/DebugUtilsTest.ts
index a8698d6b2d20..b734111741c7 100644
--- a/tests/unit/DebugUtilsTest.ts
+++ b/tests/unit/DebugUtilsTest.ts
@@ -1077,6 +1077,12 @@ describe('DebugUtils', () => {
                     reportActionID: '0',
                     actionName: CONST.REPORT.ACTIONS.TYPE.CREATED,
                     created: '2024-08-08 18:70:44.171',
+                    message: [
+                        {
+                            type: 'TEXT',
+                            text: 'Hello world!',
+                        },
+                    ],
                 },
                 // eslint-disable-next-line @typescript-eslint/naming-convention
                 '1': {
@@ -1084,6 +1090,12 @@ describe('DebugUtils', () => {
                     actionName: CONST.REPORT.ACTIONS.TYPE.REPORT_PREVIEW,
                     created: '2024-08-08 19:70:44.171',
                     childReportID: '2',
+                    message: [
+                        {
+                            type: 'TEXT',
+                            text: 'Hello world!',
+                        },
+                    ],
                 },
             };
             await Onyx.multiSet({