diff --git a/src/hooks/usePolicyForMovingExpenses.ts b/src/hooks/usePolicyForMovingExpenses.ts
index e0e313e598f6..f0625978fb35 100644
--- a/src/hooks/usePolicyForMovingExpenses.ts
+++ b/src/hooks/usePolicyForMovingExpenses.ts
@@ -1,7 +1,7 @@
 import {activePolicySelector} from '@selectors/Policy';
 import type {OnyxEntry} from 'react-native-onyx';
 import {useSession} from '@components/OnyxListItemProvider';
-import {isPaidGroupPolicy, isPolicyMemberWithoutPendingDelete} from '@libs/PolicyUtils';
+import {canSubmitPerDiemExpenseFromWorkspace, isPaidGroupPolicy, isPolicyMemberWithoutPendingDelete} from '@libs/PolicyUtils';
 import CONST from '@src/CONST';
 import ONYXKEYS from '@src/ONYXKEYS';
 import type {Policy} from '@src/types/onyx';
@@ -20,7 +20,7 @@ function isPolicyMemberByRole(policy: OnyxEntry<Policy>) {
     return !!policy?.role && Object.values(CONST.POLICY.ROLE).includes(policy.role);
 }
 
-function usePolicyForMovingExpenses() {
+function usePolicyForMovingExpenses(isPerDiemRequest?: boolean) {
     const [allPolicies] = useOnyx(ONYXKEYS.COLLECTION.POLICY, {canBeMissing: true});
     const [activePolicyID] = useOnyx(ONYXKEYS.NVP_ACTIVE_POLICY_ID, {canBeMissing: true});
     const [activePolicy] = useOnyx(`${ONYXKEYS.COLLECTION.POLICY}${activePolicyID}`, {
@@ -32,11 +32,15 @@ function usePolicyForMovingExpenses() {
     const login = session?.email ?? '';
     const userPolicies = Object.values(allPolicies ?? {}).filter(
         (policy) =>
-            checkForUserPendingDelete(login, policy) && isPolicyMemberByRole(policy) && isPaidGroupPolicy(policy) && policy?.pendingAction !== CONST.RED_BRICK_ROAD_PENDING_ACTION.DELETE,
+            checkForUserPendingDelete(login, policy) &&
+            isPolicyMemberByRole(policy) &&
+            isPaidGroupPolicy(policy) &&
+            policy?.pendingAction !== CONST.RED_BRICK_ROAD_PENDING_ACTION.DELETE &&
+            (!isPerDiemRequest || canSubmitPerDiemExpenseFromWorkspace(policy)),
     );
     const isMemberOfMoreThanOnePolicy = userPolicies.length > 1;
 
-    if (activePolicy) {
+    if (activePolicy && (!isPerDiemRequest || canSubmitPerDiemExpenseFromWorkspace(activePolicy))) {
         return {policyForMovingExpensesID: activePolicyID, policyForMovingExpenses: activePolicy, shouldSelectPolicy: false};
     }
 
diff --git a/src/pages/NewReportWorkspaceSelectionPage.tsx b/src/pages/NewReportWorkspaceSelectionPage.tsx
index d0da894e3359..c809a0832c9a 100644
--- a/src/pages/NewReportWorkspaceSelectionPage.tsx
+++ b/src/pages/NewReportWorkspaceSelectionPage.tsx
@@ -20,10 +20,11 @@ import Navigation from '@libs/Navigation/Navigation';
 import type {NewReportWorkspaceSelectionNavigatorParamList} from '@libs/Navigation/types';
 import {getHeaderMessageForNonUserList} from '@libs/OptionsListUtils';
 import Permissions from '@libs/Permissions';
-import {isPolicyAdmin, shouldShowPolicy} from '@libs/PolicyUtils';
+import {canSubmitPerDiemExpenseFromWorkspace, isPolicyAdmin, shouldShowPolicy} from '@libs/PolicyUtils';
 import {getDefaultWorkspaceAvatar, hasViolations as hasViolationsReportUtils} from '@libs/ReportUtils';
 import {buildCannedSearchQuery} from '@libs/SearchQueryUtils';
 import {shouldRestrictUserBillableActions} from '@libs/SubscriptionUtils';
+import {isPerDiemRequest} from '@libs/TransactionUtils';
 import isRHPOnSearchMoneyRequestReportPage from '@navigation/helpers/isRHPOnSearchMoneyRequestReportPage';
 import type {PlatformStackScreenProps} from '@navigation/PlatformStackNavigation/types';
 import {changeTransactionsReport} from '@userActions/Transaction';
@@ -59,6 +60,7 @@ function NewReportWorkspaceSelectionPage({route}: NewReportWorkspaceSelectionPag
     const [activePolicyID] = useOnyx(ONYXKEYS.NVP_ACTIVE_POLICY_ID, {canBeMissing: true});
 
     const [policies, fetchStatus] = useOnyx(ONYXKEYS.COLLECTION.POLICY, {canBeMissing: true});
+    const [allTransactions] = useOnyx(ONYXKEYS.COLLECTION.TRANSACTION, {canBeMissing: true});
     const currentUserPersonalDetails = useCurrentUserPersonalDetails();
 
     const [isLoadingApp] = useOnyx(ONYXKEYS.IS_LOADING_APP, {canBeMissing: true});
@@ -133,13 +135,30 @@ function NewReportWorkspaceSelectionPage({route}: NewReportWorkspaceSelectionPag
         ],
     );
 
+    const hasPerDiemTransactions = useMemo(() => {
+        if (selectedTransactionIDs && selectedTransactionIDs.length > 0 && allTransactions) {
+            return selectedTransactionIDs.some((transactionID) => {
+                const transaction = allTransactions[`${ONYXKEYS.COLLECTION.TRANSACTION}${transactionID}`];
+                return transaction && isPerDiemRequest(transaction);
+            });
+        }
+
+        return false;
+    }, [selectedTransactionIDs, allTransactions]);
+
     const usersWorkspaces = useMemo<WorkspaceListItem[]>(() => {
         if (!policies || isEmptyObject(policies)) {
             return [];
         }
 
         return Object.values(policies)
-            .filter((policy) => shouldShowPolicy(policy, !!isOffline, currentUserPersonalDetails?.login) && !policy?.isJoinRequestPending && policy?.isPolicyExpenseChatEnabled)
+            .filter(
+                (policy) =>
+                    shouldShowPolicy(policy, !!isOffline, currentUserPersonalDetails?.login) &&
+                    !policy?.isJoinRequestPending &&
+                    policy?.isPolicyExpenseChatEnabled &&
+                    (!hasPerDiemTransactions || canSubmitPerDiemExpenseFromWorkspace(policy)),
+            )
             .map((policy) => ({
                 text: policy?.name ?? '',
                 policyID: policy?.id,
@@ -157,7 +176,7 @@ function NewReportWorkspaceSelectionPage({route}: NewReportWorkspaceSelectionPag
                 shouldSyncFocus: true,
             }))
             .sort((a, b) => localeCompare(a.text, b.text));
-    }, [policies, isOffline, currentUserPersonalDetails?.login, localeCompare]);
+    }, [policies, isOffline, currentUserPersonalDetails?.login, localeCompare, hasPerDiemTransactions]);
 
     const filteredAndSortedUserWorkspaces = useMemo<WorkspaceListItem[]>(
         () => usersWorkspaces.filter((policy) => policy.text?.toLowerCase().includes(debouncedSearchTerm?.toLowerCase() ?? '')),
diff --git a/src/pages/iou/request/step/IOURequestEditReport.tsx b/src/pages/iou/request/step/IOURequestEditReport.tsx
index 312f89d9ab9a..dbedd4aff054 100644
--- a/src/pages/iou/request/step/IOURequestEditReport.tsx
+++ b/src/pages/iou/request/step/IOURequestEditReport.tsx
@@ -1,4 +1,4 @@
-import React from 'react';
+import React, {useMemo} from 'react';
 import {useSession} from '@components/OnyxListItemProvider';
 import {useSearchContext} from '@components/Search/SearchContext';
 import type {ListItem} from '@components/SelectionListWithSections/types';
@@ -11,6 +11,7 @@ import Navigation from '@libs/Navigation/Navigation';
 import Permissions from '@libs/Permissions';
 import {hasViolations as hasViolationsReportUtils} from '@libs/ReportUtils';
 import {shouldRestrictUserBillableActions} from '@libs/SubscriptionUtils';
+import {isPerDiemRequest} from '@libs/TransactionUtils';
 import {createNewReport} from '@userActions/Report';
 import CONST from '@src/CONST';
 import ONYXKEYS from '@src/ONYXKEYS';
@@ -39,8 +40,17 @@ function IOURequestEditReport({route}: IOURequestEditReportProps) {
     const session = useSession();
     const [allPolicies] = useOnyx(ONYXKEYS.COLLECTION.POLICY, {canBeMissing: true});
     const [allPolicyCategories] = useOnyx(`${ONYXKEYS.COLLECTION.POLICY_CATEGORIES}`, {canBeMissing: true});
+    const [allTransactions] = useOnyx(ONYXKEYS.COLLECTION.TRANSACTION, {canBeMissing: true});
     const currentUserPersonalDetails = useCurrentUserPersonalDetails();
-    const {policyForMovingExpensesID, shouldSelectPolicy} = usePolicyForMovingExpenses();
+
+    const hasPerDiemTransactions = useMemo(() => {
+        return selectedTransactionIDs.some((transactionID) => {
+            const transaction = allTransactions?.[`${ONYXKEYS.COLLECTION.TRANSACTION}${transactionID}`];
+            return transaction && isPerDiemRequest(transaction);
+        });
+    }, [selectedTransactionIDs, allTransactions]);
+
+    const {policyForMovingExpensesID, shouldSelectPolicy} = usePolicyForMovingExpenses(hasPerDiemTransactions);
     const [transactionViolations] = useOnyx(ONYXKEYS.COLLECTION.TRANSACTION_VIOLATIONS, {canBeMissing: true});
     const hasViolations = hasViolationsReportUtils(undefined, transactionViolations);
 
@@ -102,6 +112,7 @@ function IOURequestEditReport({route}: IOURequestEditReportProps) {
             removeFromReport={removeFromReport}
             isEditing={action === CONST.IOU.ACTION.EDIT}
             createReport={createReport}
+            isPerDiemRequest={hasPerDiemTransactions}
         />
     );
 }
diff --git a/src/pages/iou/request/step/IOURequestEditReportCommon.tsx b/src/pages/iou/request/step/IOURequestEditReportCommon.tsx
index c9e38771a802..5fcefa677969 100644
--- a/src/pages/iou/request/step/IOURequestEditReportCommon.tsx
+++ b/src/pages/iou/request/step/IOURequestEditReportCommon.tsx
@@ -68,7 +68,7 @@ function IOURequestEditReportCommon({
     const [selectedReport] = useOnyx(`${ONYXKEYS.COLLECTION.REPORT}${selectedReportID}`, {canBeMissing: true});
     const reportOwnerAccountID = useMemo(() => selectedReport?.ownerAccountID ?? currentUserPersonalDetails.accountID, [selectedReport, currentUserPersonalDetails.accountID]);
     const reportPolicy = usePolicy(selectedReport?.policyID);
-    const {policyForMovingExpenses} = usePolicyForMovingExpenses();
+    const {policyForMovingExpenses} = usePolicyForMovingExpenses(isPerDiemRequest);
 
     const [reportNameValuePairs] = useOnyx(ONYXKEYS.COLLECTION.REPORT_NAME_VALUE_PAIRS, {canBeMissing: true});
 
diff --git a/src/pages/iou/request/step/IOURequestStepReport.tsx b/src/pages/iou/request/step/IOURequestStepReport.tsx
index 3a11275b4686..8b50fb3f8c20 100644
--- a/src/pages/iou/request/step/IOURequestStepReport.tsx
+++ b/src/pages/iou/request/step/IOURequestStepReport.tsx
@@ -53,7 +53,7 @@ function IOURequestStepReport({route, transaction}: IOURequestStepReportProps) {
     const isASAPSubmitBetaEnabled = Permissions.isBetaEnabled(CONST.BETAS.ASAP_SUBMIT, allBetas);
     const session = useSession();
     const currentUserPersonalDetails = useCurrentUserPersonalDetails();
-    const {policyForMovingExpensesID, shouldSelectPolicy} = usePolicyForMovingExpenses();
+    const {policyForMovingExpensesID, shouldSelectPolicy} = usePolicyForMovingExpenses(isPerDiemRequest(transaction));
     const [transactionViolations] = useOnyx(ONYXKEYS.COLLECTION.TRANSACTION_VIOLATIONS, {canBeMissing: true});
     const hasViolations = hasViolationsReportUtils(undefined, transactionViolations);
     useRestartOnReceiptFailure(transaction, reportIDFromRoute, iouType, action);