diff --git a/src/libs/actions/IOU/index.ts b/src/libs/actions/IOU/index.ts
index 4caa9400bc6f..1697ccae3b4b 100644
--- a/src/libs/actions/IOU/index.ts
+++ b/src/libs/actions/IOU/index.ts
@@ -12952,6 +12952,7 @@ function prepareRejectMoneyRequestData(
                 existingTransactionThreadReportID: childReportID,
                 shouldGenerateTransactionThreadReport: false,
             });
+            createdIOUReportActionID = iouAction.reportActionID;
 
             optimisticData.push(
                 {
diff --git a/tests/actions/IOUTest.ts b/tests/actions/IOUTest.ts
index 307ba204dea4..5130f3d62b65 100644
--- a/tests/actions/IOUTest.ts
+++ b/tests/actions/IOUTest.ts
@@ -11131,6 +11131,58 @@ describe('actions/IOU', () => {
                 ]),
             );
         });
+
+        it('should the createdIOUReportActionID parameter not be undefined when rejecting an expense to an open report', async () => {
+            // Mock API.write for this test
+            // eslint-disable-next-line rulesdir/no-multiple-api-calls
+            const writeSpy = jest.spyOn(API, 'write').mockImplementation(jest.fn());
+
+            const openingReport = {
+                ...createRandomReport(3, undefined),
+                type: CONST.REPORT.TYPE.EXPENSE,
+                ownerAccountID: TEST_USER_ACCOUNT_ID,
+                managerID: MANAGER_ACCOUNT_ID,
+                total: 0,
+                currency: CONST.CURRENCY.USD,
+                stateNum: CONST.REPORT.STATE_NUM.OPEN,
+                statusNum: CONST.REPORT.STATUS_NUM.OPEN,
+                policyID: policy?.id,
+                chatReportID: chatReport?.reportID,
+            };
+
+            const secondTransaction = {
+                ...createRandomTransaction(2),
+                reportID: iouReport?.reportID,
+                amount,
+                currency: CONST.CURRENCY.USD,
+                merchant: 'Test Merchant',
+                transactionID: '2',
+            };
+
+            // Given: An expense report (not IOU)
+            const expenseReport = {...iouReport, type: CONST.REPORT.TYPE.EXPENSE, total: amount * 2};
+            await Onyx.set(`${ONYXKEYS.COLLECTION.REPORT}${expenseReport.reportID}`, expenseReport);
+            await Onyx.set(`${ONYXKEYS.COLLECTION.REPORT}${openingReport.reportID}`, openingReport);
+            await Onyx.set(`${ONYXKEYS.COLLECTION.TRANSACTION}${secondTransaction.transactionID}`, secondTransaction);
+            await waitForBatchedUpdates();
+
+            // When: Reject the money request
+            if (!transaction?.transactionID || !iouReport?.reportID) {
+                throw new Error('Required transaction or report data is missing');
+            }
+            rejectMoneyRequest(transaction.transactionID, iouReport.reportID, comment, policy);
+            await waitForBatchedUpdates();
+
+            // Then: createdIOUReportActionID shouldn't be undefined
+            expect(writeSpy).toHaveBeenCalledWith(
+                expect.anything(),
+                expect.not.objectContaining({
+                    createdIOUReportActionID: undefined,
+                }),
+                expect.anything(),
+            );
+            writeSpy.mockRestore();
+        });
     });
 
     describe('markRejectViolationAsResolved', () => {