diff --git a/src/libs/actions/Policy/Policy.ts b/src/libs/actions/Policy/Policy.ts
index ad7bfe87022b..3b308213bac2 100644
--- a/src/libs/actions/Policy/Policy.ts
+++ b/src/libs/actions/Policy/Policy.ts
@@ -2522,6 +2522,24 @@ function getApprovalModeForNewWorkspace(
     return CONST.POLICY.APPROVAL_MODE.OPTIONAL;
 }
 
+/**
+ * Builds the default title report field (`fieldList`) used when seeding a new policy. The object intentionally omits the
+ * non-essential `PolicyReportField` properties (orderWeight, values, keys, etc.), so it is cast to the expected type.
+ */
+function buildDefaultTitleFieldList(pendingFields?: Record<string, PendingAction>): Policy['fieldList'] {
+    return {
+        [CONST.POLICY.FIELDS.FIELD_LIST_TITLE]: {
+            defaultValue: CONST.POLICY.DEFAULT_REPORT_NAME_PATTERN,
+            type: CONST.POLICY.DEFAULT_FIELD_LIST_TYPE,
+            target: CONST.POLICY.DEFAULT_FIELD_LIST_TARGET,
+            name: CONST.POLICY.DEFAULT_FIELD_LIST_NAME,
+            fieldID: CONST.POLICY.FIELDS.FIELD_LIST_TITLE,
+            deletable: true,
+            ...(pendingFields ? {pendingFields} : {}),
+        },
+    } as unknown as Policy['fieldList'];
+}
+
 /**
  * Generates onyx data for creating a new workspace
  *
@@ -2721,17 +2739,7 @@ function buildPolicyData(options: BuildPolicyDataOptions): OnyxData<BuildPolicyD
                 originalFileName: file?.name,
                 ...optimisticMccGroupData.optimisticData,
                 requiresCategory: true,
-                fieldList: {
-                    [CONST.POLICY.FIELDS.FIELD_LIST_TITLE]: {
-                        defaultValue: CONST.POLICY.DEFAULT_REPORT_NAME_PATTERN,
-                        pendingFields: {defaultValue: CONST.RED_BRICK_ROAD_PENDING_ACTION.ADD, deletable: CONST.RED_BRICK_ROAD_PENDING_ACTION.ADD},
-                        type: CONST.POLICY.DEFAULT_FIELD_LIST_TYPE,
-                        target: CONST.POLICY.DEFAULT_FIELD_LIST_TARGET,
-                        name: CONST.POLICY.DEFAULT_FIELD_LIST_NAME,
-                        fieldID: CONST.POLICY.FIELDS.FIELD_LIST_TITLE,
-                        deletable: true,
-                    },
-                },
+                fieldList: buildDefaultTitleFieldList({defaultValue: CONST.RED_BRICK_ROAD_PENDING_ACTION.ADD, deletable: CONST.RED_BRICK_ROAD_PENDING_ACTION.ADD}),
             },
         },
         {
@@ -3201,17 +3209,7 @@ function createDraftWorkspace({
                 disabledFields: {defaultBillable: true, reimbursable: false},
                 requiresCategory: true,
                 defaultReimbursable: true,
-                fieldList: {
-                    [CONST.POLICY.FIELDS.FIELD_LIST_TITLE]: {
-                        defaultValue: CONST.POLICY.DEFAULT_REPORT_NAME_PATTERN,
-                        pendingFields: {defaultValue: CONST.RED_BRICK_ROAD_PENDING_ACTION.ADD, deletable: CONST.RED_BRICK_ROAD_PENDING_ACTION.ADD},
-                        type: CONST.POLICY.DEFAULT_FIELD_LIST_TYPE,
-                        target: CONST.POLICY.DEFAULT_FIELD_LIST_TARGET,
-                        name: CONST.POLICY.DEFAULT_FIELD_LIST_NAME,
-                        fieldID: CONST.POLICY.FIELDS.FIELD_LIST_TITLE,
-                        deletable: true,
-                    },
-                },
+                fieldList: buildDefaultTitleFieldList({defaultValue: CONST.RED_BRICK_ROAD_PENDING_ACTION.ADD, deletable: CONST.RED_BRICK_ROAD_PENDING_ACTION.ADD}),
             },
         },
         {
@@ -4257,6 +4255,9 @@ function createWorkspaceFromIOUPayment(
         disabledFields: {defaultBillable: true, reimbursable: false},
         requiresCategory: true,
         defaultReimbursable: true,
+        // Seed the title report field so computeOptimisticReportName can produce a meaningful name
+        // (e.g. "Expense {date}") instead of falling back to "New report" when this policy has no fieldList yet.
+        fieldList: buildDefaultTitleFieldList(),
     };
 
     const optimisticData: Array<
@@ -4458,14 +4459,30 @@ function createWorkspaceFromIOUPayment(
     // - change the sign of the report total
     // - update its policyID and policyName
     // - update the chatReportID to point to the new expense chat
-    const expenseReport = {
+    // - recompute reportName so the header and the policy expense chat preview don't show the stale "IOU" name
+    const expenseReport: Report = {
         ...iouReport,
         chatReportID: memberData.workspaceChatReportID,
+        parentReportID: memberData.workspaceChatReportID,
         policyID,
         policyName: workspaceName,
         type: CONST.REPORT.TYPE.EXPENSE,
         total: -(iouReport?.total ?? 0),
+        fieldList: newWorkspace.fieldList,
     };
+
+    const reportTransactions = ReportUtils.getReportTransactions(iouReportID);
+    const transactionsRecord: Record<string, Transaction> = {};
+    for (const transaction of reportTransactions) {
+        if (transaction?.transactionID) {
+            transactionsRecord[transaction.transactionID] = transaction;
+        }
+    }
+    const computedExpenseReportName = ReportUtils.computeOptimisticReportName(expenseReport, newWorkspace as Policy, policyID, transactionsRecord);
+    if (computedExpenseReportName !== null) {
+        expenseReport.reportName = computedExpenseReportName;
+    }
+
     optimisticData.push({
         onyxMethod: Onyx.METHOD.MERGE,
         key: `${ONYXKEYS.COLLECTION.REPORT}${iouReportID}`,
@@ -4477,9 +4494,6 @@ function createWorkspaceFromIOUPayment(
         value: iouReport,
     });
 
-    // The expense report transactions need to have the amount reversed to negative values
-    const reportTransactions = ReportUtils.getReportTransactions(iouReportID);
-
     // For performance reasons, we are going to compose a merge collection data for transactions
     const transactionsOptimisticData: Record<string, Transaction> = {};
     const transactionFailureData: Record<string, Transaction> = {};
@@ -4535,12 +4549,14 @@ function createWorkspaceFromIOUPayment(
 
     if (reportPreviewAction?.reportActionID) {
         // Update the created timestamp of the report preview action to be after the expense chat created timestamp.
+        // Also set childReportName so the preview line falls back to the recomputed expense report name if needed.
         optimisticData.push({
             onyxMethod: Onyx.METHOD.MERGE,
             key: `${ONYXKEYS.COLLECTION.REPORT_ACTIONS}${memberData.workspaceChatReportID}`,
             value: {
                 [reportPreviewAction.reportActionID]: {
                     ...reportPreviewAction,
+                    childReportName: expenseReport.reportName,
                     message: [
                         {
                             type: CONST.REPORT.MESSAGE.TYPE.TEXT,
diff --git a/src/pages/inbox/ReportFetchHandler.tsx b/src/pages/inbox/ReportFetchHandler.tsx
index 942b9dbf3be2..54fee8dc52b8 100644
--- a/src/pages/inbox/ReportFetchHandler.tsx
+++ b/src/pages/inbox/ReportFetchHandler.tsx
@@ -228,13 +228,13 @@ function ReportFetchHandler() {
         if (
             transactionThreadReportID !== CONST.FAKE_REPORT_ID ||
             transactionThreadReport?.reportID ||
-            (!reportLoadingState.hasOnceLoadedReportActions && !reportMetadata?.isOptimisticReport)
+            (!reportLoadingState.hasOnceLoadedReportActions && !reportMetadata?.isOptimisticReport && !isOffline)
         ) {
             return;
         }
 
         createOneTransactionThread();
-    }, [reportLoadingState.hasOnceLoadedReportActions, reportMetadata?.isOptimisticReport, transactionThreadReport?.reportID, transactionThreadReportID]);
+    }, [reportLoadingState.hasOnceLoadedReportActions, reportMetadata?.isOptimisticReport, transactionThreadReport?.reportID, transactionThreadReportID, isOffline]);
 
     useEffect(() => {
         if (isLoadingReportData || !prevIsLoadingReportData || !prevIsAnonymousUser.current || isAnonymousUser) {