diff --git a/src/hooks/useReportTransactions.ts b/src/hooks/useReportTransactions.ts
new file mode 100644
index 000000000000..ccc18f5cba6c
--- /dev/null
+++ b/src/hooks/useReportTransactions.ts
@@ -0,0 +1,24 @@
+import ONYXKEYS from '@src/ONYXKEYS';
+import type {Transaction} from '@src/types/onyx';
+import getEmptyArray from '@src/types/utils/getEmptyArray';
+import useOnyx from './useOnyx';
+
+/**
+ * Hook to get all transactions for a specific report
+ */
+function useReportTransactions(reportID: string | undefined): Transaction[] {
+    const [reportTransactions = getEmptyArray<Transaction>()] = useOnyx(ONYXKEYS.COLLECTION.TRANSACTION, {
+        selector: (transactions) => {
+            if (!transactions || !reportID) {
+                return [];
+            }
+
+            return Object.values(transactions).filter((transaction): transaction is Transaction => !!transaction && transaction.reportID === reportID);
+        },
+        canBeMissing: true,
+    });
+
+    return reportTransactions;
+}
+
+export default useReportTransactions;
diff --git a/src/pages/Search/SearchTransactionsChangeReport.tsx b/src/pages/Search/SearchTransactionsChangeReport.tsx
index 61e6b81d840b..36162420d348 100644
--- a/src/pages/Search/SearchTransactionsChangeReport.tsx
+++ b/src/pages/Search/SearchTransactionsChangeReport.tsx
@@ -57,6 +57,7 @@ function SearchTransactionsChangeReport() {
         <IOURequestEditReportCommon
             backTo={undefined}
             transactionsReports={transactionsReports}
+            transactionIds={selectedTransactionsKeys}
             selectReport={selectReport}
             removeFromReport={removeFromReport}
             isEditing
diff --git a/src/pages/iou/request/step/IOURequestEditReport.tsx b/src/pages/iou/request/step/IOURequestEditReport.tsx
index 3a22829e1416..28e3ff9dc976 100644
--- a/src/pages/iou/request/step/IOURequestEditReport.tsx
+++ b/src/pages/iou/request/step/IOURequestEditReport.tsx
@@ -56,6 +56,7 @@ function IOURequestEditReport({route}: IOURequestEditReportProps) {
         <IOURequestEditReportCommon
             backTo={backTo}
             transactionsReports={transactionReport ? [transactionReport] : []}
+            transactionIds={selectedTransactionIDs}
             selectReport={selectReport}
             removeFromReport={removeFromReport}
             isEditing={action === CONST.IOU.ACTION.EDIT}
diff --git a/src/pages/iou/request/step/IOURequestEditReportCommon.tsx b/src/pages/iou/request/step/IOURequestEditReportCommon.tsx
index 6c4760453e08..f83bd273f3f5 100644
--- a/src/pages/iou/request/step/IOURequestEditReportCommon.tsx
+++ b/src/pages/iou/request/step/IOURequestEditReportCommon.tsx
@@ -10,6 +10,7 @@ import useDebouncedState from '@hooks/useDebouncedState';
 import useLocalize from '@hooks/useLocalize';
 import useOnyx from '@hooks/useOnyx';
 import usePolicy from '@hooks/usePolicy';
+import useReportTransactions from '@hooks/useReportTransactions';
 import Navigation from '@libs/Navigation/Navigation';
 import {isPolicyAdmin} from '@libs/PolicyUtils';
 import {getOutstandingReportsForUser, getPolicyName, isIOUReport, isOpenReport, isReportOwner, sortOutstandingReportsBySelected} from '@libs/ReportUtils';
@@ -29,6 +30,7 @@ type TransactionGroupListItem = ListItem & {
 type Props = {
     backTo: Route | undefined;
     transactionsReports: Report[];
+    transactionIds?: string[];
     policyID?: string;
     selectReport: (item: TransactionGroupListItem) => void;
     removeFromReport?: () => void;
@@ -40,6 +42,7 @@ type Props = {
 function IOURequestEditReportCommon({
     backTo,
     transactionsReports,
+    transactionIds,
     selectReport,
     policyID: policyIDFromProps,
     removeFromReport,
@@ -62,9 +65,21 @@ function IOURequestEditReportCommon({
     const [searchValue, debouncedSearchValue, setSearchValue] = useDebouncedState('');
 
     const onlyReport = transactionsReports.length === 1 ? transactionsReports.at(0) : undefined;
+    const reportTransactions = useReportTransactions(onlyReport?.reportID);
+
     const isOwner = onlyReport ? onlyReport.ownerAccountID === currentUserPersonalDetails.accountID : false;
     const isReportIOU = onlyReport ? isIOUReport(onlyReport) : false;
-    const shouldShowRemoveFromReport = isEditing && isOwner && !isReportIOU && !isUnreported;
+    const isCardTransaction = useMemo(() => {
+        if (!transactionIds || !onlyReport) {
+            return false;
+        }
+
+        return reportTransactions
+            .filter((transaction) => transactionIds.includes(transaction.transactionID))
+            .some((transaction) => transaction?.comment?.liabilityType === CONST.TRANSACTION.LIABILITY_TYPE.RESTRICT);
+    }, [transactionIds, onlyReport, reportTransactions]);
+
+    const shouldShowRemoveFromReport = isEditing && isOwner && !isReportIOU && !isUnreported && !isCardTransaction;
 
     const expenseReports = useMemo(() => {
         // Early return if no reports are available to prevent useless loop
diff --git a/src/pages/iou/request/step/IOURequestStepReport.tsx b/src/pages/iou/request/step/IOURequestStepReport.tsx
index 5d157ce29e70..ce32ade036a9 100644
--- a/src/pages/iou/request/step/IOURequestStepReport.tsx
+++ b/src/pages/iou/request/step/IOURequestStepReport.tsx
@@ -137,6 +137,7 @@ function IOURequestStepReport({route, transaction}: IOURequestStepReportProps) {
         <IOURequestEditReportCommon
             backTo={backTo}
             transactionsReports={transactionReport ? [transactionReport] : []}
+            transactionIds={transaction ? [transaction.transactionID] : []}
             selectReport={selectReport}
             policyID={!isEditing && !isFromGlobalCreate ? reportOrDraftReport?.policyID : undefined}
             removeFromReport={removeFromReport}