diff --git a/src/pages/inbox/report/PureReportActionItem.tsx b/src/pages/inbox/report/PureReportActionItem.tsx
index ef8739b3381a..b3bdb218ba5d 100644
--- a/src/pages/inbox/report/PureReportActionItem.tsx
+++ b/src/pages/inbox/report/PureReportActionItem.tsx
@@ -51,6 +51,7 @@ import useResponsiveLayout from '@hooks/useResponsiveLayout';
 import useStyleUtils from '@hooks/useStyleUtils';
 import useTheme from '@hooks/useTheme';
 import useThemeStyles from '@hooks/useThemeStyles';
+import {cleanUpMoneyRequest} from '@libs/actions/IOU';
 import {resolveSuggestedFollowup} from '@libs/actions/Report/SuggestedFollowup';
 import ControlSelection from '@libs/ControlSelection';
 import {convertToDisplayString} from '@libs/CurrencyUtils';
@@ -594,11 +595,16 @@ function PureReportActionItem({
 
     const dismissError = useCallback(() => {
         const transactionID = isMoneyRequestAction(action) ? getOriginalMessage(action)?.IOUTransactionID : undefined;
+        if (isSendingMoney && transactionID && reportID) {
+            const chatReport = allReports?.[`${ONYXKEYS.COLLECTION.REPORT}${report?.chatReportID}`];
+            cleanUpMoneyRequest(transactionID, action, reportID, report, chatReport, undefined, true);
+            return;
+        }
         if (transactionID) {
             clearError(transactionID);
         }
         clearAllRelatedReportActionErrors(reportID, action);
-    }, [reportID, clearError, clearAllRelatedReportActionErrors, action]);
+    }, [action, isSendingMoney, clearAllRelatedReportActionErrors, reportID, allReports, report, clearError]);
 
     const showDismissReceiptErrorModal = useCallback(async () => {
         const result = await showConfirmModal({