diff --git a/src/libs/actions/IOU.ts b/src/libs/actions/IOU.ts
index 4690e2ca284d1..3891d03d64195 100644
--- a/src/libs/actions/IOU.ts
+++ b/src/libs/actions/IOU.ts
@@ -6314,6 +6314,14 @@ function getReportFromHoldRequestsOnyxData(
                 [optimisticExpenseReportPreview.reportActionID]: optimisticExpenseReportPreview,
             },
         },
+        // update total of the old iou report
+        {
+            onyxMethod: Onyx.METHOD.MERGE,
+            key: `${ONYXKEYS.COLLECTION.REPORT}${iouReport.reportID}`,
+            value: {
+                total: iouReport?.total !== undefined ? iouReport.total - (firstHoldTransaction?.amount ?? 0) : 0,
+            },
+        },
         // remove hold report actions from old iou report
         {
             onyxMethod: Onyx.METHOD.MERGE,
@@ -6365,6 +6373,14 @@ function getReportFromHoldRequestsOnyxData(
                 [optimisticExpenseReportPreview.reportActionID]: null,
             },
         },
+        // reset total of the old iou report
+        {
+            onyxMethod: Onyx.METHOD.MERGE,
+            key: `${ONYXKEYS.COLLECTION.REPORT}${iouReport.reportID}`,
+            value: {
+                total: iouReport?.total,
+            },
+        },
         // add hold report actions back to old iou report
         {
             onyxMethod: Onyx.METHOD.MERGE,