diff --git a/src/libs/actions/Policy/DistanceRate.ts b/src/libs/actions/Policy/DistanceRate.ts
index a56cc3d576e97..f740002c71d81 100644
--- a/src/libs/actions/Policy/DistanceRate.ts
+++ b/src/libs/actions/Policy/DistanceRate.ts
@@ -17,7 +17,7 @@ import {getDistanceRateCustomUnit, goBackWhenEnableFeature, removePendingFieldsF
 import * as ReportUtils from '@libs/ReportUtils';
 import CONST from '@src/CONST';
 import ONYXKEYS from '@src/ONYXKEYS';
-import type {Policy, Report} from '@src/types/onyx';
+import type {Policy, Report, Transaction, TransactionViolation} from '@src/types/onyx';
 import type {ErrorFields} from '@src/types/onyx/OnyxCommon';
 import type {Attributes, CustomUnit, Rate} from '@src/types/onyx/Policy';
 import type {OnyxData} from '@src/types/onyx/Request';
@@ -62,6 +62,29 @@ Onyx.connect({
     },
 });
 
+let allTransactions: NonNullable<OnyxCollection<Transaction>> = {};
+Onyx.connect({
+    key: ONYXKEYS.COLLECTION.TRANSACTION,
+    waitForCollectionCallback: true,
+    callback: (value) => {
+        if (!value) {
+            allTransactions = {};
+            return;
+        }
+
+        allTransactions = value;
+    },
+});
+
+let transactionViolations: OnyxCollection<TransactionViolation[]>;
+Onyx.connect({
+    key: ONYXKEYS.COLLECTION.TRANSACTION_VIOLATIONS,
+    waitForCollectionCallback: true,
+    callback: (value) => {
+        transactionViolations = value;
+    },
+});
+
 /**
  * Takes array of customUnitRates and removes pendingFields and errorFields from each rate - we don't want to send those via API
  */
@@ -550,6 +573,36 @@ function deletePolicyDistanceRates(policyID: string, customUnit: CustomUnit, rat
         },
     ];
 
+    const transactions = Object.values(allTransactions ?? {}).filter((transaction) => transaction?.comment?.customUnit?.customUnitID === customUnit.customUnitID);
+    const optimisticTransactionsViolations: OnyxUpdate[] = [];
+
+    transactions.forEach((transaction) => {
+        const currentTransactionViolations = transactionViolations?.[`${ONYXKEYS.COLLECTION.TRANSACTION_VIOLATIONS}${transaction?.transactionID}`] ?? [];
+        if (currentTransactionViolations.some((violation) => violation.name === CONST.VIOLATIONS.CUSTOM_UNIT_OUT_OF_POLICY)) {
+            return;
+        }
+        optimisticTransactionsViolations.push({
+            onyxMethod: Onyx.METHOD.MERGE,
+            key: `${ONYXKEYS.COLLECTION.TRANSACTION_VIOLATIONS}${transaction?.transactionID}`,
+            value: [
+                ...currentTransactionViolations,
+                {
+                    type: CONST.VIOLATION_TYPES.VIOLATION,
+                    name: CONST.VIOLATIONS.CUSTOM_UNIT_OUT_OF_POLICY,
+                    showInReview: true,
+                },
+            ],
+        });
+    });
+
+    const failureTransactionsViolations: OnyxUpdate[] = transactions.map((transaction) => {
+        const currentTransactionViolations = transactionViolations?.[`${ONYXKEYS.COLLECTION.TRANSACTION_VIOLATIONS}${transaction?.transactionID}`];
+        return {onyxMethod: Onyx.METHOD.MERGE, key: `${ONYXKEYS.COLLECTION.TRANSACTION_VIOLATIONS}${transaction?.transactionID}`, value: currentTransactionViolations};
+    });
+
+    optimisticData.push(...optimisticTransactionsViolations);
+    failureData.push(...failureTransactionsViolations);
+
     const params: DeletePolicyDistanceRatesParams = {
         policyID,
         customUnitID: customUnit.customUnitID,