diff --git a/src/libs/SearchUIUtils.ts b/src/libs/SearchUIUtils.ts
index aa27dbaa0ce41..c6b5d0691d7c1 100644
--- a/src/libs/SearchUIUtils.ts
+++ b/src/libs/SearchUIUtils.ts
@@ -547,8 +547,7 @@ function getAction(data: OnyxTypes.SearchResults['data'], key: string): SearchTr
     const hasOnlyPendingCardOrScanningTransactions = allReportTransactions.length > 0 && allReportTransactions.every(isPendingCardOrScanningTransaction);
 
     const isAllowedToApproveExpenseReport = isAllowedToApproveExpenseReportUtils(report, undefined, policy);
-
-    if (canApproveIOU(report, policy) && isAllowedToApproveExpenseReport && !hasOnlyPendingCardOrScanningTransactions) {
+    if (canApproveIOU(report, policy, allReportTransactions) && isAllowedToApproveExpenseReport && !hasOnlyPendingCardOrScanningTransactions) {
         return CONST.SEARCH.ACTION_TYPES.APPROVE;
     }
 
diff --git a/src/libs/actions/IOU.ts b/src/libs/actions/IOU.ts
index d7fe7dc36a7dd..bc2837ed81dc4 100644
--- a/src/libs/actions/IOU.ts
+++ b/src/libs/actions/IOU.ts
@@ -9133,8 +9133,7 @@ function canIOUBePaid(
 
     const {reimbursableSpend} = getMoneyRequestSpendBreakdown(iouReport);
     const isAutoReimbursable = policy?.reimbursementChoice === CONST.POLICY.REIMBURSEMENT_CHOICES.REIMBURSEMENT_YES ? false : canBeAutoReimbursed(iouReport, policy);
-    const shouldBeApproved = canApproveIOU(iouReport, policy);
-
+    const shouldBeApproved = canApproveIOU(iouReport, policy, transactions);
     const isPayAtEndExpenseReport = isPayAtEndExpenseReportReportUtils(iouReport?.reportID, transactions);
     return (
         isPayer &&
diff --git a/tests/unit/Search/SearchUIUtilsTest.ts b/tests/unit/Search/SearchUIUtilsTest.ts
index 10d49770c3998..b43a8a7cf7df3 100644
--- a/tests/unit/Search/SearchUIUtilsTest.ts
+++ b/tests/unit/Search/SearchUIUtilsTest.ts
@@ -995,6 +995,133 @@ describe('SearchUIUtils', () => {
         });
     });
 
+    test('Should show `Approve` for report', () => {
+        Onyx.merge(ONYXKEYS.SESSION, {accountID: adminAccountID});
+
+        const result: OnyxTypes.SearchResults = {
+            data: {
+                personalDetailsList: {
+                    adminAccountID: {
+                        accountID: adminAccountID,
+                        avatar: 'https://d1wpcgnaa73g0y.cloudfront.net/fake.jpeg',
+                        displayName: 'You',
+                        login: 'you@expensifail.com',
+                    },
+                    // eslint-disable-next-line @typescript-eslint/naming-convention
+                    '2074551': {
+                        accountID: 2074551,
+                        avatar: 'https://d1wpcgnaa73g0y.cloudfront.net/fake2.jpeg',
+                        displayName: 'Jason',
+                        login: 'jason@expensifail.com',
+                    },
+                },
+                // eslint-disable-next-line @typescript-eslint/naming-convention
+                policy_137DA25D273F2423: {
+                    approvalMode: 'ADVANCED',
+                    approver: '',
+                    autoReimbursement: {
+                        limit: 500000,
+                    },
+                    autoReimbursementLimit: 500000,
+                    autoReporting: true,
+                    autoReportingFrequency: 'immediate',
+                    harvesting: {
+                        enabled: true,
+                    },
+                    id: '137DA25D273F2423',
+                    name: 'Expenses - Expensify US',
+                    owner: 'accounting@expensifail.com',
+                    preventSelfApproval: true,
+                    reimbursementChoice: 'reimburseYes',
+                    role: 'user',
+                    rules: {
+                        approvalRules: [],
+                        expenseRules: [],
+                    },
+                    type: 'corporate',
+                },
+                // eslint-disable-next-line @typescript-eslint/naming-convention
+                report_6523565988285061: {
+                    accountID: 2074551,
+                    chatReportID: '4128157185472356',
+                    created: '2025-05-26 19:49:56',
+                    currency: 'USD',
+                    isOneTransactionReport: true,
+                    isOwnPolicyExpenseChat: false,
+                    isPolicyExpenseChat: false,
+                    isWaitingOnBankAccount: false,
+                    managerID: adminAccountID,
+                    nonReimbursableTotal: 0,
+                    oldPolicyName: '',
+                    ownerAccountID: 2074551,
+                    parentReportActionID: '5568426544518647396',
+                    parentReportID: '4128157185472356',
+                    policyID: '137DA25D273F2423',
+                    private_isArchived: '',
+                    reportID: '6523565988285061',
+                    reportName: 'Expense Report #6523565988285061',
+                    stateNum: 1,
+                    statusNum: 1,
+                    total: -1000,
+                    type: 'expense',
+                    unheldTotal: -1000,
+                },
+                // eslint-disable-next-line @typescript-eslint/naming-convention
+                transactions_1805965960759424086: {
+                    accountID: 2074551,
+                    amount: 0,
+                    canDelete: false,
+                    canHold: true,
+                    canUnhold: false,
+                    category: 'Employee Meals Remote (Fringe Benefit)',
+                    action: 'approve',
+                    comment: {
+                        comment: '',
+                    },
+                    created: '2025-05-26',
+                    currency: 'USD',
+                    hasEReceipt: false,
+                    isFromOneTransactionReport: true,
+                    managerID: adminAccountID,
+                    merchant: '(none)',
+                    modifiedAmount: -1000,
+                    modifiedCreated: '2025-05-22',
+                    modifiedCurrency: 'USD',
+                    modifiedMerchant: 'Costco Wholesale',
+                    parentTransactionID: '',
+                    policyID: '137DA25D273F2423',
+                    receipt: {
+                        source: 'https://www.expensify.com/receipts/fake.jpg',
+                        state: 'SCANCOMPLETE',
+                    },
+                    reportID: '6523565988285061',
+                    reportType: 'expense',
+                    tag: '',
+                    transactionID: '1805965960759424086',
+                    transactionThreadReportID: '4139222832581831',
+                    transactionType: 'cash',
+                },
+            },
+            search: {
+                type: 'expense',
+                status: 'all',
+                offset: 0,
+                hasMoreResults: false,
+                hasResults: true,
+                isLoading: false,
+                columnsToShow: {
+                    shouldShowCategoryColumn: true,
+                    shouldShowTagColumn: true,
+                    shouldShowTaxColumn: true,
+                },
+            },
+        };
+        return waitForBatchedUpdates().then(() => {
+            const action = SearchUIUtils.getAction(result.data, 'report_6523565988285061');
+            expect(action).toEqual(CONST.SEARCH.ACTION_TYPES.APPROVE);
+        });
+    });
+
     test('Should return true if the search result has valid type', () => {
         expect(SearchUIUtils.shouldShowEmptyState(false, reportsListItems.length, searchResults.search.type)).toBe(true);
         expect(SearchUIUtils.shouldShowEmptyState(true, 0, searchResults.search.type)).toBe(true);