diff --git a/src/components/MoneyReportHeader.tsx b/src/components/MoneyReportHeader.tsx
index b01c1b214f040..ba35de3c9efbd 100644
--- a/src/components/MoneyReportHeader.tsx
+++ b/src/components/MoneyReportHeader.tsx
@@ -64,6 +64,7 @@ import {
     hasViolations as hasViolationsReportUtils,
     isAllowedToApproveExpenseReport,
     isCurrentUserSubmitter,
+    isDM,
     isExported as isExportedUtils,
     isInvoiceReport as isInvoiceReportUtil,
     isProcessingReport,
@@ -422,6 +423,7 @@ function MoneyReportHeader({
     const shouldDisplaySearchRouter = !isReportInRHP || isSmallScreenWidth;
     const isReportInSearch = route.name === SCREENS.SEARCH.MONEY_REQUEST_REPORT;
     const isReportSubmitter = isCurrentUserSubmitter(chatIOUReport);
+    const isChatReportDM = isDM(chatReport);
 
     const existingB2BInvoiceReport = useParticipantsInvoiceReport(activePolicyID, CONST.REPORT.INVOICE_RECEIVER_TYPE.BUSINESS, chatReport?.policyID);
     const confirmPayment = useCallback(
@@ -1038,7 +1040,7 @@ function MoneyReportHeader({
 
                 const isDismissed = isReportSubmitter ? dismissedHoldUseExplanation : dismissedRejectUseExplanation;
 
-                if (isDismissed) {
+                if (isDismissed || isChatReportDM) {
                     changeMoneyRequestHoldStatus(requestParentReportAction);
                 } else if (isReportSubmitter) {
                     setIsHoldEducationalModalVisible(true);
diff --git a/src/components/MoneyRequestHeader.tsx b/src/components/MoneyRequestHeader.tsx
index 17d945002dfd9..1709fe77b8735 100644
--- a/src/components/MoneyRequestHeader.tsx
+++ b/src/components/MoneyRequestHeader.tsx
@@ -26,7 +26,7 @@ import type {ReportsSplitNavigatorParamList, SearchReportParamList} from '@libs/
 import {getOriginalMessage, isMoneyRequestAction, isTrackExpenseAction} from '@libs/ReportActionsUtils';
 import {getTransactionThreadPrimaryAction, isMarkAsResolvedAction} from '@libs/ReportPrimaryActionUtils';
 import {getSecondaryTransactionThreadActions} from '@libs/ReportSecondaryActionUtils';
-import {changeMoneyRequestHoldStatus, isCurrentUserSubmitter, isSelfDM, navigateToDetailsPage, rejectMoneyRequestReason} from '@libs/ReportUtils';
+import {changeMoneyRequestHoldStatus, isCurrentUserSubmitter, isDM, isSelfDM, navigateToDetailsPage, rejectMoneyRequestReason} from '@libs/ReportUtils';
 import {getReviewNavigationRoute} from '@libs/TransactionPreviewUtils';
 import {
     getOriginalTransactionWithSplitInfo,
@@ -132,6 +132,7 @@ function MoneyRequestHeader({report, parentReportAction, policy, onBackButtonPre
 
     const shouldShowBrokenConnectionViolation = shouldShowBrokenConnectionViolationTransactionUtils(parentReport, policy, transactionViolations);
     const isReportSubmitter = isCurrentUserSubmitter(chatIOUReport);
+    const isParentReportDM = isDM(parentReport);
 
     // If the parent report is a selfDM, it should always be opened in the Inbox tab
     const shouldOpenParentReportInCurrentTab = !isSelfDM(parentReport);
@@ -306,7 +307,7 @@ function MoneyRequestHeader({report, parentReportAction, policy, onBackButtonPre
 
                 const isDismissed = isReportSubmitter ? dismissedHoldUseExplanation : dismissedRejectUseExplanation;
 
-                if (isDismissed) {
+                if (isDismissed || isParentReportDM) {
                     changeMoneyRequestHoldStatus(parentReportAction);
                 } else if (isReportSubmitter) {
                     setIsHoldEducationalModalVisible(true);