diff --git a/src/CONST/index.ts b/src/CONST/index.ts
index 9df26fc194511..8b634e8387dec 100755
--- a/src/CONST/index.ts
+++ b/src/CONST/index.ts
@@ -8638,6 +8638,9 @@ const CONST = {
             REMOVE_SPLIT_BUTTON: 'SplitExpense-RemoveSplitButton',
             EDIT_SAVE_BUTTON: 'SplitExpense-EditSaveButton',
         },
+        MERGE_EXPENSE: {
+            MERGE_TRANSACTION_ITEM: 'MergeExpense-MergeTransactionItem',
+        },
         IOU_REQUEST_STEP: {
             DISTANCE_NEXT_BUTTON: 'IOURequestStep-DistanceNextButton',
             DISTANCE_MAP_NEXT_BUTTON: 'IOURequestStep-DistanceMapNextButton',
diff --git a/src/components/MoneyRequestReportView/MoneyRequestReportTransactionItem.tsx b/src/components/MoneyRequestReportView/MoneyRequestReportTransactionItem.tsx
index da6b76dc384b0..a789adcbf7c39 100644
--- a/src/components/MoneyRequestReportView/MoneyRequestReportTransactionItem.tsx
+++ b/src/components/MoneyRequestReportView/MoneyRequestReportTransactionItem.tsx
@@ -1,5 +1,6 @@
 import React, {useEffect, useRef} from 'react';
 import type {View} from 'react-native';
+import type {OnyxEntry} from 'react-native-onyx';
 import {getButtonRole} from '@components/Button/utils';
 import OfflineWithFeedback from '@components/OfflineWithFeedback';
 import {PressableWithFeedback} from '@components/Pressable';
@@ -17,7 +18,7 @@ import canUseTouchScreen from '@libs/DeviceCapabilities/canUseTouchScreen';
 import {getTransactionPendingAction, isTransactionPendingDelete} from '@libs/TransactionUtils';
 import variables from '@styles/variables';
 import CONST from '@src/CONST';
-import type {Report} from '@src/types/onyx';
+import type {Policy, Report} from '@src/types/onyx';
 import type {TransactionWithOptionalHighlight} from './MoneyRequestReportTransactionList';
 
 type MoneyRequestReportTransactionItemProps = {
@@ -27,6 +28,9 @@ type MoneyRequestReportTransactionItemProps = {
     /** Report to which the transaction belongs */
     report: Report;
 
+    /** Policy to which the transaction belongs */
+    policy: OnyxEntry<Policy>;
+
     /** Whether the mobile selection mode is enabled */
     isSelectionModeEnabled: boolean;
 
@@ -67,6 +71,7 @@ type MoneyRequestReportTransactionItemProps = {
 function MoneyRequestReportTransactionItem({
     transaction,
     report,
+    policy,
     isSelectionModeEnabled,
     toggleTransaction,
     isSelected,
@@ -139,6 +144,7 @@ function MoneyRequestReportTransactionItem({
                         transactionItem={transaction}
                         violations={filteredViolations}
                         report={report}
+                        policy={policy}
                         isSelected={isSelected}
                         dateColumnSize={dateColumnSize}
                         amountColumnSize={amountColumnSize}
diff --git a/src/components/MoneyRequestReportView/MoneyRequestReportTransactionList.tsx b/src/components/MoneyRequestReportView/MoneyRequestReportTransactionList.tsx
index f584a03093852..ef8f17f98c8d0 100644
--- a/src/components/MoneyRequestReportView/MoneyRequestReportTransactionList.tsx
+++ b/src/components/MoneyRequestReportView/MoneyRequestReportTransactionList.tsx
@@ -516,6 +516,7 @@ function MoneyRequestReportTransactionList({
                                               shouldBeHighlighted={highlightedTransactionIDs.has(transaction.transactionID)}
                                               columns={columnsToShow}
                                               report={report}
+                                              policy={policy}
                                               isSelectionModeEnabled={isMobileSelectionModeEnabled}
                                               toggleTransaction={toggleTransaction}
                                               isSelected={isTransactionSelected(transaction.transactionID)}
@@ -539,6 +540,7 @@ function MoneyRequestReportTransactionList({
                               shouldBeHighlighted={highlightedTransactionIDs.has(transaction.transactionID)}
                               columns={columnsToShow}
                               report={report}
+                              policy={policy}
                               isSelectionModeEnabled={isMobileSelectionModeEnabled}
                               toggleTransaction={toggleTransaction}
                               isSelected={isTransactionSelected(transaction.transactionID)}
diff --git a/src/components/SelectionListWithSections/Search/TransactionGroupListExpanded.tsx b/src/components/SelectionListWithSections/Search/TransactionGroupListExpanded.tsx
index 9c7343306f184..4d6c2e4e5977f 100644
--- a/src/components/SelectionListWithSections/Search/TransactionGroupListExpanded.tsx
+++ b/src/components/SelectionListWithSections/Search/TransactionGroupListExpanded.tsx
@@ -179,6 +179,7 @@ function TransactionGroupListExpanded<TItem extends ListItem>({
                 const transactionRow = (
                     <TransactionItemRow
                         report={transaction.report}
+                        policy={transaction.policy}
                         transactionItem={transaction}
                         violations={getTransactionViolations(transaction, violations, currentUserDetails.email ?? '', currentUserDetails.accountID, transaction.report, transaction.policy)}
                         isSelected={!!transaction.isSelected}
diff --git a/src/components/SelectionListWithSections/Search/TransactionListItem.tsx b/src/components/SelectionListWithSections/Search/TransactionListItem.tsx
index d3c99726d069a..2894ed323baac 100644
--- a/src/components/SelectionListWithSections/Search/TransactionListItem.tsx
+++ b/src/components/SelectionListWithSections/Search/TransactionListItem.tsx
@@ -210,6 +210,7 @@ function TransactionListItem<TItem extends ListItem>({
                         <TransactionItemRow
                             transactionItem={transactionItem}
                             report={transactionItem.report}
+                            policy={transactionItem.policy}
                             shouldShowTooltip={showTooltip}
                             onButtonPress={handleActionButtonPress}
                             onCheckboxPress={() => onCheckboxPress?.(item)}
diff --git a/src/components/TransactionItemRow/index.tsx b/src/components/TransactionItemRow/index.tsx
index 87002d6a66467..ad6c38ab1e90f 100644
--- a/src/components/TransactionItemRow/index.tsx
+++ b/src/components/TransactionItemRow/index.tsx
@@ -107,6 +107,7 @@ type TransactionWithOptionalSearchFields = TransactionWithOptionalHighlight & {
 type TransactionItemRowProps = {
     transactionItem: TransactionWithOptionalSearchFields;
     report?: Report;
+    policy?: Policy;
     shouldUseNarrowLayout: boolean;
     isSelected: boolean;
     shouldShowTooltip: boolean;
@@ -158,6 +159,7 @@ function getMerchantName(transactionItem: TransactionWithOptionalSearchFields, t
 function TransactionItemRow({
     transactionItem,
     report,
+    policy,
     shouldUseNarrowLayout,
     isSelected,
     shouldShowTooltip,
@@ -232,7 +234,8 @@ function TransactionItemRow({
             return '';
         }
 
-        const isCustomUnitOutOfPolicy = isUnreportedAndHasInvalidDistanceRateTransaction(transactionItem);
+        const policyParam = policy ?? transactionItem.policy;
+        const isCustomUnitOutOfPolicy = isUnreportedAndHasInvalidDistanceRateTransaction(transactionItem, policyParam);
         const hasFieldErrors = hasMissingSmartscanFields(transactionItem, report) || isCustomUnitOutOfPolicy;
         if (hasFieldErrors) {
             const amountMissing = isAmountMissing(transactionItem);
@@ -250,7 +253,7 @@ function TransactionItemRow({
             }
             return error;
         }
-    }, [transactionItem, translate, report]);
+    }, [transactionItem, translate, report, policy]);
 
     const exchangeRateMessage = getExchangeRate(transactionItem);
 
diff --git a/src/libs/TransactionUtils/index.ts b/src/libs/TransactionUtils/index.ts
index b656bde1d0ba4..d5b97a98683cd 100644
--- a/src/libs/TransactionUtils/index.ts
+++ b/src/libs/TransactionUtils/index.ts
@@ -1117,11 +1117,8 @@ function isFetchingWaypointsFromServer(transaction: OnyxInputOrEntry<Transaction
 /**
  * Verify that the transaction is in Self DM or is an original split transaction and that its distance rate is invalid.
  */
-function isUnreportedAndHasInvalidDistanceRateTransaction(transaction: OnyxInputOrEntry<Transaction>, policyParam: OnyxEntry<Policy> = undefined) {
+function isUnreportedAndHasInvalidDistanceRateTransaction(transaction: OnyxInputOrEntry<Transaction>, policy: OnyxEntry<Policy>) {
     if (transaction && isDistanceRequest(transaction)) {
-        const report = getReportOrDraftReport(transaction.reportID);
-        // eslint-disable-next-line @typescript-eslint/no-deprecated
-        const policy = policyParam ?? getPolicy(report?.policyID);
         const {rate} = DistanceRequestUtils.getRate({transaction, policy});
         const isUnreportedExpense = !transaction.reportID || transaction.reportID === CONST.REPORT.UNREPORTED_REPORT_ID || String(transaction.reportID) === CONST.REPORT.SPLIT_REPORT_ID;
 
diff --git a/src/pages/TransactionMerge/MergeTransactionItem.tsx b/src/pages/TransactionMerge/MergeTransactionItem.tsx
index 79eda49854f96..9e1ed63c87278 100644
--- a/src/pages/TransactionMerge/MergeTransactionItem.tsx
+++ b/src/pages/TransactionMerge/MergeTransactionItem.tsx
@@ -6,17 +6,22 @@ import {PressableWithFeedback} from '@components/Pressable';
 import type {ListItem, ListItemProps, TransactionListItemType} from '@components/SelectionListWithSections/types';
 import TransactionItemRow from '@components/TransactionItemRow';
 import useAnimatedHighlightStyle from '@hooks/useAnimatedHighlightStyle';
+import useOnyx from '@hooks/useOnyx';
+import usePolicy from '@hooks/usePolicy';
 import useStyleUtils from '@hooks/useStyleUtils';
 import useSyncFocus from '@hooks/useSyncFocus';
 import useTheme from '@hooks/useTheme';
 import useThemeStyles from '@hooks/useThemeStyles';
 import variables from '@styles/variables';
 import CONST from '@src/CONST';
+import ONYXKEYS from '@src/ONYXKEYS';
 
 function MergeTransactionItem<TItem extends ListItem>({item, isFocused, showTooltip, isDisabled, onFocus, shouldSyncFocus, onSelectRow}: ListItemProps<TItem>) {
     const styles = useThemeStyles();
     const transactionItem = item as unknown as TransactionListItemType;
     const theme = useTheme();
+    const [report] = useOnyx(`${ONYXKEYS.COLLECTION.REPORT}${transactionItem.reportID}`);
+    const policy = usePolicy(report?.policyID);
 
     const animatedHighlightStyle = useAnimatedHighlightStyle({
         borderRadius: variables.componentBorderRadius,
@@ -33,6 +38,7 @@ function MergeTransactionItem<TItem extends ListItem>({item, isFocused, showTool
         <OfflineWithFeedback pendingAction={item.pendingAction}>
             <PressableWithFeedback
                 ref={pressableRef}
+                sentryLabel={CONST.SENTRY_LABEL.MERGE_EXPENSE.MERGE_TRANSACTION_ITEM}
                 onPress={() => {
                     onSelectRow(item);
                 }}
@@ -53,6 +59,8 @@ function MergeTransactionItem<TItem extends ListItem>({item, isFocused, showTool
             >
                 <TransactionItemRow
                     transactionItem={transactionItem}
+                    report={report}
+                    policy={policy}
                     shouldUseNarrowLayout
                     isSelected={!!item.isSelected}
                     shouldShowTooltip={showTooltip}
diff --git a/tests/ui/TransactionItemRowRBRTest.tsx b/tests/ui/TransactionItemRowRBRTest.tsx
index 13b4f47600df8..dcf53e85cf5f6 100644
--- a/tests/ui/TransactionItemRowRBRTest.tsx
+++ b/tests/ui/TransactionItemRowRBRTest.tsx
@@ -46,6 +46,7 @@ const renderTransactionItemRow = (transactionItem: TransactionWithOptionalSearch
                 transactionItem={transactionItem}
                 violations={transactionItem.violations}
                 report={transactionItem.report}
+                policy={transactionItem.policy}
                 // eslint-disable-next-line react/jsx-props-no-spreading
                 {...defaultProps}
             />