diff --git a/src/components/MoneyReportHeader.tsx b/src/components/MoneyReportHeader.tsx
index 659178870646..de139c7f9886 100644
--- a/src/components/MoneyReportHeader.tsx
+++ b/src/components/MoneyReportHeader.tsx
@@ -52,8 +52,8 @@ import {
     buildOptimisticNextStepForDEWOffline,
     buildOptimisticNextStepForDynamicExternalWorkflowApproveError,
     buildOptimisticNextStepForDynamicExternalWorkflowSubmitError,
-    buildOptimisticNextStepForPreventSelfApprovalsEnabled,
     buildOptimisticNextStepForStrictPolicyRuleViolations,
+    getReportNextStep,
 } from '@libs/NextStepUtils';
 import type {KYCFlowEvent, TriggerKYCFlow} from '@libs/PaymentUtils';
 import {selectPaymentType} from '@libs/PaymentUtils';
@@ -508,7 +508,7 @@ function MoneyReportHeader({
         hasDuplicates ||
         shouldShowMarkAsResolved;
 
-    let optimisticNextStep = isBlockSubmitDueToPreventSelfApproval ? buildOptimisticNextStepForPreventSelfApprovalsEnabled() : nextStep;
+    let optimisticNextStep = getReportNextStep(nextStep, moneyRequestReport, transactions, policy, allTransactionViolations, email ?? '', accountID);
 
     // Check for DEW submit/approve failed or pending - show appropriate next step
     if (isDEWPolicy && (moneyRequestReport?.statusNum === CONST.REPORT.STATUS_NUM.OPEN || moneyRequestReport?.statusNum === CONST.REPORT.STATUS_NUM.SUBMITTED)) {
diff --git a/src/libs/NextStepUtils.ts b/src/libs/NextStepUtils.ts
index bd3e8188563f..bb0a71ae14c6 100644
--- a/src/libs/NextStepUtils.ts
+++ b/src/libs/NextStepUtils.ts
@@ -1,10 +1,10 @@
 import {addMonths, format, isPast, setDate} from 'date-fns';
 import {Str} from 'expensify-common';
-import type {OnyxEntry} from 'react-native-onyx';
+import type {OnyxCollection, OnyxEntry} from 'react-native-onyx';
 import type {ValueOf} from 'type-fest';
 import type {LocaleContextProps} from '@components/LocaleContextProvider';
 import CONST from '@src/CONST';
-import type {Policy, Report, ReportNextStepDeprecated} from '@src/types/onyx';
+import type {Policy, Report, ReportNextStepDeprecated, Transaction, TransactionViolations} from '@src/types/onyx';
 import type {ReportNextStep} from '@src/types/onyx/Report';
 import type {Message} from '@src/types/onyx/ReportNextStepDeprecated';
 import type DeepValueOf from '@src/types/utils/DeepValueOf';
@@ -20,8 +20,11 @@ import {
     getPersonalDetailsForAccountID,
     isExpenseReport,
     isInvoiceReport,
+    isOpenExpenseReport,
     isPayer,
+    isReportOwner,
 } from './ReportUtils';
+import {hasSubmissionBlockingViolations} from './TransactionUtils';
 
 type BuildNextStepNewParams = {
     report: OnyxEntry<Report>;
@@ -318,6 +321,30 @@ function buildOptimisticNextStepForPreventSelfApprovalsEnabled() {
     return optimisticNextStep;
 }
 
+function buildOptimisticFixIssueNextStep() {
+    const optimisticNextStep: ReportNextStepDeprecated = {
+        type: 'neutral',
+        icon: CONST.NEXT_STEP.ICONS.HOURGLASS,
+        message: [
+            {
+                text: 'Waiting for ',
+            },
+            {
+                text: `you`,
+                type: 'strong',
+            },
+            {
+                text: ' to ',
+            },
+            {
+                text: 'fix the issue(s)',
+            },
+        ],
+    };
+
+    return optimisticNextStep;
+}
+
 function buildOptimisticNextStepForStrictPolicyRuleViolations() {
     const optimisticNextStep: ReportNextStepDeprecated = {
         type: 'alert',
@@ -332,6 +359,39 @@ function buildOptimisticNextStepForStrictPolicyRuleViolations() {
     return optimisticNextStep;
 }
 
+function getReportNextStep(
+    currentNextStep: ReportNextStepDeprecated | undefined,
+    moneyRequestReport: OnyxEntry<Report>,
+    transactions: Array<OnyxEntry<Transaction>>,
+    policy: OnyxEntry<Policy>,
+    transactionViolations: OnyxCollection<TransactionViolations>,
+    currentUserEmail: string,
+    currentUserAccountID: number,
+) {
+    const nextApproverAccountID = getNextApproverAccountID(moneyRequestReport);
+
+    if (
+        isOpenExpenseReport(moneyRequestReport) &&
+        transactions.length > 0 &&
+        transactions.every(
+            (transaction) => !!transaction && hasSubmissionBlockingViolations(transaction, transactionViolations, currentUserEmail, currentUserAccountID, moneyRequestReport, policy),
+        )
+    ) {
+        return buildOptimisticFixIssueNextStep();
+    }
+
+    const isSubmitterSameAsNextApprover =
+        isReportOwner(moneyRequestReport) && (nextApproverAccountID === moneyRequestReport?.ownerAccountID || moneyRequestReport?.managerID === moneyRequestReport?.ownerAccountID);
+
+    // When prevent self-approval is enabled & the current user is submitter AND they're submitting to themselves, we need to show the optimistic next step
+    // We should always show this optimistic message for policies with preventSelfApproval
+    // to avoid any flicker during transitions between online/offline states
+    if (isSubmitterSameAsNextApprover && policy?.preventSelfApproval) {
+        return buildOptimisticNextStepForPreventSelfApprovalsEnabled();
+    }
+
+    return currentNextStep;
+}
 function buildOptimisticNextStepForDynamicExternalWorkflowSubmitError(iconFill?: string) {
     const optimisticNextStep: ReportNextStepDeprecated = {
         type: 'alert',
@@ -745,6 +805,7 @@ function buildNextStepNew(params: BuildNextStepNewParams): ReportNextStepDepreca
 }
 
 export {
+    getReportNextStep,
     buildNextStepMessage,
     buildOptimisticNextStep,
     parseMessage,