diff --git a/src/libs/DebugUtils.ts b/src/libs/DebugUtils.ts
index 31a0a1ee5ef5..4e576fe7ba41 100644
--- a/src/libs/DebugUtils.ts
+++ b/src/libs/DebugUtils.ts
@@ -1487,10 +1487,21 @@ function getReasonAndReportActionForRBRInLHNRow(
     transactionViolations: OnyxCollection<TransactionViolation[]>,
     hasViolations: boolean,
     reportErrors: Errors,
+    isOffline: boolean,
     isArchivedReport = false,
 ): RBRReasonAndReportAction | null {
     const {reason, reportAction} =
-        SidebarUtils.getReasonAndReportActionThatHasRedBrickRoad(report, chatReport, reportActions, hasViolations, reportErrors, transactions, transactionViolations, isArchivedReport) ?? {};
+        SidebarUtils.getReasonAndReportActionThatHasRedBrickRoad(
+            report,
+            chatReport,
+            reportActions,
+            hasViolations,
+            reportErrors,
+            transactions,
+            isOffline,
+            transactionViolations,
+            isArchivedReport,
+        ) ?? {};
 
     if (reason) {
         return {reason: `debug.reasonRBR.${reason}`, reportAction};
diff --git a/src/libs/ReportUtils.ts b/src/libs/ReportUtils.ts
index 4f44b20ab5af..f41ba251a41d 100644
--- a/src/libs/ReportUtils.ts
+++ b/src/libs/ReportUtils.ts
@@ -9464,9 +9464,16 @@ function getAllReportErrors(
     return allReportErrors;
 }
 
-function getReceiptUploadErrorReason(report: Report, chatReport: OnyxEntry<Report>, reportActions: OnyxEntry<ReportActions>, transactions: OnyxCollection<Transaction>) {
+function getReceiptUploadErrorReason(
+    report: Report,
+    chatReport: OnyxEntry<Report>,
+    reportActions: OnyxEntry<ReportActions>,
+    transactions: OnyxCollection<Transaction>,
+    // We'll make it required eventually. Refactor issue: https://github.com/Expensify/App/issues/66407
+    isOffline?: boolean,
+) {
     const parentReportAction = getReportAction(report?.parentReportID, report?.parentReportActionID);
-    const transactionThreadReportAction = getOneTransactionThreadReportAction(report, chatReport, reportActions ?? []);
+    const transactionThreadReportAction = getOneTransactionThreadReportAction(report, chatReport, reportActions ?? [], isOffline);
     if (transactionThreadReportAction) {
         const transactionID = isMoneyRequestAction(transactionThreadReportAction) ? getOriginalMessage(transactionThreadReportAction)?.IOUTransactionID : undefined;
         const transaction = transactions?.[`${ONYXKEYS.COLLECTION.TRANSACTION}${transactionID}`];
diff --git a/src/libs/SidebarUtils.ts b/src/libs/SidebarUtils.ts
index f85b14ff3336..c23158f71203 100644
--- a/src/libs/SidebarUtils.ts
+++ b/src/libs/SidebarUtils.ts
@@ -675,6 +675,7 @@ function getReasonAndReportActionThatHasRedBrickRoad(
     hasViolations: boolean,
     reportErrors: Errors,
     transactions: OnyxCollection<Transaction>,
+    isOffline: boolean,
     transactionViolations?: OnyxCollection<TransactionViolation[]>,
     isReportArchived = false,
     reports?: OnyxCollection<Report>,
@@ -709,7 +710,7 @@ function getReasonAndReportActionThatHasRedBrickRoad(
         };
     }
 
-    return getReceiptUploadErrorReason(report, chatReport, reportActions, transactions);
+    return getReceiptUploadErrorReason(report, chatReport, reportActions, transactions, isOffline);
 }
 
 /**
diff --git a/src/libs/actions/OnyxDerived/configs/reportAttributes.ts b/src/libs/actions/OnyxDerived/configs/reportAttributes.ts
index 3038696ce6f7..eef1126e6797 100644
--- a/src/libs/actions/OnyxDerived/configs/reportAttributes.ts
+++ b/src/libs/actions/OnyxDerived/configs/reportAttributes.ts
@@ -1,4 +1,5 @@
 import type {OnyxCollection, OnyxEntry} from 'react-native-onyx';
+import {getIsOffline} from '@libs/NetworkState';
 import {computeReportName} from '@libs/ReportNameUtils';
 import {generateIsEmptyReport, generateReportAttributes, hasVisibleReportFieldViolations, isArchivedReport, isValidReport} from '@libs/ReportUtils';
 import SidebarUtils from '@libs/SidebarUtils';
@@ -89,11 +90,14 @@ export default createOnyxDerivedValueConfig({
         ONYXKEYS.COLLECTION.POLICY_TAGS,
         ONYXKEYS.COLLECTION.REPORT_METADATA,
         ONYXKEYS.CONCIERGE_REPORT_ID,
+        ONYXKEYS.NETWORK,
     ],
     compute: (
         [reports, preferredLocale, transactionViolations, reportActions, reportNameValuePairs, transactions, personalDetails, session, policies, policyTags],
         {currentValue, sourceValues},
     ) => {
+        // Read the in-memory offline state directly (NETWORK is a dependency so recompute still fires when it changes).
+        const isOffline = getIsOffline();
         // Check if display names changed when personal details are updated
         let displayNamesChanged = false;
         if (hasKeyTriggeredCompute(ONYXKEYS.PERSONAL_DETAILS_LIST, sourceValues)) {
@@ -284,6 +288,7 @@ export default createOnyxDerivedValueConfig({
                     hasAnyViolations || hasFieldViolations,
                     reportErrors,
                     transactions,
+                    isOffline,
                     transactionViolations,
                     !!isReportArchived,
                     reports,
diff --git a/src/pages/Debug/Report/DebugReportPage.tsx b/src/pages/Debug/Report/DebugReportPage.tsx
index 1510b45cfddc..39429609b208 100644
--- a/src/pages/Debug/Report/DebugReportPage.tsx
+++ b/src/pages/Debug/Report/DebugReportPage.tsx
@@ -9,6 +9,7 @@ import Text from '@components/Text';
 import useCurrentUserPersonalDetails from '@hooks/useCurrentUserPersonalDetails';
 import {useMemoizedLazyExpensifyIcons} from '@hooks/useLazyAsset';
 import useLocalize from '@hooks/useLocalize';
+import useNetwork from '@hooks/useNetwork';
 import useOnyx from '@hooks/useOnyx';
 import useReportIsArchived from '@hooks/useReportIsArchived';
 import useStyleUtils from '@hooks/useStyleUtils';
@@ -60,6 +61,7 @@ function DebugReportPage({
     const [reportActions] = useOnyx(`${ONYXKEYS.COLLECTION.REPORT_ACTIONS}${reportID}`);
     const [transactions] = useOnyx(ONYXKEYS.COLLECTION.TRANSACTION);
     const [transactionViolations] = useOnyx(ONYXKEYS.COLLECTION.TRANSACTION_VIOLATIONS);
+    const {isOffline} = useNetwork();
     const reportAttributesSelector = useCallback((attributes: OnyxEntry<ReportAttributesDerivedValue>) => attributes?.reports?.[reportID], [reportID]);
     const [reportAttributes] = useOnyx(
         ONYXKEYS.DERIVED.REPORT_ATTRIBUTES,
@@ -95,6 +97,7 @@ function DebugReportPage({
                 transactionViolations,
                 hasViolations,
                 reportAttributes?.reportErrors ?? {},
+                isOffline,
                 isReportArchived,
             ) ?? {};
         const hasRBR = !!reasonRBR;
@@ -153,7 +156,7 @@ function DebugReportPage({
                         : undefined,
             },
         ];
-    }, [report, transactionViolations, isReportArchived, chatReport, reportActions, transactions, reportAttributes?.reportErrors, betas, priorityMode, draftComment, translate]);
+    }, [report, transactionViolations, isReportArchived, chatReport, reportActions, transactions, reportAttributes?.reportErrors, betas, priorityMode, draftComment, translate, isOffline]);
 
     const icons = useMemoizedLazyExpensifyIcons(['Eye']);
 
diff --git a/tests/unit/DebugUtilsTest.ts b/tests/unit/DebugUtilsTest.ts
index f80e1a568e5c..97219f58c1ed 100644
--- a/tests/unit/DebugUtilsTest.ts
+++ b/tests/unit/DebugUtilsTest.ts
@@ -1,5 +1,5 @@
 import {renderHook} from '@testing-library/react-native';
-import type {OnyxCollection} from 'react-native-onyx';
+import type {OnyxCollection, OnyxEntry} from 'react-native-onyx';
 import Onyx from 'react-native-onyx';
 import useReportIsArchived from '@hooks/useReportIsArchived';
 import DateUtils from '@libs/DateUtils';
@@ -1197,6 +1197,7 @@ describe('DebugUtils', () => {
                         undefined,
                         false,
                         {},
+                        false,
                     ) ?? {};
                 expect(reportAction).toBeUndefined();
             });
@@ -1260,6 +1261,7 @@ describe('DebugUtils', () => {
                         undefined,
                         false,
                         {},
+                        false,
                     ) ?? {};
                 expect(reportAction).toBe(undefined);
             });
@@ -1327,8 +1329,16 @@ describe('DebugUtils', () => {
                     };
                     const reportErrors = getAllReportErrors(MOCK_CHAT_REPORT, MOCK_CHAT_REPORT_ACTIONS, mockTransactions);
                     const {reportAction} =
-                        DebugUtils.getReasonAndReportActionForRBRInLHNRow(MOCK_CHAT_REPORT, chatReportR14932, MOCK_CHAT_REPORT_ACTIONS, mockTransactions, undefined, false, reportErrors) ??
-                        {};
+                        DebugUtils.getReasonAndReportActionForRBRInLHNRow(
+                            MOCK_CHAT_REPORT,
+                            chatReportR14932,
+                            MOCK_CHAT_REPORT_ACTIONS,
+                            mockTransactions,
+                            undefined,
+                            false,
+                            reportErrors,
+                            false,
+                        ) ?? {};
                     expect(reportAction).toMatchObject(MOCK_CHAT_REPORT_ACTIONS['1']);
                 });
                 it('returns correct report action which is a split bill and has an error', async () => {
@@ -1400,7 +1410,8 @@ describe('DebugUtils', () => {
                     };
                     const reportErrors = getAllReportErrors(MOCK_CHAT_REPORT, MOCK_REPORT_ACTIONS, mockTransactions);
                     const {reportAction} =
-                        DebugUtils.getReasonAndReportActionForRBRInLHNRow(MOCK_CHAT_REPORT, chatReportR14932, MOCK_REPORT_ACTIONS, mockTransactions, undefined, false, reportErrors) ?? {};
+                        DebugUtils.getReasonAndReportActionForRBRInLHNRow(MOCK_CHAT_REPORT, chatReportR14932, MOCK_REPORT_ACTIONS, mockTransactions, undefined, false, reportErrors, false) ??
+                        {};
                     expect(reportAction).toMatchObject(MOCK_REPORT_ACTIONS['3']);
                 });
             });
@@ -1458,6 +1469,7 @@ describe('DebugUtils', () => {
                         undefined,
                         false,
                         reportErrors,
+                        false,
                     ) ?? {};
                 expect(reportAction).toMatchObject(MOCK_REPORT_ACTIONS['1']);
             });
@@ -1486,7 +1498,8 @@ describe('DebugUtils', () => {
 
                 const reportErrors = getAllReportErrors(mockedReport, mockedReportActions, sharedAllTransactions);
                 const {reason} =
-                    DebugUtils.getReasonAndReportActionForRBRInLHNRow(mockedReport, chatReportR14932, mockedReportActions, sharedAllTransactions, undefined, false, reportErrors) ?? {};
+                    DebugUtils.getReasonAndReportActionForRBRInLHNRow(mockedReport, chatReportR14932, mockedReportActions, sharedAllTransactions, undefined, false, reportErrors, false) ??
+                    {};
                 expect(reason).toBe('debug.reasonRBR.hasErrors');
             });
             it('returns correct reason when there are violations', () => {
@@ -1501,6 +1514,7 @@ describe('DebugUtils', () => {
                         undefined,
                         true,
                         {},
+                        false,
                     ) ?? {};
                 expect(reason).toBe('debug.reasonRBR.hasViolations');
             });
@@ -1516,6 +1530,7 @@ describe('DebugUtils', () => {
                         undefined,
                         true,
                         {},
+                        false,
                         true,
                     ) ?? {};
                 expect(reason).toBe(undefined);
@@ -1572,9 +1587,92 @@ describe('DebugUtils', () => {
                         reportID: '1',
                     } as Transaction,
                 };
-                const {reason} = DebugUtils.getReasonAndReportActionForRBRInLHNRow(report, chatReportR14932, {}, violationTransactions, transactionViolations, false, {}) ?? {};
+                const {reason} = DebugUtils.getReasonAndReportActionForRBRInLHNRow(report, chatReportR14932, {}, violationTransactions, transactionViolations, false, {}, false) ?? {};
                 expect(reason).toBe('debug.reasonRBR.hasTransactionThreadViolations');
             });
+            it('forwards isOffline through to SidebarUtils so the live IOU transaction-thread receipt error surfaces only when isOffline=false excludes the deleted pending-delete action', () => {
+                // Given: an expense report with two IOU actions — one live (with a receipt-errored transaction) and one deleted-with-pending-delete.
+                const OFFLINE_EXPENSE_REPORT: Report = {
+                    reportID: '1',
+                    type: CONST.REPORT.TYPE.EXPENSE,
+                    chatReportID: '2',
+                };
+                const OFFLINE_CHAT_REPORT: Report = {
+                    reportID: '2',
+                };
+                const liveTransactionID = 'tx-debug-live';
+                const deletedTransactionID = 'tx-debug-deleted';
+                const OFFLINE_REPORT_ACTIONS: OnyxEntry<ReportActions> = {
+                    // eslint-disable-next-line @typescript-eslint/naming-convention
+                    '1': {
+                        reportActionID: '1',
+                        actionName: CONST.REPORT.ACTIONS.TYPE.IOU,
+                        actorAccountID: 12345,
+                        created: '2024-08-08 18:20:44.171',
+                        message: [{type: 'TEXT', text: 'live'}],
+                        originalMessage: {
+                            type: CONST.IOU.REPORT_ACTION_TYPE.CREATE,
+                            IOUTransactionID: liveTransactionID,
+                            amount: 10,
+                            currency: CONST.CURRENCY.USD,
+                        },
+                    } as ReportAction,
+                    // eslint-disable-next-line @typescript-eslint/naming-convention
+                    '2': {
+                        reportActionID: '2',
+                        actionName: CONST.REPORT.ACTIONS.TYPE.IOU,
+                        actorAccountID: 12345,
+                        created: '2024-08-08 18:25:44.171',
+                        pendingAction: CONST.RED_BRICK_ROAD_PENDING_ACTION.DELETE,
+                        message: [{type: 'TEXT', text: '', html: ''}],
+                        originalMessage: {
+                            type: CONST.IOU.REPORT_ACTION_TYPE.CREATE,
+                            IOUTransactionID: deletedTransactionID,
+                            amount: 20,
+                            currency: CONST.CURRENCY.USD,
+                        },
+                    } as ReportAction,
+                };
+                const OFFLINE_TRANSACTIONS: OnyxCollection<Transaction> = {
+                    [`${ONYXKEYS.COLLECTION.TRANSACTION}${liveTransactionID}`]: {
+                        transactionID: liveTransactionID,
+                        amount: 10,
+                        errors: {
+                            someErrorKey: {error: CONST.IOU.RECEIPT_ERROR},
+                        },
+                    } as unknown as Transaction,
+                    [`${ONYXKEYS.COLLECTION.TRANSACTION}${deletedTransactionID}`]: {
+                        transactionID: deletedTransactionID,
+                        amount: 20,
+                    } as unknown as Transaction,
+                };
+
+                const offline = DebugUtils.getReasonAndReportActionForRBRInLHNRow(
+                    OFFLINE_EXPENSE_REPORT,
+                    OFFLINE_CHAT_REPORT,
+                    OFFLINE_REPORT_ACTIONS,
+                    OFFLINE_TRANSACTIONS,
+                    {},
+                    false,
+                    {},
+                    true,
+                );
+                const online = DebugUtils.getReasonAndReportActionForRBRInLHNRow(
+                    OFFLINE_EXPENSE_REPORT,
+                    OFFLINE_CHAT_REPORT,
+                    OFFLINE_REPORT_ACTIONS,
+                    OFFLINE_TRANSACTIONS,
+                    {},
+                    false,
+                    {},
+                    false,
+                );
+
+                // Online: deleted pending-delete is skipped → 1 IOU thread → receipt error surfaces.
+                expect(online?.reason).toBe('debug.reasonRBR.hasErrors');
+                // Offline: deleted pending-delete is counted → 2 IOU actions → no single thread → no receipt error via that path.
+                expect(offline).toBeNull();
+            });
         });
     });
 });
diff --git a/tests/unit/OnyxDerivedTest.tsx b/tests/unit/OnyxDerivedTest.tsx
index 142bad735f98..236bafe3b329 100644
--- a/tests/unit/OnyxDerivedTest.tsx
+++ b/tests/unit/OnyxDerivedTest.tsx
@@ -126,9 +126,9 @@ describe('OnyxDerived', () => {
             const transaction = createRandomTransaction(1);
 
             // When the report attributes are recomputed with both report and transaction updates
-            reportAttributes.compute([reports, undefined, undefined, undefined, undefined, undefined, undefined, undefined, undefined, undefined, undefined, undefined], {});
+            reportAttributes.compute([reports, undefined, undefined, undefined, undefined, undefined, undefined, undefined, undefined, undefined, undefined, undefined, undefined], {});
             const reportAttributesComputedValue = reportAttributes.compute(
-                [reports, undefined, undefined, undefined, undefined, undefined, undefined, undefined, undefined, undefined, undefined, undefined],
+                [reports, undefined, undefined, undefined, undefined, undefined, undefined, undefined, undefined, undefined, undefined, undefined, undefined],
                 {
                     sourceValues: {
                         [ONYXKEYS.COLLECTION.REPORT]: {
diff --git a/tests/unit/SidebarUtilsTest.ts b/tests/unit/SidebarUtilsTest.ts
index 31acccfe67cf..f45e30ab1b9f 100644
--- a/tests/unit/SidebarUtilsTest.ts
+++ b/tests/unit/SidebarUtilsTest.ts
@@ -127,6 +127,7 @@ describe('SidebarUtils', () => {
                     false,
                     {},
                     MOCK_TRANSACTIONS,
+                    false,
                     MOCK_TRANSACTION_VIOLATIONS as OnyxCollection<TransactionViolations>,
                     isReportArchived.current,
                 ) ?? {};
@@ -157,6 +158,7 @@ describe('SidebarUtils', () => {
                     false,
                     reportErrors,
                     MOCK_TRANSACTIONS,
+                    false,
                     MOCK_TRANSACTION_VIOLATIONS,
                     isReportArchived.current,
                 ) ?? {};
@@ -182,6 +184,7 @@ describe('SidebarUtils', () => {
                     true,
                     {},
                     MOCK_TRANSACTIONS,
+                    false,
                     MOCK_TRANSACTION_VIOLATIONS,
                     isReportArchived.current,
                 ) ?? {};
@@ -225,6 +228,7 @@ describe('SidebarUtils', () => {
                     false,
                     reportErrors,
                     MOCK_TRANSACTIONS,
+                    false,
                     MOCK_TRANSACTION_VIOLATIONS,
                     isReportArchived.current,
                 ) ?? {};
@@ -255,6 +259,7 @@ describe('SidebarUtils', () => {
                     false,
                     reportErrors,
                     MOCK_TRANSACTIONS,
+                    false,
                     MOCK_TRANSACTION_VIOLATIONS,
                     isReportArchived.current,
                 ) ?? {};
@@ -298,6 +303,7 @@ describe('SidebarUtils', () => {
                     false,
                     reportErrors,
                     MOCK_TRANSACTIONS,
+                    false,
                     MOCK_TRANSACTION_VIOLATIONS,
                     isReportArchived.current,
                 ) ?? {};
@@ -322,6 +328,7 @@ describe('SidebarUtils', () => {
                 false,
                 {},
                 MOCK_TRANSACTIONS,
+                false,
                 MOCK_TRANSACTION_VIOLATIONS,
                 isReportArchived.current,
             );
@@ -434,6 +441,7 @@ describe('SidebarUtils', () => {
                 false,
                 {},
                 MOCK_TRANSACTIONS,
+                false,
                 MOCK_TRANSACTION_VIOLATIONS,
                 isReportArchived.current,
             );
@@ -521,6 +529,7 @@ describe('SidebarUtils', () => {
                 false,
                 reportErrors,
                 MOCK_TRANSACTIONS,
+                false,
                 MOCK_TRANSACTION_VIOLATIONS,
                 isReportArchived.current,
             );
@@ -599,6 +608,7 @@ describe('SidebarUtils', () => {
                 false,
                 {},
                 MOCK_TRANSACTIONS,
+                false,
                 MOCK_TRANSACTION_VIOLATIONS as OnyxCollection<TransactionViolations>,
                 isReportArchived.current,
             );
@@ -687,12 +697,141 @@ describe('SidebarUtils', () => {
                     true,
                     {},
                     {[transactionKey]: transaction},
+                    false,
                     transactionViolations,
                     false,
                 ) ?? {};
 
             expect(reason).toBe(CONST.RBR_REASONS.HAS_TRANSACTION_THREAD_VIOLATIONS);
         });
+
+        it('forwards isOffline: online treats deleted pending-delete IOU as skipped, so the live IOU is the single transaction thread and its receipt error surfaces', () => {
+            // Given: an expense report with TWO IOU actions — one live (with a receipt-errored transaction) and one already-deleted with pendingAction=delete.
+            const MOCK_REPORT: Report = {
+                reportID: '1',
+                type: CONST.REPORT.TYPE.EXPENSE,
+                chatReportID: '2',
+            };
+            const MOCK_CHAT_REPORT: Report = {
+                reportID: '2',
+            };
+            const liveTransactionID = 'tx-live';
+            const deletedTransactionID = 'tx-deleted';
+            const MOCK_REPORT_ACTIONS: OnyxEntry<ReportActions> = {
+                // eslint-disable-next-line @typescript-eslint/naming-convention
+                '1': {
+                    reportActionID: '1',
+                    actionName: CONST.REPORT.ACTIONS.TYPE.IOU,
+                    actorAccountID: 12345,
+                    created: '2024-08-08 18:20:44.171',
+                    message: [{type: 'TEXT', text: 'live'}],
+                    originalMessage: {
+                        type: CONST.IOU.REPORT_ACTION_TYPE.CREATE,
+                        IOUTransactionID: liveTransactionID,
+                        amount: 10,
+                        currency: CONST.CURRENCY.USD,
+                    },
+                } as ReportAction,
+                // eslint-disable-next-line @typescript-eslint/naming-convention
+                '2': {
+                    reportActionID: '2',
+                    actionName: CONST.REPORT.ACTIONS.TYPE.IOU,
+                    actorAccountID: 12345,
+                    created: '2024-08-08 18:25:44.171',
+                    pendingAction: CONST.RED_BRICK_ROAD_PENDING_ACTION.DELETE,
+                    // Empty html marks this as a legacy-deleted comment.
+                    message: [{type: 'TEXT', text: '', html: ''}],
+                    originalMessage: {
+                        type: CONST.IOU.REPORT_ACTION_TYPE.CREATE,
+                        IOUTransactionID: deletedTransactionID,
+                        amount: 20,
+                        currency: CONST.CURRENCY.USD,
+                    },
+                } as ReportAction,
+            };
+            const MOCK_TRANSACTIONS: OnyxCollection<Transaction> = {
+                [`${ONYXKEYS.COLLECTION.TRANSACTION}${liveTransactionID}`]: {
+                    transactionID: liveTransactionID,
+                    amount: 10,
+                    errors: {
+                        someErrorKey: {error: CONST.IOU.RECEIPT_ERROR},
+                    },
+                } as unknown as Transaction,
+                [`${ONYXKEYS.COLLECTION.TRANSACTION}${deletedTransactionID}`]: {
+                    transactionID: deletedTransactionID,
+                    amount: 20,
+                } as unknown as Transaction,
+            };
+
+            // When: called with isOffline=false — the pending-delete action is skipped, leaving the live one as the single thread.
+            const onlineResult = SidebarUtils.getReasonAndReportActionThatHasRedBrickRoad(MOCK_REPORT, MOCK_CHAT_REPORT, MOCK_REPORT_ACTIONS, false, {}, MOCK_TRANSACTIONS, false, {}, false);
+
+            expect(onlineResult?.reason).toBe(CONST.RBR_REASONS.HAS_ERRORS);
+        });
+
+        it('forwards isOffline: offline treats deleted pending-delete IOU as still counted, so there are 2 IOU actions and no single transaction thread is identified', () => {
+            // Given: same report setup as the previous test.
+            const MOCK_REPORT: Report = {
+                reportID: '1',
+                type: CONST.REPORT.TYPE.EXPENSE,
+                chatReportID: '2',
+            };
+            const MOCK_CHAT_REPORT: Report = {
+                reportID: '2',
+            };
+            const liveTransactionID = 'tx-live';
+            const deletedTransactionID = 'tx-deleted';
+            const MOCK_REPORT_ACTIONS: OnyxEntry<ReportActions> = {
+                // eslint-disable-next-line @typescript-eslint/naming-convention
+                '1': {
+                    reportActionID: '1',
+                    actionName: CONST.REPORT.ACTIONS.TYPE.IOU,
+                    actorAccountID: 12345,
+                    created: '2024-08-08 18:20:44.171',
+                    message: [{type: 'TEXT', text: 'live'}],
+                    originalMessage: {
+                        type: CONST.IOU.REPORT_ACTION_TYPE.CREATE,
+                        IOUTransactionID: liveTransactionID,
+                        amount: 10,
+                        currency: CONST.CURRENCY.USD,
+                    },
+                } as ReportAction,
+                // eslint-disable-next-line @typescript-eslint/naming-convention
+                '2': {
+                    reportActionID: '2',
+                    actionName: CONST.REPORT.ACTIONS.TYPE.IOU,
+                    actorAccountID: 12345,
+                    created: '2024-08-08 18:25:44.171',
+                    pendingAction: CONST.RED_BRICK_ROAD_PENDING_ACTION.DELETE,
+                    message: [{type: 'TEXT', text: '', html: ''}],
+                    originalMessage: {
+                        type: CONST.IOU.REPORT_ACTION_TYPE.CREATE,
+                        IOUTransactionID: deletedTransactionID,
+                        amount: 20,
+                        currency: CONST.CURRENCY.USD,
+                    },
+                } as ReportAction,
+            };
+            const MOCK_TRANSACTIONS: OnyxCollection<Transaction> = {
+                [`${ONYXKEYS.COLLECTION.TRANSACTION}${liveTransactionID}`]: {
+                    transactionID: liveTransactionID,
+                    amount: 10,
+                    errors: {
+                        someErrorKey: {error: CONST.IOU.RECEIPT_ERROR},
+                    },
+                } as unknown as Transaction,
+                [`${ONYXKEYS.COLLECTION.TRANSACTION}${deletedTransactionID}`]: {
+                    transactionID: deletedTransactionID,
+                    amount: 20,
+                } as unknown as Transaction,
+            };
+
+            // When: called with isOffline=true — the pending-delete action is included, making 2 IOU actions.
+            const offlineResult = SidebarUtils.getReasonAndReportActionThatHasRedBrickRoad(MOCK_REPORT, MOCK_CHAT_REPORT, MOCK_REPORT_ACTIONS, false, {}, MOCK_TRANSACTIONS, true, {}, false);
+
+            // Then: no single transaction thread is identified, so the receipt error is not surfaced via that path.
+            expect(offlineResult).toBeNull();
+        });
     });
 
     describe('shouldDisplayReportInLHN', () => {