diff --git a/src/pages/inbox/report/ReportActionItemMessage.tsx b/src/pages/inbox/report/ReportActionItemMessage.tsx
index 4c90e169a3e0..ac908369af85 100644
--- a/src/pages/inbox/report/ReportActionItemMessage.tsx
+++ b/src/pages/inbox/report/ReportActionItemMessage.tsx
@@ -1,35 +1,26 @@
-import type {ReactElement} from 'react';
 import React from 'react';
 import type {StyleProp, TextStyle, ViewStyle} from 'react-native';
 import {View} from 'react-native';
 import Button from '@components/Button';
 import Text from '@components/Text';
 import useLocalize from '@hooks/useLocalize';
-import useOnyx from '@hooks/useOnyx';
 import useThemeStyles from '@hooks/useThemeStyles';
-import getNonEmptyStringOnyxID from '@libs/getNonEmptyStringOnyxID';
 import Navigation from '@libs/Navigation/Navigation';
 import {
-    getLinkedTransactionID,
     getMemberChangeMessageFragment,
     getOriginalMessage,
-    getReportActionMessage,
-    getReportActionMessageFragments,
     getUpdateRoomDescriptionFragment,
-    isAddCommentAction,
-    isApprovedOrSubmittedReportAction as isApprovedOrSubmittedReportActionUtils,
     isMemberChangeAction,
     isMoneyRequestAction,
     isReimbursementDirectionInformationRequiredAction,
-    isThreadParentMessage,
 } from '@libs/ReportActionsUtils';
-import {getIOUReportActionDisplayMessage, getReportName, hasMissingInvoiceBankAccount, isSettled} from '@libs/ReportUtils';
+import {getReportName} from '@libs/ReportUtils';
 import CONST from '@src/CONST';
-import ONYXKEYS from '@src/ONYXKEYS';
 import ROUTES from '@src/ROUTES';
 import type {ReportAction} from '@src/types/onyx';
+import IouReportActionMessage from './actionContents/IouReportActionMessage';
+import ReportActionMessageContent from './actionContents/ReportActionMessageContent';
 import TextCommentFragment from './comment/TextCommentFragment';
-import ReportActionItemFragment from './ReportActionItemFragment';
 
 type ReportActionItemMessageProps = {
     /** The report action */
@@ -51,12 +42,18 @@ type ReportActionItemMessageProps = {
 function ReportActionItemMessage({action, displayAsGroup, reportID, style, isHidden = false}: ReportActionItemMessageProps) {
     const styles = useThemeStyles();
     const {translate} = useLocalize();
-    const [report] = useOnyx(`${ONYXKEYS.COLLECTION.REPORT}${reportID}`);
-    const [transaction] = useOnyx(`${ONYXKEYS.COLLECTION.TRANSACTION}${getNonEmptyStringOnyxID(getLinkedTransactionID(action))}`);
-    const [bankAccountList] = useOnyx(ONYXKEYS.BANK_ACCOUNT_LIST);
 
-    const fragments = getReportActionMessageFragments(translate, action);
-    const isIOUReport = isMoneyRequestAction(action);
+    if (isMoneyRequestAction(action)) {
+        return (
+            <IouReportActionMessage
+                action={action}
+                displayAsGroup={displayAsGroup}
+                reportID={reportID}
+                style={style}
+                isHidden={isHidden}
+            />
+        );
+    }
 
     if (isMemberChangeAction(action)) {
         // This will be fixed: https://github.com/Expensify/App/issues/76852
@@ -98,7 +95,6 @@ function ReportActionItemMessage({action, displayAsGroup, reportID, style, isHid
 
         Navigation.navigate(ROUTES.BANK_ACCOUNT_ENTER_SIGNER_INFO.getRoute(policyID, bankAccountID, isCompleted));
     };
-
     if (isReimbursementDirectionInformationRequiredAction(action)) {
         const {bankAccountLastFour, currency, policyID, bankAccountID, completed} =
             getOriginalMessage<typeof CONST.REPORT.ACTIONS.TYPE.REIMBURSEMENT_DIRECTOR_INFORMATION_REQUIRED>(action) ?? {};
@@ -118,86 +114,14 @@ function ReportActionItemMessage({action, displayAsGroup, reportID, style, isHid
         );
     }
 
-    let iouMessage: string | undefined;
-    if (isIOUReport) {
-        const originalMessage = action.actionName === CONST.REPORT.ACTIONS.TYPE.IOU ? getOriginalMessage(action) : null;
-        const iouReportID = originalMessage?.IOUReportID;
-        if (iouReportID) {
-            iouMessage = getIOUReportActionDisplayMessage(translate, action, transaction, report, bankAccountList);
-        }
-    }
-
-    const isApprovedOrSubmittedReportAction = isApprovedOrSubmittedReportActionUtils(action);
-
-    const isHoldReportAction = [CONST.REPORT.ACTIONS.TYPE.HOLD, CONST.REPORT.ACTIONS.TYPE.UNHOLD].some((type) => type === action.actionName);
-
-    /**
-     * Get the ReportActionItemFragments
-     * @param shouldWrapInText determines whether the fragments are wrapped in a Text component
-     * @returns report action item fragments
-     */
-    const renderReportActionItemFragments = (shouldWrapInText: boolean): ReactElement | ReactElement[] => {
-        const reportActionItemFragments = fragments.map((fragment, index) => (
-            <ReportActionItemFragment
-                /* eslint-disable-next-line react/no-array-index-key */
-                key={`actionFragment-${action.reportActionID}-${index}`}
-                reportActionID={action.reportActionID}
-                fragment={fragment}
-                iouMessage={iouMessage}
-                isThreadParentMessage={isThreadParentMessage(action, reportID)}
-                pendingAction={action.pendingAction}
-                actionName={action.actionName}
-                source={isAddCommentAction(action) ? getOriginalMessage(action)?.source : ''}
-                accountID={action.actorAccountID ?? CONST.DEFAULT_NUMBER_ID}
-                style={style}
-                displayAsGroup={displayAsGroup}
-                isApprovedOrSubmittedReportAction={isApprovedOrSubmittedReportAction}
-                isHoldReportAction={isHoldReportAction}
-                // Since system messages from Old Dot begin with the person who performed the action,
-                // the first fragment will contain the person's display name and their email. We'll use this
-                // to decide if the fragment should be from left to right for RTL display names e.g. Arabic for proper
-                // formatting.
-                isFragmentContainingDisplayName={index === 0}
-                moderationDecision={getReportActionMessage(action)?.moderationDecision?.decision}
-            />
-        ));
-
-        // Approving or submitting reports in oldDot results in system messages made up of multiple fragments of `TEXT` type
-        // which we need to wrap in `<Text>` to prevent them rendering on separate lines.
-        return shouldWrapInText ? <Text style={styles.ltr}>{reportActionItemFragments}</Text> : reportActionItemFragments;
-    };
-
-    const openWorkspaceInvoicesPage = () => {
-        const policyID = report?.policyID;
-
-        if (!policyID) {
-            return;
-        }
-
-        Navigation.navigate(ROUTES.WORKSPACE_INVOICES.getRoute(policyID));
-    };
-
-    const shouldShowAddBankAccountButton = action.actionName === CONST.REPORT.ACTIONS.TYPE.IOU && hasMissingInvoiceBankAccount(reportID) && !isSettled(reportID);
-
     return (
-        <View style={[styles.chatItemMessage, style]}>
-            {!isHidden ? (
-                <>
-                    {renderReportActionItemFragments(isApprovedOrSubmittedReportAction)}
-                    {shouldShowAddBankAccountButton && (
-                        <Button
-                            style={[styles.mt2, styles.alignSelfStart]}
-                            success
-                            text={translate('bankAccount.addBankAccount')}
-                            onPress={openWorkspaceInvoicesPage}
-                            sentryLabel={CONST.SENTRY_LABEL.REPORT.REPORT_ACTION_ITEM_MESSAGE_ADD_BANK_ACCOUNT}
-                        />
-                    )}
-                </>
-            ) : (
-                <Text style={[styles.textLabelSupporting, styles.lh20]}>{translate('moderation.flaggedContent')}</Text>
-            )}
-        </View>
+        <ReportActionMessageContent
+            action={action}
+            displayAsGroup={displayAsGroup}
+            reportID={reportID}
+            style={style}
+            isHidden={isHidden}
+        />
     );
 }
 
diff --git a/src/pages/inbox/report/actionContents/IouReportActionMessage.tsx b/src/pages/inbox/report/actionContents/IouReportActionMessage.tsx
new file mode 100644
index 000000000000..cf11b3cc3bf9
--- /dev/null
+++ b/src/pages/inbox/report/actionContents/IouReportActionMessage.tsx
@@ -0,0 +1,55 @@
+import React from 'react';
+import type {StyleProp, TextStyle, ViewStyle} from 'react-native';
+import useLocalize from '@hooks/useLocalize';
+import useOnyx from '@hooks/useOnyx';
+import getNonEmptyStringOnyxID from '@libs/getNonEmptyStringOnyxID';
+import {getLinkedTransactionID, getOriginalMessage, isActionOfType} from '@libs/ReportActionsUtils';
+import {getIOUReportActionDisplayMessage} from '@libs/ReportUtils';
+import CONST from '@src/CONST';
+import ONYXKEYS from '@src/ONYXKEYS';
+import type {ReportAction} from '@src/types/onyx';
+import ReportActionMessageContent from './ReportActionMessageContent';
+
+type IouReportActionMessageProps = {
+    /** The report action */
+    action: ReportAction;
+
+    /** Should the comment have the appearance of being grouped with the previous comment? */
+    displayAsGroup: boolean;
+
+    /** Additional styles to add after local styles. */
+    style?: StyleProp<ViewStyle & TextStyle>;
+
+    /** Whether or not the message is hidden by moderation */
+    isHidden?: boolean;
+
+    /** The ID of the report */
+    reportID: string | undefined;
+};
+
+function IouReportActionMessage({action, displayAsGroup, reportID, style, isHidden = false}: IouReportActionMessageProps) {
+    const {translate} = useLocalize();
+    const [report] = useOnyx(`${ONYXKEYS.COLLECTION.REPORT}${getNonEmptyStringOnyxID(reportID)}`);
+    const [transaction] = useOnyx(`${ONYXKEYS.COLLECTION.TRANSACTION}${getNonEmptyStringOnyxID(getLinkedTransactionID(action))}`);
+    const [bankAccountList] = useOnyx(ONYXKEYS.BANK_ACCOUNT_LIST);
+
+    let iouMessage: string | undefined;
+    const originalMessage = isActionOfType(action, CONST.REPORT.ACTIONS.TYPE.IOU) ? getOriginalMessage(action) : null;
+    const iouReportID = originalMessage?.IOUReportID;
+    if (iouReportID) {
+        iouMessage = getIOUReportActionDisplayMessage(translate, action, transaction, report, bankAccountList);
+    }
+
+    return (
+        <ReportActionMessageContent
+            action={action}
+            displayAsGroup={displayAsGroup}
+            reportID={reportID}
+            style={style}
+            isHidden={isHidden}
+            iouMessage={iouMessage}
+        />
+    );
+}
+
+export default IouReportActionMessage;
diff --git a/src/pages/inbox/report/actionContents/ReportActionMessageContent.tsx b/src/pages/inbox/report/actionContents/ReportActionMessageContent.tsx
new file mode 100644
index 000000000000..ac2bc0603e25
--- /dev/null
+++ b/src/pages/inbox/report/actionContents/ReportActionMessageContent.tsx
@@ -0,0 +1,90 @@
+import type {ReactElement} from 'react';
+import React from 'react';
+import type {StyleProp, TextStyle, ViewStyle} from 'react-native';
+import {View} from 'react-native';
+import Text from '@components/Text';
+import useLocalize from '@hooks/useLocalize';
+import useThemeStyles from '@hooks/useThemeStyles';
+import {
+    getOriginalMessage,
+    getReportActionMessage,
+    getReportActionMessageFragments,
+    isAddCommentAction,
+    isApprovedOrSubmittedReportAction as isApprovedOrSubmittedReportActionUtils,
+    isThreadParentMessage,
+} from '@libs/ReportActionsUtils';
+import ReportActionItemFragment from '@pages/inbox/report/ReportActionItemFragment';
+import CONST from '@src/CONST';
+import type {ReportAction} from '@src/types/onyx';
+
+type ReportActionMessageContentProps = {
+    /** The report action */
+    action: ReportAction;
+
+    /** Should the comment have the appearance of being grouped with the previous comment? */
+    displayAsGroup: boolean;
+
+    /** Additional styles to add after local styles. */
+    style?: StyleProp<ViewStyle & TextStyle>;
+
+    /** Whether or not the message is hidden by moderation */
+    isHidden?: boolean;
+
+    /** The ID of the report */
+    reportID: string | undefined;
+
+    /** Optional IOU display message passed into each fragment */
+    iouMessage?: string;
+};
+
+function ReportActionMessageContent({action, displayAsGroup, reportID, style, isHidden = false, iouMessage}: ReportActionMessageContentProps) {
+    const styles = useThemeStyles();
+    const {translate} = useLocalize();
+    const isApprovedOrSubmittedReportAction = isApprovedOrSubmittedReportActionUtils(action);
+    const isHoldReportAction = [CONST.REPORT.ACTIONS.TYPE.HOLD, CONST.REPORT.ACTIONS.TYPE.UNHOLD].some((type) => type === action.actionName);
+    const fragments = getReportActionMessageFragments(translate, action);
+
+    const renderReportActionItemFragments = (shouldWrapInText: boolean): ReactElement | ReactElement[] => {
+        const reportActionItemFragments = fragments.map((fragment, index) => (
+            <ReportActionItemFragment
+                // Message fragments don't have stable unique IDs, so index is the best available key
+                /* eslint-disable-next-line react/no-array-index-key */
+                key={`actionFragment-${action.reportActionID}-${index}`}
+                reportActionID={action.reportActionID}
+                fragment={fragment}
+                iouMessage={iouMessage}
+                isThreadParentMessage={isThreadParentMessage(action, reportID)}
+                pendingAction={action.pendingAction}
+                actionName={action.actionName}
+                source={isAddCommentAction(action) ? getOriginalMessage(action)?.source : ''}
+                accountID={action.actorAccountID ?? CONST.DEFAULT_NUMBER_ID}
+                style={style}
+                displayAsGroup={displayAsGroup}
+                isApprovedOrSubmittedReportAction={isApprovedOrSubmittedReportAction}
+                isHoldReportAction={isHoldReportAction}
+                // Since system messages from Old Dot begin with the person who performed the action,
+                // the first fragment will contain the person's display name and their email. We'll use this
+                // to decide if the fragment should be from left to right for RTL display names e.g. Arabic for proper
+                // formatting.
+                isFragmentContainingDisplayName={index === 0}
+                moderationDecision={getReportActionMessage(action)?.moderationDecision?.decision}
+            />
+        ));
+
+        // Approving or submitting reports in oldDot results in system messages made up of multiple fragments of `TEXT` type
+        // which we need to wrap in `<Text>` to prevent them rendering on separate lines.
+        return shouldWrapInText ? <Text style={styles.ltr}>{reportActionItemFragments}</Text> : reportActionItemFragments;
+    };
+
+    return (
+        <View style={[styles.chatItemMessage, style]}>
+            {!isHidden ? (
+                renderReportActionItemFragments(isApprovedOrSubmittedReportAction)
+            ) : (
+                <Text style={[styles.textLabelSupporting, styles.lh20]}>{translate('moderation.flaggedContent')}</Text>
+            )}
+        </View>
+    );
+}
+
+export default ReportActionMessageContent;
diff --git a/tests/ui/PureReportActionItemTest.tsx b/tests/ui/PureReportActionItemTest.tsx
index 3cbf49f23d3d..e9bdf5b6cb04 100644
--- a/tests/ui/PureReportActionItemTest.tsx
+++ b/tests/ui/PureReportActionItemTest.tsx
@@ -15,6 +15,7 @@ import {setHasRadio} from '@libs/NetworkState';
 import Parser from '@libs/Parser';
 import {getIOUActionForReportID} from '@libs/ReportActionsUtils';
 import PureReportActionItem from '@pages/inbox/report/PureReportActionItem';
+import ReportActionItemMessage from '@pages/inbox/report/ReportActionItemMessage';
 import colors from '@styles/theme/colors';
 import CONST from '@src/CONST';
 import type {TranslationPaths} from '@src/languages/types';
@@ -2634,4 +2635,77 @@ describe('PureReportActionItem', () => {
             expect(screen.getByText(translateLocal('actionableMentionTrackExpense.nothing' as TranslationPaths))).toBeOnTheScreen();
         });
     });
+
+    // Path: No FE flow creates IOU + reject/cancel/delete/approve actions; this defensive path is only
+    // reachable from BE-emitted actions
+    describe('IouReportActionMessage edge subtypes', () => {
+        const TEST_REPORT_ID = 'iouEdgeReport123';
+        const TEST_TRANSACTION_ID = 'iouEdgeTx456';
+
+        it.each([CONST.IOU.REPORT_ACTION_TYPE.REJECT, CONST.IOU.REPORT_ACTION_TYPE.CANCEL, CONST.IOU.REPORT_ACTION_TYPE.DELETE, CONST.IOU.REPORT_ACTION_TYPE.APPROVE])(
+            'renders IOU display text for IOU + %s action when transaction exists in Onyx',
+            async (subtype) => {
+                await act(async () => {
+                    await Onyx.merge(`${ONYXKEYS.COLLECTION.TRANSACTION}${TEST_TRANSACTION_ID}`, {
+                        transactionID: TEST_TRANSACTION_ID,
+                        amount: 4200,
+                        currency: 'USD',
+                        reportID: TEST_REPORT_ID,
+                        merchant: 'Test Merchant',
+                    });
+                    await Onyx.merge(`${ONYXKEYS.COLLECTION.REPORT}${TEST_REPORT_ID}`, {
+                        reportID: TEST_REPORT_ID,
+                        type: CONST.REPORT.TYPE.EXPENSE,
+                        statusNum: CONST.REPORT.STATUS_NUM.OPEN,
+                        stateNum: CONST.REPORT.STATE_NUM.OPEN,
+                    });
+                });
+
+                const action = createReportAction(CONST.REPORT.ACTIONS.TYPE.IOU, {
+                    type: subtype,
+                    IOUReportID: TEST_REPORT_ID,
+                    IOUTransactionID: TEST_TRANSACTION_ID,
+                    amount: 4200,
+                    currency: 'USD',
+                });
+                renderItemWithAction(action);
+                await waitForBatchedUpdatesWithAct();
+
+                // getIOUReportActionDisplayMessage only special-cases `type === 'pay'`. For all other action
+                // types, the displayed text is picked from the REPORT's state (isSettled, isReportApproved)
+                // and the action's structural shape (split bill, track expense).
+                expect(screen.getByText(translateLocal('iou.expenseAmount', '-$42.00', 'Test Merchant'))).toBeOnTheScreen();
+            },
+        );
+
+        it('renders flagged content text instead of IOU display when isHidden is true', async () => {
+            const action = createReportAction(CONST.REPORT.ACTIONS.TYPE.IOU, {
+                type: CONST.IOU.REPORT_ACTION_TYPE.REJECT,
+                IOUReportID: TEST_REPORT_ID,
+                IOUTransactionID: TEST_TRANSACTION_ID,
+                amount: 4200,
+                currency: 'USD',
+            });
+
+            render(
+                <ComposeProviders components={[OnyxListItemProvider, LocaleContextProvider, HTMLEngineProvider]}>
+                    <OptionsListContextProvider>
+                        <ScreenWrapper testID="test">
+                            <PortalProvider>
+                                <ReportActionItemMessage
+                                    action={action}
+                                    displayAsGroup={false}
+                                    reportID={TEST_REPORT_ID}
+                                    isHidden
+                                />
+                            </PortalProvider>
+                        </ScreenWrapper>
+                    </OptionsListContextProvider>
+                </ComposeProviders>,
+            );
+            await waitForBatchedUpdatesWithAct();
+
+            expect(screen.getByText(translateLocal('moderation.flaggedContent'))).toBeOnTheScreen();
+        });
+    });
 });