diff --git a/src/hooks/useDismissOnMoneyRequestReportRemoval.ts b/src/hooks/useDismissOnMoneyRequestReportRemoval.ts
new file mode 100644
index 000000000000..fbd26c203213
--- /dev/null
+++ b/src/hooks/useDismissOnMoneyRequestReportRemoval.ts
@@ -0,0 +1,42 @@
+import {useIsFocused} from '@react-navigation/native';
+import {useEffect, useRef} from 'react';
+import {isMoneyRequestReport} from '@libs/ReportUtils';
+import Navigation from '@navigation/Navigation';
+import ONYXKEYS from '@src/ONYXKEYS';
+import useOnyx from './useOnyx';
+import usePrevious from './usePrevious';
+
+/**
+ * Dismisses the modal when a money request report is removed (e.g. deleted or merged).
+ * Skips dismissal during route changes — the new report's data may not be loaded yet,
+ * so the absent `report` should not be interpreted as removal.
+ */
+function useDismissOnMoneyRequestReportRemoval(reportIDFromRoute: string | undefined) {
+    const [report] = useOnyx(`${ONYXKEYS.COLLECTION.REPORT}${reportIDFromRoute}`);
+    const prevReport = usePrevious(report);
+    const prevReportIDFromRoute = usePrevious(reportIDFromRoute);
+    const isFocused = useIsFocused();
+    const firstRenderRef = useRef(true);
+
+    useEffect(() => {
+        if (firstRenderRef.current) {
+            firstRenderRef.current = false;
+            return;
+        }
+
+        if (prevReportIDFromRoute !== reportIDFromRoute) {
+            return;
+        }
+
+        const isRemovalExpectedForReportType = !report && isMoneyRequestReport(prevReport);
+
+        if (isRemovalExpectedForReportType) {
+            if (!isFocused) {
+                return;
+            }
+            Navigation.dismissModal();
+        }
+    }, [report, isFocused, prevReport, prevReportIDFromRoute, reportIDFromRoute]);
+}
+
+export default useDismissOnMoneyRequestReportRemoval;
diff --git a/src/pages/Search/SearchMoneyRequestReportPage.tsx b/src/pages/Search/SearchMoneyRequestReportPage.tsx
index d467087a44c0..b67fb6248ca0 100644
--- a/src/pages/Search/SearchMoneyRequestReportPage.tsx
+++ b/src/pages/Search/SearchMoneyRequestReportPage.tsx
@@ -13,6 +13,7 @@ import useShowSuperWideRHPVersion from '@components/WideRHPContextProvider/useSh
 import WideRHPOverlayWrapper from '@components/WideRHPOverlayWrapper';
 import useActionListContextValue from '@hooks/useActionListContextValue';
 import useCurrentUserPersonalDetails from '@hooks/useCurrentUserPersonalDetails';
+import useDismissOnMoneyRequestReportRemoval from '@hooks/useDismissOnMoneyRequestReportRemoval';
 import useDocumentTitle from '@hooks/useDocumentTitle';
 import useIsReportReadyToDisplay from '@hooks/useIsReportReadyToDisplay';
 import useNetwork from '@hooks/useNetwork';
@@ -39,7 +40,7 @@ import {
     isMoneyRequestAction,
 } from '@libs/ReportActionsUtils';
 import {getReportName} from '@libs/ReportNameUtils';
-import {isMoneyRequestReport, isMoneyRequestReportPendingDeletion, isValidReportIDFromPath} from '@libs/ReportUtils';
+import {isMoneyRequestReportPendingDeletion, isValidReportIDFromPath} from '@libs/ReportUtils';
 import {cancelSpansByPrefix} from '@libs/telemetry/activeSpans';
 import {doesDeleteNavigateBackUrlIncludeDuplicatesReview, getParentReportActionDeletionStatus, hasLoadedReportActions, isThreadReportDeleted} from '@libs/TransactionNavigationUtils';
 import Navigation from '@navigation/Navigation';
@@ -72,8 +73,6 @@ function SearchMoneyRequestReportPage({route}: SearchMoneyRequestPageProps) {
     const reportIDFromRoute = getNonEmptyStringOnyxID(route.params?.reportID);
     const {currentSearchResults: snapshot} = useSearchStateContext();
 
-    const firstRenderRef = useRef(true);
-
     const [report] = useOnyx(`${ONYXKEYS.COLLECTION.REPORT}${reportIDFromRoute}`);
     const [deleteTransactionNavigateBackUrl] = useOnyx(ONYXKEYS.NVP_DELETE_TRANSACTION_NAVIGATE_BACK_URL);
 
@@ -86,34 +85,10 @@ function SearchMoneyRequestReportPage({route}: SearchMoneyRequestPageProps) {
     );
 
     const [parentReportLoadingState] = useOnyx(`${ONYXKEYS.COLLECTION.RAM_ONLY_REPORT_LOADING_STATE}${report?.parentReportID}`);
-    const prevReport = usePrevious(report);
-    const prevReportIDFromRoute = usePrevious(reportIDFromRoute);
     const {email: currentUserEmail, accountID: currentUserAccountID} = useCurrentUserPersonalDetails();
     const isFocused = useIsFocused();
 
-    // Dismiss modal when the money request report is removed (e.g. deleted or merged).
-    useEffect(() => {
-        // Skip first run so we don't dismiss on mount when report may still be loading.
-        if (firstRenderRef.current) {
-            firstRenderRef.current = false;
-            return;
-        }
-
-        // Route just changed — new report data may not be loaded yet, so don't treat as removal.
-        if (prevReportIDFromRoute !== reportIDFromRoute) {
-            return;
-        }
-
-        // Report is gone now but we had a money request report before → it was removed.
-        const isRemovalExpectedForReportType = !report && isMoneyRequestReport(prevReport);
-
-        if (isRemovalExpectedForReportType) {
-            if (!isFocused) {
-                return;
-            }
-            Navigation.dismissModal();
-        }
-    }, [report, isFocused, prevReport, prevReportIDFromRoute, reportIDFromRoute]);
+    useDismissOnMoneyRequestReportRemoval(reportIDFromRoute);
 
     useEffect(() => {
         // Update last visit time when the expense super wide RHP report is focused
@@ -210,6 +185,7 @@ function SearchMoneyRequestReportPage({route}: SearchMoneyRequestPageProps) {
 
     // Tracks initial mount to ensure openReport is called once for multi-transaction reports
     const isInitialMountRef = useRef(true);
+    const prevReportIDFromRoute = usePrevious(reportIDFromRoute);
 
     useEffect(() => {
         // Reset flag when reportID changes (screen stays mounted but navigates to different report)
diff --git a/tests/unit/hooks/useDismissOnMoneyRequestReportRemoval.test.ts b/tests/unit/hooks/useDismissOnMoneyRequestReportRemoval.test.ts
new file mode 100644
index 000000000000..41f8fa6bb3e3
--- /dev/null
+++ b/tests/unit/hooks/useDismissOnMoneyRequestReportRemoval.test.ts
@@ -0,0 +1,174 @@
+import type * as ReactNavigation from '@react-navigation/native';
+import {renderHook} from '@testing-library/react-native';
+import Onyx from 'react-native-onyx';
+import useDismissOnMoneyRequestReportRemoval from '@hooks/useDismissOnMoneyRequestReportRemoval';
+import Navigation from '@navigation/Navigation';
+import CONST from '@src/CONST';
+import ONYXKEYS from '@src/ONYXKEYS';
+import type {Report} from '@src/types/onyx';
+import waitForBatchedUpdates from '../../utils/waitForBatchedUpdates';
+
+const mockUseIsFocused = jest.fn().mockReturnValue(true);
+
+jest.mock('@react-navigation/native', () => {
+    const actualNav = jest.requireActual<typeof ReactNavigation>('@react-navigation/native');
+    return {
+        ...actualNav,
+        useIsFocused: () => mockUseIsFocused() as boolean,
+    };
+});
+
+jest.mock('@navigation/Navigation', () => ({
+    dismissModal: jest.fn(),
+}));
+
+const REPORT_A_ID = '1';
+const REPORT_B_ID = '2';
+
+function buildMoneyRequestReport(id: string, overrides?: Partial<Report>): Report {
+    return {
+        reportID: id,
+        type: CONST.REPORT.TYPE.EXPENSE,
+        chatType: undefined,
+        ...overrides,
+    } as Report;
+}
+
+function buildChatReport(id: string): Report {
+    return {
+        reportID: id,
+        type: CONST.REPORT.TYPE.CHAT,
+    } as Report;
+}
+
+describe('useDismissOnMoneyRequestReportRemoval', () => {
+    beforeAll(() => {
+        Onyx.init({keys: ONYXKEYS});
+    });
+
+    beforeEach(async () => {
+        jest.clearAllMocks();
+        mockUseIsFocused.mockReturnValue(true);
+        await Onyx.clear();
+        await waitForBatchedUpdates();
+    });
+
+    it('dismisses the modal when a focused money request report is removed', async () => {
+        await Onyx.set(`${ONYXKEYS.COLLECTION.REPORT}${REPORT_A_ID}`, buildMoneyRequestReport(REPORT_A_ID));
+        await waitForBatchedUpdates();
+
+        const {rerender} = renderHook(({reportID}: {reportID: string}) => useDismissOnMoneyRequestReportRemoval(reportID), {
+            initialProps: {reportID: REPORT_A_ID},
+        });
+
+        await Onyx.set(`${ONYXKEYS.COLLECTION.REPORT}${REPORT_A_ID}`, null);
+        await waitForBatchedUpdates();
+        rerender({reportID: REPORT_A_ID});
+
+        expect(Navigation.dismissModal).toHaveBeenCalledTimes(1);
+    });
+
+    it('does not dismiss the modal on first render even if the report is missing', async () => {
+        renderHook(({reportID}: {reportID: string}) => useDismissOnMoneyRequestReportRemoval(reportID), {
+            initialProps: {reportID: REPORT_A_ID},
+        });
+        await waitForBatchedUpdates();
+
+        expect(Navigation.dismissModal).not.toHaveBeenCalled();
+    });
+
+    it('does not dismiss the modal when the screen is unfocused', async () => {
+        mockUseIsFocused.mockReturnValue(false);
+        await Onyx.set(`${ONYXKEYS.COLLECTION.REPORT}${REPORT_A_ID}`, buildMoneyRequestReport(REPORT_A_ID));
+        await waitForBatchedUpdates();
+
+        const {rerender} = renderHook(({reportID}: {reportID: string}) => useDismissOnMoneyRequestReportRemoval(reportID), {
+            initialProps: {reportID: REPORT_A_ID},
+        });
+
+        await Onyx.set(`${ONYXKEYS.COLLECTION.REPORT}${REPORT_A_ID}`, null);
+        await waitForBatchedUpdates();
+        rerender({reportID: REPORT_A_ID});
+
+        expect(Navigation.dismissModal).not.toHaveBeenCalled();
+    });
+
+    it('does not dismiss the modal when the previous report was not a money request report', async () => {
+        await Onyx.set(`${ONYXKEYS.COLLECTION.REPORT}${REPORT_A_ID}`, buildChatReport(REPORT_A_ID));
+        await waitForBatchedUpdates();
+
+        const {rerender} = renderHook(({reportID}: {reportID: string}) => useDismissOnMoneyRequestReportRemoval(reportID), {
+            initialProps: {reportID: REPORT_A_ID},
+        });
+
+        await Onyx.set(`${ONYXKEYS.COLLECTION.REPORT}${REPORT_A_ID}`, null);
+        await waitForBatchedUpdates();
+        rerender({reportID: REPORT_A_ID});
+
+        expect(Navigation.dismissModal).not.toHaveBeenCalled();
+    });
+
+    // Regression for https://github.com/Expensify/App/pull/89150 — navigating between reports with the
+    // prev/next arrows in the search/saved-search RHP should not dismiss the modal when the next report's
+    // data has not yet loaded into Onyx.
+    it('does not dismiss the modal when the route changes to a report whose data has not loaded yet', async () => {
+        await Onyx.set(`${ONYXKEYS.COLLECTION.REPORT}${REPORT_A_ID}`, buildMoneyRequestReport(REPORT_A_ID));
+        await waitForBatchedUpdates();
+
+        const {rerender} = renderHook(({reportID}: {reportID: string}) => useDismissOnMoneyRequestReportRemoval(reportID), {
+            initialProps: {reportID: REPORT_A_ID},
+        });
+
+        rerender({reportID: REPORT_B_ID});
+        await waitForBatchedUpdates();
+
+        expect(Navigation.dismissModal).not.toHaveBeenCalled();
+    });
+
+    // Reviewer scenario: while navigating with the arrows in a saved/canned search, the previous report's
+    // status changes (e.g. open → processing) on the backend. The arrows must keep working — the modal must
+    // not be dismissed in any of the intermediate render passes.
+    it('keeps the arrows working when a report status changes mid-navigation in a saved search', async () => {
+        await Onyx.set(`${ONYXKEYS.COLLECTION.REPORT}${REPORT_A_ID}`, buildMoneyRequestReport(REPORT_A_ID, {stateNum: CONST.REPORT.STATE_NUM.OPEN}));
+        await waitForBatchedUpdates();
+
+        const {rerender} = renderHook(({reportID}: {reportID: string}) => useDismissOnMoneyRequestReportRemoval(reportID), {
+            initialProps: {reportID: REPORT_A_ID},
+        });
+
+        // Status change on the previous report (still defined, just mutated).
+        await Onyx.merge(`${ONYXKEYS.COLLECTION.REPORT}${REPORT_A_ID}`, {stateNum: CONST.REPORT.STATE_NUM.SUBMITTED});
+        await waitForBatchedUpdates();
+        rerender({reportID: REPORT_A_ID});
+
+        // Arrow forward — report B is not in Onyx yet.
+        rerender({reportID: REPORT_B_ID});
+        await waitForBatchedUpdates();
+
+        // Report B data arrives.
+        await Onyx.set(`${ONYXKEYS.COLLECTION.REPORT}${REPORT_B_ID}`, buildMoneyRequestReport(REPORT_B_ID, {stateNum: CONST.REPORT.STATE_NUM.OPEN}));
+        await waitForBatchedUpdates();
+        rerender({reportID: REPORT_B_ID});
+
+        // Arrow back — report A is still around.
+        rerender({reportID: REPORT_A_ID});
+        await waitForBatchedUpdates();
+
+        expect(Navigation.dismissModal).not.toHaveBeenCalled();
+    });
+
+    it('does not dismiss the modal when the report is updated but still present', async () => {
+        await Onyx.set(`${ONYXKEYS.COLLECTION.REPORT}${REPORT_A_ID}`, buildMoneyRequestReport(REPORT_A_ID, {stateNum: CONST.REPORT.STATE_NUM.OPEN}));
+        await waitForBatchedUpdates();
+
+        const {rerender} = renderHook(({reportID}: {reportID: string}) => useDismissOnMoneyRequestReportRemoval(reportID), {
+            initialProps: {reportID: REPORT_A_ID},
+        });
+
+        await Onyx.merge(`${ONYXKEYS.COLLECTION.REPORT}${REPORT_A_ID}`, {stateNum: CONST.REPORT.STATE_NUM.APPROVED, statusNum: CONST.REPORT.STATUS_NUM.APPROVED});
+        await waitForBatchedUpdates();
+        rerender({reportID: REPORT_A_ID});
+
+        expect(Navigation.dismissModal).not.toHaveBeenCalled();
+    });
+});