diff --git a/src/libs/OptionsListUtils.js b/src/libs/OptionsListUtils.js
index 75806077daca..e909f0d86453 100644
--- a/src/libs/OptionsListUtils.js
+++ b/src/libs/OptionsListUtils.js
@@ -398,7 +398,9 @@ function getLastMessageTextForReport(report) {
                 reportAction.pendingAction !== CONST.RED_BRICK_ROAD_PENDING_ACTION.DELETE &&
                 ReportActionUtils.isMoneyRequestAction(reportAction),
         );
-        lastMessageTextFromReport = ReportUtils.getReportPreviewMessage(iouReport, lastIOUMoneyReport, true);
+        lastMessageTextFromReport = ReportUtils.getReportPreviewMessage(iouReport, lastIOUMoneyReport, true, ReportUtils.isChatReport(report));
+    } else if (ReportActionUtils.isReimbursementQueuedAction(lastReportAction)) {
+        lastMessageTextFromReport = ReportUtils.getReimbursementQueuedActionMessage(lastReportAction, report);
     } else if (ReportActionUtils.isDeletedParentAction(lastReportAction) && ReportUtils.isChatReport(report)) {
         lastMessageTextFromReport = ReportUtils.getDeletedParentActionMessageForChatReport(lastReportAction);
     } else if (ReportActionUtils.isModifiedExpenseAction(lastReportAction)) {
diff --git a/src/libs/ReportActionsUtils.ts b/src/libs/ReportActionsUtils.ts
index d016e220e147..b17b403ee8ef 100644
--- a/src/libs/ReportActionsUtils.ts
+++ b/src/libs/ReportActionsUtils.ts
@@ -91,6 +91,10 @@ function isWhisperAction(reportAction: OnyxEntry<ReportAction>): boolean {
     return (reportAction?.whisperedToAccountIDs ?? []).length > 0;
 }
 
+function isReimbursementQueuedAction(reportAction: OnyxEntry<ReportAction>) {
+    return reportAction?.actionName === CONST.REPORT.ACTIONS.TYPE.REIMBURSEMENTQUEUED;
+}
+
 /**
  * Returns whether the comment is a thread parent message/the first message in a thread
  */
@@ -636,6 +640,7 @@ export {
     isThreadParentMessage,
     isTransactionThread,
     isWhisperAction,
+    isReimbursementQueuedAction,
     shouldReportActionBeVisible,
     shouldReportActionBeVisibleAsLastAction,
 };
diff --git a/src/libs/ReportUtils.js b/src/libs/ReportUtils.js
index b974c1cef700..5122a8177421 100644
--- a/src/libs/ReportUtils.js
+++ b/src/libs/ReportUtils.js
@@ -283,6 +283,12 @@ function isSettled(reportID) {
         return false;
     }
 
+    // In case the payment is scheduled and we are waiting for the payee to set up their wallet,
+    // consider the report as paid as well.
+    if (report.isWaitingOnBankAccount && report.statusNum === CONST.REPORT.STATUS.APPROVED) {
+        return true;
+    }
+
     return report.statusNum === CONST.REPORT.STATUS.REIMBURSED;
 }
 
@@ -1240,6 +1246,25 @@ function getDeletedParentActionMessageForChatReport(reportAction) {
     return deletedMessageText;
 }
 
+/**
+ * Returns the preview message for `REIMBURSEMENTQUEUED` action
+ *
+ * @param {Object} reportAction
+ * @param {Object} report
+ * @returns {String}
+ */
+function getReimbursementQueuedActionMessage(reportAction, report) {
+    const submitterDisplayName = getDisplayNameForParticipant(report.ownerAccountID, true);
+    let messageKey;
+    if (lodashGet(reportAction, 'originalMessage.paymentType', '') === CONST.IOU.PAYMENT_TYPE.EXPENSIFY) {
+        messageKey = 'iou.waitingOnEnabledWallet';
+    } else {
+        messageKey = 'iou.waitingOnBankAccount';
+    }
+
+    return Localize.translateLocal(messageKey, {submitterDisplayName});
+}
+
 /**
  * Returns the last visible message for a given report after considering the given optimistic actions
  *
@@ -1295,7 +1320,8 @@ function isWaitingForIOUActionFromCurrentUser(report) {
     }
 
     // Money request waiting for current user to add their credit bank account
-    if (report.hasOutstandingIOU && report.ownerAccountID === currentUserAccountID && report.isWaitingOnBankAccount) {
+    // hasOutstandingIOU will be false if the user paid, but isWaitingOnBankAccount will be true if user don't have a wallet or bank account setup
+    if (!report.hasOutstandingIOU && report.isWaitingOnBankAccount && report.ownerAccountID === currentUserAccountID) {
         return true;
     }
 
@@ -1657,9 +1683,10 @@ function getTransactionReportName(reportAction) {
  * @param {Object} report
  * @param {Object} [reportAction={}] This can be either a report preview action or the IOU action
  * @param {Boolean} [shouldConsiderReceiptBeingScanned=false]
+ * @param {Boolean} isPreviewMessageForParentChatReport
  * @returns  {String}
  */
-function getReportPreviewMessage(report, reportAction = {}, shouldConsiderReceiptBeingScanned = false) {
+function getReportPreviewMessage(report, reportAction = {}, shouldConsiderReceiptBeingScanned = false, isPreviewMessageForParentChatReport = false) {
     const reportActionMessage = lodashGet(reportAction, 'message[0].html', '');
 
     if (_.isEmpty(report) || !report.reportID) {
@@ -1698,12 +1725,14 @@ function getReportPreviewMessage(report, reportAction = {}, shouldConsiderReceip
         }
     }
 
-    if (isSettled(report.reportID)) {
+    // Show Paid preview message if it's settled or if the amount is paid & stuck at receivers end for only chat reports.
+    if (isSettled(report.reportID) || (report.isWaitingOnBankAccount && isPreviewMessageForParentChatReport)) {
         // A settled report preview message can come in three formats "paid ... elsewhere" or "paid ... with Expensify"
         let translatePhraseKey = 'iou.paidElsewhereWithAmount';
         if (
             _.contains([CONST.IOU.PAYMENT_TYPE.VBBA, CONST.IOU.PAYMENT_TYPE.EXPENSIFY], lodashGet(reportAction, 'originalMessage.paymentType')) ||
-            reportActionMessage.match(/ (with Expensify|using Expensify)$/)
+            reportActionMessage.match(/ (with Expensify|using Expensify)$/) ||
+            report.isWaitingOnBankAccount
         ) {
             translatePhraseKey = 'iou.paidWithExpensifyWithAmount';
         }
@@ -4178,4 +4207,5 @@ export {
     isReportDraft,
     shouldUseFullTitleToDisplay,
     parseReportRouteParams,
+    getReimbursementQueuedActionMessage,
 };
diff --git a/tests/unit/ReportUtilsTest.js b/tests/unit/ReportUtilsTest.js
index 6d3aba1fd9ad..25f093cbd711 100644
--- a/tests/unit/ReportUtilsTest.js
+++ b/tests/unit/ReportUtilsTest.js
@@ -271,23 +271,23 @@ describe('ReportUtils', () => {
                 expect(ReportUtils.isWaitingForIOUActionFromCurrentUser(report)).toBe(false);
             });
         });
-        it('returns false when the report has no oustanding IOU but is waiting for a bank account and the logged user is the report owner', () => {
+        it('returns true when the report has no outstanding IOU but is waiting for a bank account and the logged user is the report owner', () => {
             const report = {
                 ...LHNTestUtils.getFakeReport(),
                 hasOutstandingIOU: false,
                 ownerAccountID: currentUserAccountID,
                 isWaitingOnBankAccount: true,
             };
-            expect(ReportUtils.isWaitingForIOUActionFromCurrentUser(report)).toBe(false);
+            expect(ReportUtils.isWaitingForIOUActionFromCurrentUser(report)).toBe(true);
         });
-        it('returns true when the report has oustanding IOU and is waiting for a bank account and the logged user is the report owner', () => {
+        it('returns false when the report has outstanding IOU and is not waiting for a bank account and the logged user is the report owner', () => {
             const report = {
                 ...LHNTestUtils.getFakeReport(),
                 hasOutstandingIOU: true,
                 ownerAccountID: currentUserAccountID,
-                isWaitingOnBankAccount: true,
+                isWaitingOnBankAccount: false,
             };
-            expect(ReportUtils.isWaitingForIOUActionFromCurrentUser(report)).toBe(true);
+            expect(ReportUtils.isWaitingForIOUActionFromCurrentUser(report)).toBe(false);
         });
         it('returns false when the report has no oustanding IOU but is waiting for a bank account and the logged user is not the report owner', () => {
             const report = {