diff --git a/src/libs/ErrorUtils.ts b/src/libs/ErrorUtils.ts
index d38700efd53d..a93efb8cbff5 100644
--- a/src/libs/ErrorUtils.ts
+++ b/src/libs/ErrorUtils.ts
@@ -40,16 +40,16 @@ function getAuthenticateErrorMessage(response: Response): keyof TranslationFlatO
  * Method used to get an error object with microsecond as the key.
  * @param error - error key or message to be saved
  */
-function getMicroSecondOnyxError(error: string | null, isTranslated = false): Errors {
-    return {[DateUtils.getMicroseconds()]: error && [error, {isTranslated}]};
+function getMicroSecondOnyxError(error: string | null, isTranslated = false, errorKey?: number): Errors {
+    return {[errorKey ?? DateUtils.getMicroseconds()]: error && [error, {isTranslated}]};
 }
 
 /**
  * Method used to get an error object with microsecond as the key and an object as the value.
  * @param error - error key or message to be saved
  */
-function getMicroSecondOnyxErrorObject(error: Errors): ErrorFields {
-    return {[DateUtils.getMicroseconds()]: error};
+function getMicroSecondOnyxErrorObject(error: Errors, errorKey?: number): ErrorFields {
+    return {[errorKey ?? DateUtils.getMicroseconds()]: error};
 }
 
 // We can assume that if error is a string, it has already been translated because it is server error
diff --git a/src/libs/actions/IOU.ts b/src/libs/actions/IOU.ts
index 5632268ef6ca..77954810f462 100644
--- a/src/libs/actions/IOU.ts
+++ b/src/libs/actions/IOU.ts
@@ -417,10 +417,10 @@ function resetMoneyRequestInfo(id = '') {
 }
 
 /** Helper function to get the receipt error for money requests, or the generic error if there's no receipt */
-function getReceiptError(receipt?: Receipt, filename?: string, isScanRequest = true): Errors | ErrorFields {
+function getReceiptError(receipt?: Receipt, filename?: string, isScanRequest = true, errorKey?: number): Errors | ErrorFields {
     return isEmptyObject(receipt) || !isScanRequest
-        ? ErrorUtils.getMicroSecondOnyxError('iou.error.genericCreateFailureMessage')
-        : ErrorUtils.getMicroSecondOnyxErrorObject({error: CONST.IOU.RECEIPT_ERROR, source: receipt.source?.toString() ?? '', filename: filename ?? ''});
+        ? ErrorUtils.getMicroSecondOnyxError('iou.error.genericCreateFailureMessage', false, errorKey)
+        : ErrorUtils.getMicroSecondOnyxErrorObject({error: CONST.IOU.RECEIPT_ERROR, source: receipt.source?.toString() ?? '', filename: filename ?? ''}, errorKey);
 }
 
 function needsToBeManuallySubmitted(iouReport: OnyxTypes.Report) {
@@ -708,6 +708,8 @@ function buildOnyxDataForMoneyRequest(
         },
     );
 
+    const errorKey = DateUtils.getMicroseconds();
+
     const failureData: OnyxUpdate[] = [
         {
             onyxMethod: Onyx.METHOD.MERGE,
@@ -763,7 +765,7 @@ function buildOnyxDataForMoneyRequest(
                           [iouCreatedAction.reportActionID]: {
                               // Disabling this line since transaction.filename can be an empty string
                               // eslint-disable-next-line @typescript-eslint/prefer-nullish-coalescing
-                              errors: getReceiptError(transaction.receipt, transaction.filename || transaction.receipt?.filename, isScanRequest),
+                              errors: getReceiptError(transaction.receipt, transaction.filename || transaction.receipt?.filename, isScanRequest, errorKey),
                           },
                           [iouAction.reportActionID]: {
                               errors: ErrorUtils.getMicroSecondOnyxError(null),
@@ -773,7 +775,7 @@ function buildOnyxDataForMoneyRequest(
                           [iouAction.reportActionID]: {
                               // Disabling this line since transaction.filename can be an empty string
                               // eslint-disable-next-line @typescript-eslint/prefer-nullish-coalescing
-                              errors: getReceiptError(transaction.receipt, transaction.filename || transaction.receipt?.filename, isScanRequest),
+                              errors: getReceiptError(transaction.receipt, transaction.filename || transaction.receipt?.filename, isScanRequest, errorKey),
                           },
                       }),
             },
@@ -783,7 +785,7 @@ function buildOnyxDataForMoneyRequest(
             key: `${ONYXKEYS.COLLECTION.REPORT_ACTIONS}${transactionThreadReport.reportID}`,
             value: {
                 [transactionThreadCreatedReportAction.reportActionID]: {
-                    errors: ErrorUtils.getMicroSecondOnyxError('iou.error.genericCreateFailureMessage'),
+                    errors: ErrorUtils.getMicroSecondOnyxError('iou.error.genericCreateFailureMessage', false, errorKey),
                 },
             },
         },
@@ -3771,6 +3773,8 @@ function deleteMoneyRequest(transactionID: string, reportAction: OnyxTypes.Repor
         });
     }
 
+    const errorKey = DateUtils.getMicroseconds();
+
     failureData.push(
         {
             onyxMethod: Onyx.METHOD.MERGE,
@@ -3779,7 +3783,9 @@ function deleteMoneyRequest(transactionID: string, reportAction: OnyxTypes.Repor
                 [reportAction.reportActionID]: {
                     ...reportAction,
                     pendingAction: null,
-                    errors: ErrorUtils.getMicroSecondOnyxError('iou.error.genericDeleteFailureMessage'),
+                    errors: {
+                        [errorKey]: ['iou.error.genericDeleteFailureMessage', {isTranslated: false}],
+                    },
                 },
             },
         },
@@ -3801,7 +3807,9 @@ function deleteMoneyRequest(transactionID: string, reportAction: OnyxTypes.Repor
                 [reportPreviewAction?.reportActionID ?? '']: {
                     ...reportPreviewAction,
                     pendingAction: null,
-                    errors: ErrorUtils.getMicroSecondOnyxError('iou.error.genericDeleteFailureMessage'),
+                    errors: {
+                        [errorKey]: ['iou.error.genericDeleteFailureMessage', {isTranslated: false}],
+                    },
                 },
             },
         },
diff --git a/src/libs/actions/ReportActions.ts b/src/libs/actions/ReportActions.ts
index 72d1fe9fe63d..66deb8aca065 100644
--- a/src/libs/actions/ReportActions.ts
+++ b/src/libs/actions/ReportActions.ts
@@ -1,5 +1,4 @@
 import Onyx from 'react-native-onyx';
-import type {OnyxEntry} from 'react-native-onyx';
 import * as ReportActionUtils from '@libs/ReportActionsUtils';
 import * as ReportUtils from '@libs/ReportUtils';
 import CONST from '@src/CONST';
@@ -7,7 +6,9 @@ import ONYXKEYS from '@src/ONYXKEYS';
 import type ReportAction from '@src/types/onyx/ReportAction';
 import * as Report from './Report';
 
-function clearReportActionErrors(reportID: string, reportAction: OnyxEntry<ReportAction>) {
+type IgnoreDirection = 'parent' | 'child';
+
+function clearReportActionErrors(reportID: string, reportAction: ReportAction, keys?: string[]) {
     const originalReportID = ReportUtils.getOriginalReportID(reportID, reportAction);
 
     if (!reportAction?.reportActionID) {
@@ -34,6 +35,20 @@ function clearReportActionErrors(reportID: string, reportAction: OnyxEntry<Repor
         return;
     }
 
+    if (keys) {
+        const errors: Record<string, null> = {};
+
+        keys.forEach((key) => {
+            errors[key] = null;
+        });
+
+        Onyx.merge(`${ONYXKEYS.COLLECTION.REPORT_ACTIONS}${originalReportID}`, {
+            [reportAction.reportActionID]: {
+                errors,
+            },
+        });
+        return;
+    }
     Onyx.merge(`${ONYXKEYS.COLLECTION.REPORT_ACTIONS}${originalReportID}`, {
         [reportAction.reportActionID]: {
             errors: null,
@@ -41,7 +56,37 @@ function clearReportActionErrors(reportID: string, reportAction: OnyxEntry<Repor
     });
 }
 
+/**
+ * 
+ignore: `undefined` means we want to check both parent and children report actions
+ignore: `parent` or `child` means we want to ignore checking parent or child report actions because they've been previously checked
+ */
+function clearAllRelatedReportActionErrors(reportID: string, reportAction: ReportAction | null, ignore?: IgnoreDirection, keys?: string[]) {
+    const errorKeys = keys ?? Object.keys(reportAction?.errors ?? {});
+    if (!reportAction || errorKeys.length === 0) {
+        return;
+    }
+
+    clearReportActionErrors(reportID, reportAction, keys);
+
+    const report = ReportUtils.getReport(reportID);
+    if (report?.parentReportID && report?.parentReportActionID && ignore !== 'parent') {
+        const parentReportAction = ReportActionUtils.getReportAction(report.parentReportID, report.parentReportActionID);
+        const parentErrorKeys = Object.keys(parentReportAction?.errors ?? {}).filter((err) => errorKeys.includes(err));
+
+        clearAllRelatedReportActionErrors(report.parentReportID, parentReportAction, 'child', parentErrorKeys);
+    }
+
+    if (reportAction.childReportID && ignore !== 'child') {
+        const childActions = ReportActionUtils.getAllReportActions(reportAction.childReportID);
+        Object.values(childActions).forEach((action) => {
+            const childErrorKeys = Object.keys(action.errors ?? {}).filter((err) => errorKeys.includes(err));
+            clearAllRelatedReportActionErrors(reportAction.childReportID ?? '', action, 'parent', childErrorKeys);
+        });
+    }
+}
+
 export {
     // eslint-disable-next-line import/prefer-default-export
-    clearReportActionErrors,
+    clearAllRelatedReportActionErrors,
 };
diff --git a/src/pages/home/report/ReportActionItem.tsx b/src/pages/home/report/ReportActionItem.tsx
index cdec6945d302..84d5cf5108e9 100644
--- a/src/pages/home/report/ReportActionItem.tsx
+++ b/src/pages/home/report/ReportActionItem.tsx
@@ -829,7 +829,7 @@ function ReportActionItem({
                         />
                         <View style={StyleUtils.getReportActionItemStyle(hovered || isWhisper || isContextMenuActive || !!isEmojiPickerActive || draftMessage !== undefined)}>
                             <OfflineWithFeedback
-                                onClose={() => ReportActions.clearReportActionErrors(report.reportID, action)}
+                                onClose={() => ReportActions.clearAllRelatedReportActionErrors(report.reportID, action)}
                                 // eslint-disable-next-line @typescript-eslint/prefer-nullish-coalescing
                                 pendingAction={
                                     draftMessage !== undefined ? undefined : action.pendingAction ?? (action.isOptimisticAction ? CONST.RED_BRICK_ROAD_PENDING_ACTION.ADD : undefined)
diff --git a/tests/actions/IOUTest.ts b/tests/actions/IOUTest.ts
index 3298cd51c9f1..33cdefb749ec 100644
--- a/tests/actions/IOUTest.ts
+++ b/tests/actions/IOUTest.ts
@@ -786,13 +786,12 @@ describe('actions/IOU', () => {
                     .then(
                         () =>
                             new Promise<void>((resolve) => {
-                                ReportActions.clearReportActionErrors(iouReportID ?? '', iouAction);
-                                ReportActions.clearReportActionErrors(transactionThreadReport?.reportID ?? '', transactionThreadAction);
+                                ReportActions.clearAllRelatedReportActionErrors(iouReportID ?? '', iouAction);
                                 resolve();
                             }),
                     )
 
-                    // Then the reportAction should be removed from Onyx
+                    // Then the reportAction from chat report should be removed from Onyx
                     .then(
                         () =>
                             new Promise<void>((resolve) => {
@@ -809,6 +808,39 @@ describe('actions/IOU', () => {
                             }),
                     )
 
+                    // Then the reportAction from iou report should be removed from Onyx
+                    .then(
+                        () =>
+                            new Promise<void>((resolve) => {
+                                const connectionID = Onyx.connect({
+                                    key: `${ONYXKEYS.COLLECTION.REPORT_ACTIONS}${iouReportID}`,
+                                    waitForCollectionCallback: false,
+                                    callback: (reportActionsForReport) => {
+                                        Onyx.disconnect(connectionID);
+                                        iouAction = Object.values(reportActionsForReport ?? {}).find((reportAction) => reportAction?.actionName === CONST.REPORT.ACTIONS.TYPE.IOU) ?? null;
+                                        expect(iouAction).toBeFalsy();
+                                        resolve();
+                                    },
+                                });
+                            }),
+                    )
+
+                    // Then the reportAction from transaction report should be removed from Onyx
+                    .then(
+                        () =>
+                            new Promise<void>((resolve) => {
+                                const connectionID = Onyx.connect({
+                                    key: `${ONYXKEYS.COLLECTION.REPORT_ACTIONS}${transactionThreadReport?.reportID}`,
+                                    waitForCollectionCallback: false,
+                                    callback: (reportActionsForReport) => {
+                                        Onyx.disconnect(connectionID);
+                                        expect(reportActionsForReport).toMatchObject({});
+                                        resolve();
+                                    },
+                                });
+                            }),
+                    )
+
                     // Along with the associated transaction
                     .then(
                         () =>