diff --git a/src/components/ReportActionItem/MoneyRequestReportPreview/MoneyRequestReportPreviewContent.tsx b/src/components/ReportActionItem/MoneyRequestReportPreview/MoneyRequestReportPreviewContent.tsx
index 5be6c8ce835e..11a9ed74bc4c 100644
--- a/src/components/ReportActionItem/MoneyRequestReportPreview/MoneyRequestReportPreviewContent.tsx
+++ b/src/components/ReportActionItem/MoneyRequestReportPreview/MoneyRequestReportPreviewContent.tsx
@@ -1,3 +1,4 @@
+import {useFocusEffect} from '@react-navigation/native';
 import React, {useCallback, useContext, useDeferredValue, useEffect, useMemo, useRef, useState} from 'react';
 import {FlatList, View} from 'react-native';
 import type {ListRenderItemInfo, ViewToken} from 'react-native';
@@ -95,6 +96,7 @@ const reportAttributesSelector = (c: OnyxEntry<ReportAttributesDerivedValue>) =>
 
 function MoneyRequestReportPreviewContent({
     iouReportID,
+    newTransactionIDs,
     chatReportID,
     action,
     containerStyles,
@@ -414,7 +416,7 @@ function MoneyRequestReportPreviewContent({
         thumbsUpScale.set(isApprovedAnimationRunning ? withDelay(CONST.ANIMATION_THUMBS_UP_DELAY, withSpring(1, {duration: CONST.ANIMATION_THUMBS_UP_DURATION})) : 1);
     }, [isApproved, isApprovedAnimationRunning, thumbsUpScale]);
 
-    const carouselTransactions = shouldShowAccessPlaceHolder ? [] : transactions.slice(0, 11);
+    const carouselTransactions = useMemo(() => (shouldShowAccessPlaceHolder ? [] : transactions.slice(0, 11)), [shouldShowAccessPlaceHolder, transactions]);
     const prevCarouselTransactionLength = useRef(0);
 
     useEffect(() => {
@@ -440,6 +442,47 @@ function MoneyRequestReportPreviewContent({
     const viewabilityConfig = useMemo(() => {
         return {itemVisiblePercentThreshold: 100};
     }, []);
+    const numberOfScrollToIndexFailed = useRef(0);
+    const onScrollToIndexFailed: (info: {index: number; highestMeasuredFrameIndex: number; averageItemLength: number}) => void = ({index}) => {
+        // There is a probability of infinite loop so we want to make sure that it is not called more than 5 times.
+        if (numberOfScrollToIndexFailed.current > 4) {
+            return;
+        }
+
+        // Sometimes scrollToIndex might be called before the item is rendered so we will re-call scrollToIndex after a small delay.
+        setTimeout(() => {
+            carouselRef.current?.scrollToIndex({index, animated: true, viewOffset: 2 * styles.gap2.gap});
+        }, 100);
+        numberOfScrollToIndexFailed.current++;
+    };
+
+    const carouselTransactionsRef = useRef(carouselTransactions);
+
+    useEffect(() => {
+        carouselTransactionsRef.current = carouselTransactions;
+    }, [carouselTransactions]);
+
+    useFocusEffect(
+        useCallback(() => {
+            const index = carouselTransactions.findIndex((transaction) => newTransactionIDs?.includes(transaction.transactionID));
+
+            if (index < 0) {
+                return;
+            }
+            const newTransaction = carouselTransactions.at(index);
+            setTimeout(() => {
+                // If the new transaction is not available at the index it was on before the delay, avoid the scrolling
+                // because we are scrolling to either a wrong or unavailable transaction (which can cause crash).
+                if (newTransaction?.transactionID !== carouselTransactionsRef.current.at(index)?.transactionID) {
+                    return;
+                }
+                numberOfScrollToIndexFailed.current = 0;
+                carouselRef.current?.scrollToIndex({index, viewOffset: 2 * styles.gap2.gap, animated: true});
+            }, CONST.ANIMATED_TRANSITION);
+
+            // eslint-disable-next-line react-compiler/react-compiler, react-hooks/exhaustive-deps
+        }, [newTransactionIDs]),
+    );
 
     // eslint-disable-next-line react-compiler/react-compiler
     const onViewableItemsChanged = useRef(({viewableItems}: {viewableItems: ViewToken[]; changed: ViewToken[]}) => {
@@ -807,6 +850,7 @@ function MoneyRequestReportPreviewContent({
                                     ) : (
                                         <View style={[styles.flex1, styles.flexColumn, styles.overflowVisible]}>
                                             <FlatList
+                                                onScrollToIndexFailed={onScrollToIndexFailed}
                                                 snapToAlignment="start"
                                                 decelerationRate="fast"
                                                 snapToInterval={reportPreviewStyles.transactionPreviewCarouselStyle.width + styles.gap2.gap}
diff --git a/src/components/ReportActionItem/MoneyRequestReportPreview/index.tsx b/src/components/ReportActionItem/MoneyRequestReportPreview/index.tsx
index 3de2093e0fb3..f81c8f75bd15 100644
--- a/src/components/ReportActionItem/MoneyRequestReportPreview/index.tsx
+++ b/src/components/ReportActionItem/MoneyRequestReportPreview/index.tsx
@@ -2,6 +2,8 @@ import React, {useCallback, useMemo, useRef, useState} from 'react';
 import type {LayoutChangeEvent, ListRenderItem} from 'react-native';
 import {usePersonalDetails} from '@components/OnyxListItemProvider';
 import TransactionPreview from '@components/ReportActionItem/TransactionPreview';
+import useNewTransactions from '@hooks/useNewTransactions';
+import useOnyx from '@hooks/useOnyx';
 import usePolicy from '@hooks/usePolicy';
 import useReportWithTransactionsAndViolations from '@hooks/useReportWithTransactionsAndViolations';
 import useResponsiveLayout from '@hooks/useResponsiveLayout';
@@ -112,6 +114,9 @@ function MoneyRequestReportPreview({
         });
         Navigation.navigate(ROUTES.REPORT_WITH_ID.getRoute(iouReportID, undefined, undefined, Navigation.getActiveRoute()));
     }, [iouReportID]);
+    const [reportMetadata] = useOnyx(`${ONYXKEYS.COLLECTION.REPORT_METADATA}${chatReportID}`, {canBeMissing: true});
+    const newTransactions = useNewTransactions(reportMetadata?.hasOnceLoadedReportActions, transactions);
+    const newTransactionIDs = newTransactions.map((transaction) => transaction.transactionID);
 
     const renderItem: ListRenderItem<Transaction> = ({item}) => (
         <TransactionPreview
@@ -133,11 +138,13 @@ function MoneyRequestReportPreview({
             reportPreviewAction={action}
             onPreviewPressed={openReportFromPreview}
             shouldShowPayerAndReceiver={shouldShowPayerAndReceiver}
+            shouldHighlight={newTransactionIDs.includes(item.transactionID)}
         />
     );
 
     return (
         <MoneyRequestReportPreviewContent
+            newTransactionIDs={newTransactionIDs}
             iouReportID={iouReportID}
             chatReportID={chatReportID}
             iouReport={iouReport}
diff --git a/src/components/ReportActionItem/MoneyRequestReportPreview/types.ts b/src/components/ReportActionItem/MoneyRequestReportPreview/types.ts
index 0fb20456c25c..bd15dcdc56b9 100644
--- a/src/components/ReportActionItem/MoneyRequestReportPreview/types.ts
+++ b/src/components/ReportActionItem/MoneyRequestReportPreview/types.ts
@@ -103,6 +103,9 @@ type MoneyRequestReportPreviewContentProps = MoneyRequestReportPreviewContentOny
 
         /** Callback called when the whole preview is pressed */
         onPress: () => void;
+
+        /** IDs of newly added transactions */
+        newTransactionIDs?: string[];
     };
 
 export type {MoneyRequestReportPreviewContentProps, MoneyRequestReportPreviewProps, MoneyRequestReportPreviewStyleType};
diff --git a/src/components/ReportActionItem/TransactionPreview/TransactionPreviewContent.tsx b/src/components/ReportActionItem/TransactionPreview/TransactionPreviewContent.tsx
index 5f16f61fe2f2..81e71bdefebd 100644
--- a/src/components/ReportActionItem/TransactionPreview/TransactionPreviewContent.tsx
+++ b/src/components/ReportActionItem/TransactionPreview/TransactionPreviewContent.tsx
@@ -1,6 +1,7 @@
 import truncate from 'lodash/truncate';
 import React, {useMemo} from 'react';
 import {View} from 'react-native';
+import Animated from 'react-native-reanimated';
 import Button from '@components/Button';
 import Icon from '@components/Icon';
 // eslint-disable-next-line no-restricted-imports
@@ -11,6 +12,7 @@ import ReportActionItemImages from '@components/ReportActionItem/ReportActionIte
 import UserInfoCellsWithArrow from '@components/SelectionListWithSections/Search/UserInfoCellsWithArrow';
 import Text from '@components/Text';
 import TransactionPreviewSkeletonView from '@components/TransactionPreviewSkeletonView';
+import useAnimatedHighlightStyle from '@hooks/useAnimatedHighlightStyle';
 import useCurrentUserPersonalDetails from '@hooks/useCurrentUserPersonalDetails';
 import useEnvironment from '@hooks/useEnvironment';
 import {useMemoizedLazyExpensifyIcons} from '@hooks/useLazyAsset';
@@ -62,6 +64,7 @@ function TransactionPreviewContent({
     shouldShowPayerAndReceiver,
     navigateToReviewFields,
     isReviewDuplicateTransactionPage = false,
+    shouldHighlight = false,
 }: TransactionPreviewContentProps) {
     const icons = useMemoizedLazyExpensifyIcons(['Folder', 'Tag']);
     const theme = useTheme();
@@ -218,10 +221,17 @@ function TransactionPreviewContent({
     const previewTextViewGap = (shouldShowCategoryOrTag || !shouldWrapDisplayAmount) && styles.gap2;
     const previewTextMargin = shouldShowIOUHeader && shouldShowMerchantOrDescription && !isBillSplit && !shouldShowCategoryOrTag && styles.mbn1;
 
+    const animatedHighlightStyle = useAnimatedHighlightStyle({
+        shouldHighlight,
+        highlightColor: theme.messageHighlightBG,
+        backgroundColor: theme.cardBG,
+        shouldApplyOtherStyles: false,
+    });
+
     const transactionWrapperStyles = [styles.border, styles.moneyRequestPreviewBox, (isIOUSettled || isApproved) && isSettlementOrApprovalPartial && styles.offlineFeedbackPending];
 
     return (
-        <View style={[transactionWrapperStyles, containerStyles]}>
+        <Animated.View style={[transactionWrapperStyles, containerStyles, animatedHighlightStyle]}>
             <OfflineWithFeedback
                 errors={walletTermsErrors}
                 onClose={() => offlineWithFeedbackOnClose}
@@ -232,7 +242,7 @@ function TransactionPreviewContent({
                 shouldDisableOpacity={isDeleted}
                 shouldHideOnDelete={shouldHideOnDelete}
             >
-                <View style={[(isTransactionScanning || isWhisper) && [styles.reportPreviewBoxHoverBorder, styles.reportContainerBorderRadius]]}>
+                <View style={[(isTransactionScanning || isWhisper) && [styles.reportPreviewBoxHoverBorderColor, styles.reportContainerBorderRadius]]}>
                     <ReportActionItemImages
                         images={receiptImages}
                         // eslint-disable-next-line @typescript-eslint/prefer-nullish-coalescing
@@ -397,7 +407,7 @@ function TransactionPreviewContent({
                     )}
                 </View>
             </OfflineWithFeedback>
-        </View>
+        </Animated.View>
     );
 }
 
diff --git a/src/components/ReportActionItem/TransactionPreview/index.tsx b/src/components/ReportActionItem/TransactionPreview/index.tsx
index 5a50a494d99a..b0388743d37a 100644
--- a/src/components/ReportActionItem/TransactionPreview/index.tsx
+++ b/src/components/ReportActionItem/TransactionPreview/index.tsx
@@ -41,6 +41,7 @@ function TransactionPreview(props: TransactionPreviewProps) {
         iouReportID,
         transactionID: transactionIDFromProps,
         onPreviewPressed,
+        shouldHighlight,
         reportPreviewAction,
         contextAction,
     } = props;
@@ -130,6 +131,7 @@ function TransactionPreview(props: TransactionPreviewProps) {
                     walletTermsErrors={walletTerms?.errors}
                     routeName={route.name}
                     isReviewDuplicateTransactionPage={isReviewDuplicateTransactionPage}
+                    shouldHighlight={shouldHighlight}
                 />
             </PressableWithoutFeedback>
         );
@@ -154,6 +156,7 @@ function TransactionPreview(props: TransactionPreviewProps) {
             walletTermsErrors={walletTerms?.errors}
             routeName={route.name}
             reportPreviewAction={reportPreviewAction}
+            shouldHighlight={shouldHighlight}
             isReviewDuplicateTransactionPage={isReviewDuplicateTransactionPage}
         />
     );
diff --git a/src/components/ReportActionItem/TransactionPreview/types.ts b/src/components/ReportActionItem/TransactionPreview/types.ts
index 886dcf25a185..2a94f8701261 100644
--- a/src/components/ReportActionItem/TransactionPreview/types.ts
+++ b/src/components/ReportActionItem/TransactionPreview/types.ts
@@ -72,6 +72,9 @@ type TransactionPreviewProps = {
 
     /** In case we want to override context menu action */
     contextAction?: OnyxEntry<ReportAction>;
+
+    /** Whether the item should be highlighted */
+    shouldHighlight?: boolean;
 };
 
 type TransactionPreviewContentProps = {
@@ -141,6 +144,9 @@ type TransactionPreviewContentProps = {
 
     /** Is this component used during duplicate review flow */
     isReviewDuplicateTransactionPage?: boolean;
+
+    /** Whether the item should be highlighted */
+    shouldHighlight?: boolean;
 };
 
 export type {TransactionPreviewContentProps, TransactionPreviewProps, TransactionPreviewStyleType};
diff --git a/src/hooks/useAnimatedHighlightStyle/index.ts b/src/hooks/useAnimatedHighlightStyle/index.ts
index 45646ad9be03..cbb744e164d9 100644
--- a/src/hooks/useAnimatedHighlightStyle/index.ts
+++ b/src/hooks/useAnimatedHighlightStyle/index.ts
@@ -33,6 +33,9 @@ type Props = {
     /** Whether the item should be highlighted */
     shouldHighlight: boolean;
 
+    /** Whether it should return height and border radius styles */
+    shouldApplyOtherStyles?: boolean;
+
     /** The base backgroundColor used for the highlight animation, defaults to theme.appBG
      * @default theme.appBG
      */
@@ -63,6 +66,7 @@ export default function useAnimatedHighlightStyle({
     height,
     highlightColor,
     backgroundColor,
+    shouldApplyOtherStyles = true,
     skipInitialFade = false,
 }: Props) {
     const [startHighlight, setStartHighlight] = useState(false);
@@ -80,9 +84,8 @@ export default function useAnimatedHighlightStyle({
 
         return {
             backgroundColor: interpolateColor(repeatableValue, [0, 1], [backgroundColor ?? theme.appBG, highlightColor ?? theme.border]),
-            height: height ? interpolate(nonRepeatableValue, [0, 1], [0, height]) : 'auto',
             opacity: interpolate(nonRepeatableValue, [0, 1], [0, 1]),
-            borderRadius,
+            ...(shouldApplyOtherStyles && {height: height ? interpolate(nonRepeatableValue, [0, 1], [0, height]) : 'auto', borderRadius}),
         };
     }, [borderRadius, height, backgroundColor, highlightColor, theme.appBG, theme.border]);
 
diff --git a/src/styles/index.ts b/src/styles/index.ts
index efc5a3d8ac20..8b53b3eb5df3 100644
--- a/src/styles/index.ts
+++ b/src/styles/index.ts
@@ -4246,6 +4246,10 @@ const staticStyles = (theme: ThemeColors) =>
             backgroundColor: theme.cardBG,
         },
 
+        reportPreviewBoxHoverBorderColor: {
+            borderColor: theme.cardBG,
+        },
+
         reportContainerBorderRadius: {
             borderRadius: variables.componentBorderRadiusLarge,
         },