diff --git a/src/pages/home/ReportScreen.tsx b/src/pages/home/ReportScreen.tsx
index f3f3c7a2b195..3d1cf2622a46 100644
--- a/src/pages/home/ReportScreen.tsx
+++ b/src/pages/home/ReportScreen.tsx
@@ -386,7 +386,14 @@ function ReportScreen({route, navigation}: ReportScreenProps) {
         () => !!linkedAction && !shouldReportActionBeVisible(linkedAction, linkedAction.reportActionID, canUserPerformWriteAction(report)),
         [linkedAction, report],
     );
+
     const prevIsLinkedActionDeleted = usePrevious(linkedAction ? isLinkedActionDeleted : undefined);
+
+    // eslint-disable-next-line react-compiler/react-compiler
+    const lastReportActionIDFromRoute = usePrevious(!firstRenderRef.current ? reportActionIDFromRoute : undefined);
+
+    const [isNavigatingToDeletedAction, setIsNavigatingToDeletedAction] = useState(false);
+
     const isLinkedActionInaccessibleWhisper = useMemo(
         () => !!linkedAction && isWhisperAction(linkedAction) && !(linkedAction?.whisperedToAccountIDs ?? []).includes(currentUserAccountID),
         [currentUserAccountID, linkedAction],
@@ -416,11 +423,9 @@ function ReportScreen({route, navigation}: ReportScreenProps) {
         (!!deleteTransactionNavigateBackUrl && getReportIDFromLink(deleteTransactionNavigateBackUrl) === report?.reportID) ||
         (!reportMetadata.isOptimisticReport && isLoading);
 
-    const isLinkedActionBecomesDeleted = prevIsLinkedActionDeleted !== undefined && !prevIsLinkedActionDeleted && isLinkedActionDeleted;
-
     // eslint-disable-next-line rulesdir/no-negated-variables
     const shouldShowNotFoundLinkedAction =
-        (!isLinkedActionInaccessibleWhisper && isLinkedActionDeleted && !isLinkedActionBecomesDeleted) ||
+        (!isLinkedActionInaccessibleWhisper && isLinkedActionDeleted && isNavigatingToDeletedAction) ||
         (shouldShowSkeleton &&
             !reportMetadata.isLoadingInitialReportActions &&
             !!reportActionIDFromRoute &&
@@ -735,13 +740,23 @@ function ReportScreen({route, navigation}: ReportScreenProps) {
     }, [fetchReport]);
 
     useEffect(() => {
-        // If the linked action is previously available but now deleted,
-        // remove the reportActionID from the params to not link to the deleted action.
-        if (!isLinkedActionBecomesDeleted) {
+        // Only handle deletion cases when there's a deleted action
+        if (!isLinkedActionDeleted) {
+            setIsNavigatingToDeletedAction(false);
             return;
         }
-        Navigation.setParams({reportActionID: ''});
-    }, [isLinkedActionBecomesDeleted]);
+
+        // we want to do this destinguish between normal navigation and delete behavior
+        if (lastReportActionIDFromRoute !== reportActionIDFromRoute) {
+            setIsNavigatingToDeletedAction(true);
+            return;
+        }
+
+        // Clear params when Action gets deleted while heighlighted
+        if (!isNavigatingToDeletedAction && prevIsLinkedActionDeleted === false) {
+            Navigation.setParams({reportActionID: ''});
+        }
+    }, [isLinkedActionDeleted, prevIsLinkedActionDeleted, lastReportActionIDFromRoute, reportActionIDFromRoute, isNavigatingToDeletedAction]);
 
     // If user redirects to an inaccessible whisper via a deeplink, on a report they have access to,
     // then we set reportActionID as empty string, so we display them the report and not the "Not found page".
@@ -775,7 +790,6 @@ function ReportScreen({route, navigation}: ReportScreenProps) {
         !isDeletedAction(mostRecentReportAction);
 
     const lastRoute = usePrevious(route);
-    const lastReportActionIDFromRoute = usePrevious(reportActionIDFromRoute);
 
     const onComposerFocus = useCallback(() => setIsComposerFocus(true), []);
     const onComposerBlur = useCallback(() => setIsComposerFocus(false), []);