diff --git a/src/libs/TransactionUtils/index.ts b/src/libs/TransactionUtils/index.ts
index a865b78a9bbf..4fc850c83631 100644
--- a/src/libs/TransactionUtils/index.ts
+++ b/src/libs/TransactionUtils/index.ts
@@ -393,7 +393,7 @@ function getOriginalAmount(transaction: Transaction): number {
 /**
  * Verify if the transaction is expecting the distance to be calculated on the server
  */
-function isFetchingWaypointsFromServer(transaction: OnyxEntry<Transaction>): boolean {
+function isFetchingWaypointsFromServer(transaction: OnyxInputOrEntry<Transaction>): boolean {
     return !!transaction?.pendingFields?.waypoints;
 }
 
@@ -753,7 +753,9 @@ function calculateAmountForUpdatedWaypointOrRate(
     policy: OnyxInputOrEntry<Policy>,
     isFromExpenseReport: boolean,
 ) {
-    if (isEmptyObject(transactionChanges?.routes?.route0?.geometry) && isEmptyObject(transactionChanges.customUnitRateID)) {
+    const hasModifiedRouteWithPendingWaypoints = !isEmptyObject(transactionChanges.waypoints) && isEmptyObject(transactionChanges?.routes?.route0?.geometry);
+    const hasModifiedRateWithPendingWaypoints = !!transactionChanges?.customUnitRateID && isFetchingWaypointsFromServer(transaction);
+    if (hasModifiedRouteWithPendingWaypoints || hasModifiedRateWithPendingWaypoints) {
         return {
             amount: CONST.IOU.DEFAULT_AMOUNT,
             modifiedAmount: CONST.IOU.DEFAULT_AMOUNT,
diff --git a/src/libs/actions/IOU.ts b/src/libs/actions/IOU.ts
index 9cc844849c89..e84a14836efd 100644
--- a/src/libs/actions/IOU.ts
+++ b/src/libs/actions/IOU.ts
@@ -2524,11 +2524,13 @@ function getUpdateMoneyRequestParams(
     }
 
     // Step 3: Build the modified expense report actions
-    // We don't create a modified report action if we're updating the waypoints,
-    // since there isn't actually any optimistic data we can create for them and the report action is created on the server
-    // with the response from the MapBox API
+    // We don't create a modified report action if:
+    // - we're updating the waypoints
+    // - we're updating the distance rate while the waypoints are still pending
+    // In these cases, there isn't a valid optimistic mileage data we can use,
+    // and the report action is created on the server with the distance-related response from the MapBox API
     const updatedReportAction = ReportUtils.buildOptimisticModifiedExpenseReportAction(transactionThread, transaction, transactionChanges, isFromExpenseReport, policy);
-    if (!hasPendingWaypoints) {
+    if (!hasPendingWaypoints && !(hasModifiedDistanceRate && TransactionUtils.isFetchingWaypointsFromServer(transaction))) {
         params.reportActionID = updatedReportAction.reportActionID;
 
         optimisticData.push({
@@ -2806,7 +2808,7 @@ function getUpdateTrackExpenseParams(
     if (transaction && updatedTransaction && (hasPendingWaypoints || hasModifiedDistanceRate)) {
         updatedTransaction = {
             ...updatedTransaction,
-            ...TransactionUtils.calculateAmountForUpdatedWaypointOrRate(transaction, transactionChanges, policy, ReportUtils.isExpenseReport(transactionThread)),
+            ...TransactionUtils.calculateAmountForUpdatedWaypointOrRate(transaction, transactionChanges, policy, false),
         };
 
         // Delete the draft transaction when editing waypoints when the server responds successfully and there are no errors
@@ -2830,11 +2832,13 @@ function getUpdateTrackExpenseParams(
     }
 
     // Step 3: Build the modified expense report actions
-    // We don't create a modified report action if we're updating the waypoints,
-    // since there isn't actually any optimistic data we can create for them and the report action is created on the server
-    // with the response from the MapBox API
+    // We don't create a modified report action if:
+    // - we're updating the waypoints
+    // - we're updating the distance rate while the waypoints are still pending
+    // In these cases, there isn't a valid optimistic mileage data we can use,
+    // and the report action is created on the server with the distance-related response from the MapBox API
     const updatedReportAction = ReportUtils.buildOptimisticModifiedExpenseReportAction(transactionThread, transaction, transactionChanges, false, policy);
-    if (!hasPendingWaypoints) {
+    if (!hasPendingWaypoints && !(hasModifiedDistanceRate && TransactionUtils.isFetchingWaypointsFromServer(transaction))) {
         params.reportActionID = updatedReportAction.reportActionID;
 
         optimisticData.push({
@@ -3144,9 +3148,9 @@ function updateMoneyRequestDistanceRate(
     };
     const allReports = ReportConnection.getAllReports();
     const transactionThreadReport = allReports?.[`${ONYXKEYS.COLLECTION.REPORT}${transactionThreadReportID}`] ?? null;
-
+    const parentReport = allReports?.[`${ONYXKEYS.COLLECTION.REPORT}${transactionThreadReport?.parentReportID}`] ?? null;
     let data: UpdateMoneyRequestData;
-    if (ReportUtils.isTrackExpenseReport(transactionThreadReport)) {
+    if (ReportUtils.isTrackExpenseReport(transactionThreadReport) && ReportUtils.isSelfDM(parentReport)) {
         data = getUpdateTrackExpenseParams(transactionID, transactionThreadReportID, transactionChanges, true, policy);
     } else {
         data = getUpdateMoneyRequestParams(transactionID, transactionThreadReportID, transactionChanges, policy, policyTagList, policyCategories, true);