diff --git a/src/components/MoneyRequestHeader.tsx b/src/components/MoneyRequestHeader.tsx
index f53e3130f660..fe8cc3506b3f 100644
--- a/src/components/MoneyRequestHeader.tsx
+++ b/src/components/MoneyRequestHeader.tsx
@@ -84,8 +84,10 @@ function MoneyRequestHeader({session, parentReport, report, parentReportAction,
     let canDeleteRequest = canModifyRequest;
 
     if (ReportUtils.isPaidGroupPolicyExpenseReport(moneyRequestReport)) {
-        // If it's a paid policy expense report, only allow deleting the request if it's not submitted or the user is the policy admin
-        canDeleteRequest = canDeleteRequest && (ReportUtils.isDraftExpenseReport(moneyRequestReport) || PolicyUtils.isPolicyAdmin(policy));
+        // If it's a paid policy expense report, only allow deleting the request if it's in draft state or instantly submitted state or the user is the policy admin
+        canDeleteRequest =
+            canDeleteRequest &&
+            (ReportUtils.isDraftExpenseReport(moneyRequestReport) || ReportUtils.isExpenseReportWithInstantSubmittedState(moneyRequestReport) || PolicyUtils.isPolicyAdmin(policy));
     }
 
     const changeMoneyRequestStatus = () => {
diff --git a/src/libs/ReportUtils.ts b/src/libs/ReportUtils.ts
index 747ba27780a3..95a4bc4a8e1f 100644
--- a/src/libs/ReportUtils.ts
+++ b/src/libs/ReportUtils.ts
@@ -955,6 +955,14 @@ function isProcessingReport(report: OnyxEntry<Report> | EmptyObject): boolean {
     return report?.stateNum === CONST.REPORT.STATE_NUM.SUBMITTED && report?.statusNum === CONST.REPORT.STATUS_NUM.SUBMITTED;
 }
 
+/**
+ * Returns true if the policy has `instant` reporting frequency and if the report is still being processed (i.e. submitted state)
+ */
+function isExpenseReportWithInstantSubmittedState(report: OnyxEntry<Report> | EmptyObject): boolean {
+    const policy = allPolicies?.[`${ONYXKEYS.COLLECTION.POLICY}${report?.policyID}`] ?? null;
+    return isExpenseReport(report) && isProcessingReport(report) && PolicyUtils.isInstantSubmitEnabled(policy);
+}
+
 /**
  * Check if the report is a single chat report that isn't a thread
  * and personal detail of participant is optimistic data
@@ -1264,8 +1272,8 @@ function canDeleteReportAction(reportAction: OnyxEntry<ReportAction>, reportID:
 
         if (isActionOwner) {
             if (!isEmptyObject(report) && isPaidGroupPolicyExpenseReport(report)) {
-                // If it's a paid policy expense report, only allow deleting the request if it's not submitted or the user is the policy admin
-                return isDraftExpenseReport(report) || PolicyUtils.isPolicyAdmin(policy);
+                // If it's a paid policy expense report, only allow deleting the request if it's a draft or is instantly submitted or the user is the policy admin
+                return isDraftExpenseReport(report) || isExpenseReportWithInstantSubmittedState(report) || PolicyUtils.isPolicyAdmin(policy);
             }
             return true;
         }
@@ -4238,7 +4246,7 @@ function canRequestMoney(report: OnyxEntry<Report>, policy: OnyxEntry<Policy>, o
     if (isMoneyRequestReport(report)) {
         const isOwnExpenseReport = isExpenseReport(report) && isOwnPolicyExpenseChat;
         if (isOwnExpenseReport && PolicyUtils.isPaidGroupPolicy(policy)) {
-            return isDraftExpenseReport(report);
+            return isDraftExpenseReport(report) || isExpenseReportWithInstantSubmittedState(report);
         }
 
         return (isOwnExpenseReport || isIOUReport(report)) && !isReportApproved(report) && !isSettled(report?.reportID);
@@ -5040,6 +5048,7 @@ export {
     isPublicAnnounceRoom,
     isConciergeChatReport,
     isProcessingReport,
+    isExpenseReportWithInstantSubmittedState,
     isCurrentUserTheOnlyParticipant,
     hasAutomatedExpensifyAccountIDs,
     hasExpensifyGuidesEmails,
diff --git a/src/libs/actions/IOU.ts b/src/libs/actions/IOU.ts
index ca43d92bde83..e2ad00e1555d 100644
--- a/src/libs/actions/IOU.ts
+++ b/src/libs/actions/IOU.ts
@@ -804,8 +804,8 @@ function getMoneyRequestInformation(
         // If the scheduled submit is turned off on the policy, user needs to manually submit the report which is indicated by GBR in LHN
         needsToBeManuallySubmitted = isFromPaidPolicy && !policy?.harvesting?.enabled;
 
-        // If the linked expense report on paid policy is not draft, we need to create a new draft expense report
-        if (iouReport && isFromPaidPolicy && !ReportUtils.isDraftExpenseReport(iouReport)) {
+        // If the linked expense report on paid policy is not draft and not instantly submitted, we need to create a new draft expense report
+        if (iouReport && isFromPaidPolicy && !ReportUtils.isDraftExpenseReport(iouReport) && !ReportUtils.isExpenseReportWithInstantSubmittedState(iouReport)) {
             iouReport = null;
         }
     }
@@ -814,7 +814,7 @@ function getMoneyRequestInformation(
         if (isPolicyExpenseChat) {
             iouReport = {...iouReport};
             if (iouReport?.currency === currency && typeof iouReport.total === 'number') {
-                // Because of the Expense reports are stored as negative values, we substract the total from the amount
+                // Because of the Expense reports are stored as negative values, we subtract the total from the amount
                 iouReport.total -= amount;
             }
         } else {