diff --git a/src/components/LHNOptionsList/OptionRowLHNData.tsx b/src/components/LHNOptionsList/OptionRowLHNData.tsx
index 8f3d78546dd3..bb5fdb580aa7 100644
--- a/src/components/LHNOptionsList/OptionRowLHNData.tsx
+++ b/src/components/LHNOptionsList/OptionRowLHNData.tsx
@@ -47,6 +47,7 @@ function OptionRowLHNData({
             policy,
             parentReportAction,
             hasViolations: !!shouldDisplayViolations,
+            transactionViolations,
         });
         if (deepEqual(item, optionItemRef.current)) {
             return optionItemRef.current;
diff --git a/src/libs/ReportUtils.ts b/src/libs/ReportUtils.ts
index b4e3d206e566..3076e029fdad 100644
--- a/src/libs/ReportUtils.ts
+++ b/src/libs/ReportUtils.ts
@@ -609,6 +609,13 @@ function isDraftReport(reportID: string | undefined): boolean {
     return !!draftReport;
 }
 
+/**
+ * Returns the report
+ */
+function getReport(reportID: string): OnyxEntry<Report> {
+    return ReportConnection.getAllReports()?.[`${ONYXKEYS.COLLECTION.REPORT}${reportID}`];
+}
+
 /**
  * Returns the parentReport if the given report is a thread
  */
@@ -7380,6 +7387,7 @@ export {
     findPolicyExpenseChatByPolicyID,
     hasOnlyNonReimbursableTransactions,
     getMostRecentlyVisitedReport,
+    getReport,
 };
 
 export type {
diff --git a/src/libs/SidebarUtils.ts b/src/libs/SidebarUtils.ts
index f2082fbf5d2b..3151f522d800 100644
--- a/src/libs/SidebarUtils.ts
+++ b/src/libs/SidebarUtils.ts
@@ -18,11 +18,18 @@ import localeCompare from './LocaleCompare';
 import * as LocalePhoneNumber from './LocalePhoneNumber';
 import * as Localize from './Localize';
 import * as OptionsListUtils from './OptionsListUtils';
+import Permissions from './Permissions';
 import * as PolicyUtils from './PolicyUtils';
 import * as ReportActionsUtils from './ReportActionsUtils';
 import * as ReportUtils from './ReportUtils';
 import * as TaskUtils from './TaskUtils';
 
+let allBetas: OnyxEntry<Beta[]>;
+Onyx.connect({
+    key: ONYXKEYS.BETAS,
+    callback: (value) => (allBetas = value),
+});
+
 const visibleReportActionItems: ReportActions = {};
 Onyx.connect({
     key: ONYXKEYS.COLLECTION.REPORT_ACTIONS,
@@ -94,8 +101,17 @@ function getOrderedReportIDs(
         const isHidden = report.notificationPreference === CONST.REPORT.NOTIFICATION_PREFERENCE.HIDDEN;
         const isFocused = report.reportID === currentReportId;
         const allReportErrors = OptionsListUtils.getAllReportErrors(report, reportActions) ?? {};
+        const transactionReportActions = ReportActionsUtils.getAllReportActions(report.reportID);
+        const oneTransactionThreadReportID = ReportActionsUtils.getOneTransactionThreadReportID(report.reportID, transactionReportActions, undefined);
+        let doesTransactionThreadReportHasViolations = false;
+        if (oneTransactionThreadReportID) {
+            const transactionReport = ReportUtils.getReport(oneTransactionThreadReportID);
+            doesTransactionThreadReportHasViolations = !!transactionReport && OptionsListUtils.shouldShowViolations(transactionReport, betas ?? [], transactionViolations);
+        }
         const hasErrorsOtherThanFailedReceipt =
-            doesReportHaveViolations || Object.values(allReportErrors).some((error) => error?.[0] !== Localize.translateLocal('iou.error.genericSmartscanFailureMessage'));
+            doesTransactionThreadReportHasViolations ||
+            doesReportHaveViolations ||
+            Object.values(allReportErrors).some((error) => error?.[0] !== Localize.translateLocal('iou.error.genericSmartscanFailureMessage'));
         if (ReportUtils.isOneTransactionThread(report.reportID, report.parentReportID ?? '0', parentReportAction)) {
             return;
         }
@@ -214,6 +230,7 @@ function getOptionData({
     policy,
     parentReportAction,
     hasViolations,
+    transactionViolations,
 }: {
     report: OnyxEntry<Report>;
     reportActions: OnyxEntry<ReportActions>;
@@ -222,6 +239,7 @@ function getOptionData({
     policy: OnyxEntry<Policy> | undefined;
     parentReportAction: OnyxEntry<ReportAction> | undefined;
     hasViolations: boolean;
+    transactionViolations?: OnyxCollection<TransactionViolation[]>;
 }): ReportUtils.OptionData | undefined {
     // When a user signs out, Onyx is cleared. Due to the lazy rendering with a virtual list, it's possible for
     // this method to be called after the Onyx data has been cleared out. In that case, it's fine to do
@@ -282,6 +300,21 @@ function getOptionData({
     result.shouldShowSubscript = ReportUtils.shouldReportShowSubscript(report);
     result.pendingAction = report.pendingFields?.addWorkspaceRoom ?? report.pendingFields?.createChat;
     result.brickRoadIndicator = hasErrors || hasViolations ? CONST.BRICK_ROAD_INDICATOR_STATUS.ERROR : '';
+    const oneTransactionThreadReportID = ReportActionsUtils.getOneTransactionThreadReportID(report.reportID, ReportActionsUtils.getAllReportActions(report.reportID));
+    if (oneTransactionThreadReportID) {
+        const oneTransactionThreadReport = ReportUtils.getReport(oneTransactionThreadReportID);
+
+        if (
+            Permissions.canUseViolations(allBetas) &&
+            ReportUtils.shouldDisplayTransactionThreadViolations(
+                oneTransactionThreadReport,
+                transactionViolations,
+                ReportActionsUtils.getAllReportActions(report.reportID)[oneTransactionThreadReport?.parentReportActionID ?? '-1'],
+            )
+        ) {
+            result.brickRoadIndicator = CONST.BRICK_ROAD_INDICATOR_STATUS.ERROR;
+        }
+    }
     result.ownerAccountID = report.ownerAccountID;
     result.managerID = report.managerID;
     result.reportID = report.reportID;
diff --git a/src/libs/actions/Task.ts b/src/libs/actions/Task.ts
index 0a7244bde1e5..964f5be0129b 100644
--- a/src/libs/actions/Task.ts
+++ b/src/libs/actions/Task.ts
@@ -126,7 +126,7 @@ function createTaskAndNavigate(
 
     const currentTime = DateUtils.getDBTimeWithSkew();
     const lastCommentText = ReportUtils.formatReportLastMessageText(ReportActionsUtils.getReportActionText(optimisticAddCommentReport.reportAction));
-    const parentReport = getReport(parentReportID);
+    const parentReport = ReportUtils.getReport(parentReportID);
     const optimisticParentReport = {
         lastVisibleActionCreated: optimisticAddCommentReport.reportAction.created,
         lastMessageText: lastCommentText,
@@ -906,13 +906,6 @@ function getParentReport(report: OnyxEntry<OnyxTypes.Report>): OnyxEntry<OnyxTyp
     return ReportConnection.getAllReports()?.[`${ONYXKEYS.COLLECTION.REPORT}${report.parentReportID}`];
 }
 
-/**
- * Returns the report
- */
-function getReport(reportID: string): OnyxEntry<OnyxTypes.Report> {
-    return ReportConnection.getAllReports()?.[`${ONYXKEYS.COLLECTION.REPORT}${reportID}`];
-}
-
 /**
  * Cancels a task by setting the report state to SUBMITTED and status to CLOSED
  */