diff --git a/src/libs/actions/IOU.ts b/src/libs/actions/IOU.ts
index 7a72df9f1d87..6a2885814540 100644
--- a/src/libs/actions/IOU.ts
+++ b/src/libs/actions/IOU.ts
@@ -7049,9 +7049,19 @@ function canApproveIOU(iouReport: OnyxTypes.OnyxInputOrEntry<OnyxTypes.Report>,
     const iouSettled = ReportUtils.isSettled(iouReport?.reportID);
     const reportNameValuePairs = ReportUtils.getReportNameValuePairs(iouReport?.reportID);
     const isArchivedReport = ReportUtils.isArchivedRoom(iouReport, reportNameValuePairs);
-    const unheldTotalIsZero = iouReport && iouReport.unheldTotal === 0;
+    let isTransactionBeingScanned = false;
+    const reportTransactions = TransactionUtils.getAllReportTransactions(iouReport?.reportID);
+    for (const transaction of reportTransactions) {
+        const hasReceipt = TransactionUtils.hasReceipt(transaction);
+        const isReceiptBeingScanned = TransactionUtils.isReceiptBeingScanned(transaction);
+
+        // If transaction has receipt (scan) and its receipt is being scanned, we shouldn't be able to Approve
+        if (hasReceipt && isReceiptBeingScanned) {
+            isTransactionBeingScanned = true;
+        }
+    }
 
-    return isCurrentUserManager && !isOpenExpenseReport && !isApproved && !iouSettled && !isArchivedReport && !unheldTotalIsZero;
+    return isCurrentUserManager && !isOpenExpenseReport && !isApproved && !iouSettled && !isArchivedReport && !isTransactionBeingScanned;
 }
 
 function canIOUBePaid(