diff --git a/src/libs/NextStepUtils.ts b/src/libs/NextStepUtils.ts
index 60af22484514..261a60d3758d 100644
--- a/src/libs/NextStepUtils.ts
+++ b/src/libs/NextStepUtils.ts
@@ -11,7 +11,7 @@ import type DeepValueOf from '@src/types/utils/DeepValueOf';
 import {getNextApproverAccountID} from './actions/IOU';
 import EmailUtils from './EmailUtils';
 import {getLoginsByAccountIDs, getPersonalDetailsByIDs} from './PersonalDetailsUtils';
-import {getCorrectedAutoReportingFrequency, getReimburserAccountID} from './PolicyUtils';
+import {getApprovalWorkflow, getCorrectedAutoReportingFrequency, getReimburserAccountID} from './PolicyUtils';
 import {getDisplayNameForParticipant, getPersonalDetailsForAccountID, hasViolations as hasViolationsReportUtils, isExpenseReport, isInvoiceReport, isPayer} from './ReportUtils';
 
 let currentUserAccountID = -1;
@@ -325,7 +325,8 @@ function buildNextStep(report: OnyxEntry<Report>, predictedNextStatus: ValueOf<t
                 icon: CONST.NEXT_STEP.ICONS.HOURGLASS,
             };
             // We want to show pending approval next step for cases where the policy has approvals enabled
-            if (autoReportingFrequency !== CONST.POLICY.AUTO_REPORTING_FREQUENCIES.INSTANT) {
+            const policyApprovalMode = getApprovalWorkflow(policy);
+            if ([CONST.POLICY.APPROVAL_MODE.BASIC, CONST.POLICY.APPROVAL_MODE.ADVANCED].some((approvalMode) => approvalMode === policyApprovalMode)) {
                 optimisticNextStep.message = [
                     {
                         text: 'Waiting for ',
diff --git a/tests/unit/NextStepUtilsTest.ts b/tests/unit/NextStepUtilsTest.ts
index 47db4bf51dd1..860693f377a6 100644
--- a/tests/unit/NextStepUtilsTest.ts
+++ b/tests/unit/NextStepUtilsTest.ts
@@ -573,6 +573,69 @@ describe('libs/NextStepUtils', () => {
                     expect(result).toMatchObject(optimisticNextStep);
                 });
             });
+
+            test('approval mode enabled', () => {
+                report.managerID = strangeAccountID;
+                optimisticNextStep.icon = CONST.NEXT_STEP.ICONS.HOURGLASS;
+                optimisticNextStep.message = [
+                    {
+                        text: 'Waiting for ',
+                    },
+                    {
+                        text: ownerEmail,
+                        type: 'strong',
+                        clickToCopyText: ownerEmail,
+                    },
+                    {
+                        text: ' to ',
+                    },
+                    {
+                        text: 'approve',
+                    },
+                    {
+                        text: ' %expenses.',
+                    },
+                ];
+
+                return Onyx.merge(`${ONYXKEYS.COLLECTION.POLICY}${policyID}`, {
+                    approvalMode: CONST.POLICY.APPROVAL_MODE.BASIC,
+                }).then(() => {
+                    const result = buildNextStep(report, CONST.REPORT.STATUS_NUM.SUBMITTED);
+
+                    expect(result).toMatchObject(optimisticNextStep);
+                });
+            });
+
+            test('advanced approval mode enabled', () => {
+                report.managerID = strangeAccountID;
+                optimisticNextStep.icon = CONST.NEXT_STEP.ICONS.HOURGLASS;
+                optimisticNextStep.message = [
+                    {
+                        text: 'Waiting for ',
+                    },
+                    {
+                        text: strangeEmail,
+                        type: 'strong',
+                        clickToCopyText: strangeEmail,
+                    },
+                    {
+                        text: ' to ',
+                    },
+                    {
+                        text: 'approve',
+                    },
+                    {
+                        text: ' %expenses.',
+                    },
+                ];
+
+                return Onyx.merge(`${ONYXKEYS.COLLECTION.POLICY}${policyID}`, {
+                    approvalMode: CONST.POLICY.APPROVAL_MODE.ADVANCED,
+                }).then(() => {
+                    const result = buildNextStep(report, CONST.REPORT.STATUS_NUM.SUBMITTED);
+                    expect(result).toMatchObject(optimisticNextStep);
+                });
+            });
         });
 
         describe('it generates an optimistic nextStep once a report has been approved', () => {