diff --git a/src/libs/actions/Report.js b/src/libs/actions/Report.js
index d98f62c4aa21..5ef5463a5437 100644
--- a/src/libs/actions/Report.js
+++ b/src/libs/actions/Report.js
@@ -1254,10 +1254,11 @@ function deleteReportComment(reportID, reportAction) {
  *
  * @param {Number} reportID
  * @param {Number} [sequenceNumber] This can be used to set the last read actionID to a specific
+ * @param {Boolean} [manuallyMarked] If the user manually marked this as unread, we need to tell the API
  *  spot (eg. mark-as-unread). Otherwise, when this param is omitted, the highest sequence number becomes the one that
  *  is last read (meaning that the entire report history has been read)
  */
-function updateLastReadActionID(reportID, sequenceNumber) {
+function updateLastReadActionID(reportID, sequenceNumber, manuallyMarked = false) {
     // If report data is loading, we can't update the last read sequence number because it is obsolete
     if (isReportDataLoading) {
         return;
@@ -1283,6 +1284,7 @@ function updateLastReadActionID(reportID, sequenceNumber) {
     API.Report_UpdateLastRead({
         reportID,
         sequenceNumber: lastReadSequenceNumber,
+        markAsUnread: manuallyMarked,
     });
 }
 
diff --git a/src/pages/home/report/ContextMenu/ContextMenuActions.js b/src/pages/home/report/ContextMenu/ContextMenuActions.js
index 6306cc67f4b5..b61ebe62f150 100644
--- a/src/pages/home/report/ContextMenu/ContextMenuActions.js
+++ b/src/pages/home/report/ContextMenu/ContextMenuActions.js
@@ -97,7 +97,7 @@ export default [
         successIcon: Expensicons.Checkmark,
         shouldShow: type => type === CONTEXT_MENU_TYPES.REPORT_ACTION,
         onPress: (closePopover, {reportAction, reportID}) => {
-            Report.updateLastReadActionID(reportID, reportAction.sequenceNumber);
+            Report.updateLastReadActionID(reportID, reportAction.sequenceNumber, true);
             Report.setNewMarkerPosition(reportID, reportAction.sequenceNumber);
             if (closePopover) {
                 hideContextMenu(true, ReportActionComposeFocusManager.focus);