diff --git a/src/libs/actions/Report.js b/src/libs/actions/Report.js
index 94b5def18108..1945693cf289 100644
--- a/src/libs/actions/Report.js
+++ b/src/libs/actions/Report.js
@@ -425,6 +425,16 @@ function removeOptimisticActions(reportID) {
     });
 }
 
+/**
+ * @param {Number} reportID
+ * @param {Number} sequenceNumber
+ */
+function setNewMarkerPosition(reportID, sequenceNumber) {
+    Onyx.merge(`${ONYXKEYS.COLLECTION.REPORT}${reportID}`, {
+        newMarkerSequenceNumber: sequenceNumber,
+    });
+}
+
 /**
  * Updates a report action's message to be a new value.
  *
@@ -530,6 +540,14 @@ function updateReportWithNewAction(reportID, reportAction) {
     if (lodashGet(reportAction, 'actorEmail') === 'concierge@expensify.com') {
         return;
     }
+
+    // When a new message comes in, if the New marker is not already set (newMarkerSequenceNumber === 0), set the
+    // marker above the incoming message.
+    if (lodashGet(allReports, [reportID, 'newMarkerSequenceNumber'], 0) === 0
+        && updatedReportObject.unreadActionCount > 0) {
+        const oldestUnreadSeq = (updatedReportObject.maxSequenceNumber - updatedReportObject.unreadActionCount) + 1;
+        setNewMarkerPosition(reportID, oldestUnreadSeq);
+    }
     console.debug('[LOCAL_NOTIFICATION] Creating notification');
     LocalNotification.showCommentNotification({
         reportAction,
@@ -996,16 +1014,6 @@ function updateLastReadActionID(reportID, sequenceNumber) {
     });
 }
 
-/**
- * @param {Number} reportID
- * @param {Number} sequenceNumber
- */
-function setNewMarkerPosition(reportID, sequenceNumber) {
-    Onyx.merge(`${ONYXKEYS.COLLECTION.REPORT}${reportID}`, {
-        newMarkerSequenceNumber: sequenceNumber,
-    });
-}
-
 /**
  * Toggles the pinned state of the report.
  *