diff --git a/src/libs/ModifiedExpenseMessage.ts b/src/libs/ModifiedExpenseMessage.ts
index 2bfb5d2e1461..11ec215363b5 100644
--- a/src/libs/ModifiedExpenseMessage.ts
+++ b/src/libs/ModifiedExpenseMessage.ts
@@ -69,24 +69,21 @@ function buildMessageFragmentForValue(
     shouldConvertToLowercase = true,
 ) {
     const newValueToDisplay = valueInQuotes ? `"${newValue}"` : newValue;
+    const oldValueToDisplay = valueInQuotes ? `"${oldValue}"` : oldValue;
 
-    // If the valueName is category and the old value was Uncategorized, show it in lowercase without quotes
-    let oldValueToDisplay;
-    if (valueName.includes(translate('common.category').toLowerCase()) && isCategoryMissing(oldValue)) {
-        oldValueToDisplay = oldValue.toLowerCase();
-    } else if (valueInQuotes) {
-        oldValueToDisplay = `"${oldValue}"`;
-    } else {
-        oldValueToDisplay = oldValue;
-    }
+    // eslint-disable-next-line @typescript-eslint/no-deprecated
+    const isCategoryField = valueName.includes(translateLocal('common.category').toLowerCase());
 
     const displayValueName = shouldConvertToLowercase ? valueName.toLowerCase() : valueName;
     const isOldValuePartialMerchant = valueName === translate('common.merchant') && oldValue === CONST.TRANSACTION.PARTIAL_TRANSACTION_MERCHANT;
+    const isOldCategoryMissing = isCategoryField && isCategoryMissing(oldValue);
+    const isNewCategoryMissing = isCategoryField && isCategoryMissing(newValue);
 
-    // In case of a partial merchant value, we want to avoid user seeing the "(none)" value in the message.
-    if (!oldValue || isOldValuePartialMerchant) {
-        const fragment = translate('iou.setTheRequest', {valueName: displayValueName, newValueToDisplay});
-        setFragments.push(fragment);
+    if (!oldValue || isOldValuePartialMerchant || isOldCategoryMissing) {
+        if (!(isOldCategoryMissing && isNewCategoryMissing)) {
+            const fragment = translate('iou.setTheRequest', {valueName: displayValueName, newValueToDisplay});
+            setFragments.push(fragment);
+        }
     } else if (!newValue || newValue === CONST.TRANSACTION.PARTIAL_TRANSACTION_MERCHANT) {
         const fragment = translate('iou.removedTheRequest', {valueName: displayValueName, oldValueToDisplay});
         removalFragments.push(fragment);
diff --git a/tests/unit/ModifiedExpenseMessageTest.ts b/tests/unit/ModifiedExpenseMessageTest.ts
index b10b1b281a67..cf4446a6d305 100644
--- a/tests/unit/ModifiedExpenseMessageTest.ts
+++ b/tests/unit/ModifiedExpenseMessageTest.ts
@@ -739,6 +739,45 @@ describe('ModifiedExpenseMessage', () => {
             });
         });
 
+        describe('when the category is changed from Uncategorized with AI attribution', () => {
+            const reportAction = {
+                ...createRandomReportAction(1),
+                actionName: CONST.REPORT.ACTIONS.TYPE.MODIFIED_EXPENSE,
+                originalMessage: {
+                    category: '6403 Travel - Member Services',
+                    oldCategory: 'Uncategorized',
+                    source: CONST.CATEGORY_SOURCE.AI,
+                } as OriginalMessageModifiedExpense,
+            };
+
+            it('returns the correct text message without showing previously uncategorized', () => {
+                const expectedResult = `set the category based on past activity to "6403 Travel - Member Services"`;
+
+                const result = getForReportAction({reportAction, policyID: report.policyID});
+
+                expect(result).toEqual(expectedResult);
+            });
+        });
+
+        describe('when the category is cleared from Uncategorized (both missing)', () => {
+            const reportAction = {
+                ...createRandomReportAction(1),
+                actionName: CONST.REPORT.ACTIONS.TYPE.MODIFIED_EXPENSE,
+                originalMessage: {
+                    category: '',
+                    oldCategory: 'Uncategorized',
+                } as OriginalMessageModifiedExpense,
+            };
+
+            it('returns the generic changed expense message since no meaningful change occurred', () => {
+                const expectedResult = `changed the expense`;
+
+                const result = getForReportAction({reportAction, policyID: report.policyID});
+
+                expect(result).toEqual(expectedResult);
+            });
+        });
+
         describe('when the category is removed with AI attribution', () => {
             const reportAction = {
                 ...createRandomReportAction(1),