diff --git a/src/components/UnreadActionIndicator.js b/src/components/UnreadActionIndicator.js
new file mode 100644
index 000000000000..83154a4cbf83
--- /dev/null
+++ b/src/components/UnreadActionIndicator.js
@@ -0,0 +1,29 @@
+import React from 'react';
+import {Animated, View} from 'react-native';
+import PropTypes from 'prop-types';
+import styles from '../styles/styles';
+import Text from './Text';
+
+const propTypes = {
+    // Animated opacity
+    // eslint-disable-next-line react/forbid-prop-types
+    animatedOpacity: PropTypes.object.isRequired,
+};
+
+const UnreadActionIndicator = props => (
+    <Animated.View style={[
+        styles.unreadIndicatorContainer,
+        {opacity: props.animatedOpacity},
+    ]}
+    >
+        <View style={styles.unreadIndicatorLine} />
+        <Text style={styles.unreadIndicatorText}>
+            NEW
+        </Text>
+    </Animated.View>
+);
+
+UnreadActionIndicator.propTypes = propTypes;
+UnreadActionIndicator.displayName = 'UnreadActionIndicator';
+
+export default UnreadActionIndicator;
diff --git a/src/pages/home/report/ReportActionsView.js b/src/pages/home/report/ReportActionsView.js
index 506c8acff05e..92f249c25107 100644
--- a/src/pages/home/report/ReportActionsView.js
+++ b/src/pages/home/report/ReportActionsView.js
@@ -1,10 +1,16 @@
 import React from 'react';
-import {View, Keyboard, AppState} from 'react-native';
+import {
+    Animated,
+    View,
+    Keyboard,
+    AppState,
+} from 'react-native';
 import PropTypes from 'prop-types';
 import _ from 'underscore';
 import lodashGet from 'lodash.get';
 import {withOnyx} from 'react-native-onyx';
 import Text from '../../../components/Text';
+import UnreadActionIndicator from '../../../components/UnreadActionIndicator';
 import {fetchActions, updateLastReadActionID} from '../../../libs/actions/Report';
 import ONYXKEYS from '../../../ONYXKEYS';
 import ReportActionItem from './ReportActionItem';
@@ -23,6 +29,12 @@ const propTypes = {
 
     /* Onyx Props */
 
+    // The report currently being looked at
+    report: PropTypes.shape({
+        // Number of actions unread
+        unreadActionCount: PropTypes.number,
+    }),
+
     // Array of report actions for this report
     reportActions: PropTypes.objectOf(PropTypes.shape(ReportActionPropTypes)),
 
@@ -34,6 +46,9 @@ const propTypes = {
 };
 
 const defaultProps = {
+    report: {
+        unreadActionCount: 0,
+    },
     reportActions: {},
     session: {},
 };
@@ -46,8 +61,17 @@ class ReportActionsView extends React.Component {
         this.scrollToListBottom = this.scrollToListBottom.bind(this);
         this.recordMaxAction = this.recordMaxAction.bind(this);
         this.onVisibilityChange = this.onVisibilityChange.bind(this);
-        this.sortedReportActions = this.updateSortedReportActions();
+
+        this.sortedReportActions = [];
         this.timers = [];
+        this.unreadIndicatorOpacity = new Animated.Value(1);
+
+        // Helper variable that keeps track of the unread action count before it updates to zero
+        this.unreadActionCount = 0;
+
+        // Helper variable that prevents the unread indicator to show up for new messages
+        // received while the report is still active
+        this.shouldShowUnreadActionIndicator = true;
 
         this.state = {
             refetchNeeded: true,
@@ -145,6 +169,31 @@ class ReportActionsView extends React.Component {
         this.setState({refetchNeeded});
     }
 
+    /**
+     * Checks if the unreadActionIndicator should be shown.
+     * If it does, starts a timeout for the fading out animation and creates
+     * a flag to not show it again if the report is still open
+     */
+    setUpUnreadActionIndicator() {
+        if (!this.props.isActiveReport || !this.shouldShowUnreadActionIndicator) {
+            return;
+        }
+
+        this.unreadActionCount = this.props.report.unreadActionCount;
+
+        if (this.unreadActionCount > 0) {
+            this.unreadIndicatorOpacity = new Animated.Value(1);
+            this.timers.push(setTimeout(() => {
+                Animated.timing(this.unreadIndicatorOpacity, {
+                    toValue: 0,
+                    useNativeDriver: false,
+                }).start();
+            }, 3000));
+        }
+
+        this.shouldShowUnreadActionIndicator = false;
+    }
+
     /**
      * Updates and sorts the report actions by sequence number
      */
@@ -239,12 +288,21 @@ class ReportActionsView extends React.Component {
         needsLayoutCalculation,
     }) {
         return (
-            <ReportActionItem
-                action={item.action}
-                displayAsGroup={this.isConsecutiveActionMadeByPreviousActor(index)}
-                onLayout={onLayout}
-                needsLayoutCalculation={needsLayoutCalculation}
-            />
+
+        // Using <View /> instead of a Fragment because there is a difference between how
+        // <InvertedFlatList /> are implemented on native and web/desktop which leads to
+        // the unread indicator on native to render below the message instead of above it.
+            <View>
+                {this.unreadActionCount > 0 && index === this.unreadActionCount - 1 && (
+                    <UnreadActionIndicator animatedOpacity={this.unreadIndicatorOpacity} />
+                )}
+                <ReportActionItem
+                    action={item.action}
+                    displayAsGroup={this.isConsecutiveActionMadeByPreviousActor(index)}
+                    onLayout={onLayout}
+                    needsLayoutCalculation={needsLayoutCalculation}
+                />
+            </View>
         );
     }
 
@@ -263,6 +321,7 @@ class ReportActionsView extends React.Component {
             );
         }
 
+        this.setUpUnreadActionIndicator();
         this.updateSortedReportActions();
         return (
             <InvertedFlatList
@@ -281,6 +340,9 @@ ReportActionsView.propTypes = propTypes;
 ReportActionsView.defaultProps = defaultProps;
 
 export default withOnyx({
+    report: {
+        key: ({reportID}) => `${ONYXKEYS.COLLECTION.REPORT}${reportID}`,
+    },
     reportActions: {
         key: ({reportID}) => `${ONYXKEYS.COLLECTION.REPORT_ACTIONS}${reportID}`,
         canEvict: props => !props.isActiveReport,
diff --git a/src/styles/styles.js b/src/styles/styles.js
index db23694b1bc2..975179b65a02 100644
--- a/src/styles/styles.js
+++ b/src/styles/styles.js
@@ -948,6 +948,32 @@ const styles = {
         marginLeft: 8,
     },
 
+    unreadIndicatorContainer: {
+        position: 'absolute',
+        top: -10,
+        left: 0,
+        width: '100%',
+        height: 20,
+        paddingHorizontal: 20,
+        flexDirection: 'row',
+        alignItems: 'center',
+    },
+
+    unreadIndicatorLine: {
+        height: 1,
+        backgroundColor: themeColors.unreadIndicator,
+        flexGrow: 1,
+        marginRight: 8,
+        opacity: 0.5,
+    },
+
+    unreadIndicatorText: {
+        color: themeColors.unreadIndicator,
+        fontFamily: fontFamily.GTA_BOLD,
+        fontSize: variables.fontSizeSmall,
+        fontWeight: fontWeightBold,
+    },
+
     flipUpsideDown: {
         transform: [{rotate: '180deg'}],
     },
diff --git a/src/styles/themes/default.js b/src/styles/themes/default.js
index 2f57fb5b72cc..ea81000323fb 100644
--- a/src/styles/themes/default.js
+++ b/src/styles/themes/default.js
@@ -30,4 +30,5 @@ export default {
     pillBG: colors.gray2,
     buttonDisabledBG: colors.gray2,
     buttonHoveredBG: colors.gray1,
+    unreadIndicator: colors.green,
 };