diff --git a/src/libs/Violations/ViolationsUtils.ts b/src/libs/Violations/ViolationsUtils.ts
index 148a6d8444fd..d46a4f650ab5 100644
--- a/src/libs/Violations/ViolationsUtils.ts
+++ b/src/libs/Violations/ViolationsUtils.ts
@@ -8,7 +8,7 @@ import * as CurrencyUtils from '@libs/CurrencyUtils';
 import DateUtils from '@libs/DateUtils';
 import {isReceiptError} from '@libs/ErrorUtils';
 import Parser from '@libs/Parser';
-import {getDistanceRateCustomUnitRate, getSortedTagKeys} from '@libs/PolicyUtils';
+import {getDistanceRateCustomUnitRate, getPerDiemRateCustomUnitRate, getSortedTagKeys} from '@libs/PolicyUtils';
 import * as TransactionUtils from '@libs/TransactionUtils';
 import CONST from '@src/CONST';
 import ONYXKEYS from '@src/ONYXKEYS';
@@ -292,8 +292,10 @@ const ViolationsUtils = {
 
         const customUnitRateID = updatedTransaction?.comment?.customUnit?.customUnitRateID;
         if (customUnitRateID && customUnitRateID.length > 0) {
-            const distanceRateCustomRate = getDistanceRateCustomUnitRate(policy, customUnitRateID);
-            if (distanceRateCustomRate) {
+            const isPerDiem = TransactionUtils.isPerDiemRequest(updatedTransaction);
+            const customRate = isPerDiem ? getPerDiemRateCustomUnitRate(policy, customUnitRateID) : getDistanceRateCustomUnitRate(policy, customUnitRateID);
+
+            if (customRate) {
                 newTransactionViolations = reject(newTransactionViolations, {name: CONST.VIOLATIONS.CUSTOM_UNIT_OUT_OF_POLICY});
             } else {
                 newTransactionViolations.push({
diff --git a/tests/unit/ViolationUtilsTest.ts b/tests/unit/ViolationUtilsTest.ts
index 507b875f7f62..c37fb24b60bd 100644
--- a/tests/unit/ViolationUtilsTest.ts
+++ b/tests/unit/ViolationUtilsTest.ts
@@ -175,6 +175,45 @@ describe('getViolationsOnyxData', () => {
         });
     });
 
+    describe('per diem rate validation', () => {
+        beforeEach(() => {
+            transactionViolations = [customUnitOutOfPolicyViolation];
+
+            const customUnitRateID = 'per_diem_rate_id';
+            transaction.comment = {
+                ...transaction.comment,
+                customUnit: {
+                    ...(transaction?.comment?.customUnit ?? {}),
+                    customUnitRateID,
+                },
+            };
+            transaction.iouRequestType = CONST.IOU.REQUEST_TYPE.PER_DIEM;
+            policy.customUnits = {
+                perDiemUnitId: {
+                    customUnitID: 'perDiemUnitId',
+                    defaultCategory: '',
+                    enabled: true,
+                    name: CONST.CUSTOM_UNITS.NAME_PER_DIEM_INTERNATIONAL,
+                    rates: {
+                        [customUnitRateID]: {
+                            currency: 'USD',
+                            customUnitRateID,
+                            enabled: true,
+                            name: 'Spain',
+                            rate: 0,
+                        },
+                    },
+                },
+            };
+        });
+
+        it('should remove the customUnitOutOfPolicy violation if the per diem rate is valid for the policy', () => {
+            const result = ViolationsUtils.getViolationsOnyxData(transaction, transactionViolations, policy, policyTags, policyCategories, false, false);
+
+            expect(result.value).not.toContainEqual(customUnitOutOfPolicyViolation);
+        });
+    });
+
     describe('controlPolicyViolations', () => {
         beforeEach(() => {
             policy.type = 'corporate';