diff --git a/src/components/Image/ImageBehaviorContextProvider.tsx b/src/components/Image/ImageBehaviorContextProvider.tsx
new file mode 100644
index 000000000000..cfff212c16f6
--- /dev/null
+++ b/src/components/Image/ImageBehaviorContextProvider.tsx
@@ -0,0 +1,18 @@
+import React, {createContext} from 'react';
+
+type ImageBehaviorContextValue = {
+    /**
+     * Determine whether or not to set the aspect ratio of the container div based on the image's aspect ratio.
+     */
+    shouldSetAspectRatioInStyle: boolean;
+};
+
+const ImageBehaviorContext = createContext<ImageBehaviorContextValue>({
+    shouldSetAspectRatioInStyle: true,
+});
+
+function ImageBehaviorContextProvider({children, ...value}: {children: React.ReactNode} & ImageBehaviorContextValue) {
+    return <ImageBehaviorContext.Provider value={value}>{children}</ImageBehaviorContext.Provider>;
+}
+
+export {ImageBehaviorContext, ImageBehaviorContextProvider};
diff --git a/src/components/Image/index.tsx b/src/components/Image/index.tsx
index e6cecdc0d5ec..f3cbc332c995 100644
--- a/src/components/Image/index.tsx
+++ b/src/components/Image/index.tsx
@@ -1,14 +1,17 @@
-import React, {useCallback, useMemo, useState} from 'react';
+import React, {useCallback, useContext, useMemo, useState} from 'react';
 import {withOnyx} from 'react-native-onyx';
 import CONST from '@src/CONST';
 import ONYXKEYS from '@src/ONYXKEYS';
 import BaseImage from './BaseImage';
+import {ImageBehaviorContext} from './ImageBehaviorContextProvider';
 import type {ImageOnLoadEvent, ImageOnyxProps, ImageOwnProps, ImageProps} from './types';
 
 function Image({source: propsSource, isAuthTokenRequired = false, session, onLoad, objectPosition = CONST.IMAGE_OBJECT_POSITION.INITIAL, style, ...forwardedProps}: ImageProps) {
     const [aspectRatio, setAspectRatio] = useState<string | number | null>(null);
     const isObjectPositionTop = objectPosition === CONST.IMAGE_OBJECT_POSITION.TOP;
 
+    const {shouldSetAspectRatioInStyle} = useContext(ImageBehaviorContext);
+
     const updateAspectRatio = useCallback(
         (width: number, height: number) => {
             if (!isObjectPositionTop) {
@@ -30,7 +33,6 @@ function Image({source: propsSource, isAuthTokenRequired = false, session, onLoa
             const {width, height} = event.nativeEvent;
 
             onLoad?.(event);
-
             updateAspectRatio(width, height);
         },
         [onLoad, updateAspectRatio],
@@ -59,12 +61,17 @@ function Image({source: propsSource, isAuthTokenRequired = false, session, onLoa
         // eslint-disable-next-line react-hooks/exhaustive-deps
     }, [propsSource, isAuthTokenRequired]);
 
+    /**
+     * If the image fails to load and the object position is top, we should hide the image by setting the opacity to 0.
+     */
+    const shouldOpacityBeZero = isObjectPositionTop && !aspectRatio;
+
     return (
         <BaseImage
             // eslint-disable-next-line react/jsx-props-no-spreading
             {...forwardedProps}
             onLoad={handleLoad}
-            style={[style, aspectRatio ? {aspectRatio, height: 'auto'} : {}, isObjectPositionTop && !aspectRatio && {opacity: 0}]}
+            style={[style, shouldSetAspectRatioInStyle && aspectRatio ? {aspectRatio, height: 'auto'} : {}, shouldOpacityBeZero && {opacity: 0}]}
             source={source}
         />
     );
diff --git a/src/components/ReportActionItem/ReportActionItemImages.tsx b/src/components/ReportActionItem/ReportActionItemImages.tsx
index e2bcce9b9f1b..5e3a26d3a870 100644
--- a/src/components/ReportActionItem/ReportActionItemImages.tsx
+++ b/src/components/ReportActionItem/ReportActionItemImages.tsx
@@ -2,6 +2,7 @@
 import React from 'react';
 import {View} from 'react-native';
 import {Polygon, Svg} from 'react-native-svg';
+import {ImageBehaviorContextProvider} from '@components/Image/ImageBehaviorContextProvider';
 import Text from '@components/Text';
 import useStyleUtils from '@hooks/useStyleUtils';
 import useTheme from '@hooks/useTheme';
@@ -65,28 +66,30 @@ function ReportActionItemImages({images, size, total, isHovered = false}: Report
     return (
         <View style={styles.reportActionItemImagesContainer}>
             <View style={[styles.reportActionItemImages, hoverStyle, heightStyle]}>
-                {shownImages.map(({thumbnail, isThumbnail, image, transaction, isLocalFile, fileExtension, filename}, index) => {
-                    // Show a border to separate multiple images. Shown to the right for each except the last.
-                    const shouldShowBorder = shownImages.length > 1 && index < shownImages.length - 1;
-                    const borderStyle = shouldShowBorder ? styles.reportActionItemImageBorder : {};
-                    return (
-                        <View
-                            key={`${index}-${image}`}
-                            style={[styles.reportActionItemImage, borderStyle, hoverStyle]}
-                        >
-                            <ReportActionItemImage
-                                thumbnail={thumbnail}
-                                fileExtension={fileExtension}
-                                image={image}
-                                isLocalFile={isLocalFile}
-                                filename={filename}
-                                transaction={transaction}
-                                isThumbnail={isThumbnail}
-                                isSingleImage={numberOfShownImages === 1}
-                            />
-                        </View>
-                    );
-                })}
+                <ImageBehaviorContextProvider shouldSetAspectRatioInStyle={false}>
+                    {shownImages.map(({thumbnail, isThumbnail, image, transaction, isLocalFile, fileExtension, filename}, index) => {
+                        // Show a border to separate multiple images. Shown to the right for each except the last.
+                        const shouldShowBorder = shownImages.length > 1 && index < shownImages.length - 1;
+                        const borderStyle = shouldShowBorder ? styles.reportActionItemImageBorder : {};
+                        return (
+                            <View
+                                key={`${index}-${image}`}
+                                style={[styles.reportActionItemImage, borderStyle, hoverStyle]}
+                            >
+                                <ReportActionItemImage
+                                    thumbnail={thumbnail}
+                                    fileExtension={fileExtension}
+                                    image={image}
+                                    isLocalFile={isLocalFile}
+                                    filename={filename}
+                                    transaction={transaction}
+                                    isThumbnail={isThumbnail}
+                                    isSingleImage={numberOfShownImages === 1}
+                                />
+                            </View>
+                        );
+                    })}
+                </ImageBehaviorContextProvider>
             </View>
             {remaining > 0 && (
                 <View style={[styles.reportActionItemImagesMoreContainer]}>