diff --git a/src/components/Search.tsx b/src/components/Search.tsx
index 2de6aa8cfcef..e4faa15bfb94 100644
--- a/src/components/Search.tsx
+++ b/src/components/Search.tsx
@@ -1,10 +1,11 @@
 import {useNavigation} from '@react-navigation/native';
 import type {StackNavigationProp} from '@react-navigation/stack';
-import React, {useEffect, useRef} from 'react';
+import React, {useCallback, useEffect, useRef} from 'react';
 import type {OnyxEntry} from 'react-native-onyx';
 import {useOnyx} from 'react-native-onyx';
 import useNetwork from '@hooks/useNetwork';
 import useThemeStyles from '@hooks/useThemeStyles';
+import useWindowDimensions from '@hooks/useWindowDimensions';
 import * as SearchActions from '@libs/actions/Search';
 import * as DeviceCapabilities from '@libs/DeviceCapabilities';
 import Log from '@libs/Log';
@@ -14,6 +15,7 @@ import type {SearchColumnType, SortOrder} from '@libs/SearchUtils';
 import Navigation from '@navigation/Navigation';
 import type {CentralPaneNavigatorParamList} from '@navigation/types';
 import EmptySearchView from '@pages/Search/EmptySearchView';
+import variables from '@styles/variables';
 import CONST from '@src/CONST';
 import ONYXKEYS from '@src/ONYXKEYS';
 import ROUTES from '@src/ROUTES';
@@ -34,6 +36,10 @@ type SearchProps = {
 };
 
 const sortableSearchTabs: SearchQuery[] = [CONST.TAB_SEARCH.ALL];
+const transactionItemMobileHeight = 100;
+const reportItemTransactionHeight = 52;
+const listItemPadding = 12; // this is equivalent to 'mb3' on every transaction/report list item
+const searchHeaderHeight = 54;
 
 function isTransactionListItemType(item: TransactionListItemType | ReportListItemType): item is TransactionListItemType {
     const transactionListItem = item as TransactionListItemType;
@@ -43,9 +49,30 @@ function isTransactionListItemType(item: TransactionListItemType | ReportListIte
 function Search({query, policyIDs, sortBy, sortOrder}: SearchProps) {
     const {isOffline} = useNetwork();
     const styles = useThemeStyles();
+    const {isLargeScreenWidth} = useWindowDimensions();
     const navigation = useNavigation<StackNavigationProp<CentralPaneNavigatorParamList>>();
     const lastSearchResultsRef = useRef<OnyxEntry<SearchResults>>();
 
+    const getItemHeight = useCallback(
+        (item: TransactionListItemType | ReportListItemType) => {
+            if (isTransactionListItemType(item)) {
+                return isLargeScreenWidth ? variables.optionRowHeight + listItemPadding : transactionItemMobileHeight + listItemPadding;
+            }
+
+            if (item.transactions.length === 0) {
+                return 0;
+            }
+
+            if (item.transactions.length === 1) {
+                return isLargeScreenWidth ? variables.optionRowHeight + listItemPadding : transactionItemMobileHeight + listItemPadding;
+            }
+
+            const baseReportItemHeight = isLargeScreenWidth ? 72 : 108;
+            return baseReportItemHeight + item.transactions.length * reportItemTransactionHeight + listItemPadding;
+        },
+        [isLargeScreenWidth],
+    );
+
     const hash = SearchUtils.getQueryHash(query, policyIDs, sortBy, sortOrder);
     const [currentSearchResults, searchResultsMeta] = useOnyx(`${ONYXKEYS.COLLECTION.SNAPSHOT}${hash}`);
 
@@ -136,6 +163,7 @@ function Search({query, policyIDs, sortBy, sortOrder}: SearchProps) {
                     shouldShowYear={shouldShowYear}
                 />
             }
+            customListHeaderHeight={searchHeaderHeight}
             // To enhance the smoothness of scrolling and minimize the risk of encountering blank spaces during scrolling,
             // we have configured a larger windowSize and a longer delay between batch renders.
             // The windowSize determines the number of items rendered before and after the currently visible items.
@@ -150,6 +178,7 @@ function Search({query, policyIDs, sortBy, sortOrder}: SearchProps) {
             ListItem={ListItem}
             sections={[{data: sortedData, isDisabled: false}]}
             onSelectRow={(item) => openReport(item)}
+            getItemHeight={getItemHeight}
             shouldDebounceRowSelect
             shouldPreventDefaultFocusOnSelectRow={!DeviceCapabilities.canUseTouchScreen()}
             listHeaderWrapperStyle={[styles.ph9, styles.pv3, styles.pb5]}
diff --git a/src/components/SelectionList/BaseSelectionList.tsx b/src/components/SelectionList/BaseSelectionList.tsx
index ae092b8c2729..b92b4cef862f 100644
--- a/src/components/SelectionList/BaseSelectionList.tsx
+++ b/src/components/SelectionList/BaseSelectionList.tsx
@@ -30,6 +30,8 @@ import {isEmptyObject} from '@src/types/utils/EmptyObject';
 import arraysEqual from '@src/utils/arraysEqual';
 import type {BaseSelectionListProps, ButtonOrCheckBoxRoles, FlattenedSectionsReturn, ListItem, SectionListDataType, SectionWithIndexOffset, SelectionListHandle} from './types';
 
+const getDefaultItemHeight = () => variables.optionRowHeight;
+
 function BaseSelectionList<TItem extends ListItem>(
     {
         sections,
@@ -40,6 +42,7 @@ function BaseSelectionList<TItem extends ListItem>(
         onCheckboxPress,
         onSelectAll,
         onDismissError,
+        getItemHeight = getDefaultItemHeight,
         textInputLabel = '',
         textInputPlaceholder = '',
         textInputValue = '',
@@ -71,6 +74,7 @@ function BaseSelectionList<TItem extends ListItem>(
         isLoadingNewOptions = false,
         onLayout,
         customListHeader,
+        customListHeaderHeight = 0,
         listHeaderWrapperStyle,
         isRowMultilineSupported = false,
         textInputRef,
@@ -125,7 +129,8 @@ function BaseSelectionList<TItem extends ListItem>(
         const disabledArrowKeyOptionsIndexes: number[] = [];
         let disabledIndex = 0;
 
-        let offset = 0;
+        // need to account that the list might have some extra content above it
+        let offset = customListHeader ? customListHeaderHeight : 0;
         const itemLayouts = [{length: 0, offset}];
 
         const selectedOptions: TItem[] = [];
@@ -155,7 +160,7 @@ function BaseSelectionList<TItem extends ListItem>(
                 disabledIndex += 1;
 
                 // Account for the height of the item in getItemLayout
-                const fullItemHeight = variables.optionRowHeight;
+                const fullItemHeight = getItemHeight(item);
                 itemLayouts.push({length: fullItemHeight, offset});
                 offset += fullItemHeight;
 
@@ -187,7 +192,7 @@ function BaseSelectionList<TItem extends ListItem>(
             itemLayouts,
             allSelected: selectedOptions.length > 0 && selectedOptions.length === allOptions.length - disabledOptionsIndexes.length,
         };
-    }, [canSelectMultiple, sections]);
+    }, [canSelectMultiple, sections, customListHeader, customListHeaderHeight, getItemHeight]);
 
     const [slicedSections, ShowMoreButtonInstance] = useMemo(() => {
         let remainingOptionsLimit = CONST.MAX_SELECTION_LIST_PAGE_LENGTH * currentPage;
diff --git a/src/components/SelectionList/types.ts b/src/components/SelectionList/types.ts
index 3ea9c3a32646..f65a2624ad10 100644
--- a/src/components/SelectionList/types.ts
+++ b/src/components/SelectionList/types.ts
@@ -282,6 +282,12 @@ type BaseSelectionListProps<TItem extends ListItem> = Partial<ChildrenProps> & {
     /** Callback to fire when "Select All" checkbox is pressed. Only use along with `canSelectMultiple` */
     onSelectAll?: () => void;
 
+    /**
+     * Callback that should return height of the specific item
+     * Only use this if we're handling some non-standard items, most of the time the default value is correct
+     */
+    getItemHeight?: (item: TItem) => number;
+
     /** Callback to fire when an error is dismissed */
     onDismissError?: (item: TItem) => void;
 
@@ -390,6 +396,9 @@ type BaseSelectionListProps<TItem extends ListItem> = Partial<ChildrenProps> & {
     /** Custom header to show right above list */
     customListHeader?: ReactNode;
 
+    /** When customListHeader is provided, this should be its height needed for correct list scrolling */
+    customListHeaderHeight?: number;
+
     /** Styles for the list header wrapper */
     listHeaderWrapperStyle?: StyleProp<ViewStyle>;
 
diff --git a/src/libs/SearchUtils.ts b/src/libs/SearchUtils.ts
index 2f90918a78b0..4be04ac48802 100644
--- a/src/libs/SearchUtils.ts
+++ b/src/libs/SearchUtils.ts
@@ -157,9 +157,11 @@ function getReportSections(data: OnyxTypes.SearchResults['data']): ReportListIte
         if (key.startsWith(ONYXKEYS.COLLECTION.REPORT)) {
             const value = {...data[key]};
             const reportKey = `${ONYXKEYS.COLLECTION.REPORT}${value.reportID}`;
+            const transactions = reportIDToTransactions[reportKey]?.transactions ?? [];
+
             reportIDToTransactions[reportKey] = {
                 ...value,
-                transactions: reportIDToTransactions[reportKey]?.transactions ?? [],
+                transactions,
             };
         } else if (key.startsWith(ONYXKEYS.COLLECTION.TRANSACTION)) {
             const transactionItem = {...data[key]};