diff --git a/src/components/Search/SearchList/index.tsx b/src/components/Search/SearchList/index.tsx
index 264ea889854..546ce3cc27f 100644
--- a/src/components/Search/SearchList/index.tsx
+++ b/src/components/Search/SearchList/index.tsx
@@ -39,7 +39,6 @@ import useSafeAreaPaddings from '@hooks/useSafeAreaPaddings';
 import useThemeStyles from '@hooks/useThemeStyles';
 import {turnOnMobileSelectionMode} from '@libs/actions/MobileSelectionMode';
 import navigationRef from '@libs/Navigation/navigationRef';
-import variables from '@styles/variables';
 import CONST from '@src/CONST';
 import ONYXKEYS from '@src/ONYXKEYS';
 import type {Transaction, TransactionViolations} from '@src/types/onyx';
@@ -268,7 +267,7 @@ function SearchList({
                 return;
             }
 
-            listRef.current.scrollToIndex({index, animated, viewOffset: variables.contentHeaderHeight});
+            listRef.current.scrollToIndex({index, animated, viewPosition: 0});
         },
         [data],
     );
diff --git a/src/components/Search/index.tsx b/src/components/Search/index.tsx
index c949d013a67..cb4df1313f0 100644
--- a/src/components/Search/index.tsx
+++ b/src/components/Search/index.tsx
@@ -1,6 +1,6 @@
 import {findFocusedRoute, useFocusEffect, useIsFocused, useNavigation} from '@react-navigation/native';
 import {accountIDSelector} from '@selectors/Session';
-import React, {useCallback, useContext, useEffect, useMemo, useRef, useState} from 'react';
+import React, {useCallback, useContext, useEffect, useLayoutEffect, useMemo, useRef, useState} from 'react';
 import type {NativeScrollEvent, NativeSyntheticEvent, StyleProp, ViewStyle} from 'react-native';
 import {View} from 'react-native';
 import Animated, {FadeIn, FadeOut, useAnimatedStyle, useSharedValue, withTiming} from 'react-native-reanimated';
@@ -288,7 +288,6 @@ function Search({queryJSON, searchResults, onSearchListScroll, contentContainerS
         [reportActions],
     );
     const {translate, localeCompare, formatPhoneNumber} = useLocalize();
-    const searchListRef = useRef<SelectionListHandle | null>(null);
 
     const clearTransactionsAndSetHashAndKey = useCallback(() => {
         clearSelectedTransactions(hash);
@@ -732,6 +731,16 @@ function Search({queryJSON, searchResults, onSearchListScroll, contentContainerS
         [type, status, data, sortBy, sortOrder, groupBy, isChat, newSearchResultKey, selectedTransactions, canSelectMultiple, localeCompare, hash],
     );
 
+    const searchListRef = useRef<SelectionListHandle | null>(null);
+
+    useLayoutEffect(() => {
+        handleSelectionListScroll(sortedSelectedData, searchListRef.current);
+
+        // We only need to run the effect on change of newSearchResultKey to scroll to the new item.
+        // eslint-disable-next-line react-compiler/react-compiler
+        // eslint-disable-next-line react-hooks/exhaustive-deps
+    }, [newSearchResultKey]);
+
     const hasErrors = Object.keys(searchResults?.errors ?? {}).length > 0 && !isOffline;
 
     useEffect(() => {
@@ -790,8 +799,6 @@ function Search({queryJSON, searchResults, onSearchListScroll, contentContainerS
         );
     }, [clearSelectedTransactions, data, groupBy, reportActionsArray, selectedTransactions, setSelectedTransactions, outstandingReportsByPolicyID]);
 
-    const onLayout = useCallback(() => handleSelectionListScroll(sortedSelectedData, searchListRef.current), [handleSelectionListScroll, sortedSelectedData]);
-
     const areAllOptionalColumnsHidden = useMemo(() => {
         const canBeMissingColumns = expenseHeaders.filter((header) => header.canBeMissing).map((header) => header.columnName);
         return canBeMissingColumns.every((column) => !columnsToShow.includes(column));
@@ -905,7 +912,6 @@ function Search({queryJSON, searchResults, onSearchListScroll, contentContainerS
                     columns={columnsToShow}
                     areAllOptionalColumnsHidden={areAllOptionalColumnsHidden}
                     violations={violations}
-                    onLayout={onLayout}
                     isMobileSelectionModeEnabled={isMobileSelectionModeEnabled}
                     shouldAnimate={type === CONST.SEARCH.DATA_TYPES.EXPENSE}
                     newTransactions={newTransactions}
diff --git a/src/hooks/useSearchHighlightAndScroll.ts b/src/hooks/useSearchHighlightAndScroll.ts
index a7551339e23..20aa2b98e6b 100644
--- a/src/hooks/useSearchHighlightAndScroll.ts
+++ b/src/hooks/useSearchHighlightAndScroll.ts
@@ -44,7 +44,7 @@ function useSearchHighlightAndScroll({
     // Ref to track if the search was triggered by this hook
     const triggeredByHookRef = useRef(false);
     const searchTriggeredRef = useRef(false);
-    const hasNewItemsRef = useRef(false);
+    const newTransactionIDsRef = useRef<string[]>([]);
     const previousSearchResults = usePrevious(searchResults?.data);
     const [newSearchResultKey, setNewSearchResultKey] = useState<string | null>(null);
     const highlightedIDs = useRef<Set<string>>(new Set());
@@ -126,7 +126,9 @@ function useSearchHighlightAndScroll({
             // We only want to highlight new items if the addition of transactions or report actions triggered the search.
             // This is because, on deletion of items, the backend sometimes returns old items in place of the deleted ones.
             // We don't want to highlight these old items, even if they appear new in the current search results.
-            hasNewItemsRef.current = isChat ? reportActionsIDs.length > previousReportActionsIDs.length : transactionsIDs.length > previousTransactionsIDs.length;
+            if (!isChat && hasTransactionsIDsChange) {
+                newTransactionIDsRef.current.push(...transactionsIDs.filter((id) => !previousTransactionsIDs.includes(id)).map((id) => id.replace(ONYXKEYS.COLLECTION.TRANSACTION, '')));
+            }
 
             // Set the flag indicating the search is triggered by the hook
             triggeredByHookRef.current = true;
@@ -178,7 +180,7 @@ function useSearchHighlightAndScroll({
             // Find new report action IDs that are not in the previousReportActionIDs and not already highlighted
             const newReportActionIDs = currentReportActionIDs.filter((id) => !previousReportActionIDs.includes(id) && !highlightedIDs.current.has(id));
 
-            if (!triggeredByHookRef.current || newReportActionIDs.length === 0 || !hasNewItemsRef.current) {
+            if (!triggeredByHookRef.current || newReportActionIDs.length === 0) {
                 return;
             }
 
@@ -192,12 +194,16 @@ function useSearchHighlightAndScroll({
             const currentTransactionIDs = extractTransactionIDsFromSearchResults(searchResults.data);
 
             // Find new transaction IDs that are not in the previousTransactionIDs and not already highlighted
-            const newTransactionIDs = currentTransactionIDs.filter((id) => !previousTransactionIDs.includes(id) && !highlightedIDs.current.has(id));
+            const newTransactionIDs = currentTransactionIDs.filter(
+                (id) => !previousTransactionIDs.includes(id) && !highlightedIDs.current.has(id) && newTransactionIDsRef.current.includes(id),
+            );
 
-            if (!triggeredByHookRef.current || newTransactionIDs.length === 0 || !hasNewItemsRef.current) {
+            if (!triggeredByHookRef.current || newTransactionIDs.length === 0) {
                 return;
             }
 
+            // As the new transactions are going to be highlighted below, which would make them obsolete, we will remove them from newTransactionIDsRef.
+            newTransactionIDsRef.current = newTransactionIDsRef.current.filter((id) => !newTransactionIDs.includes(id));
             const newTransactionID = newTransactionIDs.at(0) ?? '';
             const newTransactionKey = `${ONYXKEYS.COLLECTION.TRANSACTION}${newTransactionID}`;
 
@@ -255,7 +261,7 @@ function useSearchHighlightAndScroll({
             });
 
             // Early return if the new item is not found in the data array
-            if (indexOfNewItem <= 0) {
+            if (indexOfNewItem < 0) {
                 return;
             }