diff --git a/src/components/HTMLEngineProvider/HTMLRenderers/ImageRenderer.js b/src/components/HTMLEngineProvider/HTMLRenderers/ImageRenderer.js
index 96fd95cc5224..de7aafa20c03 100644
--- a/src/components/HTMLEngineProvider/HTMLRenderers/ImageRenderer.js
+++ b/src/components/HTMLEngineProvider/HTMLRenderers/ImageRenderer.js
@@ -44,6 +44,9 @@ const ImageRenderer = (props) => {
         Config.EXPENSIFY.URL_API_ROOT,
     );
 
+    const imageWidth = htmlAttribs['data-expensify-width'] ? parseInt(htmlAttribs['data-expensify-width'], 10) : undefined;
+    const imageHeight = htmlAttribs['data-expensify-height'] ? parseInt(htmlAttribs['data-expensify-height'], 10) : undefined;
+
     return (
         <AttachmentModal
             allowDownload
@@ -60,6 +63,8 @@ const ImageRenderer = (props) => {
                         previewSourceURL={previewSource}
                         style={styles.webViewStyles.tagStyles.img}
                         isAuthTokenRequired={isAttachment}
+                        imageWidth={imageWidth}
+                        imageHeight={imageHeight}
                     />
                 </PressableWithoutFocus>
             )}
diff --git a/src/components/ThumbnailImage.js b/src/components/ThumbnailImage.js
index 9d15be907014..3088a13a425b 100644
--- a/src/components/ThumbnailImage.js
+++ b/src/components/ThumbnailImage.js
@@ -19,11 +19,19 @@ const propTypes = {
     /** Do the urls require an authToken? */
     isAuthTokenRequired: PropTypes.bool.isRequired,
 
+    /** Width of the thumbnail image */
+    imageWidth: PropTypes.number,
+
+    /** Height of the thumbnail image */
+    imageHeight: PropTypes.number,
+
     ...windowDimensionsPropTypes,
 };
 
 const defaultProps = {
     style: {},
+    imageWidth: 200,
+    imageHeight: 200,
 };
 
 class ThumbnailImage extends PureComponent {
@@ -31,14 +39,25 @@ class ThumbnailImage extends PureComponent {
         super(props);
 
         this.updateImageSize = this.updateImageSize.bind(this);
-
+        const {thumbnailWidth, thumbnailHeight} = this.calculateThumbnailImageSize(props.imageWidth, props.imageHeight);
         this.state = {
-            thumbnailWidth: 200,
-            thumbnailHeight: 200,
+            thumbnailWidth,
+            thumbnailHeight,
         };
     }
 
-    updateImageSize({width, height}) {
+    /**
+     * Compute the thumbnails width and height given original image dimensions.
+     *
+     * @param {Number} width - Width of the original image.
+     * @param {Number} height - Height of the original image.
+     * @returns {Object} - Object containing thumbnails width and height.
+     */
+    calculateThumbnailImageSize(width, height) {
+        if (!width || !height) {
+            return {};
+        }
+
         // Width of the thumbnail works better as a constant than it does
         // a percentage of the screen width since it is relative to each screen
         // Note: Clamp minimum width 40px to support touch device
@@ -54,8 +73,17 @@ class ThumbnailImage extends PureComponent {
         } else {
             thumbnailScreenHeight = Math.round(thumbnailScreenWidth * aspectRatio);
         }
+        return {thumbnailWidth: thumbnailScreenWidth, thumbnailHeight: Math.max(40, thumbnailScreenHeight)};
+    }
 
-        this.setState({thumbnailWidth: thumbnailScreenWidth, thumbnailHeight: Math.max(40, thumbnailScreenHeight)});
+    /**
+     * Update the state with the computed thumbnail sizes.
+     *
+     * @param {{ width: number, height: number }} Params - width and height of the original image.
+     */
+    updateImageSize({width, height}) {
+        const {thumbnailWidth, thumbnailHeight} = this.calculateThumbnailImageSize(width, height);
+        this.setState({thumbnailWidth, thumbnailHeight});
     }
 
     render() {
diff --git a/src/pages/home/report/ReportActionItemFragment.js b/src/pages/home/report/ReportActionItemFragment.js
index 8cfcfe9aac73..e70becf96f45 100644
--- a/src/pages/home/report/ReportActionItemFragment.js
+++ b/src/pages/home/report/ReportActionItemFragment.js
@@ -1,5 +1,5 @@
 import React, {memo} from 'react';
-import {ActivityIndicator, ImageBackground, View} from 'react-native';
+import {ActivityIndicator, View} from 'react-native';
 import PropTypes from 'prop-types';
 import Str from 'expensify-common/lib/str';
 import reportActionFragmentPropTypes from './reportActionFragmentPropTypes';
@@ -72,28 +72,18 @@ const ReportActionItemFragment = (props) => {
             // If this is an attachment placeholder, return the placeholder component
             if (props.isAttachment && props.loading) {
                 return (
-                    <View style={[styles.chatItemAttachmentPlaceholder]}>
-                        {Str.isImage(props.attachmentInfo.name)
-                            ? (
-                                <ImageBackground
-                                    source={{uri: props.attachmentInfo.source}}
-                                    resizeMode="cover"
-                                    imageStyle={[styles.borderBottomRounded, styles.borderTopRounded]}
-                                    style={[styles.flex1, styles.justifyContentCenter, styles.alignItemsCenter]}
-                                >
-                                    <ActivityIndicator
-                                        size="large"
-                                        color={themeColors.uploadPreviewActivityIndicator}
-                                    />
-                                </ImageBackground>
-                            ) : (
+                    Str.isImage(props.attachmentInfo.name)
+                        ? (
+                            <RenderHTML html={`<comment><img src="${props.attachmentInfo.source}"/></comment>`} />
+                        ) : (
+                            <View style={[styles.chatItemAttachmentPlaceholder]}>
                                 <ActivityIndicator
                                     size="large"
                                     color={themeColors.textSupporting}
                                     style={[styles.flex1]}
                                 />
-                            )}
-                    </View>
+                            </View>
+                        )
                 );
             }