diff --git a/src/components/TagPicker/index.tsx b/src/components/TagPicker/index.tsx
index 9d3a70d4d50c..946a4889b4c7 100644
--- a/src/components/TagPicker/index.tsx
+++ b/src/components/TagPicker/index.tsx
@@ -38,11 +38,13 @@ type TagPickerProps = {
     /** Should show the selected option that is disabled? */
     shouldShowDisabledAndSelectedOption?: boolean;
 
+    shouldOrderListByTagName?: boolean;
+
     /** Indicates which tag list index was selected */
     tagListIndex: number;
 };
 
-function TagPicker({selectedTag, tagListName, policyID, tagListIndex, shouldShowDisabledAndSelectedOption = false, onSubmit}: TagPickerProps) {
+function TagPicker({selectedTag, tagListName, policyID, tagListIndex, shouldShowDisabledAndSelectedOption = false, shouldOrderListByTagName = false, onSubmit}: TagPickerProps) {
     const [policyTags] = useOnyx(`${ONYXKEYS.COLLECTION.POLICY_TAGS}${policyID}`);
     const [policyRecentlyUsedTags] = useOnyx(`${ONYXKEYS.COLLECTION.POLICY_RECENTLY_USED_TAGS}${policyID}`);
     const styles = useThemeStyles();
@@ -79,19 +81,24 @@ function TagPicker({selectedTag, tagListName, policyID, tagListIndex, shouldShow
         return [...selectedOptions, ...Object.values(policyTagList.tags).filter((policyTag) => policyTag.enabled && !selectedNames.includes(policyTag.name))];
     }, [selectedOptions, policyTagList, shouldShowDisabledAndSelectedOption]);
 
-    const sections = useMemo(
-        () =>
-            OptionsListUtils.getFilteredOptions({
-                searchValue,
-                selectedOptions,
-                includeP2P: false,
-                includeTags: true,
-                tags: enabledTags,
-                recentlyUsedTags: policyRecentlyUsedTagsList,
-                canInviteUser: false,
-            }).tagOptions,
-        [searchValue, enabledTags, selectedOptions, policyRecentlyUsedTagsList],
-    );
+    const sections = useMemo(() => {
+        const options = OptionsListUtils.getFilteredOptions({
+            searchValue,
+            selectedOptions,
+            includeP2P: false,
+            includeTags: true,
+            tags: enabledTags,
+            recentlyUsedTags: policyRecentlyUsedTagsList,
+            canInviteUser: false,
+        }).tagOptions;
+
+        return shouldOrderListByTagName
+            ? options.map((option) => ({
+                  ...option,
+                  data: option.data.sort((a, b) => a.text?.localeCompare(b.text ?? '') ?? 0),
+              }))
+            : options;
+    }, [searchValue, selectedOptions, enabledTags, policyRecentlyUsedTagsList, shouldOrderListByTagName]);
 
     const headerMessage = OptionsListUtils.getHeaderMessageForNonUserList((sections?.at(0)?.data?.length ?? 0) > 0, searchValue);
 
diff --git a/src/pages/Debug/DebugDetails.tsx b/src/pages/Debug/DebugDetails.tsx
index d6ef905283e9..247915f4e431 100644
--- a/src/pages/Debug/DebugDetails.tsx
+++ b/src/pages/Debug/DebugDetails.tsx
@@ -16,6 +16,7 @@ import useThemeStyles from '@hooks/useThemeStyles';
 import type {ObjectType, OnyxDataType} from '@libs/DebugUtils';
 import DebugUtils from '@libs/DebugUtils';
 import Navigation from '@libs/Navigation/Navigation';
+import * as OptionsListUtils from '@libs/OptionsListUtils';
 import * as PolicyUtils from '@libs/PolicyUtils';
 import Debug from '@userActions/Debug';
 import type CONST from '@src/CONST';
@@ -53,6 +54,7 @@ function DebugDetails({formType, data, children, onSave, onDelete, validate}: De
     const [formDraftData] = useOnyx(ONYXKEYS.FORMS.DEBUG_DETAILS_FORM_DRAFT);
     const [report] = useOnyx(`${ONYXKEYS.COLLECTION.REPORT}${(data as OnyxEntry<Transaction>)?.reportID ?? ''}`);
     const [policyTags] = useOnyx(`${ONYXKEYS.COLLECTION.POLICY_TAGS}${report?.policyID}`);
+    const policyTagLists = useMemo(() => PolicyUtils.getTagLists(policyTags), [policyTags]);
     const booleanFields = useMemo(
         () =>
             Object.entries(data ?? {})
@@ -65,16 +67,13 @@ function DebugDetails({formType, data, children, onSave, onDelete, validate}: De
             Object.entries(data ?? {})
                 .filter((entry): entry is [string, string] => {
                     // Tag picker needs to be hidden when the policy has no tags available to pick
-                    if (
-                        entry[0] === TRANSACTION_FORM_INPUT_IDS.TAG &&
-                        !Object.values(policyTags ?? {}).some((policyTagList) => PolicyUtils.getCountOfEnabledTagsOfList(policyTagList.tags))
-                    ) {
+                    if (entry[0] === TRANSACTION_FORM_INPUT_IDS.TAG && !OptionsListUtils.hasEnabledTags(policyTagLists)) {
                         return false;
                     }
                     return DETAILS_CONSTANT_FIELDS[formType].some(({fieldName}) => fieldName === entry[0]);
                 })
                 .sort((a, b) => a[0].localeCompare(b[0])),
-        [data, formType, policyTags],
+        [data, formType, policyTagLists],
     );
     const numberFields = useMemo(
         () =>
diff --git a/src/pages/Debug/DebugDetailsConstantPickerPage.tsx b/src/pages/Debug/DebugDetailsConstantPickerPage.tsx
index aa30efc4c907..205bfc7bb48c 100644
--- a/src/pages/Debug/DebugDetailsConstantPickerPage.tsx
+++ b/src/pages/Debug/DebugDetailsConstantPickerPage.tsx
@@ -14,6 +14,7 @@ import CONST from '@src/CONST';
 import type SCREENS from '@src/SCREENS';
 import TRANSACTION_FORM_INPUT_IDS from '@src/types/form/DebugTransactionForm';
 import ConstantPicker from './ConstantPicker';
+import DebugTagPicker from './DebugTagPicker';
 
 type DebugDetailsConstantPickerPageProps = StackScreenProps<DebugParamList, typeof SCREENS.DEBUG.DETAILS_CONSTANT_PICKER_PAGE>;
 
@@ -55,12 +56,10 @@ function DebugDetailsConstantPickerPage({
             }
             if (fieldName === TRANSACTION_FORM_INPUT_IDS.TAG) {
                 return (
-                    <TagPicker
+                    <DebugTagPicker
                         policyID={policyID}
-                        selectedTag={fieldValue ?? ''}
-                        tagListName=""
+                        tagName={fieldValue}
                         onSubmit={onSubmit}
-                        tagListIndex={0}
                     />
                 );
             }
diff --git a/src/pages/Debug/DebugTagPicker.tsx b/src/pages/Debug/DebugTagPicker.tsx
new file mode 100644
index 000000000000..2c3707b59fde
--- /dev/null
+++ b/src/pages/Debug/DebugTagPicker.tsx
@@ -0,0 +1,71 @@
+import React, {useCallback, useMemo, useState} from 'react';
+import {View} from 'react-native';
+import {useOnyx} from 'react-native-onyx';
+import Button from '@components/Button';
+import type {ListItem} from '@components/SelectionList/types';
+import TagPicker from '@components/TagPicker';
+import Text from '@components/Text';
+import useLocalize from '@hooks/useLocalize';
+import useThemeStyles from '@hooks/useThemeStyles';
+import * as IOUUtils from '@libs/IOUUtils';
+import * as PolicyUtils from '@libs/PolicyUtils';
+import * as TransactionUtils from '@libs/TransactionUtils';
+import ONYXKEYS from '@src/ONYXKEYS';
+
+type DebugTagPickerProps = {
+    policyID: string;
+    tagName?: string;
+    onSubmit: (item: ListItem) => void;
+};
+
+function DebugTagPicker({policyID, tagName = '', onSubmit}: DebugTagPickerProps) {
+    const styles = useThemeStyles();
+    const {translate} = useLocalize();
+    const [newTagName, setNewTagName] = useState(tagName);
+    const selectedTags = useMemo(() => TransactionUtils.getTagArrayFromName(newTagName), [newTagName]);
+    const [policyTags] = useOnyx(`${ONYXKEYS.COLLECTION.POLICY_TAGS}${policyID}`);
+    const policyTagLists = useMemo(() => PolicyUtils.getTagLists(policyTags), [policyTags]);
+
+    const updateTagName = useCallback(
+        (index: number) =>
+            ({text}: ListItem) => {
+                const newTag = text === selectedTags.at(index) ? undefined : text;
+                setNewTagName(IOUUtils.insertTagIntoTransactionTagsString(newTagName, newTag ?? '', index));
+            },
+        [newTagName, selectedTags],
+    );
+
+    const submitTag = useCallback(() => {
+        onSubmit({text: newTagName});
+    }, [newTagName, onSubmit]);
+
+    return (
+        <View style={styles.gap5}>
+            <View style={styles.gap5}>
+                {policyTagLists.map(({name}, index) => (
+                    <View>
+                        {policyTagLists.length > 1 && <Text style={[styles.textLabelSupportingNormal, styles.ph5, styles.mb3]}>{name}</Text>}
+                        <TagPicker
+                            policyID={policyID}
+                            selectedTag={selectedTags.at(index) ?? ''}
+                            tagListName={name}
+                            tagListIndex={index}
+                            shouldOrderListByTagName
+                            onSubmit={updateTagName(index)}
+                        />
+                    </View>
+                ))}
+            </View>
+            <View style={styles.ph5}>
+                <Button
+                    success
+                    large
+                    text={translate('common.save')}
+                    onPress={submitTag}
+                />
+            </View>
+        </View>
+    );
+}
+
+export default DebugTagPicker;