diff --git a/src/components/Search/index.tsx b/src/components/Search/index.tsx
index 9238488361b0..a13b816fd8b8 100644
--- a/src/components/Search/index.tsx
+++ b/src/components/Search/index.tsx
@@ -466,6 +466,7 @@ function Search({queryJSON, onSearchListScroll, contentContainerStyle}: SearchPr
             }
             contentContainerStyle={[contentContainerStyle, styles.pb3]}
             scrollEventThrottle={1}
+            shouldKeepFocusedItemAtTopOfViewableArea={type === CONST.SEARCH.DATA_TYPES.CHAT}
         />
     );
 }
diff --git a/src/components/SelectionList/BaseSelectionList.tsx b/src/components/SelectionList/BaseSelectionList.tsx
index 3e1b3a3c2d70..bf8aa5454caa 100644
--- a/src/components/SelectionList/BaseSelectionList.tsx
+++ b/src/components/SelectionList/BaseSelectionList.tsx
@@ -107,6 +107,7 @@ function BaseSelectionList<TItem extends ListItem>(
         scrollEventThrottle,
         contentContainerStyle,
         shouldHighlightSelectedItem = false,
+        shouldKeepFocusedItemAtTopOfViewableArea = false,
     }: BaseSelectionListProps<TItem>,
     ref: ForwardedRef<SelectionListHandle>,
 ) {
@@ -126,6 +127,20 @@ function BaseSelectionList<TItem extends ListItem>(
     const [currentPage, setCurrentPage] = useState(1);
     const isTextInputFocusedRef = useRef<boolean>(false);
     const {singleExecution} = useSingleExecution();
+    const [itemHeights, setItemHeights] = useState<Record<string, number>>({});
+
+    const onItemLayout = (event: LayoutChangeEvent, itemKey: string | null | undefined) => {
+        if (!itemKey) {
+            return;
+        }
+
+        const {height} = event.nativeEvent.layout;
+
+        setItemHeights((prevHeights) => ({
+            ...prevHeights,
+            [itemKey]: height,
+        }));
+    };
 
     const incrementPage = () => setCurrentPage((prev) => prev + 1);
 
@@ -151,7 +166,7 @@ function BaseSelectionList<TItem extends ListItem>(
         const selectedOptions: TItem[] = [];
 
         sections.forEach((section, sectionIndex) => {
-            const sectionHeaderHeight = variables.optionsListSectionHeaderHeight;
+            const sectionHeaderHeight = !!section.title || !!section.CustomSectionHeader ? variables.optionsListSectionHeaderHeight : 0;
             itemLayouts.push({length: sectionHeaderHeight, offset});
             offset += sectionHeaderHeight;
 
@@ -175,7 +190,7 @@ function BaseSelectionList<TItem extends ListItem>(
                 disabledIndex += 1;
 
                 // Account for the height of the item in getItemLayout
-                const fullItemHeight = getItemHeight(item);
+                const fullItemHeight = item?.keyForList && itemHeights[item.keyForList] ? itemHeights[item.keyForList] : getItemHeight(item);
                 itemLayouts.push({length: fullItemHeight, offset});
                 offset += fullItemHeight;
 
@@ -207,7 +222,7 @@ function BaseSelectionList<TItem extends ListItem>(
             itemLayouts,
             allSelected: selectedOptions.length > 0 && selectedOptions.length === allOptions.length - disabledOptionsIndexes.length,
         };
-    }, [canSelectMultiple, sections, customListHeader, customListHeaderHeight, getItemHeight]);
+    }, [canSelectMultiple, sections, customListHeader, customListHeaderHeight, itemHeights, getItemHeight]);
 
     const [slicedSections, ShowMoreButtonInstance] = useMemo(() => {
         let remainingOptionsLimit = CONST.MAX_SELECTION_LIST_PAGE_LENGTH * currentPage;
@@ -257,8 +272,20 @@ function BaseSelectionList<TItem extends ListItem>(
 
             const itemIndex = item.index ?? -1;
             const sectionIndex = item.sectionIndex ?? -1;
+            let viewOffsetToKeepFocusedItemAtTopOfViewableArea = 0;
+
+            // Since there are always two items above the focused item in viewable area, and items can grow beyond the screen size
+            // in searchType chat, the focused item may move out of view. To prevent this, we will ensure that the focused item remains at
+            // the top of the viewable area at all times by adjusting the viewOffset.
+            if (shouldKeepFocusedItemAtTopOfViewableArea) {
+                const firstPreviousItem = index > 0 ? flattenedSections.allOptions.at(index - 1) : undefined;
+                const firstPreviousItemHeight = firstPreviousItem && firstPreviousItem.keyForList ? itemHeights[firstPreviousItem.keyForList] : 0;
+                const secondPreviousItem = index > 1 ? flattenedSections.allOptions.at(index - 2) : undefined;
+                const secondPreviousItemHeight = secondPreviousItem && secondPreviousItem?.keyForList ? itemHeights[secondPreviousItem.keyForList] : 0;
+                viewOffsetToKeepFocusedItemAtTopOfViewableArea = firstPreviousItemHeight + secondPreviousItemHeight;
+            }
 
-            listRef.current.scrollToLocation({sectionIndex, itemIndex, animated, viewOffset: variables.contentHeaderHeight});
+            listRef.current.scrollToLocation({sectionIndex, itemIndex, animated, viewOffset: variables.contentHeaderHeight - viewOffsetToKeepFocusedItemAtTopOfViewableArea});
         },
 
         // eslint-disable-next-line react-compiler/react-compiler, react-hooks/exhaustive-deps
@@ -450,7 +477,7 @@ function BaseSelectionList<TItem extends ListItem>(
         };
 
         return (
-            <>
+            <View onLayout={(event: LayoutChangeEvent) => onItemLayout(event, item?.keyForList)}>
                 <ListItem
                     item={item}
                     isFocused={isItemFocused}
@@ -486,7 +513,7 @@ function BaseSelectionList<TItem extends ListItem>(
                     wrapperStyle={listItemWrapperStyle}
                 />
                 {item.footerContent && item.footerContent}
-            </>
+            </View>
         );
     };
 
diff --git a/src/components/SelectionList/types.ts b/src/components/SelectionList/types.ts
index 8fb50456182c..a534ba4a1623 100644
--- a/src/components/SelectionList/types.ts
+++ b/src/components/SelectionList/types.ts
@@ -597,6 +597,9 @@ type BaseSelectionListProps<TItem extends ListItem> = Partial<ChildrenProps> & {
 
     /** Whether we highlight all the selected items */
     shouldHighlightSelectedItem?: boolean;
+
+    /** Determines if the focused item should remain at the top of the viewable area when navigating with arrow keys */
+    shouldKeepFocusedItemAtTopOfViewableArea?: boolean;
 } & TRightHandSideComponent<TItem>;
 
 type SelectionListHandle = {