diff --git a/src/libs/OptionsListUtils.js b/src/libs/OptionsListUtils.js
index ba86339f7270..00e00e3b4a17 100644
--- a/src/libs/OptionsListUtils.js
+++ b/src/libs/OptionsListUtils.js
@@ -1585,6 +1585,64 @@ function shouldOptionShowTooltip(option) {
     return (!option.isChatRoom || option.isThread) && !option.isArchivedRoom;
 }
 
+/**
+ * Handles the logic for displaying selected participants from the search term
+ * @param {String} searchTerm
+ * @param {Array} selectedOptions
+ * @param {Array} filteredRecentReports
+ * @param {Array} filteredPersonalDetails
+ * @param {Object} personalDetails
+ * @param {Boolean} shouldGetOptionDetails
+ * @param {Number} indexOffset
+ * @returns {Object}
+ */
+function formatSectionsFromSearchTerm(searchTerm, selectedOptions, filteredRecentReports, filteredPersonalDetails, personalDetails = {}, shouldGetOptionDetails = false, indexOffset) {
+    // We show the selected participants at the top of the list when there is no search term
+    // However, if there is a search term we remove the selected participants from the top of the list unless they are part of the search results
+    // This clears up space on mobile views, where if you create a group with 4+ people you can't see the selected participants and the search results at the same time
+    if (searchTerm === '') {
+        return {
+            section: {
+                title: undefined,
+                data: shouldGetOptionDetails
+                    ? _.map(selectedOptions, (participant) => {
+                          const isPolicyExpenseChat = lodashGet(participant, 'isPolicyExpenseChat', false);
+                          return isPolicyExpenseChat ? getPolicyExpenseReportOption(participant) : getParticipantsOption(participant, personalDetails);
+                      })
+                    : selectedOptions,
+                shouldShow: !_.isEmpty(selectedOptions),
+                indexOffset,
+            },
+            newIndexOffset: indexOffset + selectedOptions.length,
+        };
+    }
+
+    // If you select a new user you don't have a contact for, they won't get returned as part of a recent report or personal details
+    // This will add them to the list of options, deduping them if they already exist in the other lists
+    const selectedParticipantsWithoutDetails = _.filter(selectedOptions, (participant) => {
+        const accountID = lodashGet(participant, 'accountID', null);
+        const isPartOfSearchTerm = participant.searchText.toLowerCase().includes(searchTerm.trim().toLowerCase());
+        const isReportInRecentReports = _.some(filteredRecentReports, (report) => report.accountID === accountID);
+        const isReportInPersonalDetails = _.some(filteredPersonalDetails, (personalDetail) => personalDetail.accountID === accountID);
+        return isPartOfSearchTerm && !isReportInRecentReports && !isReportInPersonalDetails;
+    });
+
+    return {
+        section: {
+            title: undefined,
+            data: shouldGetOptionDetails
+                ? _.map(selectedParticipantsWithoutDetails, (participant) => {
+                      const isPolicyExpenseChat = lodashGet(participant, 'isPolicyExpenseChat', false);
+                      return isPolicyExpenseChat ? getPolicyExpenseReportOption(participant) : getParticipantsOption(participant, personalDetails);
+                  })
+                : selectedParticipantsWithoutDetails,
+            shouldShow: !_.isEmpty(selectedParticipantsWithoutDetails),
+            indexOffset,
+        },
+        newIndexOffset: indexOffset + selectedParticipantsWithoutDetails.length,
+    };
+}
+
 export {
     addSMSDomainIfPhoneNumber,
     getAvatarsForAccountIDs,
@@ -1610,4 +1668,5 @@ export {
     hasEnabledOptions,
     getCategoryOptionTree,
     formatMemberForList,
+    formatSectionsFromSearchTerm,
 };
diff --git a/src/pages/NewChatPage.js b/src/pages/NewChatPage.js
index a9401bce684e..9ee5f838aafd 100755
--- a/src/pages/NewChatPage.js
+++ b/src/pages/NewChatPage.js
@@ -71,16 +71,9 @@ function NewChatPage({betas, isGroupChat, personalDetails, reports, translate, i
         const sectionsList = [];
         let indexOffset = 0;
 
-        // Only show the selected participants if the search is empty
-        if (searchTerm === '') {
-            sectionsList.push({
-                title: undefined,
-                data: selectedOptions,
-                shouldShow: !_.isEmpty(selectedOptions),
-                indexOffset,
-            });
-            indexOffset += selectedOptions.length;
-        }
+        const formatResults = OptionsListUtils.formatSectionsFromSearchTerm(searchTerm, selectedOptions, filteredRecentReports, filteredPersonalDetails, {}, false, indexOffset);
+        sectionsList.push(formatResults.section);
+        indexOffset = formatResults.newIndexOffset;
 
         if (maxParticipantsReached) {
             return sectionsList;
diff --git a/src/pages/iou/steps/MoneyRequstParticipantsPage/MoneyRequestParticipantsSelector.js b/src/pages/iou/steps/MoneyRequstParticipantsPage/MoneyRequestParticipantsSelector.js
index 1263dd5db2b9..9f1e5a416995 100755
--- a/src/pages/iou/steps/MoneyRequstParticipantsPage/MoneyRequestParticipantsSelector.js
+++ b/src/pages/iou/steps/MoneyRequstParticipantsPage/MoneyRequestParticipantsSelector.js
@@ -104,19 +104,17 @@ function MoneyRequestParticipantsSelector({
         const newSections = [];
         let indexOffset = 0;
 
-        // Only show the selected participants if the search is empty
-        if (searchTerm === '') {
-            newSections.push({
-                title: undefined,
-                data: _.map(participants, (participant) => {
-                    const isPolicyExpenseChat = lodashGet(participant, 'isPolicyExpenseChat', false);
-                    return isPolicyExpenseChat ? OptionsListUtils.getPolicyExpenseReportOption(participant) : OptionsListUtils.getParticipantsOption(participant, personalDetails);
-                }),
-                shouldShow: true,
-                indexOffset,
-            });
-            indexOffset += participants.length;
-        }
+        const formatResults = OptionsListUtils.formatSectionsFromSearchTerm(
+            searchTerm,
+            participants,
+            newChatOptions.recentReports,
+            newChatOptions.personalDetails,
+            personalDetails,
+            true,
+            indexOffset,
+        );
+        newSections.push(formatResults.section);
+        indexOffset = formatResults.newIndexOffset;
 
         if (maxParticipantsReached) {
             return newSections;