diff --git a/src/components/AvatarWithIndicator.js b/src/components/AvatarWithIndicator.tsx
similarity index 62%
rename from src/components/AvatarWithIndicator.js
rename to src/components/AvatarWithIndicator.tsx
index f3607b69a73f..3ae9507350c8 100644
--- a/src/components/AvatarWithIndicator.js
+++ b/src/components/AvatarWithIndicator.tsx
@@ -1,4 +1,3 @@
-import PropTypes from 'prop-types';
 import React from 'react';
 import {View} from 'react-native';
 import * as UserUtils from '@libs/UserUtils';
@@ -9,38 +8,33 @@ import * as Expensicons from './Icon/Expensicons';
 import Indicator from './Indicator';
 import Tooltip from './Tooltip';
 
-const propTypes = {
+type AvatarWithIndicatorProps = {
     /** URL for the avatar */
-    source: PropTypes.oneOfType([PropTypes.string, PropTypes.func]).isRequired,
+    source: UserUtils.AvatarSource;
 
     /** To show a tooltip on hover */
-    tooltipText: PropTypes.string,
+    tooltipText?: string;
 
     /** A fallback avatar icon to display when there is an error on loading avatar from remote URL. */
-    fallbackIcon: PropTypes.oneOfType([PropTypes.func, PropTypes.string]),
+    fallbackIcon?: UserUtils.AvatarSource;
 
     /** Indicates whether the avatar is loaded or not  */
-    isLoading: PropTypes.bool,
+    isLoading?: boolean;
 };
 
-const defaultProps = {
-    tooltipText: '',
-    fallbackIcon: Expensicons.FallbackAvatar,
-    isLoading: true,
-};
-
-function AvatarWithIndicator(props) {
+function AvatarWithIndicator({source, tooltipText = '', fallbackIcon = Expensicons.FallbackAvatar, isLoading = true}: AvatarWithIndicatorProps) {
     const styles = useThemeStyles();
+
     return (
-        <Tooltip text={props.tooltipText}>
+        <Tooltip text={tooltipText}>
             <View style={[styles.sidebarAvatar]}>
-                {props.isLoading ? (
+                {isLoading ? (
                     <AvatarSkeleton />
                 ) : (
                     <>
                         <Avatar
-                            source={UserUtils.getSmallSizeAvatar(props.source)}
-                            fallbackIcon={props.fallbackIcon}
+                            source={UserUtils.getSmallSizeAvatar(source)}
+                            fallbackIcon={fallbackIcon}
                         />
                         <Indicator />
                     </>
@@ -50,8 +44,6 @@ function AvatarWithIndicator(props) {
     );
 }
 
-AvatarWithIndicator.defaultProps = defaultProps;
-AvatarWithIndicator.propTypes = propTypes;
 AvatarWithIndicator.displayName = 'AvatarWithIndicator';
 
 export default AvatarWithIndicator;
diff --git a/src/libs/UserUtils.ts b/src/libs/UserUtils.ts
index d091cca57df4..29a43bcf711d 100644
--- a/src/libs/UserUtils.ts
+++ b/src/libs/UserUtils.ts
@@ -105,22 +105,22 @@ function getDefaultAvatarURL(accountID: string | number = '', isNewDot = false):
 
 /**
  * Given a user's avatar path, returns true if user doesn't have an avatar or if URL points to a default avatar
- * @param [avatarURL] - the avatar source from user's personalDetails
+ * @param avatarSource - the avatar source from user's personalDetails
  */
-function isDefaultAvatar(avatarURL?: string | React.FC<SvgProps>): boolean {
-    if (typeof avatarURL === 'string') {
-        if (avatarURL.includes('images/avatars/avatar_') || avatarURL.includes('images/avatars/default-avatar_') || avatarURL.includes('images/avatars/user/default')) {
+function isDefaultAvatar(avatarSource?: AvatarSource): boolean {
+    if (typeof avatarSource === 'string') {
+        if (avatarSource.includes('images/avatars/avatar_') || avatarSource.includes('images/avatars/default-avatar_') || avatarSource.includes('images/avatars/user/default')) {
             return true;
         }
 
         // We use a hardcoded "default" Concierge avatar
-        if (avatarURL === CONST.CONCIERGE_ICON_URL_2021 || avatarURL === CONST.CONCIERGE_ICON_URL) {
+        if (avatarSource === CONST.CONCIERGE_ICON_URL_2021 || avatarSource === CONST.CONCIERGE_ICON_URL) {
             return true;
         }
     }
 
-    if (!avatarURL) {
-        // If null URL, we should also use a default avatar
+    if (!avatarSource) {
+        // If null source, we should also use a default avatar
         return true;
     }
 
@@ -128,14 +128,14 @@ function isDefaultAvatar(avatarURL?: string | React.FC<SvgProps>): boolean {
 }
 
 /**
- * Provided a source URL, if source is a default avatar, return the associated SVG.
- * Otherwise, return the URL pointing to a user-uploaded avatar.
+ * Provided an avatar source, if source is a default avatar, return the associated SVG.
+ * Otherwise, return the URL or SVG pointing to the user-uploaded avatar.
  *
- * @param avatarURL - the avatar source from user's personalDetails
+ * @param avatarSource - the avatar source from user's personalDetails
  * @param accountID - the accountID of the user
  */
-function getAvatar(avatarURL: AvatarSource, accountID: number): AvatarSource {
-    return isDefaultAvatar(avatarURL) ? getDefaultAvatar(accountID) : avatarURL;
+function getAvatar(avatarSource: AvatarSource, accountID?: number): AvatarSource {
+    return isDefaultAvatar(avatarSource) ? getDefaultAvatar(accountID) : avatarSource;
 }
 
 /**
@@ -153,8 +153,8 @@ function getAvatarUrl(avatarURL: string, accountID: number): string {
  * Avatars uploaded by users will have a _128 appended so that the asset server returns a small version.
  * This removes that part of the URL so the full version of the image can load.
  */
-function getFullSizeAvatar(avatarURL: string, accountID: number): AvatarSource {
-    const source = getAvatar(avatarURL, accountID);
+function getFullSizeAvatar(avatarSource: AvatarSource, accountID: number): AvatarSource {
+    const source = getAvatar(avatarSource, accountID);
     if (typeof source !== 'string') {
         return source;
     }
@@ -165,8 +165,8 @@ function getFullSizeAvatar(avatarURL: string, accountID: number): AvatarSource {
  * Small sized avatars end with _128.<file-type>. This adds the _128 at the end of the
  * source URL (before the file type) if it doesn't exist there already.
  */
-function getSmallSizeAvatar(avatarURL: string, accountID: number): AvatarSource {
-    const source = getAvatar(avatarURL, accountID);
+function getSmallSizeAvatar(avatarSource: AvatarSource, accountID?: number): AvatarSource {
+    const source = getAvatar(avatarSource, accountID);
     if (typeof source !== 'string') {
         return source;
     }
diff --git a/src/types/onyx/ReportAction.ts b/src/types/onyx/ReportAction.ts
index 891a0ffcb7b8..64e1eb0b7c88 100644
--- a/src/types/onyx/ReportAction.ts
+++ b/src/types/onyx/ReportAction.ts
@@ -1,5 +1,5 @@
-import {SvgProps} from 'react-native-svg';
 import {ValueOf} from 'type-fest';
+import {AvatarSource} from '@libs/UserUtils';
 import CONST from '@src/CONST';
 import * as OnyxCommon from './OnyxCommon';
 import OriginalMessage, {Decision, Reaction} from './OriginalMessage';
@@ -85,7 +85,7 @@ type ReportActionBase = {
     /** accountIDs of the people to which the whisper was sent to (if any). Returns empty array if it is not a whisper */
     whisperedToAccountIDs?: number[];
 
-    avatar?: string | React.FC<SvgProps>;
+    avatar?: AvatarSource;
 
     automatic?: boolean;
 
@@ -145,4 +145,4 @@ type ReportAction = ReportActionBase & OriginalMessage;
 type ReportActions = Record<string, ReportAction>;
 
 export default ReportAction;
-export type {ReportActions, Message};
+export type {Message, ReportActions};