diff --git a/src/libs/OptionsListUtils.js b/src/libs/OptionsListUtils.js
index 8047bb3b7b47..8b254de6f106 100644
--- a/src/libs/OptionsListUtils.js
+++ b/src/libs/OptionsListUtils.js
@@ -45,6 +45,16 @@ Onyx.connect({
     },
 });
 
+const iouReports = {};
+Onyx.connect({
+    key: ONYXKEYS.COLLECTION.REPORT_IOUS,
+    callback: (iouReport, key) => {
+        if (iouReport && key && iouReport.ownerEmail) {
+            iouReports[key] = iouReport;
+        }
+    },
+});
+
 /**
  * Helper method to return a default avatar
  *
@@ -180,6 +190,10 @@ function createOption(personalDetailList, report, draftComments, {
         && lodashGet(draftComments, `${ONYXKEYS.COLLECTION.REPORT_DRAFT_COMMENT}${report.reportID}`, '');
 
     const hasOutstandingIOU = lodashGet(report, 'hasOutstandingIOU', false);
+    const iouReport = hasOutstandingIOU
+        ? lodashGet(iouReports, `${ONYXKEYS.COLLECTION.REPORT_IOUS}${report.iouReportID}`, {})
+        : {};
+
     const lastActorDetails = report ? _.find(personalDetailList, {login: report.lastActorEmail}) : null;
     const lastMessageText = report
         ? (hasMultipleParticipants && lastActorDetails
@@ -226,6 +240,8 @@ function createOption(personalDetailList, report, draftComments, {
         isPinned: lodashGet(report, 'isPinned', false),
         hasOutstandingIOU,
         iouReportID: lodashGet(report, 'iouReportID'),
+        isIOUReportOwner: lodashGet(iouReport, 'ownerEmail', '') === currentUserLogin,
+        iouReportAmount: lodashGet(iouReport, 'total', 0),
         isDefaultChatRoom,
     };
 }
@@ -280,10 +296,12 @@ function getOptions(reports, personalDetails, draftComments, activeReportID, {
     hideReadReports = false,
     sortByAlphaAsc = false,
     forcePolicyNamePreview = false,
+    prioritizeIOUDebts = false,
 }) {
     let recentReportOptions = [];
     const pinnedReportOptions = [];
     const personalDetailsOptions = [];
+    const iouDebtReportOptions = [];
 
     const reportMapForLogins = {};
     let sortProperty = sortByLastMessageTimestamp
@@ -307,7 +325,11 @@ function getOptions(reports, personalDetails, draftComments, activeReportID, {
         const reportDraftComment = report
             && draftComments
             && lodashGet(draftComments, `${ONYXKEYS.COLLECTION.REPORT_DRAFT_COMMENT}${report.reportID}`, '');
+        const iouReportOwner = lodashGet(report, 'hasOutstandingIOU', false)
+            ? lodashGet(iouReports, [`${ONYXKEYS.COLLECTION.REPORT_IOUS}${report.iouReportID}`, 'ownerEmail'], '')
+            : '';
 
+        const reportContainsIOUDebt = iouReportOwner && iouReportOwner !== currentUserLogin;
         const shouldFilterReportIfEmpty = !showReportsWithNoComments && report.lastMessageTimestamp === 0;
         const shouldFilterReportIfRead = hideReadReports && report.unreadActionCount === 0;
         const shouldShowReportIfHasDraft = showReportsWithDrafts && reportDraftComment && reportDraftComment.length > 0;
@@ -315,7 +337,8 @@ function getOptions(reports, personalDetails, draftComments, activeReportID, {
         if (report.reportID !== activeReportID
             && !report.isPinned
             && !shouldShowReportIfHasDraft
-            && shouldFilterReport) {
+            && shouldFilterReport
+            && !reportContainsIOUDebt) {
             return;
         }
 
@@ -380,6 +403,8 @@ function getOptions(reports, personalDetails, draftComments, activeReportID, {
             // collect the pinned reports so we can sort them alphabetically once they are collected
             if (prioritizePinnedReports && reportOption.isPinned) {
                 pinnedReportOptions.push(reportOption);
+            } else if (prioritizeIOUDebts && reportOption.hasOutstandingIOU && !reportOption.isIOUReportOwner) {
+                iouDebtReportOptions.push(reportOption);
             } else {
                 recentReportOptions.push(reportOption);
             }
@@ -391,6 +416,12 @@ function getOptions(reports, personalDetails, draftComments, activeReportID, {
         }
     }
 
+    // If we are prioritizing IOUs the user owes, add them before the normal recent report options
+    if (prioritizeIOUDebts) {
+        const sortedIOUReports = lodashOrderBy(iouDebtReportOptions, ['iouReportAmount'], ['desc']);
+        recentReportOptions = sortedIOUReports.concat(recentReportOptions);
+    }
+
     // If we are prioritizing our pinned reports then shift them to the front and sort them by report name
     if (prioritizePinnedReports) {
         const sortedPinnedReports = lodashOrderBy(pinnedReportOptions, ['text'], ['asc']);
@@ -475,6 +506,7 @@ function getSearchOptions(
         includePersonalDetails: true,
         sortByLastMessageTimestamp: false,
         forcePolicyNamePreview: true,
+        prioritizeIOUDebts: false,
     });
 }
 
@@ -589,6 +621,7 @@ function getSidebarOptions(
 ) {
     let sideBarOptions = {
         prioritizePinnedReports: true,
+        prioritizeIOUDebts: true,
     };
     if (priorityMode === CONST.PRIORITY_MODE.GSD) {
         sideBarOptions = {
diff --git a/tests/unit/OptionsListUtilsTest.js b/tests/unit/OptionsListUtilsTest.js
index 2a54da5e2015..27ee71d6976a 100644
--- a/tests/unit/OptionsListUtilsTest.js
+++ b/tests/unit/OptionsListUtilsTest.js
@@ -86,6 +86,19 @@ describe('OptionsListUtils', () => {
             reportName: 'Silver Surfer',
             unreadActionCount: 0,
         },
+
+        // Note: This report has an IOU
+        9: {
+            lastVisitedTimestamp: 1610666739302,
+            lastMessageTimestamp: 1611282168,
+            isPinned: false,
+            reportID: 9,
+            participants: ['mistersinister@marauders.com'],
+            reportName: 'Mister Sinister',
+            unreadActionCount: 0,
+            iouReportID: 100,
+            hasOutstandingIOU: true,
+        },
     };
 
     // And a set of personalDetails some with existing reports and some without
@@ -119,6 +132,10 @@ describe('OptionsListUtils', () => {
             displayName: 'Captain America',
             login: 'steverogers@expensify.com',
         },
+        'mistersinister@marauders.com': {
+            displayName: 'Mr Sinister',
+            login: 'mistersinister@marauders.com',
+        },
 
         // These do not exist in reports at all
         'natasharomanoff@expensify.com': {
@@ -134,11 +151,11 @@ describe('OptionsListUtils', () => {
     const REPORTS_WITH_CONCIERGE = {
         ...REPORTS,
 
-        9: {
+        10: {
             lastVisitedTimestamp: 1610666739302,
             lastMessageTimestamp: 1,
             isPinned: false,
-            reportID: 9,
+            reportID: 10,
             participants: ['concierge@expensify.com'],
             reportName: 'Concierge',
             unreadActionCount: 1,
@@ -160,6 +177,10 @@ describe('OptionsListUtils', () => {
             keys: ONYXKEYS,
             initialKeyStates: {
                 [ONYXKEYS.SESSION]: {email: 'tonystark@expensify.com'},
+                [`${ONYXKEYS.COLLECTION.REPORT_IOUS}100`]: {
+                    ownerEmail: 'mistersinister@marauders.com',
+                    total: '1000',
+                },
             },
             registerStorageEventListener: () => {},
         });
@@ -404,11 +425,11 @@ describe('OptionsListUtils', () => {
             ...REPORTS,
 
             // Note: This report has no lastMessageTimestamp but is also pinned
-            9: {
+            10: {
                 lastVisitedTimestamp: 1610666739300,
                 lastMessageTimestamp: 0,
                 isPinned: true,
-                reportID: 9,
+                reportID: 10,
                 participants: ['captain_britain@expensify.com'],
                 reportName: 'Captain Britain',
             },
@@ -436,8 +457,11 @@ describe('OptionsListUtils', () => {
         // And the most recent pinned report is first in the list of reports
         expect(results.recentReports[0].login).toBe('captain_britain@expensify.com');
 
-        // And the third report is the report with a lastMessageTimestamp
-        expect(results.recentReports[2].login).toBe('steverogers@expensify.com');
+        // And the third report is the report with an IOU debt
+        expect(results.recentReports[2].login).toBe('mistersinister@marauders.com');
+
+        // And the fourth report is the report with the lastMessage timestamp
+        expect(results.recentReports[3].login).toBe('steverogers@expensify.com');
     });
 
     it('getSidebarOptions() with GSD priority mode', () => {
@@ -457,5 +481,8 @@ describe('OptionsListUtils', () => {
 
         // And Black Panther is alphabetically the first report and has an unread message
         expect(results.recentReports[0].login).toBe('tchalla@expensify.com');
+
+        // And Mister Sinister is alphabetically the fifth report and has an IOU debt despite not being pinned
+        expect(results.recentReports[5].login).toBe('mistersinister@marauders.com');
     });
 });