diff --git a/src/components/SelectionList/Search/ExpenseItemHeaderNarrow.tsx b/src/components/SelectionList/Search/ExpenseItemHeaderNarrow.tsx
index 60f278998f0de..30a5d798c863a 100644
--- a/src/components/SelectionList/Search/ExpenseItemHeaderNarrow.tsx
+++ b/src/components/SelectionList/Search/ExpenseItemHeaderNarrow.tsx
@@ -1,5 +1,6 @@
 import React, {memo} from 'react';
 import {View} from 'react-native';
+import type {StyleProp, ViewStyle} from 'react-native';
 import Icon from '@components/Icon';
 import * as Expensicons from '@components/Icon/Expensicons';
 import {PressableWithFeedback} from '@components/Pressable';
@@ -19,6 +20,7 @@ type ExpenseItemHeaderNarrowProps = {
     participantFromDisplayName: string;
     participantToDisplayName: string;
     action?: SearchTransactionAction;
+    containerStyle?: StyleProp<ViewStyle>;
     onButtonPress: () => void;
     canSelectMultiple?: boolean;
     isSelected?: boolean;
@@ -35,6 +37,7 @@ function ExpenseItemHeaderNarrow({
     onButtonPress,
     action,
     canSelectMultiple,
+    containerStyle,
     isDisabledCheckbox,
     isSelected,
     isDisabled,
@@ -46,7 +49,7 @@ function ExpenseItemHeaderNarrow({
     const theme = useTheme();
 
     return (
-        <View style={[styles.flex1, styles.flexRow, styles.alignItemsCenter, styles.justifyContentBetween, styles.mb4, styles.gap2]}>
+        <View style={[styles.flex1, styles.flexRow, styles.alignItemsCenter, styles.justifyContentBetween, styles.mb3, styles.gap2, containerStyle]}>
             <View style={[styles.flexRow, styles.alignItemsCenter, styles.gap2, styles.flex1]}>
                 {canSelectMultiple && (
                     <PressableWithFeedback
diff --git a/src/components/SelectionList/Search/ReportListItem.tsx b/src/components/SelectionList/Search/ReportListItem.tsx
index fb503960cd5e9..be8ddfe438222 100644
--- a/src/components/SelectionList/Search/ReportListItem.tsx
+++ b/src/components/SelectionList/Search/ReportListItem.tsx
@@ -71,7 +71,14 @@ function ReportListItem<TItem extends ListItem>({
         return;
     }
 
-    const listItemPressableStyle = [styles.selectionListPressableItemWrapper, styles.pv3, item.isSelected && styles.activeComponentBG, isFocused && styles.sidebarLinkActive, styles.ph3];
+    const listItemPressableStyle = [
+        styles.selectionListPressableItemWrapper,
+        styles.pv1half,
+        styles.ph0,
+        styles.overflowHidden,
+        item.isSelected && styles.activeComponentBG,
+        isFocused && styles.sidebarLinkActive,
+    ];
 
     const handleOnButtonPress = () => {
         onSelectRow(item);
@@ -144,10 +151,11 @@ function ReportListItem<TItem extends ListItem>({
                         participantToDisplayName={participantToDisplayName}
                         action={reportItem.action}
                         onButtonPress={handleOnButtonPress}
+                        containerStyle={[styles.ph3, styles.pt1half, styles.mb1half]}
                     />
                 )}
-                <View style={[styles.flex1, styles.flexRow, styles.alignItemsCenter, styles.gap3, styles.mnh40]}>
-                    <View style={[styles.flexRow, styles.flex1, styles.alignItemsCenter, styles.justifyContentBetween]}>
+                <View style={[styles.flex1, styles.flexRow, styles.alignItemsCenter, styles.gap3, styles.ph3, styles.pv1half]}>
+                    <View style={[styles.flexRow, styles.flex1, styles.alignItemsCenter, styles.justifyContentBetween, styles.mnh40]}>
                         <View style={[styles.flexRow, styles.alignItemsCenter, styles.flex2]}>
                             {canSelectMultiple && (
                                 <Checkbox
@@ -192,11 +200,11 @@ function ReportListItem<TItem extends ListItem>({
                         }}
                         onCheckboxPress={() => onCheckboxPress?.(transaction as unknown as TItem)}
                         showItemHeaderOnNarrowLayout={false}
-                        containerStyle={styles.mt3}
+                        containerStyle={[transaction.isSelected && styles.activeComponentBG, styles.ph3, styles.pv1half]}
                         isChildListItem
                         isDisabled={!!isDisabled}
                         canSelectMultiple={!!canSelectMultiple}
-                        isButtonSelected={item.isSelected}
+                        isButtonSelected={transaction.isSelected}
                         shouldShowTransactionCheckbox
                     />
                 ))}
diff --git a/src/styles/utils/spacing.ts b/src/styles/utils/spacing.ts
index 877cffbe1292a..5b416f5a120e3 100644
--- a/src/styles/utils/spacing.ts
+++ b/src/styles/utils/spacing.ts
@@ -287,6 +287,10 @@ export default {
         marginBottom: 4,
     },
 
+    mb1half: {
+        marginBottom: 6,
+    },
+
     mb2: {
         marginBottom: 8,
     },
@@ -401,6 +405,10 @@ export default {
         paddingVertical: 4,
     },
 
+    pv1half: {
+        paddingVertical: 6,
+    },
+
     pv2: {
         paddingVertical: 8,
     },
@@ -549,6 +557,10 @@ export default {
         paddingTop: 4,
     },
 
+    pt1half: {
+        paddingTop: 6,
+    },
+
     pt2: {
         paddingTop: 8,
     },