diff --git a/src/libs/OptionsListUtils.ts b/src/libs/OptionsListUtils.ts
index 4910254d5cfc0..929ea5f7229a1 100644
--- a/src/libs/OptionsListUtils.ts
+++ b/src/libs/OptionsListUtils.ts
@@ -215,7 +215,7 @@ type GetOptionsConfig = {
     includeRecentReports?: boolean;
     includeSelectedOptions?: boolean;
     recentAttendees?: Attendee[];
-    excludeHiddenReports?: boolean;
+    excludeHiddenThreads?: boolean;
     canShowManagerMcTest?: boolean;
 } & GetValidReportsConfig;
 
@@ -1484,7 +1484,7 @@ function getValidOptions(
         selectedOptions = [],
         shouldSeparateSelfDMChat = false,
         shouldSeparateWorkspaceChat = false,
-        excludeHiddenReports = false,
+        excludeHiddenThreads = false,
         canShowManagerMcTest = false,
         ...config
     }: GetOptionsConfig = {},
@@ -1579,8 +1579,8 @@ function getValidOptions(
         }
     }
 
-    if (excludeHiddenReports) {
-        recentReportOptions = recentReportOptions.filter((option) => option.notificationPreference !== CONST.REPORT.NOTIFICATION_PREFERENCE.HIDDEN);
+    if (excludeHiddenThreads) {
+        recentReportOptions = recentReportOptions.filter((option) => !option.isThread || option.notificationPreference !== CONST.REPORT.NOTIFICATION_PREFERENCE.HIDDEN);
     }
 
     return {
@@ -1613,7 +1613,7 @@ function getSearchOptions(options: OptionList, betas: Beta[] = [], isUsedInChatF
         includeTasks: true,
         includeSelfDM: true,
         shouldBoldTitleByDefault: !isUsedInChatFinder,
-        excludeHiddenReports: true,
+        excludeHiddenThreads: true,
     });
     const orderedOptions = orderOptions(optionList);
     Timing.end(CONST.TIMING.LOAD_SEARCH_OPTIONS);
diff --git a/tests/unit/OptionsListUtilsTest.ts b/tests/unit/OptionsListUtilsTest.ts
index 5a964cd7d6f04..5f99086aec562 100644
--- a/tests/unit/OptionsListUtilsTest.ts
+++ b/tests/unit/OptionsListUtilsTest.ts
@@ -179,9 +179,24 @@ describe('OptionsListUtils', () => {
             isOwnPolicyExpenseChat: true,
             type: CONST.REPORT.TYPE.CHAT,
         },
+        '11': {
+            lastReadTime: '2021-01-14 11:25:39.200',
+            lastVisibleActionCreated: '2022-11-22 03:26:02.001',
+            reportID: '11',
+            isPinned: false,
+            participants: {
+                10: {notificationPreference: CONST.REPORT.NOTIFICATION_PREFERENCE.HIDDEN},
+            },
+            reportName: '',
+            chatType: CONST.REPORT.CHAT_TYPE.POLICY_EXPENSE_CHAT,
+            isOwnPolicyExpenseChat: true,
+            type: CONST.REPORT.TYPE.CHAT,
+            policyID,
+            policyName: POLICY.name,
+        },
 
         // Thread report with notification preference = hidden
-        '11': {
+        '12': {
             lastReadTime: '2021-01-14 11:25:39.200',
             lastVisibleActionCreated: '2022-11-22 03:26:02.001',
             reportID: '11',
@@ -195,6 +210,8 @@ describe('OptionsListUtils', () => {
             type: CONST.REPORT.TYPE.CHAT,
             policyID,
             policyName: POLICY.name,
+            parentReportActionID: '123',
+            parentReportID: '123',
         },
     };
 
@@ -547,7 +564,7 @@ describe('OptionsListUtils', () => {
         // Filtering of personalDetails that have reports is done in filterOptions
         expect(results.personalDetails.length).toBe(9);
 
-        // Then all of the reports should be shown including the archived rooms, except for the report with notificationPreferences hidden.
+        // Then all of the reports should be shown including the archived rooms, except for the thread report with notificationPreferences hidden.
         expect(results.recentReports.length).toBe(Object.values(OPTIONS.reports).length - 1);
     });
 
@@ -766,8 +783,8 @@ describe('OptionsListUtils', () => {
         // When we pass an empty search value
         let results = getShareDestinationOptions(filteredReports, OPTIONS.personalDetails, []);
 
-        // Then we should expect all the recent reports to show but exclude the archived rooms
-        expect(results.recentReports.length).toBe(Object.values(OPTIONS.reports).length - 1);
+        // Then we should expect all the recent reports to show but exclude the archived rooms and the hidden thread
+        expect(results.recentReports.length).toBe(Object.values(OPTIONS.reports).length - 2);
 
         // Filter current REPORTS_WITH_WORKSPACE_ROOMS as we do in the component, before getting share destination options
         const filteredReportsWithWorkspaceRooms = Object.values(OPTIONS_WITH_WORKSPACE_ROOM.reports).reduce<OptionList['reports']>((filtered, option) => {
@@ -782,8 +799,8 @@ describe('OptionsListUtils', () => {
         // When we also have a policy to return rooms in the results
         results = getShareDestinationOptions(filteredReportsWithWorkspaceRooms, OPTIONS.personalDetails, []);
         // Then we should expect the DMS, the group chats and the workspace room to show
-        // We should expect all the recent reports to show, excluding the archived rooms
-        expect(results.recentReports.length).toBe(Object.values(OPTIONS_WITH_WORKSPACE_ROOM.reports).length - 1);
+        // We should expect all the recent reports to show, excluding the archived rooms and the hidden thread
+        expect(results.recentReports.length).toBe(Object.values(OPTIONS_WITH_WORKSPACE_ROOM.reports).length - 2);
     });
 
     describe('getShareLogOptions', () => {
@@ -834,7 +851,7 @@ describe('OptionsListUtils', () => {
             const options = getSearchOptions(OPTIONS, [CONST.BETAS.ALL]);
             const filteredOptions = filterAndOrderOptions(options, '');
 
-            expect(filteredOptions.recentReports.length + filteredOptions.personalDetails.length).toBe(12);
+            expect(filteredOptions.recentReports.length + filteredOptions.personalDetails.length).toBe(13);
         });
 
         it('should return filtered options in correct order', () => {
@@ -923,7 +940,7 @@ describe('OptionsListUtils', () => {
             const options = getSearchOptions(OPTIONS);
             const filteredOptions = filterAndOrderOptions(options, searchText);
 
-            expect(filteredOptions.recentReports.length).toBe(2);
+            expect(filteredOptions.recentReports.length).toBe(3);
             expect(filteredOptions.recentReports.at(0)?.text).toBe('Mister Fantastic');
             expect(filteredOptions.recentReports.at(1)?.text).toBe('Mister Fantastic, Invisible Woman');
         });
@@ -1151,7 +1168,7 @@ describe('OptionsListUtils', () => {
             const options = getSearchOptions(OPTIONS);
             const filteredOptions = filterAndOrderOptions(options, 'fantastic');
 
-            expect(filteredOptions.recentReports.length).toBe(2);
+            expect(filteredOptions.recentReports.length).toBe(3);
             expect(filteredOptions.recentReports.at(0)?.text).toBe('Mister Fantastic');
             expect(filteredOptions.recentReports.at(1)?.text).toBe('Mister Fantastic, Invisible Woman');