diff --git a/src/libs/ReportUtils.ts b/src/libs/ReportUtils.ts
index e98acb5bafbe4..49367a50e6f6b 100644
--- a/src/libs/ReportUtils.ts
+++ b/src/libs/ReportUtils.ts
@@ -10044,6 +10044,22 @@ function getOutstandingReportsForUser(
         .sort((a, b) => a?.reportName?.localeCompare(b?.reportName?.toLowerCase() ?? '') ?? 0);
 }
 
+/**
+ * Sort outstanding reports by their name, while keeping the selected one at the beginning.
+ * @param report1 Details of the first report to be compared.
+ * @param report2 Details of the second report to be compared.
+ * @param selectedReportID ID of the selected report which needs to be at the beginning.
+ */
+function sortOutstandingReportsBySelected(report1: OnyxEntry<Report>, report2: OnyxEntry<Report>, selectedReportID: string | undefined): number {
+    if (report1?.reportID === selectedReportID) {
+        return -1;
+    }
+    if (report2?.reportID === selectedReportID) {
+        return 1;
+    }
+    return report1?.reportName?.localeCompare(report2?.reportName?.toLowerCase() ?? '') ?? 0;
+}
+
 /**
  * @returns the object to update `report.hasOutstandingChildRequest`
  */
@@ -11435,6 +11451,7 @@ export {
     shouldReportBeInOptionList,
     shouldReportShowSubscript,
     shouldShowFlagComment,
+    sortOutstandingReportsBySelected,
     getReportActionWithMissingSmartscanFields,
     shouldShowRBRForMissingSmartscanFields,
     shouldUseFullTitleToDisplay,
diff --git a/src/pages/iou/request/step/IOURequestEditReportCommon.tsx b/src/pages/iou/request/step/IOURequestEditReportCommon.tsx
index f2107c4db7e07..cab6c66b31362 100644
--- a/src/pages/iou/request/step/IOURequestEditReportCommon.tsx
+++ b/src/pages/iou/request/step/IOURequestEditReportCommon.tsx
@@ -11,7 +11,7 @@ import useDebouncedState from '@hooks/useDebouncedState';
 import useLocalize from '@hooks/useLocalize';
 import useOnyx from '@hooks/useOnyx';
 import Navigation from '@libs/Navigation/Navigation';
-import {getOutstandingReportsForUser, getPolicyName, isIOUReport} from '@libs/ReportUtils';
+import {getOutstandingReportsForUser, getPolicyName, isIOUReport, sortOutstandingReportsBySelected} from '@libs/ReportUtils';
 import CONST from '@src/CONST';
 import ONYXKEYS from '@src/ONYXKEYS';
 import type {Route} from '@src/ROUTES';
@@ -86,7 +86,7 @@ function IOURequestEditReportCommon({backTo, transactionsReports, selectReport,
         }
 
         return expenseReports
-            .sort((a, b) => a?.reportName?.localeCompare(b?.reportName?.toLowerCase() ?? '') ?? 0)
+            .sort((report1, report2) => sortOutstandingReportsBySelected(report1, report2, onlyReport?.reportID))
             .filter((report) => !debouncedSearchValue || report?.reportName?.toLowerCase().includes(debouncedSearchValue.toLowerCase()))
             .filter((report): report is NonNullable<typeof report> => report !== undefined)
             .map((report) => {
diff --git a/tests/unit/ReportUtilsTest.ts b/tests/unit/ReportUtilsTest.ts
index 0587e769c17da..f9b2f9202c80c 100644
--- a/tests/unit/ReportUtilsTest.ts
+++ b/tests/unit/ReportUtilsTest.ts
@@ -65,6 +65,7 @@ import {
     shouldReportBeInOptionList,
     shouldReportShowSubscript,
     shouldShowFlagComment,
+    sortOutstandingReportsBySelected,
     temporary_getMoneyRequestOptions,
 } from '@libs/ReportUtils';
 import type {OptionData} from '@libs/ReportUtils';
@@ -444,6 +445,21 @@ describe('ReportUtils', () => {
         });
     });
 
+    describe('sortOutstandingReportsBySelected', () => {
+        it('should return -1 when report1 is selected and report2 is not', () => {
+            const report1 = LHNTestUtils.getFakeReport();
+            const report2 = LHNTestUtils.getFakeReport();
+            const selectedReportID = report1.reportID;
+            expect(sortOutstandingReportsBySelected(report1, report2, selectedReportID)).toBe(-1);
+        });
+        it('should return 1 when report2 is selected and report1 is not', () => {
+            const report1 = LHNTestUtils.getFakeReport();
+            const report2 = LHNTestUtils.getFakeReport();
+            const selectedReportID = report2.reportID;
+            expect(sortOutstandingReportsBySelected(report1, report2, selectedReportID)).toBe(1);
+        });
+    });
+
     describe('getDisplayNamesWithTooltips', () => {
         test('withSingleParticipantReport', () => {
             const participants = getDisplayNamesWithTooltips(participantsPersonalDetails, false);