diff --git a/src/components/SelectionListWithSections/Search/TransactionGroupListItem.tsx b/src/components/SelectionListWithSections/Search/TransactionGroupListItem.tsx
index 7f234f04061b2..d12bba47546d8 100644
--- a/src/components/SelectionListWithSections/Search/TransactionGroupListItem.tsx
+++ b/src/components/SelectionListWithSections/Search/TransactionGroupListItem.tsx
@@ -166,8 +166,9 @@ function TransactionGroupListItem<TItem extends ListItem>({
     const shouldDisplayEmptyView = isEmpty && isExpenseReportType;
     const isDisabledOrEmpty = isEmpty || isDisabled;
 
+    // Search transactions - handles both refresh (offset 0) and pagination (current offset + pageSize)
     const searchTransactions = useCallback(
-        (pageSize = 0) => {
+        (pageSize = 0, isRefresh = false) => {
             if (!groupItem.transactionsQueryJSON) {
                 return;
             }
@@ -175,7 +176,7 @@ function TransactionGroupListItem<TItem extends ListItem>({
             search({
                 queryJSON: groupItem.transactionsQueryJSON,
                 searchKey: undefined,
-                offset: (transactionsSnapshot?.search?.offset ?? 0) + pageSize,
+                offset: isRefresh ? 0 : (transactionsSnapshot?.search?.offset ?? 0) + pageSize,
                 shouldCalculateTotals: false,
                 isLoading: !!transactionsSnapshot?.search?.isLoading,
             });
@@ -201,15 +202,23 @@ function TransactionGroupListItem<TItem extends ListItem>({
         if (!newTransactionID || !isExpanded) {
             return;
         }
-        searchTransactions();
+        searchTransactions(0, true);
     }, [newTransactionID, isExpanded, searchTransactions]);
 
     const handleToggle = useCallback(() => {
-        setIsExpanded(!isExpanded);
-        if (isExpanded) {
-            setTransactionsVisibleLimit(CONST.TRANSACTION.RESULTS_PAGE_SIZE);
-        }
-    }, [isExpanded]);
+        setIsExpanded((prev) => {
+            const newExpandedState = !prev;
+
+            if (newExpandedState) {
+                // Refresh transactions when expanding
+                searchTransactions(0, true);
+            } else {
+                setTransactionsVisibleLimit(CONST.TRANSACTION.RESULTS_PAGE_SIZE);
+            }
+
+            return newExpandedState;
+        });
+    }, [searchTransactions]);
 
     const onPress = useCallback(() => {
         if (isExpenseReportType || transactions.length === 0) {
@@ -244,11 +253,9 @@ function TransactionGroupListItem<TItem extends ListItem>({
     const onExpandIconPress = useCallback(() => {
         if (isEmpty && !shouldDisplayEmptyView) {
             onPress();
-        } else if (groupItem.transactionsQueryJSON && !isExpanded) {
-            searchTransactions();
         }
         handleToggle();
-    }, [isEmpty, shouldDisplayEmptyView, groupItem.transactionsQueryJSON, isExpanded, handleToggle, onPress, searchTransactions]);
+    }, [isEmpty, shouldDisplayEmptyView, handleToggle, onPress]);
 
     const getHeader = useCallback(
         (hovered: boolean) => {