diff --git a/src/components/MoneyRequestConfirmationList.tsx b/src/components/MoneyRequestConfirmationList.tsx
index 40647e33849c..a367f8ec5a89 100755
--- a/src/components/MoneyRequestConfirmationList.tsx
+++ b/src/components/MoneyRequestConfirmationList.tsx
@@ -285,7 +285,11 @@ function MoneyRequestConfirmationList({
         return allPolicies?.[`${ONYXKEYS.COLLECTION.POLICY}${senderWorkspaceParticipant?.policyID}`];
     }, [allPolicies, selectedParticipantsProp]);
 
-    const canUpdateSenderWorkspace = useMemo(() => PolicyUtils.canSendInvoice(allPolicies) && !!transaction?.isFromGlobalCreate, [allPolicies, transaction?.isFromGlobalCreate]);
+    const canUpdateSenderWorkspace = useMemo(() => {
+        const isInvoiceRoomParticipant = selectedParticipantsProp.some((participant) => participant.isInvoiceRoom);
+
+        return PolicyUtils.canSendInvoice(allPolicies) && !!transaction?.isFromGlobalCreate && !isInvoiceRoomParticipant;
+    }, [allPolicies, selectedParticipantsProp, transaction?.isFromGlobalCreate]);
 
     const canModifyTaxFields = !isReadOnly && !isDistanceRequest;
 
diff --git a/src/libs/OptionsListUtils.ts b/src/libs/OptionsListUtils.ts
index fef64b712ad6..8cd2615dc4a6 100644
--- a/src/libs/OptionsListUtils.ts
+++ b/src/libs/OptionsListUtils.ts
@@ -173,6 +173,7 @@ type GetOptionsConfig = {
     policyReportFieldOptions?: string[];
     recentlyUsedPolicyReportFieldOptions?: string[];
     transactionViolations?: OnyxCollection<TransactionViolation[]>;
+    includeInvoiceRooms?: boolean;
 };
 
 type GetUserToInviteConfig = {
@@ -1746,6 +1747,7 @@ function getOptions(
         includePolicyReportFieldOptions = false,
         policyReportFieldOptions = [],
         recentlyUsedPolicyReportFieldOptions = [],
+        includeInvoiceRooms = false,
     }: GetOptionsConfig,
 ): Options {
     if (includeCategories) {
@@ -1945,8 +1947,16 @@ function getOptions(
             const isCurrentUserOwnedPolicyExpenseChatThatCouldShow =
                 reportOption.isPolicyExpenseChat && reportOption.ownerAccountID === currentUserAccountID && includeOwnedWorkspaceChats && !reportOption.isArchivedRoom;
 
-            // Skip if we aren't including multiple participant reports and this report has multiple participants
-            if (!isCurrentUserOwnedPolicyExpenseChatThatCouldShow && !includeMultipleParticipantReports && !reportOption.login) {
+            const shouldShowInvoiceRoom = includeInvoiceRooms && ReportUtils.isInvoiceRoom(reportOption.item) && ReportUtils.isPolicyAdmin(reportOption.policyID ?? '', policies);
+
+            /**
+                Exclude the report option if it doesn't meet any of the following conditions:
+                - It is not an owned policy expense chat that could be shown
+                - Multiple participant reports are not included
+                - It doesn't have a login
+                - It is not an invoice room that should be shown
+            */
+            if (!isCurrentUserOwnedPolicyExpenseChatThatCouldShow && !includeMultipleParticipantReports && !reportOption.login && !shouldShowInvoiceRoom) {
                 continue;
             }
 
@@ -2136,6 +2146,7 @@ function getFilteredOptions(
     policyReportFieldOptions: string[] = [],
     recentlyUsedPolicyReportFieldOptions: string[] = [],
     maxRecentReportsToShow = 5,
+    includeInvoiceRooms = false,
 ) {
     return getOptions(
         {reports, personalDetails},
@@ -2162,6 +2173,7 @@ function getFilteredOptions(
             includePolicyReportFieldOptions,
             policyReportFieldOptions,
             recentlyUsedPolicyReportFieldOptions,
+            includeInvoiceRooms,
         },
     );
 }
diff --git a/src/pages/iou/request/MoneyRequestParticipantsSelector.tsx b/src/pages/iou/request/MoneyRequestParticipantsSelector.tsx
index 1e8e63ee2df3..3173311e77fd 100644
--- a/src/pages/iou/request/MoneyRequestParticipantsSelector.tsx
+++ b/src/pages/iou/request/MoneyRequestParticipantsSelector.tsx
@@ -22,6 +22,7 @@ import * as DeviceCapabilities from '@libs/DeviceCapabilities';
 import type {MaybePhraseKey} from '@libs/Localize';
 import type {Options} from '@libs/OptionsListUtils';
 import * as OptionsListUtils from '@libs/OptionsListUtils';
+import * as ReportUtils from '@libs/ReportUtils';
 import * as Policy from '@userActions/Policy/Policy';
 import * as Report from '@userActions/Report';
 import type {IOUAction, IOURequestType, IOUType} from '@src/CONST';
@@ -116,6 +117,7 @@ function MoneyRequestParticipantsSelector({participants = [], onFinish, onPartic
             undefined,
             undefined,
             isCategorizeOrShareAction ? 0 : undefined,
+            iouType === CONST.IOU.TYPE.INVOICE,
         );
 
         const formatResults = OptionsListUtils.formatSectionsFromSearchTerm(
@@ -189,10 +191,9 @@ function MoneyRequestParticipantsSelector({participants = [], onFinish, onPartic
             ];
 
             if (iouType === CONST.IOU.TYPE.INVOICE) {
-                const primaryPolicy = Policy.getPrimaryPolicy(activePolicyID);
-
+                const policyID = option.item && ReportUtils.isInvoiceRoom(option.item) ? option.policyID : Policy.getPrimaryPolicy(activePolicyID)?.id;
                 newParticipants.push({
-                    policyID: primaryPolicy?.id,
+                    policyID,
                     isSender: true,
                     selected: false,
                     iouType,
diff --git a/src/pages/iou/request/step/IOURequestStepParticipants.tsx b/src/pages/iou/request/step/IOURequestStepParticipants.tsx
index 7b592b657c84..d9d7a8d192a0 100644
--- a/src/pages/iou/request/step/IOURequestStepParticipants.tsx
+++ b/src/pages/iou/request/step/IOURequestStepParticipants.tsx
@@ -89,23 +89,26 @@ function IOURequestStepParticipants({
     const addParticipant = useCallback(
         (val: Participant[]) => {
             HttpUtils.cancelPendingRequests(READ_COMMANDS.SEARCH_FOR_REPORTS);
-            IOU.setMoneyRequestParticipants(transactionID, val);
-            const rateID = DistanceRequestUtils.getCustomUnitRateID(val[0]?.reportID ?? '');
-            IOU.setCustomUnitRateID(transactionID, rateID);
 
+            const firstParticipantReportID = val[0]?.reportID ?? '';
+            const rateID = DistanceRequestUtils.getCustomUnitRateID(firstParticipantReportID);
+            const isInvoice = iouType === CONST.IOU.TYPE.INVOICE && ReportUtils.isInvoiceRoom(ReportUtils.getReport(firstParticipantReportID));
             numberOfParticipants.current = val.length;
 
+            IOU.setMoneyRequestParticipants(transactionID, val);
+            IOU.setCustomUnitRateID(transactionID, rateID);
+
             // When multiple participants are selected, the reportID is generated at the end of the confirmation step.
             // So we are resetting selectedReportID ref to the reportID coming from params.
-            if (val.length !== 1) {
+            if (val.length !== 1 && !isInvoice) {
                 selectedReportID.current = reportID;
                 return;
             }
 
             // When a participant is selected, the reportID needs to be saved because that's the reportID that will be used in the confirmation step.
-            selectedReportID.current = val[0]?.reportID ?? reportID;
+            selectedReportID.current = firstParticipantReportID || reportID;
         },
-        [reportID, transactionID],
+        [iouType, reportID, transactionID],
     );
 
     const goToNextStep = useCallback(() => {
diff --git a/src/types/onyx/IOU.ts b/src/types/onyx/IOU.ts
index 68e8836e149c..8ffac34f2512 100644
--- a/src/types/onyx/IOU.ts
+++ b/src/types/onyx/IOU.ts
@@ -1,6 +1,7 @@
 import type {ValueOf} from 'type-fest';
 import type CONST from '@src/CONST';
 import type {Icon} from './OnyxCommon';
+import type Report from './Report';
 
 type Participant = {
     accountID?: number;
@@ -25,6 +26,7 @@ type Participant = {
     isSelfDM?: boolean;
     isSender?: boolean;
     iouType?: string;
+    item?: Report;
     ownerAccountID?: number;
 };