diff --git a/src/App.tsx b/src/App.tsx
index 3e6fc9ac2a27..789cac513431 100644
--- a/src/App.tsx
+++ b/src/App.tsx
@@ -12,6 +12,7 @@ import CustomStatusBarAndBackground from './components/CustomStatusBarAndBackgro
 import CustomStatusBarAndBackgroundContextProvider from './components/CustomStatusBarAndBackground/CustomStatusBarAndBackgroundContextProvider';
 import ErrorBoundary from './components/ErrorBoundary';
 import FullScreenBlockingViewContextProvider from './components/FullScreenBlockingViewContextProvider';
+import FullScreenLoaderContextProvider from './components/FullScreenLoaderContext';
 import HTMLEngineProvider from './components/HTMLEngineProvider';
 import InitialURLContextProvider from './components/InitialURLContextProvider';
 import {InputBlurContextProvider} from './components/InputBlurContext';
@@ -111,6 +112,7 @@ function App({url, hybridAppSettings, timestamp}: AppProps) {
                                 ProductTrainingContextProvider,
                                 InputBlurContextProvider,
                                 FullScreenBlockingViewContextProvider,
+                                FullScreenLoaderContextProvider,
                             ]}
                         >
                             <CustomStatusBarAndBackground />
diff --git a/src/components/AttachmentPicker/index.native.tsx b/src/components/AttachmentPicker/index.native.tsx
index 6aa65e1f4977..bd0102d1fde7 100644
--- a/src/components/AttachmentPicker/index.native.tsx
+++ b/src/components/AttachmentPicker/index.native.tsx
@@ -116,6 +116,7 @@ function AttachmentPicker({
     shouldValidateImage = true,
     shouldHideGalleryOption = false,
     fileLimit = 1,
+    onOpenPicker,
 }: AttachmentPickerProps) {
     const styles = useThemeStyles();
     const [isVisible, setIsVisible] = useState(false);
@@ -398,6 +399,7 @@ function AttachmentPicker({
      */
     const selectItem = useCallback(
         (item: Item) => {
+            onOpenPicker?.();
             /* setTimeout delays execution to the frame after the modal closes
              * without this on iOS closing the modal closes the gallery/camera as well */
             onModalHide.current = () => {
@@ -410,7 +412,7 @@ function AttachmentPicker({
             };
             close();
         },
-        [pickAttachment],
+        [pickAttachment, onOpenPicker],
     );
 
     useKeyboardShortcut(
diff --git a/src/components/AttachmentPicker/types.ts b/src/components/AttachmentPicker/types.ts
index 1e2e65761527..1958a94ac883 100644
--- a/src/components/AttachmentPicker/types.ts
+++ b/src/components/AttachmentPicker/types.ts
@@ -55,6 +55,9 @@ type AttachmentPickerProps = {
 
     /** Whether to allow multiple files to be selected. */
     fileLimit?: number;
+
+    /** A callback that will be called when the picker is opened. */
+    onOpenPicker?: () => void;
 };
 
 export default AttachmentPickerProps;
diff --git a/src/components/FullScreenLoaderContext.tsx b/src/components/FullScreenLoaderContext.tsx
new file mode 100644
index 000000000000..f06773992407
--- /dev/null
+++ b/src/components/FullScreenLoaderContext.tsx
@@ -0,0 +1,60 @@
+import React, {createContext, useContext, useMemo, useState} from 'react';
+import type {ReactNode} from 'react';
+import FullScreenLoadingIndicator from './FullscreenLoadingIndicator';
+
+type FullScreenLoaderContextType = {
+    /**
+     * Whether the full screen loader is visible.
+     */
+    isLoaderVisible: boolean;
+    /**
+     * Set the full screen loader visibility.
+     */
+    setIsLoaderVisible: React.Dispatch<React.SetStateAction<boolean>>;
+};
+
+const FullScreenLoaderContext = createContext<FullScreenLoaderContextType>({
+    isLoaderVisible: false,
+    setIsLoaderVisible: () => {},
+});
+
+type FullScreenLoaderContextProviderProps = {
+    /**
+     * The children of the full screen loader context provider.
+     */
+    children: ReactNode;
+};
+
+function FullScreenLoaderContextProvider({children}: FullScreenLoaderContextProviderProps) {
+    const [isLoaderVisible, setIsLoaderVisible] = useState(false);
+
+    const loaderContext = useMemo(
+        () => ({
+            isLoaderVisible,
+            setIsLoaderVisible,
+        }),
+        [isLoaderVisible],
+    );
+
+    return (
+        <FullScreenLoaderContext.Provider value={loaderContext}>
+            {children}
+            {isLoaderVisible && <FullScreenLoadingIndicator />}
+        </FullScreenLoaderContext.Provider>
+    );
+}
+
+function useFullScreenLoader() {
+    const context = useContext(FullScreenLoaderContext);
+
+    if (!context) {
+        throw new Error('useFullScreenLoader must be used within a FullScreenLoaderContextProvider');
+    }
+
+    return context;
+}
+
+FullScreenLoaderContextProvider.displayName = 'FullScreenLoaderContextProvider';
+
+export default FullScreenLoaderContextProvider;
+export {FullScreenLoaderContext, useFullScreenLoader};
diff --git a/src/pages/iou/request/step/IOURequestStepScan/index.native.tsx b/src/pages/iou/request/step/IOURequestStepScan/index.native.tsx
index 156c3c155466..60d34f6d0867 100644
--- a/src/pages/iou/request/step/IOURequestStepScan/index.native.tsx
+++ b/src/pages/iou/request/step/IOURequestStepScan/index.native.tsx
@@ -16,7 +16,7 @@ import Shutter from '@assets/images/shutter.svg';
 import type {FileObject} from '@components/AttachmentModal';
 import AttachmentPicker from '@components/AttachmentPicker';
 import Button from '@components/Button';
-import FullScreenLoadingIndicator from '@components/FullscreenLoadingIndicator';
+import {useFullScreenLoader} from '@components/FullScreenLoaderContext';
 import Icon from '@components/Icon';
 import * as Expensicons from '@components/Icon/Expensicons';
 import ImageSVG from '@components/ImageSVG';
@@ -81,6 +81,7 @@ function IOURequestStepScan({
 }: IOURequestStepScanProps) {
     const theme = useTheme();
     const styles = useThemeStyles();
+    const {isLoaderVisible, setIsLoaderVisible} = useFullScreenLoader();
     const device = useCameraDevice('back', {
         physicalDevices: ['wide-angle-camera', 'ultra-wide-angle-camera'],
     });
@@ -105,7 +106,6 @@ function IOURequestStepScan({
     const isPlatformMuted = mutedPlatforms[platform];
     const [cameraPermissionStatus, setCameraPermissionStatus] = useState<string | null>(null);
     const [didCapturePhoto, setDidCapturePhoto] = useState(false);
-    const [isLoadingReceipt, setIsLoadingReceipt] = useState(false);
     const isTabActive = useIsFocused();
 
     const [pdfFile, setPdfFile] = useState<null | FileObject>(null);
@@ -203,8 +203,12 @@ function IOURequestStepScan({
 
             return () => {
                 subscription.remove();
+
+                if (isLoaderVisible) {
+                    setIsLoaderVisible(false);
+                }
             };
-        }, []),
+        }, [isLoaderVisible, setIsLoaderVisible]),
     );
 
     const validateReceipt = (file: FileObject) => {
@@ -551,13 +555,7 @@ function IOURequestStepScan({
             return;
         }
 
-        // With the image size > 24MB, we use manipulateAsync to resize the image.
-        // It takes a long time so we should display a loading indicator while the resize image progresses.
-        if (Str.isImage(originalFile.name ?? '') && (originalFile?.size ?? 0) > CONST.API_ATTACHMENT_VALIDATIONS.MAX_SIZE) {
-            setIsLoadingReceipt(true);
-        }
         resizeImageIfNeeded(originalFile).then((file) => {
-            setIsLoadingReceipt(false);
             // Store the receipt on the transaction object in Onyx
             // On Android devices, fetching blob for a file with name containing spaces fails to retrieve the type of file.
             // So, let us also save the file type in receipt for later use during blob fetch
@@ -702,7 +700,6 @@ function IOURequestStepScan({
                     setElementTop(e.nativeEvent.layout.height - (variables.tabSelectorButtonHeight + variables.tabSelectorButtonPadding) * 2);
                 }}
             >
-                {isLoadingReceipt && <FullScreenLoadingIndicator />}
                 {!!pdfFile && (
                     <PDFThumbnail
                         style={styles.invisiblePDF}
@@ -786,7 +783,7 @@ function IOURequestStepScan({
                 </EducationalTooltip>
 
                 <View style={[styles.flexRow, styles.justifyContentAround, styles.alignItemsCenter, styles.pv3]}>
-                    <AttachmentPicker>
+                    <AttachmentPicker onOpenPicker={() => setIsLoaderVisible(true)}>
                         {({openPicker}) => (
                             <PressableWithFeedback
                                 role={CONST.ROLE.BUTTON}
@@ -795,6 +792,7 @@ function IOURequestStepScan({
                                 onPress={() => {
                                     openPicker({
                                         onPicked: (data) => setReceiptAndNavigate(data.at(0) ?? {}),
+                                        onCanceled: () => setIsLoaderVisible(false),
                                     });
                                 }}
                             >