diff --git a/src/components/TagPicker/index.tsx b/src/components/TagPicker/index.tsx
index ff2be627d249..81369b169e2e 100644
--- a/src/components/TagPicker/index.tsx
+++ b/src/components/TagPicker/index.tsx
@@ -113,6 +113,7 @@ function TagPicker({
             selectedOptions,
             tags: enabledTags,
             recentlyUsedTags: policyRecentlyUsedTagsList,
+            localeCompare,
         });
         return shouldOrderListByTagName
             ? tagSections.map((option) => ({
diff --git a/src/libs/TagsOptionsListUtils.ts b/src/libs/TagsOptionsListUtils.ts
index 8af5e3bc61bf..69100d839ca6 100644
--- a/src/libs/TagsOptionsListUtils.ts
+++ b/src/libs/TagsOptionsListUtils.ts
@@ -1,8 +1,8 @@
 import type {OnyxEntry} from 'react-native-onyx';
+import type {LocaleContextProps} from '@components/LocaleContextProvider';
 import CONST from '@src/CONST';
 import type {Policy, PolicyTag, PolicyTagLists, PolicyTags, Transaction} from '@src/types/onyx';
 import type {PendingAction} from '@src/types/onyx/OnyxCommon';
-import localeCompare from './LocaleCompare';
 import {translateLocal} from './Localize';
 import {hasEnabledOptions} from './OptionsListUtils';
 import type {Option} from './OptionsListUtils';
@@ -52,19 +52,21 @@ function getTagsOptions(tags: Array<Pick<PolicyTag, 'name' | 'enabled' | 'pendin
  */
 function getTagListSections({
     tags,
+    localeCompare,
     recentlyUsedTags = [],
     selectedOptions = [],
     searchValue = '',
     maxRecentReportsToShow = CONST.IOU.MAX_RECENT_REPORTS_TO_SHOW,
 }: {
     tags: PolicyTags | Array<SelectedTagOption | PolicyTag>;
+    localeCompare: LocaleContextProps['localeCompare'];
     recentlyUsedTags?: string[];
     selectedOptions?: SelectedTagOption[];
     searchValue?: string;
     maxRecentReportsToShow?: number;
 }) {
     const tagSections = [];
-    const sortedTags = sortTags(tags);
+    const sortedTags = sortTags(tags, localeCompare);
 
     const selectedOptionNames = selectedOptions.map((selectedOption) => selectedOption.name);
     const enabledTags = sortedTags.filter((tag) => tag.enabled);
@@ -172,7 +174,7 @@ function hasEnabledTags(policyTagList: Array<PolicyTagLists[keyof PolicyTagLists
 /**
  * Sorts tags alphabetically by name.
  */
-function sortTags(tags: Record<string, PolicyTag | SelectedTagOption> | Array<PolicyTag | SelectedTagOption>) {
+function sortTags(tags: Record<string, PolicyTag | SelectedTagOption> | Array<PolicyTag | SelectedTagOption>, localeCompare: LocaleContextProps['localeCompare']) {
     return Object.values(tags ?? {}).sort((a, b) => localeCompare(a.name, b.name)) as PolicyTag[];
 }
 
diff --git a/tests/unit/TagsOptionsListUtilsTest.ts b/tests/unit/TagsOptionsListUtilsTest.ts
index d1ad1e43a115..2cde1a338844 100644
--- a/tests/unit/TagsOptionsListUtilsTest.ts
+++ b/tests/unit/TagsOptionsListUtilsTest.ts
@@ -6,6 +6,7 @@ import IntlStore from '@src/languages/IntlStore';
 import type {PolicyTagLists} from '@src/types/onyx';
 import createRandomPolicy from '../utils/collections/policies';
 import createRandomTransaction from '../utils/collections/transaction';
+import {localeCompare} from '../utils/TestHelper';
 import waitForBatchedUpdates from '../utils/waitForBatchedUpdates';
 
 describe('TagsOptionsListUtils', () => {
@@ -335,22 +336,22 @@ describe('TagsOptionsListUtils', () => {
             },
         ];
 
-        const smallResult = getTagListSections({searchValue: emptySearch, tags: smallTagsList});
+        const smallResult = getTagListSections({searchValue: emptySearch, tags: smallTagsList, localeCompare});
         expect(smallResult).toStrictEqual(smallResultList);
 
-        const smallSearchResult = getTagListSections({searchValue: search, tags: smallTagsList});
+        const smallSearchResult = getTagListSections({searchValue: search, tags: smallTagsList, localeCompare});
         expect(smallSearchResult).toStrictEqual(smallSearchResultList);
 
-        const employeeSearchResult = getTagListSections({searchValue: employeeSearch, tags: smallTagsList});
+        const employeeSearchResult = getTagListSections({searchValue: employeeSearch, tags: smallTagsList, localeCompare});
         expect(employeeSearchResult).toStrictEqual(employeeSearchResultList);
 
-        const smallWrongSearchResult = getTagListSections({searchValue: wrongSearch, tags: smallTagsList});
+        const smallWrongSearchResult = getTagListSections({searchValue: wrongSearch, tags: smallTagsList, localeCompare});
         expect(smallWrongSearchResult).toStrictEqual(smallWrongSearchResultList);
 
-        const largeResult = getTagListSections({searchValue: emptySearch, selectedOptions, tags: largeTagsList, recentlyUsedTags});
+        const largeResult = getTagListSections({searchValue: emptySearch, selectedOptions, tags: largeTagsList, recentlyUsedTags, localeCompare});
         expect(largeResult).toStrictEqual(largeResultList);
 
-        const largeSearchResult = getTagListSections({searchValue: search, selectedOptions, tags: largeTagsList, recentlyUsedTags});
+        const largeSearchResult = getTagListSections({searchValue: search, selectedOptions, tags: largeTagsList, recentlyUsedTags, localeCompare});
         expect(largeSearchResult).toStrictEqual(largeSearchResultList);
 
         const largeWrongSearchResult = getTagListSections({
@@ -358,6 +359,7 @@ describe('TagsOptionsListUtils', () => {
             selectedOptions,
             tags: largeTagsList,
             recentlyUsedTags,
+            localeCompare,
         });
         expect(largeWrongSearchResult).toStrictEqual(largeWrongSearchResultList);
     });
@@ -369,13 +371,13 @@ describe('TagsOptionsListUtils', () => {
         const expectedOrderNames = ['!', '@', '#', '$', '0', '0a', '1', '2', '3', '10', '10bc', '20', '20a', 'a', 'a1', 'a20', 'b', 'b1', 'b10', 'c', '中国', '日本'];
         const unorderedTags = createTagObjects(unorderedTagNames);
         const expectedOrder = createTagObjects(expectedOrderNames);
-        expect(sortTags(unorderedTags)).toStrictEqual(expectedOrder);
+        expect(sortTags(unorderedTags, localeCompare)).toStrictEqual(expectedOrder);
 
         const unorderedTagNames2 = ['0', 'a1', '1', 'b1', '3', '10', 'b10', 'a', '2', 'c', '20', 'a20', 'b'];
         const expectedOrderNames2 = ['0', '1', '2', '3', '10', '20', 'a', 'a1', 'a20', 'b', 'b1', 'b10', 'c'];
         const unorderedTags2 = createTagObjects(unorderedTagNames2);
         const expectedOrder2 = createTagObjects(expectedOrderNames2);
-        expect(sortTags(unorderedTags2)).toStrictEqual(expectedOrder2);
+        expect(sortTags(unorderedTags2, localeCompare)).toStrictEqual(expectedOrder2);
 
         const unorderedTagNames3 = [
             '61',
@@ -583,7 +585,7 @@ describe('TagsOptionsListUtils', () => {
         ];
         const unorderedTags3 = createTagObjects(unorderedTagNames3);
         const expectedOrder3 = createTagObjects(expectedOrderNames3);
-        expect(sortTags(unorderedTags3)).toStrictEqual(expectedOrder3);
+        expect(sortTags(unorderedTags3, localeCompare)).toStrictEqual(expectedOrder3);
     });
 
     it('sortTags by object works the same', () => {
@@ -607,7 +609,7 @@ describe('TagsOptionsListUtils', () => {
             },
         };
 
-        const sorted = sortTags(tagsObject.tags);
+        const sorted = sortTags(tagsObject.tags, localeCompare);
         expect(Array.isArray(sorted)).toBe(true);
         // Expect to be sorted alphabetically
         expect(sorted.at(0)?.name).toBe('Car');