diff --git a/src/libs/OptionsListUtils.js b/src/libs/OptionsListUtils.js
index 3722b243d21c..cb8f1df50891 100644
--- a/src/libs/OptionsListUtils.js
+++ b/src/libs/OptionsListUtils.js
@@ -400,7 +400,13 @@ function getOptions(reports, personalDetails, activeReportID, {
             : '';
 
         const reportContainsIOUDebt = iouReportOwner && iouReportOwner !== currentUserLogin;
-        const shouldFilterReportIfEmpty = !showReportsWithNoComments && report.lastMessageTimestamp === 0 && !isDefaultRoom;
+        const shouldFilterReportIfEmpty = !showReportsWithNoComments && report.lastMessageTimestamp === 0
+
+                // We make exceptions for defaultRooms and policyExpenseChats so we can immediately
+                // highlight them in the LHN when they are created and have no messsages yet. We do
+                // not give archived rooms this exception since they do not need to be higlihted.
+                && !(!ReportUtils.isArchivedRoom(report) && (isDefaultRoom || isPolicyExpenseChat));
+
         const shouldFilterReportIfRead = hideReadReports && report.unreadActionCount === 0;
         const shouldFilterReport = shouldFilterReportIfEmpty || shouldFilterReportIfRead;
         if (report.reportID !== activeReportID
@@ -426,7 +432,7 @@ function getOptions(reports, personalDetails, activeReportID, {
         // Save the report in the map if this is a single participant so we can associate the reportID with the
         // personal detail option later. Individuals should not be associated with single participant
         // policyExpenseChats or chatRooms since those are not people.
-        if (logins.length <= 1 && !ReportUtils.isPolicyExpenseChat(report) && !ReportUtils.isChatRoom(report)) {
+        if (logins.length <= 1 && !isPolicyExpenseChat && !isChatRoom) {
             reportMapForLogins[logins[0]] = report;
         }
         const isSearchingSomeonesPolicyExpenseChat = !report.isOwnPolicyExpenseChat && searchValue !== '';
diff --git a/tests/unit/OptionsListUtilsTest.js b/tests/unit/OptionsListUtilsTest.js
index 15a9a7978304..3fb6441c6602 100644
--- a/tests/unit/OptionsListUtilsTest.js
+++ b/tests/unit/OptionsListUtilsTest.js
@@ -675,4 +675,102 @@ describe('OptionsListUtils', () => {
                 // Spider-Man report name is last report and has unread message
                 expect(results.recentReports[8].login).toBe('peterparker@expensify.com');
             }));
+
+    it('getSidebarOptions() with empty policyExpenseChats and defaultRooms', () => {
+        const reportsWithEmptyChatRooms = {
+            // This report is a policyExpenseChat without any messages in it (i.e. no lastMessageTimestamp)
+            10: {
+                chatType: 'policyExpenseChat',
+                hasOutstandingIOU: false,
+                isOwnPolicyExpenseChat: true,
+                isPinned: false,
+                lastMessageTimestamp: 0,
+                lastVisitedTimestamp: 1610666739302,
+                participants: ['test3@instantworkspace.com'],
+                policyID: 'Whatever',
+                reportID: 10,
+                reportName: "Someone's workspace",
+                unreadActionCount: 0,
+                visibility: undefined,
+            },
+
+            // This is an archived version of the above policyExpenseChat
+            11: {
+                chatType: 'policyExpenseChat',
+                hasOutstandingIOU: false,
+                isOwnPolicyExpenseChat: true,
+                isPinned: false,
+                lastMessageTimestamp: 0,
+                lastVisitedTimestamp: 1610666739302,
+                participants: ['test3@instantworkspace.com'],
+                policyID: 'Whatever',
+                reportID: 11,
+                reportName: "Someone's workspace",
+                unreadActionCount: 0,
+                visibility: undefined,
+                stateNum: CONST.REPORT.STATE_NUM.SUBMITTED,
+                statusNum: CONST.REPORT.STATUS.CLOSED,
+            },
+
+            // This report is a defaultRoom without any messages in it (i.e. no lastMessageTimestamp)
+            12: {
+                chatType: 'policyAdmins',
+                hasOutstandingIOU: false,
+                isPinned: false,
+                lastMessageTimestamp: 0,
+                lastVisitedTimestamp: 1610666739302,
+                participants: ['test3@instantworkspace.com'],
+                policyID: 'Whatever',
+                reportID: 12,
+                reportName: '#admins',
+                unreadActionCount: 0,
+                visibility: undefined,
+            },
+
+            // This is an archived version of the above defaultRoom
+            13: {
+                chatType: 'policyAdmins',
+                hasOutstandingIOU: false,
+                isPinned: false,
+                lastMessageTimestamp: 0,
+                lastVisitedTimestamp: 1610666739302,
+                participants: ['test3@instantworkspace.com'],
+                policyID: 'Whatever',
+                reportID: 13,
+                reportName: '#admins',
+                unreadActionCount: 0,
+                visibility: undefined,
+                stateNum: CONST.REPORT.STATE_NUM.SUBMITTED,
+                statusNum: CONST.REPORT.STATUS.CLOSED,
+            },
+        };
+
+        // First we call getSidebarOptions() with no search value and default priority mode
+        let results = OptionsListUtils.getSidebarOptions(
+            reportsWithEmptyChatRooms,
+            PERSONAL_DETAILS,
+            0,
+            CONST.PRIORITY_MODE.DEFAULT,
+        );
+
+        // Then expect all of the reports to be shown except the archived policyExpenseChats and defaultRooms
+        expect(results.recentReports.length).toBe(_.size(reportsWithEmptyChatRooms) - 2);
+
+        expect(results.recentReports[0].isPolicyExpenseChat).toBe(true);
+        expect(results.recentReports[0].text).toBe("Someone's workspace");
+
+        expect(results.recentReports[1].isChatRoom).toBe(true);
+        expect(results.recentReports[1].text).toBe('#admins');
+
+        // Now we call getSidebarOptions() with no search value and GSD priority mode
+        results = OptionsListUtils.getSidebarOptions(
+            reportsWithEmptyChatRooms,
+            PERSONAL_DETAILS,
+            0,
+            CONST.PRIORITY_MODE.GSD,
+        );
+
+        // None of the chats should be here since they've all been read
+        expect(results.recentReports.length).toBe(0);
+    });
 });