diff --git a/change/@react-native-windows-telemetry-d7dc63f1-c900-4229-bcb4-8d7cd683293c.json b/change/@react-native-windows-telemetry-d7dc63f1-c900-4229-bcb4-8d7cd683293c.json
new file mode 100644
index 00000000000..4505d14de6a
--- /dev/null
+++ b/change/@react-native-windows-telemetry-d7dc63f1-c900-4229-bcb4-8d7cd683293c.json
@@ -0,0 +1,7 @@
+{
+  "type": "prerelease",
+  "comment": "Expand sanitization checks for error telemetry instances",
+  "packageName": "@react-native-windows/telemetry",
+  "email": "14967941+danielayala94@users.noreply.github.com",
+  "dependentChangeType": "patch"
+}
diff --git a/packages/@react-native-windows/telemetry/src/e2etest/telemetry.test.ts b/packages/@react-native-windows/telemetry/src/e2etest/telemetry.test.ts
index 790ff617a9f..ab238b6b14a 100644
--- a/packages/@react-native-windows/telemetry/src/e2etest/telemetry.test.ts
+++ b/packages/@react-native-windows/telemetry/src/e2etest/telemetry.test.ts
@@ -740,3 +740,85 @@ test.each(testTelemetryOptions)(
     });
   },
 );
+
+test.each(testTelemetryOptions)(
+  'Telemetry run test command end to end with CodedError, verifies PII is scrubbed if present in CodedError.',
+  async options => {
+    await TelemetryTest.startTest(options);
+
+    const codedErrorInfo = new errorUtils.CodedError(
+      'MSBuildError', // type
+      'test error', // message
+      {
+        fieldWithPath:
+          'Test Error occurred at C:\\some\\file\\path\\project.build.appxrecipe', // expectation: replace the whole C:\\... thing with "[path]".
+        fieldWithNoPath: 'Test Error data', // expectation: no changes to this string.
+        fieldWithNoString: 14, // expectation: no changes to this value.
+        arrayField: [
+          'No path',
+          15,
+          'Clean this path: C:\\some\\file\\path2\\project.build.appxrecipe',
+          [
+            'No path',
+            150,
+            'Also clean this: C:\\some\\file\\path2\\project.build.appxrecipe',
+          ],
+        ],
+        someObject: {
+          fieldWithPath:
+            'Test Error occurred at C:\\some\\file\\path3\\project.build.appxrecipe', // expectation: replace the whole C:\\... thing with "[path]".
+          fieldWithNoPath: 'Test Error data 2', // expectation: no changes to this string.
+          fieldWithNoString: 16, // expectation: no changes to this value.
+          nestedObject: {
+            fieldWithPath:
+              'Test Error occurred at C:\\some\\file\\path4\\project.build.appxrecipe', // expectation: replace the whole C:\\... thing with "[path]".
+            fieldWithNoPath: 'Test Error data 3', // expectation: no changes to this string.
+            fieldWithNoString: 17, // expectation: no changes to this value.
+          },
+        },
+      }, // data
+    );
+
+    const expectedError = new errorUtils.CodedError(
+      'MSBuildError', // type
+      'test error', // message
+      {
+        fieldWithPath: 'Test Error occurred at [path]',
+        fieldWithNoPath: 'Test Error data',
+        fieldWithNoString: 14,
+        arrayField: [
+          'No path',
+          15,
+          'Clean this path: [path]',
+          ['No path', 150, 'Also clean this: [path]'],
+        ],
+        someObject: {
+          fieldWithPath: 'Test Error occurred at [path]',
+          fieldWithNoPath: 'Test Error data 2',
+          fieldWithNoString: 16,
+          nestedObject: {
+            fieldWithPath: 'Test Error occurred at [path]',
+            fieldWithNoPath: 'Test Error data 3',
+            fieldWithNoString: 17,
+          },
+        },
+      }, // data
+    );
+
+    const caughtErrors: Error[] = [];
+    TelemetryTest.addTelemetryInitializer(
+      verifyTestCommandTelemetryProcessor(
+        caughtErrors,
+        expectedError.type,
+        expectedError,
+      ),
+    );
+
+    await runTestCommandE2E(() => testCommandBody(codedErrorInfo));
+
+    TelemetryTest.endTest(() => {
+      // Check if any errors were thrown
+      expect(caughtErrors).toHaveLength(0);
+    });
+  },
+);
diff --git a/packages/@react-native-windows/telemetry/src/telemetry.ts b/packages/@react-native-windows/telemetry/src/telemetry.ts
index 509a578ac03..00303817482 100644
--- a/packages/@react-native-windows/telemetry/src/telemetry.ts
+++ b/packages/@react-native-windows/telemetry/src/telemetry.ts
@@ -467,6 +467,9 @@ export class Telemetry {
       }
     }
 
+    // Scrub any potential PII present in codedError.data array, as long as the data is a string.
+    codedErrorStruct.data = Telemetry.sanitizeAny(codedErrorStruct.data);
+
     // Break down TS Error object into Exception Data
     const exceptionData = Telemetry.convertErrorIntoExceptionData(error);
 
@@ -531,4 +534,26 @@ export class Telemetry {
 
     return exceptionData;
   }
+
+  static sanitizeAny(data: any): any {
+    if (Array.isArray(data)) {
+      // This is an array, sanitize each element recursively.
+      return data.map(item => Telemetry.sanitizeAny(item));
+    } else if (typeof data === 'object' && data !== null) {
+      // This is an object, sanitize each field recursively.
+      const sanitizedObject: Record<string, any> = {};
+      for (const key in data) {
+        if (Object.prototype.hasOwnProperty.call(data, key)) {
+          sanitizedObject[key] = Telemetry.sanitizeAny(data[key]);
+        }
+      }
+      return sanitizedObject;
+    } else if (typeof data === 'string') {
+      // The base case: this is a string, sanitize it.
+      return errorUtils.sanitizeErrorMessage(data);
+    }
+
+    // Not a string, return the data unchanged.
+    return data;
+  }
 }