diff --git a/src/libs/ReportUtils.ts b/src/libs/ReportUtils.ts
index e2b6a14e2e08..05e2db66d629 100644
--- a/src/libs/ReportUtils.ts
+++ b/src/libs/ReportUtils.ts
@@ -2306,7 +2306,6 @@ function getReportPreviewMessage(
     isPreviewMessageForParentChatReport = false,
     policy: OnyxEntry<Policy> = null,
     isForListPreview = false,
-    shouldHidePayer = false,
 ): string {
     const reportActionMessage = reportAction?.message?.[0].html ?? '';
 
@@ -2371,9 +2370,7 @@ function getReportPreviewMessage(
     if (isSettled(report.reportID) || (report.isWaitingOnBankAccount && isPreviewMessageForParentChatReport)) {
         // A settled report preview message can come in three formats "paid ... elsewhere" or "paid ... with Expensify"
         let translatePhraseKey: TranslationPaths = 'iou.paidElsewhereWithAmount';
-        if (isPreviewMessageForParentChatReport) {
-            translatePhraseKey = 'iou.payerPaidAmount';
-        } else if (
+        if (
             [CONST.IOU.PAYMENT_TYPE.VBBA, CONST.IOU.PAYMENT_TYPE.EXPENSIFY].some((paymentType) => paymentType === originalMessage?.paymentType) ||
             !!reportActionMessage.match(/ (with Expensify|using Expensify)$/) ||
             report.isWaitingOnBankAccount
@@ -2381,7 +2378,7 @@ function getReportPreviewMessage(
             translatePhraseKey = 'iou.paidWithExpensifyWithAmount';
         }
 
-        let actualPayerName = report.managerID === currentUserAccountID || shouldHidePayer ? '' : getDisplayNameForParticipant(report.managerID, true);
+        let actualPayerName = report.managerID === currentUserAccountID ? '' : getDisplayNameForParticipant(report.managerID, true);
         actualPayerName = actualPayerName && isForListPreview && !isPreviewMessageForParentChatReport ? `${actualPayerName}:` : actualPayerName;
         const payerDisplayName = isPreviewMessageForParentChatReport ? payerName : actualPayerName;
 
@@ -4690,6 +4687,62 @@ function getVisibleMemberIDs(report: OnyxEntry<Report>): number[] {
     return visibleChatMemberAccountIDs;
 }
 
+/**
+ * Return iou report action display message
+ */
+function getIOUReportActionDisplayMessage(reportAction: OnyxEntry<ReportAction>): string {
+    if (reportAction?.actionName !== CONST.REPORT.ACTIONS.TYPE.IOU) {
+        return '';
+    }
+    const originalMessage = reportAction.originalMessage;
+    const {IOUReportID} = originalMessage;
+    const iouReport = getReport(IOUReportID);
+    let translationKey: TranslationPaths;
+    if (originalMessage.type === CONST.IOU.REPORT_ACTION_TYPE.PAY) {
+        // The `REPORT_ACTION_TYPE.PAY` action type is used for both fulfilling existing requests and sending money. To
+        // differentiate between these two scenarios, we check if the `originalMessage` contains the `IOUDetails`
+        // property. If it does, it indicates that this is a 'Send money' action.
+        const {amount, currency} = originalMessage.IOUDetails ?? originalMessage;
+        const formattedAmount = CurrencyUtils.convertToDisplayString(Math.abs(amount), currency) ?? '';
+        const payerName = isExpenseReport(iouReport) ? getPolicyName(iouReport) : getDisplayNameForParticipant(iouReport?.managerID, true);
+
+        switch (originalMessage.paymentType) {
+            case CONST.IOU.PAYMENT_TYPE.ELSEWHERE:
+                translationKey = 'iou.paidElsewhereWithAmount';
+                break;
+            case CONST.IOU.PAYMENT_TYPE.EXPENSIFY:
+            case CONST.IOU.PAYMENT_TYPE.VBBA:
+                translationKey = 'iou.paidWithExpensifyWithAmount';
+                break;
+            default:
+                translationKey = 'iou.payerPaidAmount';
+                break;
+        }
+        return Localize.translateLocal(translationKey, {amount: formattedAmount, payer: payerName ?? ''});
+    }
+
+    const transaction = TransactionUtils.getTransaction(originalMessage.IOUTransactionID ?? '');
+    const transactionDetails = getTransactionDetails(!isEmptyObject(transaction) ? transaction : null);
+    const formattedAmount = CurrencyUtils.convertToDisplayString(transactionDetails?.amount ?? 0, transactionDetails?.currency);
+    const isRequestSettled = isSettled(originalMessage.IOUReportID);
+    const isApproved = isReportApproved(iouReport);
+    if (isRequestSettled) {
+        return Localize.translateLocal('iou.payerSettled', {
+            amount: formattedAmount,
+        });
+    }
+    if (isApproved) {
+        return Localize.translateLocal('iou.approvedAmount', {
+            amount: formattedAmount,
+        });
+    }
+    translationKey = ReportActionsUtils.isSplitBillAction(reportAction) ? 'iou.didSplitAmount' : 'iou.requestedAmount';
+    return Localize.translateLocal(translationKey, {
+        formattedAmount,
+        comment: transactionDetails?.comment ?? '',
+    });
+}
+
 /**
  * Checks if a report is a group chat.
  *
@@ -5127,6 +5180,7 @@ export {
     hasOnlyTransactionsWithPendingRoutes,
     hasNonReimbursableTransactions,
     hasMissingSmartscanFields,
+    getIOUReportActionDisplayMessage,
     isWaitingForAssigneeToCompleteTask,
     isGroupChat,
     isDraftExpenseReport,
diff --git a/src/pages/home/report/ContextMenu/ContextMenuActions.tsx b/src/pages/home/report/ContextMenu/ContextMenuActions.tsx
index abd9d2a09fdf..51e6b25f1314 100644
--- a/src/pages/home/report/ContextMenu/ContextMenuActions.tsx
+++ b/src/pages/home/report/ContextMenu/ContextMenuActions.tsx
@@ -359,15 +359,7 @@ const ContextMenuActions: ContextMenuAction[] = [
                     const displayMessage = ReportUtils.getReimbursementDeQueuedActionMessage(reportAction, expenseReport);
                     Clipboard.setString(displayMessage);
                 } else if (ReportActionsUtils.isMoneyRequestAction(reportAction)) {
-                    const displayMessage = ReportUtils.getReportPreviewMessage(
-                        ReportUtils.getReport(ReportUtils.getOriginalReportID(reportID, reportAction)),
-                        reportAction,
-                        false,
-                        false,
-                        null,
-                        false,
-                        true,
-                    );
+                    const displayMessage = ReportUtils.getIOUReportActionDisplayMessage(reportAction);
                     Clipboard.setString(displayMessage);
                 } else if (ReportActionsUtils.isCreatedTaskReportAction(reportAction)) {
                     const taskPreviewMessage = TaskUtils.getTaskCreatedMessage(reportAction);
diff --git a/src/pages/home/report/ReportActionItemMessage.tsx b/src/pages/home/report/ReportActionItemMessage.tsx
index becc8e094c97..0ec23e9aaf79 100644
--- a/src/pages/home/report/ReportActionItemMessage.tsx
+++ b/src/pages/home/report/ReportActionItemMessage.tsx
@@ -58,7 +58,7 @@ function ReportActionItemMessage({action, displayAsGroup, reportID, style, isHid
         const originalMessage = action.actionName === CONST.REPORT.ACTIONS.TYPE.IOU ? action.originalMessage : null;
         const iouReportID = originalMessage?.IOUReportID;
         if (iouReportID) {
-            iouMessage = ReportUtils.getReportPreviewMessage(ReportUtils.getReport(iouReportID), action, false, false, null, false, true);
+            iouMessage = ReportUtils.getIOUReportActionDisplayMessage(action);
         }
     }
 
diff --git a/tests/perf-test/ReportUtils.perf-test.ts b/tests/perf-test/ReportUtils.perf-test.ts
index ee3c54608436..ae3429bb9c01 100644
--- a/tests/perf-test/ReportUtils.perf-test.ts
+++ b/tests/perf-test/ReportUtils.perf-test.ts
@@ -184,4 +184,23 @@ describe('ReportUtils', () => {
         await waitForBatchedUpdates();
         await measureFunction(() => ReportUtils.getTransactionDetails(transaction, 'yyyy-MM-dd'));
     });
+
+    test('[ReportUtils] getIOUReportActionDisplayMessage on 1k policies', async () => {
+        const reportAction = {
+            ...createRandomReportAction(1),
+            actionName: CONST.REPORT.ACTIONS.TYPE.IOU,
+            originalMessage: {
+                IOUReportID: '1',
+                IOUTransactionID: '1',
+                amount: 100,
+                participantAccountID: 1,
+                currency: CONST.CURRENCY.USD,
+                type: CONST.IOU.REPORT_ACTION_TYPE.PAY,
+                paymentType: CONST.IOU.PAYMENT_TYPE.EXPENSIFY,
+            },
+        };
+
+        await waitForBatchedUpdates();
+        await measureFunction(() => ReportUtils.getIOUReportActionDisplayMessage(reportAction));
+    });
 });