diff --git a/src/components/AttachmentPicker/index.native.tsx b/src/components/AttachmentPicker/index.native.tsx
index bc4467e82f01..5305155ae495 100644
--- a/src/components/AttachmentPicker/index.native.tsx
+++ b/src/components/AttachmentPicker/index.native.tsx
@@ -16,6 +16,8 @@ import useArrowKeyFocusManager from '@hooks/useArrowKeyFocusManager';
 import useKeyboardShortcut from '@hooks/useKeyboardShortcut';
 import useLocalize from '@hooks/useLocalize';
 import useResponsiveLayout from '@hooks/useResponsiveLayout';
+import useStyleUtils from '@hooks/useStyleUtils';
+import useTheme from '@hooks/useTheme';
 import useThemeStyles from '@hooks/useThemeStyles';
 import * as FileUtils from '@libs/fileDownload/FileUtils';
 import CONST from '@src/CONST';
@@ -117,6 +119,8 @@ function AttachmentPicker({
 }: AttachmentPickerProps) {
     const styles = useThemeStyles();
     const [isVisible, setIsVisible] = useState(false);
+    const StyleUtils = useStyleUtils();
+    const theme = useTheme();
 
     const completeAttachmentSelection = useRef<(data: FileObject[]) => void>(() => {});
     const onModalHide = useRef<() => void>();
@@ -444,6 +448,7 @@ function AttachmentPicker({
                             title={translate(item.textTranslationKey)}
                             onPress={() => selectItem(item)}
                             focused={focusedIndex === menuIndex}
+                            wrapperStyle={StyleUtils.getItemBackgroundColorStyle(false, focusedIndex === menuIndex, theme.activeComponentBG, theme.hoverComponentBG)}
                         />
                     ))}
                 </View>
diff --git a/src/components/EmojiPicker/EmojiPickerMenuItem/index.tsx b/src/components/EmojiPicker/EmojiPickerMenuItem/index.tsx
index 8aaf4a14e560..1629089dace5 100644
--- a/src/components/EmojiPicker/EmojiPickerMenuItem/index.tsx
+++ b/src/components/EmojiPicker/EmojiPickerMenuItem/index.tsx
@@ -68,8 +68,7 @@ function EmojiPickerMenuItem({
                 ref.current = el ?? null;
             }}
             style={({pressed}) => [
-                isFocused ? themeStyles.emojiItemKeyboardHighlighted : {},
-                isHovered || isHighlighted ? themeStyles.emojiItemHighlighted : {},
+                isFocused || isHovered || isHighlighted ? themeStyles.emojiItemHighlighted : {},
                 Browser.isMobile() && StyleUtils.getButtonBackgroundColorStyle(getButtonState(false, pressed)),
                 themeStyles.emojiItem,
             ]}
diff --git a/src/components/MenuItem.tsx b/src/components/MenuItem.tsx
index 303a51d064d9..7fb5533fd172 100644
--- a/src/components/MenuItem.tsx
+++ b/src/components/MenuItem.tsx
@@ -251,6 +251,9 @@ type MenuItemBaseProps = {
     /** Should we remove the background color of the menu item */
     shouldRemoveBackground?: boolean;
 
+    /** Should we remove the hover background color of the menu item */
+    shouldRemoveHoverBackground?: boolean;
+
     /** Should we use default cursor for disabled content */
     shouldUseDefaultCursorWhenDisabled?: boolean;
 
@@ -411,6 +414,7 @@ function MenuItem(
         shouldEscapeText = undefined,
         shouldGreyOutWhenDisabled = true,
         shouldRemoveBackground = false,
+        shouldRemoveHoverBackground = false,
         shouldUseDefaultCursorWhenDisabled = false,
         shouldShowLoadingSpinnerIcon = false,
         isAnonymousAction = false,
@@ -594,7 +598,7 @@ function MenuItem(
                                             StyleUtils.getButtonBackgroundColorStyle(getButtonState(focused || isHovered, pressed, success, disabled, interactive), true),
                                         ...(Array.isArray(wrapperStyle) ? wrapperStyle : [wrapperStyle]),
                                         shouldGreyOutWhenDisabled && disabled && styles.buttonOpacityDisabled,
-                                        isHovered && interactive && !focused && !pressed && !shouldRemoveBackground && styles.hoveredComponentBG,
+                                        isHovered && interactive && !focused && !pressed && !shouldRemoveBackground && !shouldRemoveHoverBackground && styles.hoveredComponentBG,
                                     ] as StyleProp<ViewStyle>
                                 }
                                 disabledStyle={shouldUseDefaultCursorWhenDisabled && [styles.cursorDefault]}
diff --git a/src/components/PopoverMenu.tsx b/src/components/PopoverMenu.tsx
index 21d0aa516d86..2f5537be6145 100644
--- a/src/components/PopoverMenu.tsx
+++ b/src/components/PopoverMenu.tsx
@@ -8,6 +8,7 @@ import type {ModalProps} from 'react-native-modal';
 import useArrowKeyFocusManager from '@hooks/useArrowKeyFocusManager';
 import useKeyboardShortcut from '@hooks/useKeyboardShortcut';
 import useResponsiveLayout from '@hooks/useResponsiveLayout';
+import useStyleUtils from '@hooks/useStyleUtils';
 import useTheme from '@hooks/useTheme';
 import useThemeStyles from '@hooks/useThemeStyles';
 import useWindowDimensions from '@hooks/useWindowDimensions';
@@ -168,6 +169,7 @@ function PopoverMenu({
 }: PopoverMenuProps) {
     const styles = useThemeStyles();
     const theme = useTheme();
+    const StyleUtils = useStyleUtils();
     // We need to use isSmallScreenWidth instead of shouldUseNarrowLayout to apply correct popover styles
     // eslint-disable-next-line rulesdir/prefer-shouldUseNarrowLayout-instead-of-isSmallScreenWidth
     const {isSmallScreenWidth} = useResponsiveLayout();
@@ -262,7 +264,8 @@ function PopoverMenu({
                         }
                         setFocusedIndex(menuIndex);
                     }}
-                    style={{backgroundColor: item.isSelected ? theme.activeComponentBG : undefined}}
+                    wrapperStyle={StyleUtils.getItemBackgroundColorStyle(!!item.isSelected, focusedIndex === menuIndex, theme.activeComponentBG, theme.hoverComponentBG)}
+                    shouldRemoveHoverBackground={item.isSelected}
                     titleStyle={StyleSheet.flatten([styles.flex1, item.titleStyle])}
                     // Spread other props dynamically
                     {...menuItemProps}
diff --git a/src/components/SelectionList/BaseListItem.tsx b/src/components/SelectionList/BaseListItem.tsx
index dc216b51e291..15a82e327b9a 100644
--- a/src/components/SelectionList/BaseListItem.tsx
+++ b/src/components/SelectionList/BaseListItem.tsx
@@ -6,6 +6,7 @@ import OfflineWithFeedback from '@components/OfflineWithFeedback';
 import PressableWithFeedback from '@components/Pressable/PressableWithFeedback';
 import useHover from '@hooks/useHover';
 import {useMouseContext} from '@hooks/useMouseContext';
+import useStyleUtils from '@hooks/useStyleUtils';
 import useSyncFocus from '@hooks/useSyncFocus';
 import useTheme from '@hooks/useTheme';
 import useThemeStyles from '@hooks/useThemeStyles';
@@ -38,6 +39,7 @@ function BaseListItem<TItem extends ListItem>({
 }: BaseListItemProps<TItem>) {
     const theme = useTheme();
     const styles = useThemeStyles();
+    const StyleUtils = useStyleUtils();
     const {hovered, bind} = useHover();
     const {isMouseDownOnInput, setMouseUp} = useMouseContext();
 
@@ -96,13 +98,13 @@ function BaseListItem<TItem extends ListItem>({
                 dataSet={{[CONST.SELECTION_SCRAPER_HIDDEN_ELEMENT]: true, [CONST.INNER_BOX_SHADOW_ELEMENT]: true}}
                 onMouseDown={(e) => e.preventDefault()}
                 id={keyForList ?? ''}
-                style={pressableStyle}
+                style={[pressableStyle, isFocused && StyleUtils.getItemBackgroundColorStyle(!!item.isSelected, !!isFocused, theme.activeComponentBG, theme.hoverComponentBG)]}
                 onFocus={onFocus}
                 onMouseLeave={handleMouseLeave}
                 tabIndex={item.tabIndex}
                 wrapperStyle={pressableWrapperStyle}
             >
-                <View style={wrapperStyle}>
+                <View style={[wrapperStyle, isFocused && StyleUtils.getItemBackgroundColorStyle(!!item.isSelected, !!isFocused, theme.activeComponentBG, theme.hoverComponentBG)]}>
                     {typeof children === 'function' ? children(hovered) : children}
 
                     {!canSelectMultiple && !!item.isSelected && !rightHandSideComponent && (
diff --git a/src/components/SelectionList/CardListItem.tsx b/src/components/SelectionList/CardListItem.tsx
index 7f40d3165501..0e887d1d30db 100644
--- a/src/components/SelectionList/CardListItem.tsx
+++ b/src/components/SelectionList/CardListItem.tsx
@@ -46,7 +46,7 @@ function CardListItem<TItem extends ListItem>({
     return (
         <BaseListItem
             item={item}
-            wrapperStyle={[styles.flex1, styles.justifyContentBetween, styles.sidebarLinkInner, styles.userSelectNone, styles.peopleRow, isFocused && styles.sidebarLinkActive]}
+            wrapperStyle={[styles.flex1, styles.justifyContentBetween, styles.sidebarLinkInner, styles.userSelectNone, styles.peopleRow]}
             isFocused={isFocused}
             isDisabled={isDisabled}
             showTooltip={showTooltip}
diff --git a/src/components/SelectionList/ChatListItem.tsx b/src/components/SelectionList/ChatListItem.tsx
index 52b42b0c64dd..a3e04c9088f1 100644
--- a/src/components/SelectionList/ChatListItem.tsx
+++ b/src/components/SelectionList/ChatListItem.tsx
@@ -60,9 +60,7 @@ function ChatListItem<TItem extends ListItem>({
     return (
         <BaseListItem
             item={item}
-            pressableStyle={[
-                [styles.selectionListPressableItemWrapper, styles.textAlignLeft, item.isSelected && styles.activeComponentBG, isFocused && styles.sidebarLinkActive, item.cursorStyle],
-            ]}
+            pressableStyle={[[styles.selectionListPressableItemWrapper, styles.textAlignLeft, item.isSelected && styles.activeComponentBG, item.cursorStyle]]}
             wrapperStyle={[styles.flexRow, styles.flex1, styles.justifyContentBetween, styles.userSelectNone]}
             containerStyle={styles.mb2}
             isFocused={isFocused}
diff --git a/src/components/SelectionList/InviteMemberListItem.tsx b/src/components/SelectionList/InviteMemberListItem.tsx
index c253a964f2c7..7442fe24f7d2 100644
--- a/src/components/SelectionList/InviteMemberListItem.tsx
+++ b/src/components/SelectionList/InviteMemberListItem.tsx
@@ -61,7 +61,7 @@ function InviteMemberListItem<TItem extends ListItem>({
         <BaseListItem
             pressableStyle={[[shouldHighlightSelectedItem && item.isSelected && styles.activeComponentBG]]}
             item={item}
-            wrapperStyle={[styles.flex1, styles.justifyContentBetween, styles.sidebarLinkInner, styles.userSelectNone, styles.peopleRow, isFocused && styles.sidebarLinkActive]}
+            wrapperStyle={[styles.flex1, styles.justifyContentBetween, styles.sidebarLinkInner, styles.userSelectNone, styles.peopleRow]}
             isFocused={isFocused}
             isDisabled={isDisabled}
             showTooltip={showTooltip}
diff --git a/src/components/SelectionList/RadioListItem.tsx b/src/components/SelectionList/RadioListItem.tsx
index 1f0e174d4749..3a8a4f0b57a6 100644
--- a/src/components/SelectionList/RadioListItem.tsx
+++ b/src/components/SelectionList/RadioListItem.tsx
@@ -32,7 +32,7 @@ function RadioListItem<TItem extends ListItem>({
     return (
         <BaseListItem
             item={item}
-            wrapperStyle={[styles.flex1, styles.justifyContentBetween, styles.sidebarLinkInner, styles.userSelectNone, styles.optionRow, isFocused && styles.sidebarLinkActive, wrapperStyle]}
+            wrapperStyle={[styles.flex1, styles.justifyContentBetween, styles.sidebarLinkInner, styles.userSelectNone, styles.optionRow, wrapperStyle]}
             isFocused={isFocused}
             isDisabled={isDisabled}
             showTooltip={showTooltip}
diff --git a/src/components/SelectionList/Search/ReportListItem.tsx b/src/components/SelectionList/Search/ReportListItem.tsx
index 4a88c9ef9b26..7add6be940d2 100644
--- a/src/components/SelectionList/Search/ReportListItem.tsx
+++ b/src/components/SelectionList/Search/ReportListItem.tsx
@@ -89,7 +89,6 @@ function ReportListItem<TItem extends ListItem>({
         // Removing background style because they are added to the parent OpacityView via animatedHighlightStyle
         styles.bgTransparent,
         item.isSelected && styles.activeComponentBG,
-        isFocused && styles.sidebarLinkActive,
         styles.mh0,
     ];
 
diff --git a/src/components/SelectionList/Search/SearchQueryListItem.tsx b/src/components/SelectionList/Search/SearchQueryListItem.tsx
index f1636be0d88c..bba574fa3ac7 100644
--- a/src/components/SelectionList/Search/SearchQueryListItem.tsx
+++ b/src/components/SelectionList/Search/SearchQueryListItem.tsx
@@ -32,7 +32,7 @@ function SearchQueryListItem({item, isFocused, showTooltip, onSelectRow, onFocus
     return (
         <BaseListItem
             item={item}
-            pressableStyle={[[styles.searchQueryListItemStyle, item.isSelected && styles.activeComponentBG, isFocused && styles.sidebarLinkActive, item.cursorStyle]]}
+            pressableStyle={[[styles.searchQueryListItemStyle, item.isSelected && styles.activeComponentBG, item.cursorStyle]]}
             wrapperStyle={[styles.flexRow, styles.flex1, styles.justifyContentBetween, styles.userSelectNone, styles.alignItemsCenter]}
             isFocused={isFocused}
             onSelectRow={onSelectRow}
diff --git a/src/components/SelectionList/Search/TransactionListItem.tsx b/src/components/SelectionList/Search/TransactionListItem.tsx
index f56687550e4d..1a27599ed0bd 100644
--- a/src/components/SelectionList/Search/TransactionListItem.tsx
+++ b/src/components/SelectionList/Search/TransactionListItem.tsx
@@ -34,7 +34,6 @@ function TransactionListItem<TItem extends ListItem>({
         // Removing background style because they are added to the parent OpacityView via animatedHighlightStyle
         styles.bgTransparent,
         item.isSelected && styles.activeComponentBG,
-        isFocused && styles.sidebarLinkActive,
         styles.mh0,
     ];
 
diff --git a/src/components/SelectionList/SelectableListItem.tsx b/src/components/SelectionList/SelectableListItem.tsx
index b1b242737623..e3c2a36ea7ed 100644
--- a/src/components/SelectionList/SelectableListItem.tsx
+++ b/src/components/SelectionList/SelectableListItem.tsx
@@ -32,7 +32,7 @@ function SelectableListItem<TItem extends ListItem>({
     return (
         <BaseListItem
             item={item}
-            wrapperStyle={[styles.flex1, styles.justifyContentBetween, styles.sidebarLinkInner, isFocused && styles.sidebarLinkActive]}
+            wrapperStyle={[styles.flex1, styles.justifyContentBetween, styles.sidebarLinkInner]}
             isFocused={isFocused}
             isDisabled={isDisabled}
             showTooltip={showTooltip}
diff --git a/src/components/SelectionList/TableListItem.tsx b/src/components/SelectionList/TableListItem.tsx
index 636ac8762da1..0900e49f43ce 100644
--- a/src/components/SelectionList/TableListItem.tsx
+++ b/src/components/SelectionList/TableListItem.tsx
@@ -44,7 +44,7 @@ function TableListItem<TItem extends ListItem>({
     return (
         <BaseListItem
             item={item}
-            pressableStyle={[[styles.selectionListPressableItemWrapper, item.isSelected && styles.activeComponentBG, isFocused && styles.sidebarLinkActive, item.cursorStyle]]}
+            pressableStyle={[[styles.selectionListPressableItemWrapper, item.isSelected && styles.activeComponentBG, item.cursorStyle]]}
             wrapperStyle={[styles.flexRow, styles.flex1, styles.justifyContentBetween, styles.userSelectNone, styles.alignItemsCenter]}
             containerStyle={styles.mb2}
             isFocused={isFocused}
diff --git a/src/components/SelectionList/UserListItem.tsx b/src/components/SelectionList/UserListItem.tsx
index 47fa3a2d9aee..a98e2a5f6726 100644
--- a/src/components/SelectionList/UserListItem.tsx
+++ b/src/components/SelectionList/UserListItem.tsx
@@ -72,7 +72,7 @@ function UserListItem<TItem extends ListItem>({
             rightHandSideComponent={rightHandSideComponent}
             errors={item.errors}
             pendingAction={item.pendingAction}
-            pressableStyle={[isFocused && styles.sidebarLinkActive, pressableStyle]}
+            pressableStyle={pressableStyle}
             FooterComponent={
                 item.invitedSecondaryLogin ? (
                     <Text style={[styles.ml9, styles.ph5, styles.pb3, styles.textLabelSupporting]}>
diff --git a/src/pages/workspace/categories/SpendCategorySelectorListItem.tsx b/src/pages/workspace/categories/SpendCategorySelectorListItem.tsx
index dd7e2e2bd751..691a66918797 100644
--- a/src/pages/workspace/categories/SpendCategorySelectorListItem.tsx
+++ b/src/pages/workspace/categories/SpendCategorySelectorListItem.tsx
@@ -15,7 +15,6 @@ function SpendCategorySelectorListItem<TItem extends ListItem>({item, onSelectRo
     return (
         <BaseListItem
             item={item}
-            wrapperStyle={[isFocused && styles.sidebarLinkActive]}
             pressableStyle={[styles.mt2]}
             onSelectRow={onSelectRow}
             isFocused={isFocused}
diff --git a/src/styles/utils/index.ts b/src/styles/utils/index.ts
index 65faa941866a..f517a19c5ebf 100644
--- a/src/styles/utils/index.ts
+++ b/src/styles/utils/index.ts
@@ -1119,6 +1119,19 @@ function getAmountWidth(amount: string): number {
     return width;
 }
 
+function getItemBackgroundColorStyle(isSelected: boolean, isFocused: boolean, selectedBG: string, focusedBG: string): ViewStyle {
+    let backgroundColor;
+    if (isSelected) {
+        backgroundColor = selectedBG;
+    } else if (isFocused) {
+        backgroundColor = focusedBG;
+    }
+
+    return {
+        backgroundColor,
+    };
+}
+
 const staticStyleUtils = {
     positioning,
     combineStyles,
@@ -1193,6 +1206,7 @@ const staticStyleUtils = {
     getAmountWidth,
     getBorderRadiusStyle,
     getHighResolutionInfoWrapperStyle,
+    getItemBackgroundColorStyle,
 };
 
 const createStyleUtils = (theme: ThemeColors, styles: ThemeStyles) => ({