diff --git a/src/hooks/useSearchSelector.base.ts b/src/hooks/useSearchSelector.base.ts
index 7196fa0a9ea5..cd87176342b2 100644
--- a/src/hooks/useSearchSelector.base.ts
+++ b/src/hooks/useSearchSelector.base.ts
@@ -271,6 +271,7 @@ function useSearchSelectorBase({
                     searchString: computedSearchTerm,
                     includeUserToInvite,
                     includeCurrentUser,
+                    shouldAcceptName: true,
                 });
             default:
                 return getEmptyOptions();
diff --git a/src/libs/OptionsListUtils/index.ts b/src/libs/OptionsListUtils/index.ts
index 7a3e40a13a5a..a161671fead7 100644
--- a/src/libs/OptionsListUtils/index.ts
+++ b/src/libs/OptionsListUtils/index.ts
@@ -1687,7 +1687,10 @@ function getUserToInviteOption({
     const isValidPhoneNumber = parsedPhoneNumber.possible && Str.isValidE164Phone(getPhoneNumberWithoutSpecialChars(parsedPhoneNumber.number?.input ?? ''));
     const isInOptionToExclude = loginsToExclude[addSMSDomainIfPhoneNumber(searchValue).toLowerCase()];
 
-    if (isCurrentUserLogin || isInSelectedOption || (!isValidEmail && !isValidPhoneNumber && !shouldAcceptName) || isInOptionToExclude) {
+    // Angle brackets are not valid characters for user names
+    const hasInvalidCharacters = shouldAcceptName && (searchValue.includes('<') || searchValue.includes('>'));
+
+    if (isCurrentUserLogin || isInSelectedOption || (!isValidEmail && !isValidPhoneNumber && !shouldAcceptName) || isInOptionToExclude || hasInvalidCharacters) {
         return null;
     }
 
@@ -1704,7 +1707,7 @@ function getUserToInviteOption({
         showChatPreviewLine,
     });
     userToInvite.isOptimisticAccount = true;
-    userToInvite.login = isValidEmail || isValidPhoneNumber ? searchValue : '';
+    userToInvite.login = searchValue;
     // eslint-disable-next-line @typescript-eslint/prefer-nullish-coalescing
     userToInvite.text = userToInvite.text || searchValue;
     // eslint-disable-next-line @typescript-eslint/prefer-nullish-coalescing
@@ -2125,6 +2128,7 @@ function getValidOptions(
         maxElements,
         includeUserToInvite = false,
         maxRecentReportElements = undefined,
+        shouldAcceptName = false,
         ...config
     }: GetOptionsConfig = {},
     countryCode: number = CONST.DEFAULT_COUNTRY_CODE,
@@ -2311,6 +2315,7 @@ function getValidOptions(
             countryCode,
             {
                 excludeLogins: loginsToExclude,
+                shouldAcceptName,
             },
         );
     }
@@ -2444,7 +2449,7 @@ function getFilteredRecentAttendees(personalDetails: OnyxEntry<PersonalDetailsLi
         .filter((attendee) => !attendees.find(({email, displayName}) => (attendee.email ? email === attendee.email : displayName === attendee.displayName)))
         .map((attendee) => ({
             ...attendee,
-            login: attendee.email ?? attendee.displayName,
+            login: attendee.email ? attendee.email : attendee.displayName,
             ...getPersonalDetailByEmail(attendee.email),
         }))
         .map((attendee) => getParticipantsOption(attendee, personalDetails));
diff --git a/src/libs/OptionsListUtils/types.ts b/src/libs/OptionsListUtils/types.ts
index 814cc47f115e..603399bf9d84 100644
--- a/src/libs/OptionsListUtils/types.ts
+++ b/src/libs/OptionsListUtils/types.ts
@@ -190,6 +190,7 @@ type GetOptionsConfig = {
     maxElements?: number;
     maxRecentReportElements?: number;
     includeUserToInvite?: boolean;
+    shouldAcceptName?: boolean;
 } & GetValidReportsConfig;
 
 type GetUserToInviteConfig = {
diff --git a/src/pages/iou/request/MoneyRequestAttendeeSelector.tsx b/src/pages/iou/request/MoneyRequestAttendeeSelector.tsx
index 36c8b99b1f8a..8b626bb99e5c 100644
--- a/src/pages/iou/request/MoneyRequestAttendeeSelector.tsx
+++ b/src/pages/iou/request/MoneyRequestAttendeeSelector.tsx
@@ -79,7 +79,7 @@ function MoneyRequestAttendeeSelector({attendees = [], onFinish, onAttendeesAdde
                 ...attendee,
                 reportID: CONST.DEFAULT_NUMBER_ID.toString(),
                 selected: true,
-                login: attendee.email,
+                login: attendee.email ? attendee.email : attendee.displayName,
                 ...getPersonalDetailByEmail(attendee.email),
             })),
         [attendees],
@@ -204,13 +204,7 @@ function MoneyRequestAttendeeSelector({attendees = [], onFinish, onAttendeesAdde
         const cleanSearchTerm = searchTerm.trim().toLowerCase();
         const formatResults = formatSectionsFromSearchTerm(
             cleanSearchTerm,
-            attendees.map((attendee) => ({
-                ...attendee,
-                reportID: CONST.DEFAULT_NUMBER_ID.toString(),
-                selected: true,
-                login: attendee.email,
-                ...getPersonalDetailByEmail(attendee.email),
-            })),
+            initialSelectedOptions,
             orderedAvailableOptions.recentReports,
             orderedAvailableOptions.personalDetails,
             personalDetails,
@@ -272,6 +266,7 @@ function MoneyRequestAttendeeSelector({attendees = [], onFinish, onAttendeesAdde
         areOptionsInitialized,
         didScreenTransitionEnd,
         searchTerm,
+        initialSelectedOptions,
         attendees,
         orderedAvailableOptions.recentReports,
         orderedAvailableOptions.personalDetails,
diff --git a/tests/unit/OptionsListUtilsTest.tsx b/tests/unit/OptionsListUtilsTest.tsx
index 283a8a23b589..418fda95bcb1 100644
--- a/tests/unit/OptionsListUtilsTest.tsx
+++ b/tests/unit/OptionsListUtilsTest.tsx
@@ -27,6 +27,7 @@ import {
     getPersonalDetailSearchTerms,
     getSearchOptions,
     getSearchValueForPhoneOrEmail,
+    getUserToInviteOption,
     getValidOptions,
     optionsOrderBy,
     orderOptions,
@@ -2962,4 +2963,24 @@ describe('OptionsListUtils', () => {
             expect(searchTerms2.includes(displayName)).toBe(true);
         });
     });
+
+    describe('getUserToInviteOption', () => {
+        it('should not return userToInvite for plain text name when shouldAcceptName is false', () => {
+            const result = getUserToInviteOption({
+                searchValue: 'Jeff Amazon',
+                loginList: {},
+            });
+            expect(result).toBeNull();
+        });
+
+        it('should return userToInvite for plain text name when shouldAcceptName is true', () => {
+            const result = getUserToInviteOption({
+                searchValue: 'Jeff Amazon',
+                shouldAcceptName: true,
+                loginList: {},
+            });
+            expect(result).not.toBeNull();
+            expect(result?.login).toBe('Jeff Amazon');
+        });
+    });
 });