diff --git a/src/libs/OptionsListUtils.ts b/src/libs/OptionsListUtils.ts
index 2621e4d7f12b..cfd2f0214d0d 100644
--- a/src/libs/OptionsListUtils.ts
+++ b/src/libs/OptionsListUtils.ts
@@ -943,32 +943,32 @@ function getCategoryListSections(
         return categorySections;
     }
 
-    if (selectedOptions.length > 0) {
+    const selectedOptionNames = selectedOptions.map((selectedOption) => selectedOption.name);
+    const enabledAndSelectedCategories = sortedCategories.filter((category) => category.enabled || selectedOptionNames.includes(category.name));
+    const numberOfVisibleCategories = enabledAndSelectedCategories.length;
+
+    if (numberOfVisibleCategories < CONST.CATEGORY_LIST_THRESHOLD) {
         categorySections.push({
-            // "Selected" section
+            // "All" section when items amount less than the threshold
             title: '',
             shouldShow: false,
             indexOffset,
-            data: getCategoryOptionTree(selectedOptions, true),
+            data: getCategoryOptionTree(enabledAndSelectedCategories),
         });
 
-        indexOffset += selectedOptions.length;
+        return categorySections;
     }
 
-    const selectedOptionNames = selectedOptions.map((selectedOption) => selectedOption.name);
-    const filteredCategories = enabledCategories.filter((category) => !selectedOptionNames.includes(category.name));
-    const numberOfVisibleCategories = selectedOptions.length + filteredCategories.length;
-
-    if (numberOfVisibleCategories < CONST.CATEGORY_LIST_THRESHOLD) {
+    if (selectedOptions.length > 0) {
         categorySections.push({
-            // "All" section when items amount less than the threshold
+            // "Selected" section
             title: '',
             shouldShow: false,
             indexOffset,
-            data: getCategoryOptionTree(filteredCategories),
+            data: getCategoryOptionTree(selectedOptions, true),
         });
 
-        return categorySections;
+        indexOffset += selectedOptions.length;
     }
 
     const filteredRecentlyUsedCategories = recentlyUsedCategories
@@ -992,6 +992,8 @@ function getCategoryListSections(
         indexOffset += filteredRecentlyUsedCategories.length;
     }
 
+    const filteredCategories = enabledCategories.filter((category) => !selectedOptionNames.includes(category.name));
+
     categorySections.push({
         // "All" section when items amount more than the threshold
         title: Localize.translateLocal('common.all'),