diff --git a/src/libs/actions/Policy/Policy.ts b/src/libs/actions/Policy/Policy.ts
index d20e9cd04a08..5f965b5e71b4 100644
--- a/src/libs/actions/Policy/Policy.ts
+++ b/src/libs/actions/Policy/Policy.ts
@@ -3908,6 +3908,7 @@ function updateCustomRules(policyID: string, customRules: string) {
                 key: `${ONYXKEYS.COLLECTION.POLICY}${policyID}`,
                 value: {
                     customRules: parsedCustomRules,
+                    isLoading: true,
                 },
             },
         ],
@@ -3920,6 +3921,7 @@ function updateCustomRules(policyID: string, customRules: string) {
                         // TODO
                         // maxExpenseAge: null,
                     },
+                    isLoading: false,
                 },
             },
         ],
@@ -3929,6 +3931,7 @@ function updateCustomRules(policyID: string, customRules: string) {
                 key: `${ONYXKEYS.COLLECTION.POLICY}${policyID}`,
                 value: {
                     customRules: originalCustomRules,
+                    isLoading: false,
                     // TODO
                     // pendingFields: {maxExpenseAge: null},
                     // errorFields: {maxExpenseAge: ErrorUtils.getMicroSecondOnyxErrorWithTranslationKey('common.genericErrorMessage')},
diff --git a/src/pages/workspace/rules/CustomRulesSection.tsx b/src/pages/workspace/rules/CustomRulesSection.tsx
index 0a55f63e7437..fc3b5e0c3a57 100644
--- a/src/pages/workspace/rules/CustomRulesSection.tsx
+++ b/src/pages/workspace/rules/CustomRulesSection.tsx
@@ -17,7 +17,12 @@ function CustomRulesSection({policyID}: CustomRulesSectionProps) {
     const {translate} = useLocalize();
     const styles = useThemeStyles();
     const policy = usePolicy(policyID);
-    const parsedRules = useMemo(() => getParsedComment(policy?.customRules ?? ''), [policy]);
+    const parsedRules = useMemo(() => {
+        const customRules = policy?.customRules ?? '';
+        const options = policy?.isLoading ? {shouldEscapeText: false} : undefined;
+
+        return getParsedComment(customRules, options);
+    }, [policy]);
     const rulesDescription = typeof parsedRules === 'string' ? parsedRules : '';
 
     return (