diff --git a/src/components/OptionListContextProvider.tsx b/src/components/OptionListContextProvider.tsx
index d74fac25e195..c5b9f8f9c40b 100644
--- a/src/components/OptionListContextProvider.tsx
+++ b/src/components/OptionListContextProvider.tsx
@@ -1,7 +1,7 @@
 import React, {createContext, useCallback, useContext, useEffect, useMemo, useRef, useState} from 'react';
 import {useOnyx} from 'react-native-onyx';
 import usePrevious from '@hooks/usePrevious';
-import {createOptionFromReport, createOptionList} from '@libs/OptionsListUtils';
+import {createOptionFromReport, createOptionList, processReport} from '@libs/OptionsListUtils';
 import type {OptionList, SearchOption} from '@libs/OptionsListUtils';
 import {isSelfDM} from '@libs/ReportUtils';
 import ONYXKEYS from '@src/ONYXKEYS';
@@ -46,34 +46,80 @@ function OptionsListContextProvider({children}: OptionsListProviderProps) {
         reports: [],
         personalDetails: [],
     });
-    const [preferredLocale] = useOnyx(ONYXKEYS.NVP_PREFERRED_LOCALE, {canBeMissing: true});
-    const [reports] = useOnyx(ONYXKEYS.COLLECTION.REPORT, {canBeMissing: true});
-
+    const [reportAttributes] = useOnyx(ONYXKEYS.DERIVED.REPORT_ATTRIBUTES, {canBeMissing: true});
+    const prevReportAttributesLocale = usePrevious(reportAttributes?.locale);
+    const [reports, {sourceValue: changedReports}] = useOnyx(ONYXKEYS.COLLECTION.REPORT, {canBeMissing: true});
     const personalDetails = usePersonalDetails();
     const prevPersonalDetails = usePrevious(personalDetails);
+    const hasInitialData = useMemo(() => Object.keys(personalDetails ?? {}).length > 0, [personalDetails]);
+
+    const loadOptions = useCallback(() => {
+        const optionLists = createOptionList(personalDetails, reports);
+        setOptions({
+            reports: optionLists.reports,
+            personalDetails: optionLists.personalDetails,
+        });
+    }, [personalDetails, reports]);
 
     /**
-     * This effect is used to update the options list when reports change.
+     * This effect is responsible for generating the options list when their data is not yet initialized
      */
     useEffect(() => {
-        // there is no need to update the options if the options are not initialized
-        if (!areOptionsInitialized.current || !reports) {
+        if (!areOptionsInitialized.current || !reports || hasInitialData) {
+            return;
+        }
+
+        loadOptions();
+    }, [reports, personalDetails, hasInitialData, loadOptions]);
+
+    /**
+     * This effect is responsible for generating the options list when the locale changes
+     * Since options might use report attributes, it's necessary to call this after report attributes are loaded with the new locale to make sure the options are generated in a proper language
+     */
+    useEffect(() => {
+        if (reportAttributes?.locale === prevReportAttributesLocale) {
+            return;
+        }
+
+        loadOptions();
+    }, [prevReportAttributesLocale, loadOptions, reportAttributes?.locale]);
+
+    /**
+     * This effect is responsible for updating the options only for changed reports
+     */
+    useEffect(() => {
+        if (!changedReports || !areOptionsInitialized.current) {
             return;
         }
-        // Since reports updates can happen in bulk, and some reports depend on other reports, we need to recreate the whole list from scratch.
-        const newReports = createOptionList(personalDetails, reports).reports;
 
         setOptions((prevOptions) => {
-            const newOptions = {
+            const changedReportEntries = Object.values(changedReports);
+            if (changedReportEntries.length === 0) {
+                return prevOptions;
+            }
+
+            const updatedReportsMap = new Map(prevOptions.reports.map((report) => [report.reportID, report]));
+            changedReportEntries.forEach((report) => {
+                if (!report) {
+                    return;
+                }
+
+                const reportID = report?.reportID;
+                const {reportOption} = processReport(report, personalDetails);
+
+                if (reportOption) {
+                    updatedReportsMap.set(reportID, reportOption);
+                } else {
+                    updatedReportsMap.delete(reportID);
+                }
+            });
+
+            return {
                 ...prevOptions,
-                reports: newReports,
+                reports: Array.from(updatedReportsMap.values()),
             };
-
-            return newOptions;
         });
-
-        // eslint-disable-next-line react-compiler/react-compiler
-    }, [reports, personalDetails, preferredLocale]);
+    }, [changedReports, personalDetails]);
 
     /**
      * This effect is used to update the options list when personal details change.
@@ -142,14 +188,6 @@ function OptionsListContextProvider({children}: OptionsListProviderProps) {
         // eslint-disable-next-line react-compiler/react-compiler, react-hooks/exhaustive-deps
     }, [personalDetails]);
 
-    const loadOptions = useCallback(() => {
-        const optionLists = createOptionList(personalDetails, reports);
-        setOptions({
-            reports: optionLists.reports,
-            personalDetails: optionLists.personalDetails,
-        });
-    }, [personalDetails, reports]);
-
     const initializeOptions = useCallback(() => {
         loadOptions();
         areOptionsInitialized.current = true;
@@ -182,7 +220,7 @@ const useOptionsListContext = () => useContext(OptionsListContext);
 const useOptionsList = (options?: {shouldInitialize: boolean}) => {
     const {shouldInitialize = true} = options ?? {};
     const {initializeOptions, options: optionsList, areOptionsInitialized, resetOptions} = useOptionsListContext();
-    const [isLoadingApp] = useOnyx(ONYXKEYS.IS_LOADING_APP, {canBeMissing: true});
+    const [isLoadingApp] = useOnyx(ONYXKEYS.IS_LOADING_APP, {canBeMissing: false});
 
     useEffect(() => {
         if (!shouldInitialize || areOptionsInitialized || isLoadingApp) {
diff --git a/src/libs/OptionsListUtils.ts b/src/libs/OptionsListUtils.ts
index 5b8028c9a3ed..16b536c51527 100644
--- a/src/libs/OptionsListUtils.ts
+++ b/src/libs/OptionsListUtils.ts
@@ -1123,35 +1123,53 @@ function isReportSelected(reportOption: OptionData, selectedOptions: Array<Parti
     return selectedOptions.some((option) => (option.accountID && option.accountID === reportOption.accountID) || (option.reportID && option.reportID === reportOption.reportID));
 }
 
+function processReport(
+    report: OnyxEntry<Report>,
+    personalDetails: OnyxEntry<PersonalDetailsList>,
+): {
+    reportMapEntry?: [number, Report]; // The entry to add to reportMapForAccountIDs if applicable
+    reportOption: SearchOption<Report> | null; // The report option to add to allReportOptions if applicable
+} {
+    if (!report) {
+        return {reportOption: null};
+    }
+
+    const isOneOnOneChat = reportUtilsIsOneOnOneChat(report);
+    const accountIDs = getParticipantsAccountIDsForDisplay(report);
+    const isChatRoom = reportUtilsIsChatRoom(report);
+
+    if ((!accountIDs || accountIDs.length === 0) && !isChatRoom) {
+        return {reportOption: null};
+    }
+
+    // Determine if this report should be mapped to a personal detail
+    const reportMapEntry = accountIDs.length <= 1 && isOneOnOneChat ? ([accountIDs.at(0), report] as [number, Report]) : undefined;
+
+    return {
+        reportMapEntry,
+        reportOption: {
+            item: report,
+            ...createOption(accountIDs, personalDetails, report, {}),
+        },
+    };
+}
+
 function createOptionList(personalDetails: OnyxEntry<PersonalDetailsList>, reports?: OnyxCollection<Report>) {
     const reportMapForAccountIDs: Record<number, Report> = {};
     const allReportOptions: Array<SearchOption<Report>> = [];
 
     if (reports) {
         Object.values(reports).forEach((report) => {
-            if (!report) {
-                return;
-            }
-
-            const isOneOnOneChat = reportUtilsIsOneOnOneChat(report);
-            const accountIDs = getParticipantsAccountIDsForDisplay(report);
+            const {reportMapEntry, reportOption} = processReport(report, personalDetails);
 
-            const isChatRoom = reportUtilsIsChatRoom(report);
-            if ((!accountIDs || accountIDs.length === 0) && !isChatRoom) {
-                return;
+            if (reportMapEntry) {
+                const [accountID, reportValue] = reportMapEntry;
+                reportMapForAccountIDs[accountID] = reportValue;
             }
 
-            // Save the report in the map if this is a single participant so we can associate the reportID with the
-            // personal detail option later. Individuals should not be associated with single participant
-            // policyExpenseChats or chatRooms since those are not people.
-            if (accountIDs.length <= 1 && isOneOnOneChat) {
-                reportMapForAccountIDs[accountIDs[0]] = report;
+            if (reportOption) {
+                allReportOptions.push(reportOption);
             }
-
-            allReportOptions.push({
-                item: report,
-                ...createOption(accountIDs, personalDetails, report, {}),
-            });
         });
     }
 
@@ -2383,6 +2401,7 @@ export {
     getIsUserSubmittedExpenseOrScannedReceipt,
     getManagerMcTestParticipant,
     shouldShowLastActorDisplayName,
+    processReport,
 };
 
 export type {Section, SectionBase, MemberForList, Options, OptionList, SearchOption, Option, OptionTree, ReportAndPersonalDetailOptions};