diff --git a/src/CONST.js b/src/CONST.js
index 362e53fb0a1a..cc0ebd4f7bab 100755
--- a/src/CONST.js
+++ b/src/CONST.js
@@ -1152,6 +1152,7 @@ const CONST = {
         SPECIAL_CHARS_WITHOUT_NEWLINE: /((?!\n)[()-\s\t])/g,
         DIGITS_AND_PLUS: /^\+?[0-9]*$/,
         ALPHABETIC_AND_LATIN_CHARS: /^[a-zA-ZÀ-ÿ ]*$/,
+        NON_ALPHABETIC_AND_NON_LATIN_CHARS: /[^a-zA-ZÀ-ÿ]/g,
         POSITIVE_INTEGER: /^\d+$/,
         PO_BOX: /\b[P|p]?(OST|ost)?\.?\s*[O|o|0]?(ffice|FFICE)?\.?\s*[B|b][O|o|0]?[X|x]?\.?\s+[#]?(\d+)\b/,
         ANY_VALUE: /^.+$/,
diff --git a/src/components/CountryPicker/CountrySelectorModal.js b/src/components/CountryPicker/CountrySelectorModal.js
index d16d97741d7c..b917e771e815 100644
--- a/src/components/CountryPicker/CountrySelectorModal.js
+++ b/src/components/CountryPicker/CountrySelectorModal.js
@@ -6,6 +6,7 @@ import useLocalize from '../../hooks/useLocalize';
 import HeaderWithBackButton from '../HeaderWithBackButton';
 import SelectionListRadio from '../SelectionListRadio';
 import Modal from '../Modal';
+import searchCountryOptions from '../../libs/searchCountryOptions';
 
 const propTypes = {
     /** Whether the modal is visible */
@@ -33,15 +34,6 @@ const defaultProps = {
     onCountrySelected: () => {},
 };
 
-function filterOptions(searchValue, data) {
-    const trimmedSearchValue = searchValue.trim();
-    if (trimmedSearchValue.length === 0) {
-        return [];
-    }
-
-    return _.filter(data, (country) => country.text.toLowerCase().includes(searchValue.toLowerCase()));
-}
-
 function CountrySelectorModal({currentCountry, isVisible, onClose, onCountrySelected, setSearchValue, searchValue}) {
     const {translate} = useLocalize();
 
@@ -52,12 +44,13 @@ function CountrySelectorModal({currentCountry, isVisible, onClose, onCountrySele
                 keyForList: countryISO,
                 text: countryName,
                 isSelected: currentCountry === countryISO,
+                searchValue: `${countryISO}${countryName}`.toLowerCase().replaceAll(CONST.REGEX.NON_ALPHABETIC_AND_NON_LATIN_CHARS, ''),
             })),
         [translate, currentCountry],
     );
 
-    const filteredData = filterOptions(searchValue, countries);
-    const headerMessage = searchValue.trim() && !filteredData.length ? translate('common.noResultsFound') : '';
+    const searchResults = searchCountryOptions(searchValue, countries);
+    const headerMessage = searchValue.trim() && !searchResults.length ? translate('common.noResultsFound') : '';
 
     return (
         <Modal
@@ -77,7 +70,7 @@ function CountrySelectorModal({currentCountry, isVisible, onClose, onCountrySele
                 textInputLabel={translate('common.country')}
                 textInputPlaceholder={translate('countrySelectorModal.placeholderText')}
                 textInputValue={searchValue}
-                sections={[{data: filteredData, indexOffset: 0}]}
+                sections={[{data: searchResults, indexOffset: 0}]}
                 onSelectRow={onCountrySelected}
                 onChangeText={setSearchValue}
                 shouldFocusOnSelectRow
diff --git a/src/components/StatePicker/StateSelectorModal.js b/src/components/StatePicker/StateSelectorModal.js
index 5bbd2363c4b3..869c818a7009 100644
--- a/src/components/StatePicker/StateSelectorModal.js
+++ b/src/components/StatePicker/StateSelectorModal.js
@@ -6,6 +6,7 @@ import Modal from '../Modal';
 import HeaderWithBackButton from '../HeaderWithBackButton';
 import SelectionListRadio from '../SelectionListRadio';
 import useLocalize from '../../hooks/useLocalize';
+import searchCountryOptions from '../../libs/searchCountryOptions';
 
 const propTypes = {
     /** Whether the modal is visible */
@@ -37,15 +38,6 @@ const defaultProps = {
     label: undefined,
 };
 
-function filterOptions(searchValue, data) {
-    const trimmedSearchValue = searchValue.trim();
-    if (trimmedSearchValue.length === 0) {
-        return [];
-    }
-
-    return _.filter(data, (country) => country.text.toLowerCase().includes(searchValue.toLowerCase()));
-}
-
 function StateSelectorModal({currentState, isVisible, onClose, onStateSelected, searchValue, setSearchValue, label}) {
     const {translate} = useLocalize();
 
@@ -56,12 +48,13 @@ function StateSelectorModal({currentState, isVisible, onClose, onStateSelected,
                 keyForList: state.stateISO,
                 text: state.stateName,
                 isSelected: currentState === state.stateISO,
+                searchValue: `${state.stateISO}${state.stateName}`.toLowerCase().replaceAll(CONST.REGEX.NON_ALPHABETIC_AND_NON_LATIN_CHARS, ''),
             })),
         [translate, currentState],
     );
 
-    const filteredData = filterOptions(searchValue, countryStates);
-    const headerMessage = searchValue.trim() && !filteredData.length ? translate('common.noResultsFound') : '';
+    const searchResults = searchCountryOptions(searchValue, countryStates);
+    const headerMessage = searchValue.trim() && !searchResults.length ? translate('common.noResultsFound') : '';
 
     return (
         <Modal
@@ -82,7 +75,7 @@ function StateSelectorModal({currentState, isVisible, onClose, onStateSelected,
                 textInputLabel={label || translate('common.state')}
                 textInputPlaceholder={translate('stateSelectorModal.placeholderText')}
                 textInputValue={searchValue}
-                sections={[{data: filteredData, indexOffset: 0}]}
+                sections={[{data: searchResults, indexOffset: 0}]}
                 onSelectRow={onStateSelected}
                 onChangeText={setSearchValue}
                 shouldFocusOnSelectRow
diff --git a/src/libs/searchCountryOptions.js b/src/libs/searchCountryOptions.js
new file mode 100644
index 000000000000..84351665111d
--- /dev/null
+++ b/src/libs/searchCountryOptions.js
@@ -0,0 +1,22 @@
+import _ from 'underscore';
+import CONST from '../CONST';
+
+/**
+ * Searches the countries/states data and returns sorted results based on the search query
+ * @param {String} searchValue
+ * @param {Object[]} countriesData - An array of country data objects
+ * @returns {Object[]} An array of countries/states sorted based on the search query
+ */
+function searchCountryOptions(searchValue, countriesData) {
+    const trimmedSearchValue = searchValue.toLowerCase().replaceAll(CONST.REGEX.NON_ALPHABETIC_AND_NON_LATIN_CHARS, '');
+    if (trimmedSearchValue.length === 0) {
+        return [];
+    }
+
+    const filteredData = _.filter(countriesData, (country) => country.searchValue.includes(trimmedSearchValue));
+
+    // sort by country code
+    return _.sortBy(filteredData, (country) => (country.value.toLowerCase() === trimmedSearchValue ? -1 : 1));
+}
+
+export default searchCountryOptions;