diff --git a/.changeset/new-ways-roll.md b/.changeset/new-ways-roll.md
new file mode 100644
index 0000000000000..65d5da2a98c65
--- /dev/null
+++ b/.changeset/new-ways-roll.md
@@ -0,0 +1,5 @@
+---
+"@rocket.chat/meteor": patch
+---
+
+fixes the selection of room and users performance when using forward message feature
diff --git a/apps/meteor/client/components/UserAndRoomAutoCompleteMultiple/UserAndRoomAutoCompleteMultiple.spec.tsx b/apps/meteor/client/components/UserAndRoomAutoCompleteMultiple/UserAndRoomAutoCompleteMultiple.spec.tsx
new file mode 100644
index 0000000000000..f37e6a32c8c74
--- /dev/null
+++ b/apps/meteor/client/components/UserAndRoomAutoCompleteMultiple/UserAndRoomAutoCompleteMultiple.spec.tsx
@@ -0,0 +1,91 @@
+import { useUser, useUserSubscriptions, useRoomAvatarPath } from '@rocket.chat/ui-contexts';
+import { render, screen, waitFor } from '@testing-library/react';
+import userEvent from '@testing-library/user-event';
+
+import UserAndRoomAutoCompleteMultiple from './UserAndRoomAutoCompleteMultiple';
+import { roomCoordinator } from '../../lib/rooms/roomCoordinator';
+
+// Mock dependencies
+jest.mock('@rocket.chat/ui-contexts', () => ({
+	useUser: jest.fn(),
+	useUserSubscriptions: jest.fn(),
+	useRoomAvatarPath: jest.fn(),
+}));
+jest.mock('../../lib/rooms/roomCoordinator', () => ({
+	roomCoordinator: { readOnly: jest.fn() },
+}));
+
+const mockUser = { _id: 'user1', username: 'testuser' };
+
+const mockRooms = [
+	{
+		rid: 'room1',
+		fname: 'General',
+		name: 'general',
+		t: 'c',
+		avatarETag: 'etag1',
+	},
+	{
+		rid: 'room2',
+		fname: 'Direct',
+		name: 'direct',
+		t: 'd',
+		avatarETag: 'etag2',
+		blocked: false,
+		blocker: false,
+	},
+];
+
+describe('UserAndRoomAutoCompleteMultiple', () => {
+	beforeEach(() => {
+		(useUser as jest.Mock).mockReturnValue(mockUser);
+		(useUserSubscriptions as jest.Mock).mockReturnValue(mockRooms);
+		(useRoomAvatarPath as jest.Mock).mockReturnValue((rid: string) => `/avatar/path/${rid}`);
+		(roomCoordinator.readOnly as jest.Mock).mockReturnValue(false);
+	});
+
+	it('should render options based on user subscriptions', async () => {
+		render(<UserAndRoomAutoCompleteMultiple value={[]} onChange={jest.fn()} />);
+
+		const input = screen.getByRole('textbox');
+		await userEvent.click(input);
+
+		await waitFor(() => {
+			expect(screen.getByText('General')).toBeInTheDocument();
+		});
+
+		await waitFor(() => {
+			expect(screen.getByText('Direct')).toBeInTheDocument();
+		});
+	});
+
+	it('should filter out read-only rooms', async () => {
+		(roomCoordinator.readOnly as jest.Mock).mockImplementation((rid) => rid === 'room1');
+		render(<UserAndRoomAutoCompleteMultiple value={[]} onChange={jest.fn()} />);
+
+		const input = screen.getByRole('textbox');
+		await userEvent.click(input);
+
+		await waitFor(() => {
+			expect(screen.queryByText('General')).not.toBeInTheDocument();
+		});
+		await waitFor(() => {
+			expect(screen.getByText('Direct')).toBeInTheDocument();
+		});
+	});
+
+	it('should call onChange when selecting an option', async () => {
+		const handleChange = jest.fn();
+		render(<UserAndRoomAutoCompleteMultiple value={[]} onChange={handleChange} />);
+
+		const input = screen.getByRole('textbox');
+		await userEvent.click(input);
+
+		await waitFor(() => {
+			expect(screen.getByText('General')).toBeInTheDocument();
+		});
+
+		await userEvent.click(screen.getByText('General'));
+		expect(handleChange).toHaveBeenCalled();
+	});
+});
diff --git a/apps/meteor/client/components/UserAndRoomAutoCompleteMultiple/UserAndRoomAutoCompleteMultiple.tsx b/apps/meteor/client/components/UserAndRoomAutoCompleteMultiple/UserAndRoomAutoCompleteMultiple.tsx
index 747cd1b7700af..509718bb1129d 100644
--- a/apps/meteor/client/components/UserAndRoomAutoCompleteMultiple/UserAndRoomAutoCompleteMultiple.tsx
+++ b/apps/meteor/client/components/UserAndRoomAutoCompleteMultiple/UserAndRoomAutoCompleteMultiple.tsx
@@ -4,59 +4,64 @@ import { useDebouncedValue } from '@rocket.chat/fuselage-hooks';
 import { escapeRegExp } from '@rocket.chat/string-helpers';
 import { RoomAvatar, UserAvatar } from '@rocket.chat/ui-avatar';
 import { useUser, useUserSubscriptions } from '@rocket.chat/ui-contexts';
-import type { ComponentProps, ReactElement } from 'react';
-import { memo, useCallback, useMemo, useState } from 'react';
+import type { ComponentProps } from 'react';
+import { memo, useMemo, useState } from 'react';
 
 import { Rooms } from '../../../app/models/client';
-import { useReactiveValue } from '../../hooks/useReactiveValue';
 import { roomCoordinator } from '../../lib/rooms/roomCoordinator';
 
-type UserAndRoomAutoCompleteMultipleProps = Omit<ComponentProps<typeof AutoComplete>, 'filter'>;
+type UserAndRoomAutoCompleteMultipleProps = Omit<ComponentProps<typeof AutoComplete>, 'filter'> & { limit?: number };
 
-const UserAndRoomAutoCompleteMultiple = ({ value, onChange, ...props }: UserAndRoomAutoCompleteMultipleProps): ReactElement => {
+const UserAndRoomAutoCompleteMultiple = ({ value, onChange, limit, ...props }: UserAndRoomAutoCompleteMultipleProps) => {
 	const user = useUser();
 	const [filter, setFilter] = useState('');
 	const debouncedFilter = useDebouncedValue(filter, 1000);
 
-	const subscriptions = useUserSubscriptions(
-		useMemo(
-			() => ({
-				open: { $ne: false },
-				$or: [
-					{ lowerCaseFName: new RegExp(escapeRegExp(debouncedFilter), 'i') },
-					{ lowerCaseName: new RegExp(escapeRegExp(debouncedFilter), 'i') },
-				],
-			}),
+	const rooms = useUserSubscriptions(
+		...useMemo<Parameters<typeof useUserSubscriptions>>(
+			() => [
+				{
+					open: { $ne: false },
+					$or: [
+						{ lowerCaseFName: new RegExp(escapeRegExp(debouncedFilter), 'i') },
+						{ lowerCaseName: new RegExp(escapeRegExp(debouncedFilter), 'i') },
+					],
+				},
+				// We are using a higher limit here to take advantage of the amount that
+				// will be filtered below into a smaller set respecting the limit prop.
+				{ limit: 100 },
+			],
 			[debouncedFilter],
 		),
 	);
 
-	const rooms = useReactiveValue(
-		useCallback(
-			() =>
-				subscriptions.filter((subscription) => {
-					if (!user) {
-						return;
-					}
+	const options = useMemo(() => {
+		if (!user) {
+			return [];
+		}
 
-					if (isDirectMessageRoom(subscription) && (subscription.blocked || subscription.blocker)) {
-						return;
-					}
+		return rooms.reduce<Exclude<UserAndRoomAutoCompleteMultipleProps['options'], undefined>>((acc, room) => {
+			if (acc.length === limit) return acc;
 
-					return !roomCoordinator.readOnly(Rooms.state.get(subscription.rid), user);
-				}),
-			[subscriptions, user],
-		),
-	);
+			if (isDirectMessageRoom(room) && (room.blocked || room.blocker)) {
+				return acc;
+			}
 
-	const options = useMemo(
-		() =>
-			rooms.map(({ rid, fname, name, avatarETag, t }) => ({
-				value: rid,
-				label: { name: fname || name, avatarETag, type: t },
-			})),
-		[rooms],
-	);
+			if (roomCoordinator.readOnly(Rooms.state.get(room.rid), user)) return acc;
+
+			return [
+				...acc,
+				{
+					value: room.rid,
+					label: {
+						name: room.fname || room.name,
+						avatarETag: room.avatarETag,
+						type: room.t,
+					},
+				},
+			];
+		}, []);
+	}, [limit, rooms, user]);
 
 	return (
 		<AutoComplete
@@ -66,7 +71,7 @@ const UserAndRoomAutoCompleteMultiple = ({ value, onChange, ...props }: UserAndR
 			filter={filter}
 			setFilter={setFilter}
 			multiple
-			renderSelected={({ selected: { value, label }, onRemove, ...props }): ReactElement => (
+			renderSelected={({ selected: { value, label }, onRemove, ...props }) => (
 				<Chip {...props} height='x20' value={value} onClick={onRemove} mie={4}>
 					{label.t === 'd' ? (
 						<UserAvatar size='x20' username={value} />
@@ -78,7 +83,7 @@ const UserAndRoomAutoCompleteMultiple = ({ value, onChange, ...props }: UserAndR
 					</Box>
 				</Chip>
 			)}
-			renderItem={({ value, label, ...props }): ReactElement => (
+			renderItem={({ value, label, ...props }) => (
 				<Option key={value} {...props}>
 					<OptionAvatar>
 						{label.t === 'd' ? (
diff --git a/apps/meteor/client/views/room/modals/ForwardMessageModal/ForwardMessageModal.tsx b/apps/meteor/client/views/room/modals/ForwardMessageModal/ForwardMessageModal.tsx
index c652d4fce7847..760faa8085c4c 100644
--- a/apps/meteor/client/views/room/modals/ForwardMessageModal/ForwardMessageModal.tsx
+++ b/apps/meteor/client/views/room/modals/ForwardMessageModal/ForwardMessageModal.tsx
@@ -110,6 +110,7 @@ const ForwardMessageModal = ({ onClose, permalink, message }: ForwardMessageProp
 										aria-describedby={`${usersAndRoomsField}-hint`}
 										name={name}
 										value={value}
+										limit={25}
 										onChange={onChange}
 									/>
 								)}