diff --git a/packages/react-native/Libraries/Inspector/Inspector.js b/packages/react-native/Libraries/Inspector/Inspector.js
index bc76e794870..330b501b0a7 100644
--- a/packages/react-native/Libraries/Inspector/Inspector.js
+++ b/packages/react-native/Libraries/Inspector/Inspector.js
@@ -29,13 +29,17 @@ const hook = window.__REACT_DEVTOOLS_GLOBAL_HOOK__;
 
 // Required for React DevTools to view/edit React Native styles in Flipper.
 // Flipper doesn't inject these values when initializing DevTools.
-hook.resolveRNStyle = require('../StyleSheet/flattenStyle');
-hook.nativeStyleEditorValidAttributes = Object.keys(ReactNativeStyleAttributes);
+if (hook) {
+  hook.resolveRNStyle = require('../StyleSheet/flattenStyle');
+  hook.nativeStyleEditorValidAttributes = Object.keys(
+    ReactNativeStyleAttributes,
+  );
+}
 
 class Inspector extends React.Component<
   {
     inspectedView: ?HostRef,
-    onRequestRerenderApp: (callback: (instance: ?HostRef) => void) => void,
+    onRequestRerenderApp: () => void,
     ...
   },
   {
@@ -194,9 +198,7 @@ class Inspector extends React.Component<
 
   setTouchTargeting(val: boolean) {
     PressabilityDebug.setEnabled(val);
-    this.props.onRequestRerenderApp(inspectedView => {
-      this.setState({inspectedView});
-    });
+    this.props.onRequestRerenderApp();
   }
 
   setNetworking(val: boolean) {
diff --git a/packages/react-native/Libraries/ReactNative/AppContainer-dev.js b/packages/react-native/Libraries/ReactNative/AppContainer-dev.js
new file mode 100644
index 00000000000..7cced77b069
--- /dev/null
+++ b/packages/react-native/Libraries/ReactNative/AppContainer-dev.js
@@ -0,0 +1,154 @@
+/**
+ * Copyright (c) Meta Platforms, Inc. and affiliates.
+ *
+ * This source code is licensed under the MIT license found in the
+ * LICENSE file in the root directory of this source tree.
+ *
+ * @flow strict-local
+ * @format
+ * @oncall react_native
+ */
+
+import type {Props} from './AppContainer';
+
+import TraceUpdateOverlay from '../Components/TraceUpdateOverlay/TraceUpdateOverlay';
+import View from '../Components/View/View';
+import ViewNativeComponent from '../Components/View/ViewNativeComponent';
+import RCTDeviceEventEmitter from '../EventEmitter/RCTDeviceEventEmitter';
+import ReactDevToolsOverlay from '../Inspector/DevtoolsOverlay';
+import LogBoxNotificationContainer from '../LogBox/LogBoxNotificationContainer';
+import StyleSheet from '../StyleSheet/StyleSheet';
+import {RootTagContext, createRootTag} from './RootTag';
+import * as React from 'react';
+
+const {useEffect, useState, useCallback} = React;
+
+const reactDevToolsHook = window.__REACT_DEVTOOLS_GLOBAL_HOOK__;
+
+type InspectorDeferredProps = {
+  inspectedView: React.ElementRef<typeof ViewNativeComponent> | null,
+  onInspectedViewRerenderRequest: () => void,
+};
+
+const InspectorDeferred = ({
+  inspectedView,
+  onInspectedViewRerenderRequest,
+}: InspectorDeferredProps) => {
+  // D39382967 adds a require cycle: InitializeCore -> AppContainer -> Inspector -> InspectorPanel -> ScrollView -> InitializeCore
+  // We can't remove it yet, fallback to dynamic require for now. This is the only reason why this logic is in a separate function.
+  const Inspector = require('../Inspector/Inspector');
+
+  return (
+    <Inspector
+      inspectedView={inspectedView}
+      onRequestRerenderApp={onInspectedViewRerenderRequest}
+    />
+  );
+};
+
+const AppContainer = ({
+  children,
+  fabric,
+  initialProps,
+  internal_excludeInspector = false,
+  internal_excludeLogBox = false,
+  rootTag,
+  showArchitectureIndicator,
+  WrapperComponent,
+}: Props): React.Node => {
+  const [mainRef, setMainRef] = useState<React.ElementRef<
+    typeof ViewNativeComponent,
+  > | null>(null);
+
+  const [key, setKey] = useState(0);
+  const [shouldRenderInspector, setShouldRenderInspector] = useState(false);
+  const [shouldRenderDebuggingOverlays, setShouldRenderDebuggingOverlays] =
+    useState(reactDevToolsHook?.reactDevtoolsAgent != null);
+
+  useEffect(() => {
+    let inspectorSubscription = null;
+    if (!internal_excludeInspector) {
+      inspectorSubscription = RCTDeviceEventEmitter.addListener(
+        'toggleElementInspector',
+        () => setShouldRenderInspector(value => !value),
+      );
+    }
+
+    let reactDevToolsAgentListener = null;
+    // Subscribe listener, if agent is not attached yet
+    if (
+      reactDevToolsHook != null &&
+      reactDevToolsHook.reactDevtoolsAgent == null
+    ) {
+      reactDevToolsAgentListener = () => setShouldRenderDebuggingOverlays(true);
+      reactDevToolsHook.on?.('react-devtools', reactDevToolsAgentListener);
+    }
+
+    return () => {
+      inspectorSubscription?.remove();
+
+      if (
+        reactDevToolsHook?.off != null &&
+        reactDevToolsAgentListener != null
+      ) {
+        reactDevToolsHook.off('react-devtools', reactDevToolsAgentListener);
+      }
+    };
+    // eslint-disable-next-line react-hooks/exhaustive-deps
+  }, []);
+
+  let innerView: React.Node = (
+    <View
+      collapsable={!shouldRenderDebuggingOverlays && !shouldRenderInspector}
+      pointerEvents="box-none"
+      key={key}
+      style={styles.container}
+      ref={setMainRef}>
+      {children}
+    </View>
+  );
+
+  if (WrapperComponent != null) {
+    innerView = (
+      <WrapperComponent
+        initialProps={initialProps}
+        fabric={fabric === true}
+        showArchitectureIndicator={showArchitectureIndicator === true}>
+        {innerView}
+      </WrapperComponent>
+    );
+  }
+
+  const onInspectedViewRerenderRequest = useCallback(
+    () => setKey(k => k + 1),
+    [],
+  );
+
+  return (
+    <RootTagContext.Provider value={createRootTag(rootTag)}>
+      <View style={styles.container} pointerEvents="box-none">
+        {innerView}
+
+        {shouldRenderDebuggingOverlays && <TraceUpdateOverlay />}
+        {shouldRenderDebuggingOverlays && (
+          <ReactDevToolsOverlay inspectedView={mainRef} />
+        )}
+
+        {shouldRenderInspector && (
+          <InspectorDeferred
+            inspectedView={mainRef}
+            onInspectedViewRerenderRequest={onInspectedViewRerenderRequest}
+          />
+        )}
+
+        {!internal_excludeLogBox && <LogBoxNotificationContainer />}
+      </View>
+    </RootTagContext.Provider>
+  );
+};
+
+const styles = StyleSheet.create({
+  container: {flex: 1},
+});
+
+export default AppContainer;
diff --git a/packages/react-native/Libraries/ReactNative/AppContainer-prod.js b/packages/react-native/Libraries/ReactNative/AppContainer-prod.js
new file mode 100644
index 00000000000..201d54562b9
--- /dev/null
+++ b/packages/react-native/Libraries/ReactNative/AppContainer-prod.js
@@ -0,0 +1,53 @@
+/**
+ * Copyright (c) Meta Platforms, Inc. and affiliates.
+ *
+ * This source code is licensed under the MIT license found in the
+ * LICENSE file in the root directory of this source tree.
+ *
+ * @flow strict-local
+ * @format
+ * @oncall react_native
+ */
+
+import type {Props} from './AppContainer';
+
+import View from '../Components/View/View';
+import StyleSheet from '../StyleSheet/StyleSheet';
+import {RootTagContext, createRootTag} from './RootTag';
+import * as React from 'react';
+
+const AppContainer = ({
+  children,
+  fabric,
+  initialProps,
+  rootTag,
+  showArchitectureIndicator,
+  WrapperComponent,
+}: Props): React.Node => {
+  let innerView = children;
+
+  if (WrapperComponent != null) {
+    innerView = (
+      <WrapperComponent
+        initialProps={initialProps}
+        fabric={fabric === true}
+        showArchitectureIndicator={showArchitectureIndicator === true}>
+        {innerView}
+      </WrapperComponent>
+    );
+  }
+
+  return (
+    <RootTagContext.Provider value={createRootTag(rootTag)}>
+      <View style={styles.root} pointerEvents="box-none">
+        {innerView}
+      </View>
+    </RootTagContext.Provider>
+  );
+};
+
+const styles = StyleSheet.create({
+  root: {flex: 1},
+});
+
+export default AppContainer;
diff --git a/packages/react-native/Libraries/ReactNative/AppContainer.js b/packages/react-native/Libraries/ReactNative/AppContainer.js
index 6ad1aa217ab..b27db96888b 100644
--- a/packages/react-native/Libraries/ReactNative/AppContainer.js
+++ b/packages/react-native/Libraries/ReactNative/AppContainer.js
@@ -10,170 +10,21 @@
 
 import type {RootTag} from './RootTag';
 
-import View from '../Components/View/View';
-import RCTDeviceEventEmitter from '../EventEmitter/RCTDeviceEventEmitter';
-import StyleSheet from '../StyleSheet/StyleSheet';
-import {type EventSubscription} from '../vendor/emitter/EventEmitter';
-import {RootTagContext, createRootTag} from './RootTag';
 import * as React from 'react';
 
-const reactDevToolsHook = window.__REACT_DEVTOOLS_GLOBAL_HOOK__;
-
-type Props = $ReadOnly<{|
+export type Props = $ReadOnly<{|
   children?: React.Node,
   fabric?: boolean,
   rootTag: number | RootTag,
   initialProps?: {...},
   showArchitectureIndicator?: boolean,
   WrapperComponent?: ?React.ComponentType<any>,
-  internal_excludeLogBox?: ?boolean,
-  internal_excludeInspector?: ?boolean,
+  internal_excludeLogBox?: boolean,
+  internal_excludeInspector?: boolean,
 |}>;
 
-type State = {|
-  inspector: ?React.Node,
-  devtoolsOverlay: ?React.Node,
-  traceUpdateOverlay: ?React.Node,
-  mainKey: number,
-|};
-
-class AppContainer extends React.Component<Props, State> {
-  state: State = {
-    inspector: null,
-    devtoolsOverlay: null,
-    traceUpdateOverlay: null,
-    mainKey: 1,
-  };
-  _mainRef: ?React.ElementRef<typeof View>;
-  _subscription: ?EventSubscription = null;
-  _reactDevToolsAgentListener: ?() => void = null;
-
-  static getDerivedStateFromError: any = undefined;
-
-  mountReactDevToolsOverlays(): void {
-    if (__DEV__) {
-      const DevtoolsOverlay = require('../Inspector/DevtoolsOverlay').default;
-      const devtoolsOverlay = <DevtoolsOverlay inspectedView={this._mainRef} />;
-
-      const TraceUpdateOverlay =
-        require('../Components/TraceUpdateOverlay/TraceUpdateOverlay').default;
-      const traceUpdateOverlay = <TraceUpdateOverlay />;
-
-      this.setState({devtoolsOverlay, traceUpdateOverlay});
-    }
-  }
-
-  componentDidMount(): void {
-    if (__DEV__) {
-      if (!this.props.internal_excludeInspector) {
-        this._subscription = RCTDeviceEventEmitter.addListener(
-          'toggleElementInspector',
-          () => {
-            const Inspector = require('../Inspector/Inspector');
-            const inspector = this.state.inspector ? null : (
-              <Inspector
-                inspectedView={this._mainRef}
-                onRequestRerenderApp={updateInspectedView => {
-                  this.setState(
-                    s => ({mainKey: s.mainKey + 1}),
-                    () => updateInspectedView(this._mainRef),
-                  );
-                }}
-              />
-            );
-            this.setState({inspector});
-          },
-        );
-
-        if (reactDevToolsHook != null) {
-          if (reactDevToolsHook.reactDevtoolsAgent) {
-            // In case if this is not the first AppContainer rendered and React DevTools are already attached
-            this.mountReactDevToolsOverlays();
-            return;
-          }
-
-          this._reactDevToolsAgentListener = () =>
-            this.mountReactDevToolsOverlays();
-
-          if (reactDevToolsHook.on != null) {
-            reactDevToolsHook.on(
-              'react-devtools',
-              this._reactDevToolsAgentListener,
-            );
-          }
-        }
-      }
-    }
-  }
-
-  componentWillUnmount(): void {
-    if (this._subscription != null) {
-      this._subscription.remove();
-    }
-
-    if (
-      reactDevToolsHook?.off != null &&
-      this._reactDevToolsAgentListener != null
-    ) {
-      reactDevToolsHook.off('react-devtools', this._reactDevToolsAgentListener);
-    }
-  }
-
-  render(): React.Node {
-    let logBox = null;
-    if (__DEV__) {
-      if (!this.props.internal_excludeLogBox) {
-        const LogBoxNotificationContainer =
-          require('../LogBox/LogBoxNotificationContainer').default;
-        logBox = <LogBoxNotificationContainer />;
-      }
-    }
-
-    let innerView: React.Node = (
-      <View
-        collapsable={!this.state.inspector && !this.state.devtoolsOverlay}
-        key={this.state.mainKey}
-        pointerEvents="box-none"
-        style={styles.appContainer}
-        ref={ref => {
-          this._mainRef = ref;
-        }}>
-        {this.props.children}
-      </View>
-    );
-
-    const Wrapper = this.props.WrapperComponent;
-    if (Wrapper != null) {
-      innerView = (
-        <Wrapper
-          initialProps={this.props.initialProps}
-          fabric={this.props.fabric === true}
-          showArchitectureIndicator={
-            this.props.showArchitectureIndicator === true
-          }>
-          {innerView}
-        </Wrapper>
-      );
-    }
-
-    return (
-      <RootTagContext.Provider value={createRootTag(this.props.rootTag)}>
-        <View style={styles.appContainer} pointerEvents="box-none">
-          {innerView}
-          {this.state.traceUpdateOverlay}
-          {this.state.devtoolsOverlay}
-          {this.state.inspector}
-          {logBox}
-        </View>
-      </RootTagContext.Provider>
-    );
-  }
-}
-
-const styles = StyleSheet.create({
-  appContainer: {
-    flex: 1,
-  },
-});
+const AppContainer: React.AbstractComponent<Props> = __DEV__
+  ? require('./AppContainer-dev').default
+  : require('./AppContainer-prod').default;
 
 module.exports = AppContainer;