diff --git a/packages/react-native/Libraries/AppDelegate/RCTAppSetupUtils.mm b/packages/react-native/Libraries/AppDelegate/RCTAppSetupUtils.mm
index 99484c42092..a416e90b907 100644
--- a/packages/react-native/Libraries/AppDelegate/RCTAppSetupUtils.mm
+++ b/packages/react-native/Libraries/AppDelegate/RCTAppSetupUtils.mm
@@ -10,13 +10,13 @@
 #if RCT_NEW_ARCH_ENABLED
 // Turbo Module
 #import <React/CoreModulesPlugins.h>
+#import <React/RCTBundleAssetImageLoader.h>
 #import <React/RCTDataRequestHandler.h>
 #import <React/RCTFileRequestHandler.h>
 #import <React/RCTGIFImageDecoder.h>
 #import <React/RCTHTTPRequestHandler.h>
 #import <React/RCTImageLoader.h>
 #import <React/RCTJSIExecutorRuntimeInstaller.h>
-#import <React/RCTLocalAssetImageLoader.h>
 #import <React/RCTNetworking.h>
 
 // Fabric
@@ -83,7 +83,7 @@ id<RCTTurboModule> RCTAppSetupDefaultModuleFromClass(Class moduleClass)
   if (moduleClass == RCTImageLoader.class) {
     return [[moduleClass alloc] initWithRedirectDelegate:nil
         loadersProvider:^NSArray<id<RCTImageURLLoader>> *(RCTModuleRegistry *moduleRegistry) {
-          return @[ [RCTLocalAssetImageLoader new] ];
+          return @[ [RCTBundleAssetImageLoader new] ];
         }
         decodersProvider:^NSArray<id<RCTImageDataDecoder>> *(RCTModuleRegistry *moduleRegistry) {
           return @[ [RCTGIFImageDecoder new] ];
diff --git a/packages/react-native/Libraries/Image/RCTBundleAssetImageLoader.h b/packages/react-native/Libraries/Image/RCTBundleAssetImageLoader.h
new file mode 100644
index 00000000000..fd91a7b86d9
--- /dev/null
+++ b/packages/react-native/Libraries/Image/RCTBundleAssetImageLoader.h
@@ -0,0 +1,12 @@
+/*
+ * 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.
+ */
+
+#import <React/RCTImageURLLoader.h>
+
+@interface RCTBundleAssetImageLoader : NSObject <RCTImageURLLoader>
+
+@end
diff --git a/packages/react-native/Libraries/Image/RCTBundleAssetImageLoader.mm b/packages/react-native/Libraries/Image/RCTBundleAssetImageLoader.mm
new file mode 100644
index 00000000000..f412e9b74c1
--- /dev/null
+++ b/packages/react-native/Libraries/Image/RCTBundleAssetImageLoader.mm
@@ -0,0 +1,83 @@
+/*
+ * 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.
+ */
+
+#import <React/RCTBundleAssetImageLoader.h>
+
+#import <atomic>
+#import <memory>
+
+#import <React/RCTUtils.h>
+#import <ReactCommon/RCTTurboModule.h>
+
+#import "RCTImagePlugins.h"
+
+@interface RCTBundleAssetImageLoader () <RCTTurboModule>
+@end
+
+@implementation RCTBundleAssetImageLoader
+
+RCT_EXPORT_MODULE()
+
+- (BOOL)canLoadImageURL:(NSURL *)requestURL
+{
+  return RCTIsBundleAssetURL(requestURL);
+}
+
+- (BOOL)requiresScheduling
+{
+  // Don't schedule this loader on the URL queue so we can load the
+  // local assets synchronously to avoid flickers.
+  return NO;
+}
+
+- (BOOL)shouldCacheLoadedImages
+{
+  // UIImage imageNamed handles the caching automatically so we don't want
+  // to add it to the image cache.
+  return NO;
+}
+
+- (nullable RCTImageLoaderCancellationBlock)loadImageForURL:(NSURL *)imageURL
+                                                       size:(CGSize)size
+                                                      scale:(CGFloat)scale
+                                                 resizeMode:(RCTResizeMode)resizeMode
+                                            progressHandler:(RCTImageLoaderProgressBlock)progressHandler
+                                         partialLoadHandler:(RCTImageLoaderPartialLoadBlock)partialLoadHandler
+                                          completionHandler:(RCTImageLoaderCompletionBlock)completionHandler
+{
+  UIImage *image = RCTImageFromLocalAssetURL(imageURL);
+  if (image) {
+    if (progressHandler) {
+      progressHandler(1, 1);
+    }
+    completionHandler(nil, image);
+  } else {
+    NSString *message = [NSString stringWithFormat:@"Could not find image %@", imageURL];
+    RCTLogWarn(@"%@", message);
+    completionHandler(RCTErrorWithMessage(message), nil);
+  }
+
+  return nil;
+}
+
+- (std::shared_ptr<facebook::react::TurboModule>)getTurboModule:
+    (const facebook::react::ObjCTurboModule::InitParams &)params
+{
+  return nullptr;
+}
+
+- (float)loaderPriority
+{
+  return 1;
+}
+
+@end
+
+Class RCTBundleAssetImageLoaderCls(void)
+{
+  return RCTBundleAssetImageLoader.class;
+}
diff --git a/packages/react-native/Libraries/Image/RCTLocalAssetImageLoader.h b/packages/react-native/Libraries/Image/RCTLocalAssetImageLoader.h
index 453accef355..c7d3465b827 100644
--- a/packages/react-native/Libraries/Image/RCTLocalAssetImageLoader.h
+++ b/packages/react-native/Libraries/Image/RCTLocalAssetImageLoader.h
@@ -7,6 +7,7 @@
 
 #import <React/RCTImageURLLoader.h>
 
-@interface RCTLocalAssetImageLoader : NSObject <RCTImageURLLoader>
+__deprecated_msg("Use RCTBundleAssetImageLoader instead") @interface RCTLocalAssetImageLoader
+    : NSObject<RCTImageURLLoader>
 
 @end
diff --git a/packages/react-native/Libraries/Image/RCTLocalAssetImageLoader.mm b/packages/react-native/Libraries/Image/RCTLocalAssetImageLoader.mm
index a79b4666b18..8f6e1b5c0d1 100644
--- a/packages/react-native/Libraries/Image/RCTLocalAssetImageLoader.mm
+++ b/packages/react-native/Libraries/Image/RCTLocalAssetImageLoader.mm
@@ -24,7 +24,7 @@ RCT_EXPORT_MODULE()
 
 - (BOOL)canLoadImageURL:(NSURL *)requestURL
 {
-  return RCTIsLocalAssetURL(requestURL);
+  return RCTIsBundleAssetURL(requestURL);
 }
 
 - (BOOL)requiresScheduling
@@ -70,6 +70,11 @@ RCT_EXPORT_MODULE()
   return nullptr;
 }
 
+- (float)loaderPriority
+{
+  return 0;
+}
+
 @end
 
 Class RCTLocalAssetImageLoaderCls(void)