diff --git a/packages/transaction-pay-controller/CHANGELOG.md b/packages/transaction-pay-controller/CHANGELOG.md
index 3254ccfca74..ddfcae1b402 100644
--- a/packages/transaction-pay-controller/CHANGELOG.md
+++ b/packages/transaction-pay-controller/CHANGELOG.md
@@ -7,6 +7,10 @@ and this project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0
 
 ## [Unreleased]
 
+### Changed
+
+- Extract shared `buildTokenData` utility and add `TokenListController` fallback for token lookups ([#7774](https://github.com/MetaMask/core/pull/7774))
+
 ## [12.0.2]
 
 ### Changed
diff --git a/packages/transaction-pay-controller/src/actions/update-payment-token.test.ts b/packages/transaction-pay-controller/src/actions/update-payment-token.test.ts
index 8b0d24dfc9e..6a94bb2962b 100644
--- a/packages/transaction-pay-controller/src/actions/update-payment-token.test.ts
+++ b/packages/transaction-pay-controller/src/actions/update-payment-token.test.ts
@@ -2,12 +2,8 @@ import type { TransactionMeta } from '@metamask/transaction-controller';
 import { noop } from 'lodash';
 
 import { updatePaymentToken } from './update-payment-token';
-import type { TransactionData } from '../types';
-import {
-  getTokenBalance,
-  getTokenInfo,
-  getTokenFiatRate,
-} from '../utils/token';
+import type { TransactionData, TransactionPaymentToken } from '../types';
+import { buildTokenData } from '../utils/token';
 import { getTransaction } from '../utils/transaction';
 
 jest.mock('../utils/token');
@@ -18,18 +14,25 @@ const CHAIN_ID_MOCK = '0x1';
 const FROM_MOCK = '0x456';
 const TRANSACTION_ID_MOCK = '123-456';
 
+const PAYMENT_TOKEN_MOCK: TransactionPaymentToken = {
+  address: TOKEN_ADDRESS_MOCK,
+  balanceFiat: '2.46',
+  balanceHuman: '1.23',
+  balanceRaw: '1230000',
+  balanceUsd: '3.69',
+  chainId: CHAIN_ID_MOCK,
+  decimals: 6,
+  symbol: 'TST',
+};
+
 describe('Update Payment Token Action', () => {
-  const getTokenBalanceMock = jest.mocked(getTokenBalance);
-  const getTokenInfoMock = jest.mocked(getTokenInfo);
-  const getTokenFiatRateMock = jest.mocked(getTokenFiatRate);
+  const buildTokenDataMock = jest.mocked(buildTokenData);
   const getTransactionMock = jest.mocked(getTransaction);
 
   beforeEach(() => {
     jest.resetAllMocks();
 
-    getTokenInfoMock.mockReturnValue({ decimals: 6, symbol: 'TST' });
-    getTokenBalanceMock.mockReturnValue('1230000');
-    getTokenFiatRateMock.mockReturnValue({ fiatRate: '2.0', usdRate: '3.0' });
+    buildTokenDataMock.mockReturnValue(PAYMENT_TOKEN_MOCK);
 
     getTransactionMock.mockReturnValue({
       id: TRANSACTION_ID_MOCK,
@@ -52,43 +55,23 @@ describe('Update Payment Token Action', () => {
       },
     );
 
+    expect(buildTokenDataMock).toHaveBeenCalledWith({
+      chainId: CHAIN_ID_MOCK,
+      from: FROM_MOCK,
+      messenger: {},
+      tokenAddress: TOKEN_ADDRESS_MOCK,
+    });
+
     expect(updateTransactionDataMock).toHaveBeenCalledTimes(1);
 
     const transactionDataMock = {} as TransactionData;
     updateTransactionDataMock.mock.calls[0][1](transactionDataMock);
 
-    expect(transactionDataMock.paymentToken).toStrictEqual({
-      address: TOKEN_ADDRESS_MOCK,
-      balanceFiat: '2.46',
-      balanceHuman: '1.23',
-      balanceRaw: '1230000',
-      balanceUsd: '3.69',
-      chainId: CHAIN_ID_MOCK,
-      decimals: 6,
-      symbol: 'TST',
-    });
-  });
-
-  it('throws if decimals not found', () => {
-    getTokenInfoMock.mockReturnValue(undefined);
-
-    expect(() =>
-      updatePaymentToken(
-        {
-          chainId: CHAIN_ID_MOCK,
-          tokenAddress: TOKEN_ADDRESS_MOCK,
-          transactionId: TRANSACTION_ID_MOCK,
-        },
-        {
-          messenger: {} as never,
-          updateTransactionData: noop,
-        },
-      ),
-    ).toThrow('Payment token not found');
+    expect(transactionDataMock.paymentToken).toStrictEqual(PAYMENT_TOKEN_MOCK);
   });
 
-  it('throws if token fiat rate not found', () => {
-    getTokenFiatRateMock.mockReturnValue(undefined);
+  it('throws if token data not found', () => {
+    buildTokenDataMock.mockReturnValue(undefined);
 
     expect(() =>
       updatePaymentToken(
diff --git a/packages/transaction-pay-controller/src/actions/update-payment-token.ts b/packages/transaction-pay-controller/src/actions/update-payment-token.ts
index e9c7108af01..1405a90b7a9 100644
--- a/packages/transaction-pay-controller/src/actions/update-payment-token.ts
+++ b/packages/transaction-pay-controller/src/actions/update-payment-token.ts
@@ -1,19 +1,13 @@
 import { createModuleLogger } from '@metamask/utils';
 import type { Hex } from '@metamask/utils';
-import { BigNumber } from 'bignumber.js';
 
 import type { TransactionPayControllerMessenger } from '..';
 import { projectLogger } from '../logger';
 import type {
-  TransactionPaymentToken,
   UpdatePaymentTokenRequest,
   UpdateTransactionDataCallback,
 } from '../types';
-import {
-  getTokenBalance,
-  getTokenFiatRate,
-  getTokenInfo,
-} from '../utils/token';
+import { buildTokenData } from '../utils/token';
 import { getTransaction } from '../utils/transaction';
 
 const log = createModuleLogger(projectLogger, 'update-payment-token');
@@ -42,7 +36,7 @@ export function updatePaymentToken(
     throw new Error('Transaction not found');
   }
 
-  const paymentToken = getPaymentToken({
+  const paymentToken = buildTokenData({
     chainId,
     from: transaction?.txParams.from as Hex,
     messenger,
@@ -59,63 +53,3 @@ export function updatePaymentToken(
     data.paymentToken = paymentToken;
   });
 }
-
-/**
- * Generate the full payment token data from a token address and chain ID.
- *
- * @param request - The payment token request parameters.
- * @param request.chainId - The chain ID.
- * @param request.from - The address to get the token balance for.
- * @param request.messenger - The transaction pay controller messenger.
- * @param request.tokenAddress - The token address.
- * @returns The payment token or undefined if the token data could not be retrieved.
- */
-function getPaymentToken({
-  chainId,
-  from,
-  messenger,
-  tokenAddress,
-}: {
-  chainId: Hex;
-  from: Hex;
-  messenger: TransactionPayControllerMessenger;
-  tokenAddress: Hex;
-}): TransactionPaymentToken | undefined {
-  const { decimals, symbol } =
-    getTokenInfo(messenger, tokenAddress, chainId) ?? {};
-
-  if (decimals === undefined || !symbol) {
-    return undefined;
-  }
-
-  const tokenFiatRate = getTokenFiatRate(messenger, tokenAddress, chainId);
-
-  if (tokenFiatRate === undefined) {
-    return undefined;
-  }
-
-  const balance = getTokenBalance(messenger, from, chainId, tokenAddress);
-  const balanceRawValue = new BigNumber(balance);
-  const balanceHumanValue = new BigNumber(balance).shiftedBy(-decimals);
-  const balanceRaw = balanceRawValue.toFixed(0);
-  const balanceHuman = balanceHumanValue.toString(10);
-
-  const balanceFiat = balanceHumanValue
-    .multipliedBy(tokenFiatRate.fiatRate)
-    .toString(10);
-
-  const balanceUsd = balanceHumanValue
-    .multipliedBy(tokenFiatRate.usdRate)
-    .toString(10);
-
-  return {
-    address: tokenAddress,
-    balanceFiat,
-    balanceHuman,
-    balanceRaw,
-    balanceUsd,
-    chainId,
-    decimals,
-    symbol,
-  };
-}
diff --git a/packages/transaction-pay-controller/src/tests/messenger-mock.ts b/packages/transaction-pay-controller/src/tests/messenger-mock.ts
index b6d69d4f22d..d8bdc6732e3 100644
--- a/packages/transaction-pay-controller/src/tests/messenger-mock.ts
+++ b/packages/transaction-pay-controller/src/tests/messenger-mock.ts
@@ -2,6 +2,7 @@ import type { TokensControllerGetStateAction } from '@metamask/assets-controller
 import type { TokenBalancesControllerGetStateAction } from '@metamask/assets-controllers';
 import type { TokenRatesControllerGetStateAction } from '@metamask/assets-controllers';
 import type { AccountTrackerControllerGetStateAction } from '@metamask/assets-controllers';
+import type { GetTokenListState } from '@metamask/assets-controllers';
 import type { BridgeStatusControllerGetStateAction } from '@metamask/bridge-status-controller';
 import type {
   MessengerActions,
@@ -93,6 +94,10 @@ export function getMessengerMock({
     TokensControllerGetStateAction['handler']
   > = jest.fn();
 
+  const getTokenListControllerStateMock: jest.MockedFn<
+    GetTokenListState['handler']
+  > = jest.fn();
+
   const getTokenBalanceControllerStateMock: jest.MockedFn<
     TokenBalancesControllerGetStateAction['handler']
   > = jest.fn();
@@ -197,6 +202,11 @@ export function getMessengerMock({
       getTokensControllerStateMock,
     );
 
+    messenger.registerActionHandler(
+      'TokenListController:getState',
+      getTokenListControllerStateMock,
+    );
+
     messenger.registerActionHandler(
       'TokenBalancesController:getState',
       getTokenBalanceControllerStateMock,
@@ -263,6 +273,7 @@ export function getMessengerMock({
     getRemoteFeatureFlagControllerStateMock,
     getStrategyMock,
     getTokenBalanceControllerStateMock,
+    getTokenListControllerStateMock,
     getTokenRatesControllerStateMock,
     getTokensControllerStateMock,
     getTransactionControllerStateMock,
diff --git a/packages/transaction-pay-controller/src/utils/token.test.ts b/packages/transaction-pay-controller/src/utils/token.test.ts
index ffdaa5fc353..093434f4426 100644
--- a/packages/transaction-pay-controller/src/utils/token.test.ts
+++ b/packages/transaction-pay-controller/src/utils/token.test.ts
@@ -4,6 +4,7 @@ import type { TokenRatesControllerState } from '@metamask/assets-controllers';
 import type { Hex } from '@metamask/utils';
 
 import {
+  buildTokenData,
   getTokenBalance,
   getTokenInfo,
   getTokenFiatRate,
@@ -471,4 +472,173 @@ describe('Token Utils', () => {
       ]);
     });
   });
+
+  describe('buildTokenData', () => {
+    beforeEach(() => {
+      getTokensControllerStateMock.mockReturnValue({
+        allTokens: {
+          [CHAIN_ID_MOCK]: {
+            test123: [
+              {
+                address: TOKEN_ADDRESS_MOCK.toLowerCase() as Hex,
+                decimals: DECIMALS_MOCK,
+                symbol: SYMBOL_MOCK,
+              },
+            ],
+          },
+        },
+      } as never);
+
+      getTokenBalanceControllerStateMock.mockReturnValue({
+        tokenBalances: {
+          [FROM_MOCK.toLowerCase()]: {
+            [CHAIN_ID_MOCK]: {
+              [TOKEN_ADDRESS_MOCK]: '0x1e8480' as Hex, // 2000000
+            },
+          },
+        },
+      } as never);
+
+      getCurrencyRateControllerStateMock.mockReturnValue({
+        currencyRates: {
+          [TICKER_MOCK]: {
+            conversionRate: 2.0,
+            usdConversionRate: 3.0,
+          },
+        },
+      });
+
+      getTokenRatesControllerStateMock.mockReturnValue({
+        marketData: {
+          [CHAIN_ID_MOCK]: {
+            [TOKEN_ADDRESS_MOCK]: {
+              price: 1.5,
+            },
+          },
+        },
+      } as TokenRatesControllerState);
+
+      findNetworkClientIdByChainIdMock.mockReturnValue(NETWORK_CLIENT_ID_MOCK);
+
+      getNetworkClientByIdMock.mockReturnValue({
+        configuration: { ticker: TICKER_MOCK },
+      } as never);
+    });
+
+    it('builds token data with balance and fiat values', () => {
+      const result = buildTokenData({
+        chainId: CHAIN_ID_MOCK,
+        from: FROM_MOCK,
+        messenger,
+        tokenAddress: TOKEN_ADDRESS_MOCK,
+      });
+
+      expect(result).toStrictEqual({
+        address: TOKEN_ADDRESS_MOCK,
+        balanceFiat: '6',
+        balanceHuman: '2',
+        balanceRaw: '2000000',
+        balanceUsd: '9',
+        chainId: CHAIN_ID_MOCK,
+        decimals: DECIMALS_MOCK,
+        symbol: SYMBOL_MOCK,
+      });
+    });
+
+    it('returns undefined if token info not found', () => {
+      getTokensControllerStateMock.mockReturnValue({
+        allTokens: {},
+      } as never);
+
+      const result = buildTokenData({
+        chainId: CHAIN_ID_MOCK,
+        from: FROM_MOCK,
+        messenger,
+        tokenAddress: TOKEN_ADDRESS_MOCK,
+      });
+
+      expect(result).toBeUndefined();
+    });
+
+    it('returns undefined if fiat rate not found', () => {
+      getCurrencyRateControllerStateMock.mockReturnValue({
+        currencyRates: {},
+      });
+
+      getTokenRatesControllerStateMock.mockReturnValue({
+        marketData: {},
+      } as TokenRatesControllerState);
+
+      const result = buildTokenData({
+        chainId: CHAIN_ID_MOCK,
+        from: FROM_MOCK,
+        messenger,
+        tokenAddress: TOKEN_ADDRESS_MOCK,
+      });
+
+      expect(result).toBeUndefined();
+    });
+  });
+
+  describe('getTokenInfo - TokenListController fallback', () => {
+    it('falls back to TokenListController for unknown tokens', () => {
+      const {
+        messenger: testMessenger,
+        getTokensControllerStateMock: tokensStateMock,
+        getTokenListControllerStateMock,
+      } = getMessengerMock();
+
+      tokensStateMock.mockReturnValue({
+        allTokens: {},
+      } as never);
+
+      getTokenListControllerStateMock.mockReturnValue({
+        tokensChainsCache: {
+          [CHAIN_ID_MOCK]: {
+            data: {
+              [TOKEN_ADDRESS_MOCK.toLowerCase()]: {
+                decimals: 8,
+                symbol: 'LISTTOKEN',
+              },
+            },
+          },
+        },
+      } as never);
+
+      const result = getTokenInfo(
+        testMessenger,
+        TOKEN_ADDRESS_MOCK,
+        CHAIN_ID_MOCK,
+      );
+
+      expect(result).toStrictEqual({
+        decimals: 8,
+        symbol: 'LISTTOKEN',
+      });
+    });
+
+    it('returns undefined if token not in TokenListController', () => {
+      const {
+        messenger: testMessenger,
+        getTokensControllerStateMock: tokensStateMock,
+        getTokenListControllerStateMock,
+      } = getMessengerMock();
+
+      tokensStateMock.mockReturnValue({
+        allTokens: {},
+      } as never);
+
+      getTokenListControllerStateMock.mockReturnValue({
+        tokensChainsCache: {},
+      } as never);
+
+      const result = getTokenInfo(
+        testMessenger,
+        TOKEN_ADDRESS_MOCK,
+        CHAIN_ID_MOCK,
+      );
+
+      expect(result).toBeUndefined();
+    });
+  });
 });
diff --git a/packages/transaction-pay-controller/src/utils/token.ts b/packages/transaction-pay-controller/src/utils/token.ts
index b05f0a5f32c..3596ad08b96 100644
--- a/packages/transaction-pay-controller/src/utils/token.ts
+++ b/packages/transaction-pay-controller/src/utils/token.ts
@@ -10,7 +10,11 @@ import {
   NATIVE_TOKEN_ADDRESS,
   POLYGON_USDCE_ADDRESS,
 } from '../constants';
-import type { FiatRates, TransactionPayControllerMessenger } from '../types';
+import type {
+  FiatRates,
+  TransactionPayControllerMessenger,
+  TransactionPaymentToken,
+} from '../types';
 
 const STABLECOINS: Record<Hex, Hex[]> = {
   [CHAIN_ID_ARBITRUM]: [ARBITRUM_USDC_ADDRESS.toLowerCase() as Hex],
@@ -134,6 +138,7 @@ export function getTokenInfo(
   const isNative =
     normalizedTokenAddress === getNativeToken(chainId).toLowerCase();
 
+  // First, check user's added tokens
   const token = Object.values(controllerState.allTokens?.[chainId] ?? {})
     .flat()
     .find(
@@ -141,14 +146,25 @@ export function getTokenInfo(
         singleToken.address.toLowerCase() === normalizedTokenAddress,
     );
 
-  if (!token && !isNative) {
-    return undefined;
-  }
-
   if (token && !isNative) {
     return { decimals: Number(token.decimals), symbol: token.symbol };
   }
 
+  // Fallback to TokenListController for known tokens not yet added by user
+  if (!token && !isNative) {
+    const tokenListInfo = getTokenInfoFromTokenList(
+      messenger,
+      tokenAddress,
+      chainId,
+    );
+
+    if (tokenListInfo) {
+      return tokenListInfo;
+    }
+
+    return undefined;
+  }
+
   const ticker = getTicker(chainId, messenger);
 
   if (!ticker) {
@@ -263,3 +279,100 @@ function getTicker(
     return undefined;
   }
 }
+
+/**
+ * Get token info from TokenListController.
+ * This provides a fallback for tokens that aren't in the user's token list yet.
+ *
+ * @param messenger - Controller messenger.
+ * @param tokenAddress - Address of the token contract.
+ * @param chainId - Id of the chain.
+ * @returns The token info or undefined if not found.
+ */
+function getTokenInfoFromTokenList(
+  messenger: TransactionPayControllerMessenger,
+  tokenAddress: Hex,
+  chainId: Hex,
+): { decimals: number; symbol: string } | undefined {
+  try {
+    const tokenListState = messenger.call('TokenListController:getState');
+    const normalizedAddress = tokenAddress.toLowerCase() as Hex;
+
+    // TokenListController stores tokens by chain ID and address
+    const tokensByChain = tokenListState.tokensChainsCache?.[chainId];
+    const tokenData = tokensByChain?.data?.[normalizedAddress];
+
+    if (tokenData?.decimals !== undefined && tokenData?.symbol) {
+      return {
+        decimals: Number(tokenData.decimals),
+        symbol: tokenData.symbol,
+      };
+    }
+
+    return undefined;
+  } catch {
+    // TokenListController might not be available
+    return undefined;
+  }
+}
+
+/**
+ * Build full token data from a token address and chain ID.
+ * Used by both payment token and selected token update actions.
+ *
+ * @param request - The token request parameters.
+ * @param request.chainId - The chain ID.
+ * @param request.from - The address to get the token balance for.
+ * @param request.messenger - The transaction pay controller messenger.
+ * @param request.tokenAddress - The token address.
+ * @returns The token data or undefined if the token data could not be retrieved.
+ */
+export function buildTokenData({
+  chainId,
+  from,
+  messenger,
+  tokenAddress,
+}: {
+  chainId: Hex;
+  from: Hex;
+  messenger: TransactionPayControllerMessenger;
+  tokenAddress: Hex;
+}): TransactionPaymentToken | undefined {
+  const { decimals, symbol } =
+    getTokenInfo(messenger, tokenAddress, chainId) ?? {};
+
+  if (decimals === undefined || !symbol) {
+    return undefined;
+  }
+
+  const tokenFiatRate = getTokenFiatRate(messenger, tokenAddress, chainId);
+
+  if (tokenFiatRate === undefined) {
+    return undefined;
+  }
+
+  const balance = getTokenBalance(messenger, from, chainId, tokenAddress);
+  const balanceRawValue = new BigNumber(balance);
+  const balanceHumanValue = new BigNumber(balance).shiftedBy(-decimals);
+  const balanceRaw = balanceRawValue.toFixed(0);
+  const balanceHuman = balanceHumanValue.toString(10);
+
+  const balanceFiat = balanceHumanValue
+    .multipliedBy(tokenFiatRate.fiatRate)
+    .toString(10);
+
+  const balanceUsd = balanceHumanValue
+    .multipliedBy(tokenFiatRate.usdRate)
+    .toString(10);
+
+  return {
+    address: tokenAddress,
+    balanceFiat,
+    balanceHuman,
+    balanceRaw,
+    balanceUsd,
+    chainId,
+    decimals,
+    symbol,
+  };
+}