diff --git a/packages/react-native/ReactCommon/yoga/yoga/algorithm/AbsoluteLayout.cpp b/packages/react-native/ReactCommon/yoga/yoga/algorithm/AbsoluteLayout.cpp
index b2d8d8dbefcd..36ba193abc39 100644
--- a/packages/react-native/ReactCommon/yoga/yoga/algorithm/AbsoluteLayout.cpp
+++ b/packages/react-native/ReactCommon/yoga/yoga/algorithm/AbsoluteLayout.cpp
@@ -553,6 +553,8 @@ bool layoutAbsoluteDescendants(
                          containingNodeAvailableInnerHeight) ||
           hasNewLayout;
 
+      cleanupContentsNodesRecursively(
+          child, /* didPerformLayout */ hasNewLayout);
       if (hasNewLayout) {
         child->setHasNewLayout(hasNewLayout);
       }
diff --git a/packages/react-native/ReactCommon/yoga/yoga/algorithm/CalculateLayout.cpp b/packages/react-native/ReactCommon/yoga/yoga/algorithm/CalculateLayout.cpp
index fcc053135492..9dfaf9d84be1 100644
--- a/packages/react-native/ReactCommon/yoga/yoga/algorithm/CalculateLayout.cpp
+++ b/packages/react-native/ReactCommon/yoga/yoga/algorithm/CalculateLayout.cpp
@@ -480,7 +480,9 @@ static void zeroOutLayoutRecursively(yoga::Node* const node) {
   }
 }
 
-static void cleanupContentsNodesRecursively(yoga::Node* const node) {
+void cleanupContentsNodesRecursively(
+    yoga::Node* const node,
+    bool didPerformLayout) {
   if (node->hasContentsChildren()) [[unlikely]] {
     node->cloneContentsChildrenIfNeeded();
     for (auto child : node->getChildren()) {
@@ -488,11 +490,13 @@ static void cleanupContentsNodesRecursively(yoga::Node* const node) {
         child->getLayout() = {};
         child->setLayoutDimension(0, Dimension::Width);
         child->setLayoutDimension(0, Dimension::Height);
-        child->setHasNewLayout(true);
+        if (didPerformLayout) {
+          child->setHasNewLayout(true);
+        }
         child->setDirty(false);
         child->cloneChildrenIfNeeded();
 
-        cleanupContentsNodesRecursively(child);
+        cleanupContentsNodesRecursively(child, didPerformLayout);
       }
     }
   }
@@ -1317,7 +1321,7 @@ static void calculateLayoutImpl(
 
     // Clean and update all display: contents nodes with a direct path to the
     // current node as they will not be traversed
-    cleanupContentsNodesRecursively(node);
+    cleanupContentsNodesRecursively(node, performLayout);
     return;
   }
 
@@ -1335,7 +1339,7 @@ static void calculateLayoutImpl(
 
     // Clean and update all display: contents nodes with a direct path to the
     // current node as they will not be traversed
-    cleanupContentsNodesRecursively(node);
+    cleanupContentsNodesRecursively(node, performLayout);
     return;
   }
 
@@ -1353,7 +1357,7 @@ static void calculateLayoutImpl(
           ownerHeight)) {
     // Clean and update all display: contents nodes with a direct path to the
     // current node as they will not be traversed
-    cleanupContentsNodesRecursively(node);
+    cleanupContentsNodesRecursively(node, /* didPerformLayout */ false);
     return;
   }
 
@@ -1365,7 +1369,7 @@ static void calculateLayoutImpl(
 
   // Clean and update all display: contents nodes with a direct path to the
   // current node as they will not be traversed
-  cleanupContentsNodesRecursively(node);
+  cleanupContentsNodesRecursively(node, performLayout);
 
   // STEP 1: CALCULATE VALUES FOR REMAINDER OF ALGORITHM
   const FlexDirection mainAxis =
diff --git a/packages/react-native/ReactCommon/yoga/yoga/algorithm/CalculateLayout.h b/packages/react-native/ReactCommon/yoga/yoga/algorithm/CalculateLayout.h
index 5e6884ec1a49..d7c5752d8cc4 100644
--- a/packages/react-native/ReactCommon/yoga/yoga/algorithm/CalculateLayout.h
+++ b/packages/react-native/ReactCommon/yoga/yoga/algorithm/CalculateLayout.h
@@ -35,4 +35,6 @@ bool calculateLayoutInternal(
     uint32_t depth,
     uint32_t generationCount);
 
+void cleanupContentsNodesRecursively(yoga::Node* node, bool didPerformLayout);
+
 } // namespace facebook::yoga
diff --git a/packages/react-native/ReactCommon/yoga/yoga/node/Node.cpp b/packages/react-native/ReactCommon/yoga/yoga/node/Node.cpp
index d42bd5f9e707..d04127733d3f 100644
--- a/packages/react-native/ReactCommon/yoga/yoga/node/Node.cpp
+++ b/packages/react-native/ReactCommon/yoga/yoga/node/Node.cpp
@@ -392,7 +392,12 @@ void Node::cloneChildrenIfNeeded() {
       child = resolveRef(config_->cloneNode(child, this, i));
       child->setOwner(this);
 
-      if (child->hasContentsChildren()) [[unlikely]] {
+      if (child->style().display() == Display::Contents) [[unlikely]] {
+        // The contents node's children are treated as children of the
+        // contents node's parent for layout purposes, so they need
+        // to be cloned as well.
+        child->cloneChildrenIfNeeded();
+      } else if (child->hasContentsChildren()) [[unlikely]] {
         child->cloneContentsChildrenIfNeeded();
       }
     }