diff --git a/test/helpers/setup-helper.js b/test/helpers/setup-helper.js
index 7bb8345bd1eb..c9a29cebe4ab 100644
--- a/test/helpers/setup-helper.js
+++ b/test/helpers/setup-helper.js
@@ -134,7 +134,11 @@ window.localStorage = {
 };
 
 // used for native dark/light mode detection
-window.matchMedia = () => true;
+window.matchMedia = () => ({
+  // Used for NFT list virtualization
+  // eslint-disable-next-line no-empty-function
+  addEventListener: () => {},
+});
 
 // override @metamask/logo
 window.requestAnimationFrame = () => undefined;
diff --git a/ui/components/app/assets/nfts/nft-grid/nft-grid.tsx b/ui/components/app/assets/nfts/nft-grid/nft-grid.tsx
index ba8bfccb356b..1f31b0bba87a 100644
--- a/ui/components/app/assets/nfts/nft-grid/nft-grid.tsx
+++ b/ui/components/app/assets/nfts/nft-grid/nft-grid.tsx
@@ -1,6 +1,7 @@
-import React from 'react';
+import React, { useEffect, useMemo, useState } from 'react';
 import { useSelector } from 'react-redux';
 import { toHex } from '@metamask/controller-utils';
+import { useVirtualizer } from '@tanstack/react-virtual';
 import {
   AlignItems,
   Display,
@@ -18,6 +19,7 @@ import useGetAssetImageUrl from '../../../../../hooks/useGetAssetImageUrl';
 import { getImageForChainId } from '../../../../../selectors/multichain';
 import { getNetworkConfigurationsByChainId } from '../../../../../../shared/modules/selectors/networks';
 import useFetchNftDetailsFromTokenURI from '../../../../../hooks/useFetchNftDetailsFromTokenURI';
+import { useScrollContainer } from '../../../../../contexts/scroll-container';
 // TODO: Remove restricted import
 // eslint-disable-next-line import/no-restricted-paths
 import { isWebUrl } from '../../../../../../app/scripts/lib/util';
@@ -71,6 +73,9 @@ const NFTGridItem = (props: {
   );
 };
 
+// Breakpoint matches design-system $screen-md-max (768px - 1px)
+const SCREEN_MD_MAX = 767;
+
 // TODO: Fix in https://github.com/MetaMask/metamask-extension/issues/31860
 // eslint-disable-next-line @typescript-eslint/naming-convention
 export default function NftGrid({
@@ -82,30 +87,118 @@ export default function NftGrid({
   handleNftClick: (nft: NFT) => void;
   privacyMode?: boolean;
 }) {
+  const scrollContainerRef = useScrollContainer();
   const nftsStillFetchingIndication = useSelector(
     getNftIsStillFetchingIndication,
   );
 
+  // Detect screen size to match CSS Grid column count
+  // 4 columns for large screens, 3 columns for medium and below
+  const [itemsPerRow, setItemsPerRow] = useState(() =>
+    window.innerWidth > SCREEN_MD_MAX ? 4 : 3,
+  );
+
+  useEffect(() => {
+    const mediaQuery = window.matchMedia(`(max-width: ${SCREEN_MD_MAX}px)`);
+
+    const handleResize = (e: MediaQueryListEvent) => {
+      setItemsPerRow(e.matches ? 3 : 4);
+    };
+
+    mediaQuery.addEventListener('change', handleResize);
+    return () => mediaQuery.removeEventListener('change', handleResize);
+  }, []);
+
+  // Group NFTs into rows for virtualization
+  const nftRows = useMemo(() => {
+    const rows: NFT[][] = [];
+    for (let i = 0; i < nfts.length; i += itemsPerRow) {
+      rows.push(nfts.slice(i, i + itemsPerRow));
+    }
+    return rows;
+  }, [nfts, itemsPerRow]);
+
+  const virtualizer = useVirtualizer({
+    count: nftRows.length,
+    getScrollElement: () => scrollContainerRef?.current || null,
+    estimateSize: () => 200,
+    overscan: 5,
+  });
+
+  // Disable virtualization when scroll container is not available (e.g., in tests)
+  // or when there are few NFTs (no performance benefit)
+  const shouldDisableVirtualization =
+    !scrollContainerRef?.current || nfts.length <= 20;
+
   return (
     <Box style={{ margin: 16 }}>
-      <Box display={Display.Grid} gap={4} className="nft-items__wrapper">
-        {nfts.map((nft: NFT, index: number) => {
-          return (
-            <NFTGridItemErrorBoundary key={index} fallback={() => null}>
-              <Box
-                data-testid="nft-wrapper"
-                className="nft-items__image-wrapper"
+      {shouldDisableVirtualization ? (
+        <Box display={Display.Grid} gap={4} className="nft-items__wrapper">
+          {nfts.map((nft: NFT, index: number) => {
+            return (
+              <NFTGridItemErrorBoundary key={index} fallback={() => null}>
+                <Box
+                  data-testid="nft-wrapper"
+                  className="nft-items__image-wrapper"
+                >
+                  <NFTGridItem
+                    nft={nft}
+                    onClick={() => handleNftClick(nft)}
+                    privacyMode={privacyMode}
+                  />
+                </Box>
+              </NFTGridItemErrorBoundary>
+            );
+          })}
+        </Box>
+      ) : (
+        <div
+          className="relative w-full"
+          style={{
+            height: `${virtualizer.getTotalSize()}px`,
+          }}
+        >
+          {virtualizer.getVirtualItems().map((virtualRow) => {
+            const rowNfts = nftRows[virtualRow.index];
+            return (
+              <div
+                key={virtualRow.index}
+                data-index={virtualRow.index}
+                ref={virtualizer.measureElement}
+                className="absolute top-0 left-0 w-full"
+                style={{
+                  transform: `translateY(${virtualRow.start}px)`,
+                  paddingBottom: '16px',
+                }}
               >
-                <NFTGridItem
-                  nft={nft}
-                  onClick={() => handleNftClick(nft)}
-                  privacyMode={privacyMode}
-                />
-              </Box>
-            </NFTGridItemErrorBoundary>
-          );
-        })}
-      </Box>
+                <Box
+                  display={Display.Grid}
+                  gap={4}
+                  className="nft-items__wrapper"
+                >
+                  {rowNfts.map((nft, index) => (
+                    <NFTGridItemErrorBoundary
+                      key={`${virtualRow.index}-${index}`}
+                      fallback={() => null}
+                    >
+                      <Box
+                        data-testid="nft-wrapper"
+                        className="nft-items__image-wrapper"
+                      >
+                        <NFTGridItem
+                          nft={nft}
+                          onClick={() => handleNftClick(nft)}
+                          privacyMode={privacyMode}
+                        />
+                      </Box>
+                    </NFTGridItemErrorBoundary>
+                  ))}
+                </Box>
+              </div>
+            );
+          })}
+        </div>
+      )}
       {nftsStillFetchingIndication ? (
         <Box
           className="nfts-tab__fetching"