diff --git a/app/models/ledger/item.rb b/app/models/ledger/item.rb
index fc0cdc794c..ec2d98f494 100644
--- a/app/models/ledger/item.rb
+++ b/app/models/ledger/item.rb
@@ -29,6 +29,7 @@
 #  index_ledger_items_on_author_id        (author_id)
 #  index_ledger_items_on_datetime         (datetime)
 #  index_ledger_items_on_linked_object    (linked_object_type,linked_object_id)
+#  index_ledger_items_on_memo_tsvector    (to_tsvector('simple'::regconfig, COALESCE(memo, ''::text))) USING gin
 #  index_ledger_items_on_receipt_missing  (id) WHERE (receipt_required AND (marked_no_or_lost_receipt_at IS NULL) AND (receipt_count = 0))
 #  index_ledger_items_on_short_code       (short_code) UNIQUE
 #  index_ledger_items_on_status           (status)
diff --git a/app/models/ledger/query.rb b/app/models/ledger/query.rb
index 57d408abcd..fb6ce4fa6d 100644
--- a/app/models/ledger/query.rb
+++ b/app/models/ledger/query.rb
@@ -45,15 +45,21 @@ def initialize(query_hash)
     # dynamically-empty set (e.g. an event with no card grants) can never leak
     # another organization's items.
     def execute(ledgers: [], all_ledgers: false)
-      results = apply_query(relation: Ledger::Item.all, query: @query_hash)
-
       # Strict boolean: only a literal true opts out of scoping, so a caller that
       # accidentally passes a truthy value (e.g. the string "false") fails closed.
-      unless all_ledgers == true
+      # Stashed on the instance (rather than threaded through every apply_*
+      # method) so apply_partial_predicate's $search branch can scope its own
+      # subquery to the same ledgers instead of searching every ledger's items.
+      @ledger_scope_ids = ledgers
+      @ledger_scope_all = (all_ledgers == true)
+
+      results = apply_query(relation: Ledger::Item.all, query: @query_hash)
+
+      unless @ledger_scope_all
         # Scope via a subquery rather than joins(...).distinct: DISTINCT breaks
         # under Postgres when combined with our ORDER BY and a narrowed select
         # list (e.g. pluck) — ORDER BY expressions must appear in the select list.
-        results = results.where(id: Ledger::Mapping.where(ledger_id: ledgers).select(:ledger_item_id))
+        results = results.where(id: Ledger::Mapping.where(ledger_id: @ledger_scope_ids).select(:ledger_item_id))
       end
 
       # Pending items sort first regardless of datetime. A CASE (rather than
@@ -256,7 +262,12 @@ def apply_partial_predicate(relation, operator, raw_key, operand)
         # full-text search, supported only on the memo column.
         raise Ledger::Query::Error.new("$search is only supported on the memo field") unless key == "memo"
 
-        relation.where(id: Ledger::Item.search_memo(operand).select(:id))
+        matches = Ledger::Item.search_memo(operand)
+        # Scope the search itself to the same ledgers as the overall query,
+        # rather than full-text searching every ledger's items — mirrors the
+        # scoping applied to `results` in execute().
+        matches = matches.where(id: Ledger::Mapping.where(ledger_id: @ledger_scope_ids).select(:ledger_item_id)) unless @ledger_scope_all
+        relation.where(id: matches.select(:id))
       else
         raise Ledger::Query::Error.new("Unsupported comparison operator: #{operator}")
       end
diff --git a/db/migrate/20260718010000_add_gin_index_for_ledger_item_memo_search.rb b/db/migrate/20260718010000_add_gin_index_for_ledger_item_memo_search.rb
new file mode 100644
index 0000000000..5471d34c92
--- /dev/null
+++ b/db/migrate/20260718010000_add_gin_index_for_ledger_item_memo_search.rb
@@ -0,0 +1,15 @@
+# frozen_string_literal: true
+
+class AddGinIndexForLedgerItemMemoSearch < ActiveRecord::Migration[8.0]
+  disable_ddl_transaction!
+
+  def change
+    # Expression must match exactly what Ledger::Item's pg_search_scope(:search_memo)
+    # generates (dictionary "simple") for Postgres to use this index for that search.
+    add_index :ledger_items, "to_tsvector('simple', coalesce(memo, ''))",
+              using: :gin,
+              name: "index_ledger_items_on_memo_tsvector",
+              algorithm: :concurrently
+  end
+
+end
diff --git a/db/schema.rb b/db/schema.rb
index 72d9ac95f5..11581d8ebf 100644
--- a/db/schema.rb
+++ b/db/schema.rb
@@ -12,7 +12,7 @@
 #
 # It's strongly recommended that you check this file into your version control system.
 
-ActiveRecord::Schema[8.0].define(version: 2026_07_16_120000) do
+ActiveRecord::Schema[8.0].define(version: 2026_07_18_010000) do
   create_schema "google_sheets"
 
   # These are extensions that must be enabled in order to support this database
@@ -1618,6 +1618,7 @@
     t.string "status"
     t.text "system_memo"
     t.datetime "updated_at", null: false
+    t.index "to_tsvector('simple'::regconfig, COALESCE(memo, ''::text))", name: "index_ledger_items_on_memo_tsvector", using: :gin
     t.index ["amount_cents"], name: "index_ledger_items_on_amount_cents"
     t.index ["author_id"], name: "index_ledger_items_on_author_id"
     t.index ["datetime"], name: "index_ledger_items_on_datetime"
diff --git a/spec/models/ledger/query_spec.rb b/spec/models/ledger/query_spec.rb
index 9b00885518..166213edc6 100644
--- a/spec/models/ledger/query_spec.rb
+++ b/spec/models/ledger/query_spec.rb
@@ -395,6 +395,19 @@ def ids_of(*items)
     end
   end
 
+  describe "$search" do
+    it "matches items by memo full-text search" do
+      result = execute_query({ memo: { "$search" => "alpha" } })
+
+      expect(result.pluck(:id)).to match_array(ids_of(item_b, item_c))
+    end
+
+    it "raises when $search is used on a field other than memo" do
+      query = { amount_cents: { "$search" => "100" } }
+      expect { described_class.new(query).execute }.to raise_error(Ledger::Query::Error, /\$search is only supported on the memo field/)
+    end
+  end
+
   describe "error handling" do
     it "raises on unsupported logical operator" do
       query = { "$xor" => [{ amount_cents: 100 }] }
@@ -509,6 +522,34 @@ def create_other_ledger_item(**attrs)
       expect(result.to_sql).to match(/ledger_mappings/)
       expect(result.pluck(:id)).to be_empty
     end
+
+    it "only returns matches from the requested ledger when combined with $search" do
+      other_payment_item = create_other_ledger_item(amount_cents: 400, memo: "other payment")
+
+      result = execute_query({ memo: { "$search" => "payment" } })
+
+      expect(result.pluck(:id)).to match_array(ids_of(item_b, item_e, item_f, item_g))
+      expect(result.pluck(:id)).not_to include(other_payment_item.id)
+    end
+
+    it "includes $search matches from every requested ledger when multiple are given" do
+      other_payment_item = create_other_ledger_item(amount_cents: 400, memo: "other payment")
+
+      result = described_class.new({ memo: { "$search" => "payment" } }).execute(ledgers: [test_ledger.id, other_ledger.id])
+
+      expect(result.pluck(:id)).to match_array(ids_of(item_b, item_e, item_f, item_g, other_payment_item))
+    end
+
+    it "scopes the $search subquery itself to the requested ledgers, not just the final result" do
+      # The $search subquery is a separate query.rb code path from every other
+      # predicate (it wraps pg_search's own scope rather than a plain `where`),
+      # so it needs its own assertion that the ledger scope reaches it: a
+      # `FROM "ledger_mappings"` subquery for the search itself, plus one for
+      # the outer result set — not just the outer one alone.
+      result = execute_query({ memo: { "$search" => "payment" } })
+
+      expect(result.to_sql.scan(/FROM "ledger_mappings"/).count).to eq(2)
+    end
   end
 
   describe "complex queries" do