diff --git a/src/vs/editor/browser/gpu/objectCollectionBuffer.ts b/src/vs/editor/browser/gpu/objectCollectionBuffer.ts
index 5f3119ecaa48c..a61fe8c09de78 100644
--- a/src/vs/editor/browser/gpu/objectCollectionBuffer.ts
+++ b/src/vs/editor/browser/gpu/objectCollectionBuffer.ts
@@ -48,6 +48,11 @@ export interface IObjectCollectionBuffer<T extends ObjectCollectionBufferPropert
 	 */
 	readonly onDidChange: Event<void>;
 
+	/**
+	 * Fires when the buffer is recreated.
+	 */
+	readonly onDidChangeBuffer: Event<void>;
+
 	/**
 	 * Creates an entry in the collection. This will return a managed object that can be modified
 	 * which will update the underlying buffer.
@@ -96,6 +101,8 @@ class ObjectCollectionBuffer<T extends ObjectCollectionBufferPropertySpec[]> ext
 
 	private readonly _onDidChange = this._register(new Emitter<void>());
 	readonly onDidChange = this._onDidChange.event;
+	private readonly _onDidChangeBuffer = this._register(new Emitter<void>());
+	readonly onDidChangeBuffer = this._onDidChangeBuffer.event;
 
 	constructor(
 		public propertySpecs: T,
@@ -118,7 +125,8 @@ class ObjectCollectionBuffer<T extends ObjectCollectionBufferPropertySpec[]> ext
 
 	createEntry(data: ObjectCollectionPropertyValues<T>): IObjectCollectionBufferEntry<T> {
 		if (this._entries.size === this.capacity) {
-			throw new Error(`Cannot create more entries ObjectCollectionBuffer entries (capacity=${this.capacity})`);
+			this._expandBuffer();
+			this._onDidChangeBuffer.fire();
 		}
 
 		const value = new ObjectCollectionBufferEntry(this.view, this._propertySpecsMap, this._dirtyTracker, this._entries.size, data);
@@ -143,6 +151,14 @@ class ObjectCollectionBuffer<T extends ObjectCollectionBufferPropertySpec[]> ext
 		}));
 		return value;
 	}
+
+	private _expandBuffer() {
+		this.capacity *= 2;
+		const newView = new Float32Array(this.capacity * this._entrySize);
+		newView.set(this.view);
+		this.view = newView;
+		this.buffer = this.view.buffer;
+	}
 }
 
 class ObjectCollectionBufferEntry<T extends ObjectCollectionBufferPropertySpec[]> extends Disposable implements IObjectCollectionBufferEntry<T> {
diff --git a/src/vs/editor/browser/gpu/rectangleRenderer.ts b/src/vs/editor/browser/gpu/rectangleRenderer.ts
index 421cd90252428..0859281f48b31 100644
--- a/src/vs/editor/browser/gpu/rectangleRenderer.ts
+++ b/src/vs/editor/browser/gpu/rectangleRenderer.ts
@@ -4,6 +4,8 @@
  *--------------------------------------------------------------------------------------------*/
 
 import { getActiveWindow } from '../../../base/browser/dom.js';
+import { Event } from '../../../base/common/event.js';
+import { IReference, MutableDisposable } from '../../../base/common/lifecycle.js';
 import { EditorOption } from '../../common/config/editorOptions.js';
 import { ViewEventHandler } from '../../common/viewEventHandler.js';
 import type { ViewScrollChangedEvent } from '../../common/viewEvents.js';
@@ -34,7 +36,7 @@ export class RectangleRenderer extends ViewEventHandler {
 	private _pipeline!: GPURenderPipeline;
 
 	private _vertexBuffer!: GPUBuffer;
-	private _shapeBindBuffer!: GPUBuffer;
+	private readonly _shapeBindBuffer: MutableDisposable<IReference<GPUBuffer>> = this._register(new MutableDisposable());
 
 	private _scrollOffsetBindBuffer!: GPUBuffer;
 	private _scrollOffsetValueBuffer!: Float32Array;
@@ -141,11 +143,20 @@ export class RectangleRenderer extends ViewEventHandler {
 
 		// #region Storage buffers
 
-		this._shapeBindBuffer = this._register(GPULifecycle.createBuffer(this._device, {
-			label: 'Monaco rectangle renderer shape buffer',
-			size: this._shapeCollection.buffer.byteLength,
-			usage: GPUBufferUsage.STORAGE | GPUBufferUsage.COPY_DST,
-		})).object;
+		const createShapeBindBuffer = () => {
+			return GPULifecycle.createBuffer(this._device, {
+				label: 'Monaco rectangle renderer shape buffer',
+				size: this._shapeCollection.buffer.byteLength,
+				usage: GPUBufferUsage.STORAGE | GPUBufferUsage.COPY_DST,
+			});
+		};
+		this._shapeBindBuffer.value = createShapeBindBuffer();
+		this._register(Event.runAndSubscribe(this._shapeCollection.onDidChangeBuffer, () => {
+			this._shapeBindBuffer.value = createShapeBindBuffer();
+			if (this._pipeline) {
+				this._updateBindGroup(this._pipeline, layoutInfoUniformBuffer);
+			}
+		}));
 
 		// #endregion Storage buffers
 
@@ -208,23 +219,26 @@ export class RectangleRenderer extends ViewEventHandler {
 
 		// #region Bind group
 
+		this._updateBindGroup(this._pipeline, layoutInfoUniformBuffer);
+
+		// endregion Bind group
+
+		this._initialized = true;
+	}
+
+	private _updateBindGroup(pipeline: GPURenderPipeline, layoutInfoUniformBuffer: GPUBuffer) {
 		this._bindGroup = this._device.createBindGroup({
 			label: 'Monaco rectangle renderer bind group',
-			layout: this._pipeline.getBindGroupLayout(0),
+			layout: pipeline.getBindGroupLayout(0),
 			entries: [
-				{ binding: RectangleRendererBindingId.Shapes, resource: { buffer: this._shapeBindBuffer } },
+				{ binding: RectangleRendererBindingId.Shapes, resource: { buffer: this._shapeBindBuffer.value!.object } },
 				{ binding: RectangleRendererBindingId.LayoutInfoUniform, resource: { buffer: layoutInfoUniformBuffer } },
 				{ binding: RectangleRendererBindingId.ScrollOffset, resource: { buffer: this._scrollOffsetBindBuffer } },
 			],
 		});
-
-		// endregion Bind group
-
-		this._initialized = true;
 	}
 
 	register(x: number, y: number, width: number, height: number, red: number, green: number, blue: number, alpha: number): IObjectCollectionBufferEntry<RectangleRendererEntrySpec> {
-		// TODO: Expand buffer if needed
 		return this._shapeCollection.createEntry({ x, y, width, height, red, green, blue, alpha });
 	}
 
@@ -240,7 +254,7 @@ export class RectangleRenderer extends ViewEventHandler {
 	private _update() {
 		const shapes = this._shapeCollection;
 		if (shapes.dirtyTracker.isDirty) {
-			this._device.queue.writeBuffer(this._shapeBindBuffer, 0, shapes.buffer, shapes.dirtyTracker.dataOffset, shapes.dirtyTracker.dirtySize! * shapes.view.BYTES_PER_ELEMENT);
+			this._device.queue.writeBuffer(this._shapeBindBuffer.value!.object, 0, shapes.buffer, shapes.dirtyTracker.dataOffset, shapes.dirtyTracker.dirtySize! * shapes.view.BYTES_PER_ELEMENT);
 			shapes.dirtyTracker.clear();
 		}
 
diff --git a/src/vs/editor/test/browser/view/gpu/objectCollectionBuffer.test.ts b/src/vs/editor/test/browser/view/gpu/objectCollectionBuffer.test.ts
index dc8c5b8de7bf0..ae8c0670d2b8b 100644
--- a/src/vs/editor/test/browser/view/gpu/objectCollectionBuffer.test.ts
+++ b/src/vs/editor/test/browser/view/gpu/objectCollectionBuffer.test.ts
@@ -3,7 +3,7 @@
  *  Licensed under the MIT License. See License.txt in the project root for license information.
  *--------------------------------------------------------------------------------------------*/
 
-import { deepStrictEqual, strictEqual, throws } from 'assert';
+import { deepStrictEqual, strictEqual } from 'assert';
 import { ensureNoDisposablesAreLeakedInTestSuite } from '../../../../../base/test/common/utils.js';
 import { createObjectCollectionBuffer, type IObjectCollectionBuffer } from '../../../../browser/gpu/objectCollectionBuffer.js';
 
@@ -35,7 +35,11 @@ suite('ObjectCollectionBuffer', () => {
 			{ name: 'b' },
 		] as const, 1));
 		store.add(buffer.createEntry({ a: 1, b: 2 }));
-		throws(() => buffer.createEntry({ a: 3, b: 4 }));
+		strictEqual(buffer.entryCount, 1);
+		strictEqual(buffer.buffer.byteLength, 8);
+		buffer.createEntry({ a: 3, b: 4 });
+		strictEqual(buffer.entryCount, 2);
+		strictEqual(buffer.buffer.byteLength, 16);
 	});
 
 	test('dispose entry', () => {