diff --git a/packages/scenes/src/variables/adhoc/AdHocFiltersCombobox/AdHocFiltersComboboxRenderer.tsx b/packages/scenes/src/variables/adhoc/AdHocFiltersCombobox/AdHocFiltersComboboxRenderer.tsx
index 66ecaab00..0462a03b8 100644
--- a/packages/scenes/src/variables/adhoc/AdHocFiltersCombobox/AdHocFiltersComboboxRenderer.tsx
+++ b/packages/scenes/src/variables/adhoc/AdHocFiltersCombobox/AdHocFiltersComboboxRenderer.tsx
@@ -1,11 +1,12 @@
 import { css, cx } from '@emotion/css';
 import { GrafanaTheme2 } from '@grafana/data';
 import { Icon, Tooltip, useStyles2 } from '@grafana/ui';
-import React, { Fragment, memo, useEffect, useRef, useState } from 'react';
+import React, { Fragment, memo, useCallback, useLayoutEffect, useMemo, useRef, useState } from 'react';
 import { AdHocFiltersVariable } from '../AdHocFiltersVariable';
 import { AdHocFilterPill } from './AdHocFilterPill';
 import { AdHocFiltersAlwaysWipCombobox } from './AdHocFiltersAlwaysWipCombobox';
 import { debounce } from 'lodash';
+import { calculateCollapseThreshold } from './utils';
 
 interface Props {
   model: AdHocFiltersVariable;
@@ -14,37 +15,42 @@ interface Props {
 export const AdHocFiltersComboboxRenderer = memo(function AdHocFiltersComboboxRenderer({ model }: Props) {
   const { filters, readOnly } = model.useState();
   const styles = useStyles2(getStyles);
-  const [limitFiltersTo, setLimitFiltersTo] = useState<number | null>(null);
   const wrapperRef = useRef<HTMLDivElement>(null);
 
-  const handleCollapseFilters = (shouldCollapse: boolean) => {
-    if (!shouldCollapse) {
-      setLimitFiltersTo(null);
-      return;
-    }
-    if (wrapperRef.current) {
-      const rect = wrapperRef.current.getBoundingClientRect();
-      if (rect.height - 6 > 26) {
-        const componentLineSpan = (rect.height - 6) / 26;
-        const filterCutOff = Math.max(1, Math.floor(filters.length / (componentLineSpan + 1)));
-        setLimitFiltersTo(filterCutOff);
-      } else {
-        setLimitFiltersTo(null);
-      }
-    }
-  };
+  // ref that focuses on the always wip filter input
+  // defined in the combobox component via useImperativeHandle
+  const focusOnWipInputRef = useRef<() => void>();
+
+  const [collapseThreshold, setCollapseThreshold] = useState<number | null>(null);
+
+  const updateCollapseThreshold = useCallback(
+    (shouldCollapse: boolean, filtersLength: number) => {
+      const filterCollapseThreshold = calculateCollapseThreshold(
+        !readOnly ? shouldCollapse : false,
+        filtersLength,
+        wrapperRef
+      );
+      setCollapseThreshold(filterCollapseThreshold);
+    },
+    [readOnly]
+  );
+
+  const debouncedSetActive = useMemo(() => debounce(updateCollapseThreshold, 100), [updateCollapseThreshold]);
 
-  const debouncedSetActive = debounce(handleCollapseFilters, 100);
+  const handleFilterCollapse = useCallback(
+    (shouldCollapse: boolean, filtersLength: number) => () => {
+      debouncedSetActive(shouldCollapse, filtersLength);
+    },
+    [debouncedSetActive]
+  );
 
-  useEffect(() => {
-    handleCollapseFilters(true);
+  useLayoutEffect(() => {
+    // updateCollapseThreshold(!!model.state.collapseFilters ? true : false, filters.length);
+    updateCollapseThreshold(true, filters.length);
+    // needs to run only on first render
     // eslint-disable-next-line react-hooks/exhaustive-deps
   }, []);
 
-  // ref that focuses on the always wip filter input
-  // defined in the combobox component via useImperativeHandle
-  const focusOnWipInputRef = useRef<() => void>();
-
   return (
     <div
       className={cx(styles.comboboxWrapper, { [styles.comboboxFocusOutline]: !readOnly })}
@@ -52,16 +58,13 @@ export const AdHocFiltersComboboxRenderer = memo(function AdHocFiltersComboboxRe
         focusOnWipInputRef.current?.();
       }}
       ref={wrapperRef}
-      onFocusCapture={(e) => {
-        debouncedSetActive(false);
-      }}
-      onBlurCapture={(e) => {
-        debouncedSetActive(true);
-      }}
+      onFocusCapture={handleFilterCollapse(false, filters.length)}
+      // onBlurCapture={handleFilterCollapse(!!model.state.collapseFilters ? true : false, filters.length}
+      onBlurCapture={handleFilterCollapse(true, filters.length)}
     >
       <Icon name="filter" className={styles.filterIcon} size="lg" />
 
-      {(limitFiltersTo ? filters.slice(0, limitFiltersTo) : filters).map((filter, index) => (
+      {(collapseThreshold ? filters.slice(0, collapseThreshold) : filters).map((filter, index) => (
         <AdHocFilterPill
           key={`${index}-${filter.key}`}
           filter={filter}
@@ -71,14 +74,12 @@ export const AdHocFiltersComboboxRenderer = memo(function AdHocFiltersComboboxRe
         />
       ))}
 
-      {limitFiltersTo ? (
+      {collapseThreshold ? (
         <Tooltip
           content={
             <div>
-              {filters.slice(limitFiltersTo).map((filter, i) => {
+              {filters.slice(collapseThreshold).map((filter, i) => {
                 const keyLabel = filter.keyLabel ?? filter.key;
-                // TODO remove when we're on the latest version of @grafana/data
-                //@ts-expect-error
                 const valueLabel = filter.valueLabels?.join(', ') || filter.values?.join(', ') || filter.value;
                 return (
                   <Fragment key={`${keyLabel}-${i}`}>
@@ -89,7 +90,7 @@ export const AdHocFiltersComboboxRenderer = memo(function AdHocFiltersComboboxRe
             </div>
           }
         >
-          <div className={cx(styles.basePill)}>+{filters.length - limitFiltersTo} filters </div>
+          <div className={cx(styles.basePill)}>+{filters.length - collapseThreshold} filters </div>
         </Tooltip>
       ) : null}
 
diff --git a/packages/scenes/src/variables/adhoc/AdHocFiltersCombobox/utils.ts b/packages/scenes/src/variables/adhoc/AdHocFiltersCombobox/utils.ts
index 78f0078d9..8f2f65e19 100644
--- a/packages/scenes/src/variables/adhoc/AdHocFiltersCombobox/utils.ts
+++ b/packages/scenes/src/variables/adhoc/AdHocFiltersCombobox/utils.ts
@@ -211,3 +211,24 @@ export const populateInputValueOnInputTypeSwitch = ({
     setInputValue('');
   }
 };
+
+export const calculateCollapseThreshold = (
+  shouldCollapse: boolean,
+  filtersLength: number,
+  wrapperRef: React.RefObject<HTMLDivElement>
+) => {
+  if (!shouldCollapse || !wrapperRef.current) {
+    return null;
+  }
+
+  const rect = wrapperRef.current.getBoundingClientRect();
+
+  if (rect.height - 6 > 26) {
+    const componentLineSpan = (rect.height - 6) / 26;
+    const filterCutOff = Math.max(1, Math.floor(filtersLength / (componentLineSpan + 1)));
+
+    return filterCutOff;
+  }
+
+  return null;
+};
diff --git a/packages/scenes/src/variables/adhoc/AdHocFiltersVariable.tsx b/packages/scenes/src/variables/adhoc/AdHocFiltersVariable.tsx
index 2c4249c9d..a079ae476 100644
--- a/packages/scenes/src/variables/adhoc/AdHocFiltersVariable.tsx
+++ b/packages/scenes/src/variables/adhoc/AdHocFiltersVariable.tsx
@@ -103,6 +103,11 @@ export interface AdHocFiltersVariableState extends SceneVariableState {
    * @internal state of the new filter being added
    */
   _wip?: AdHocFilterWithLabels;
+
+  /**
+   * Flag that will collapse combobox filters when they become too long
+   */
+  collapseFilters?: boolean;
 }
 
 export type AdHocVariableExpressionBuilderFn = (filters: AdHocFilterWithLabels[]) => string;