diff --git a/packages/scenes/src/variables/adhoc/AdHocFiltersCombobox/AdHocFiltersComboboxRenderer.tsx b/packages/scenes/src/variables/adhoc/AdHocFiltersCombobox/AdHocFiltersComboboxRenderer.tsx
index a5ccf2a1e..5c5aa709e 100644
--- a/packages/scenes/src/variables/adhoc/AdHocFiltersCombobox/AdHocFiltersComboboxRenderer.tsx
+++ b/packages/scenes/src/variables/adhoc/AdHocFiltersCombobox/AdHocFiltersComboboxRenderer.tsx
@@ -1,10 +1,12 @@
 import { css, cx } from '@emotion/css';
 import { GrafanaTheme2 } from '@grafana/data';
-import { Icon, useStyles2 } from '@grafana/ui';
-import React, { memo, useRef } from 'react';
+import { Icon, Tooltip, useStyles2 } from '@grafana/ui';
+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;
@@ -13,21 +15,59 @@ interface Props {
 export const AdHocFiltersComboboxRenderer = memo(function AdHocFiltersComboboxRenderer({ model }: Props) {
   const { filters, readOnly } = model.useState();
   const styles = useStyles2(getStyles);
+  const wrapperRef = useRef<HTMLDivElement>(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 handleFilterCollapse = useCallback(
+    (shouldCollapse: boolean, filtersLength: number) => () => {
+      debouncedSetActive(shouldCollapse, filtersLength);
+    },
+    [debouncedSetActive]
+  );
+
+  useLayoutEffect(() => {
+    updateCollapseThreshold(!!model.state.collapseFilters ? true : false, filters.length);
+    // TODO: remove below before merging
+    // updateCollapseThreshold(true, filters.length); // for testing locally
+
+    // needs to run only on first render
+    // eslint-disable-next-line react-hooks/exhaustive-deps
+  }, []);
+
   return (
     <div
       className={cx(styles.comboboxWrapper, { [styles.comboboxFocusOutline]: !readOnly })}
       onClick={() => {
         focusOnWipInputRef.current?.();
       }}
+      ref={wrapperRef}
+      onFocusCapture={handleFilterCollapse(false, filters.length)}
+      // TODO: remove below before merging
+      // onBlurCapture={handleFilterCollapse(true, filters.length)} // for testing locally
+      onBlurCapture={handleFilterCollapse(!!model.state.collapseFilters ? true : false, filters.length)}
     >
       <Icon name="filter" className={styles.filterIcon} size="lg" />
 
-      {filters.map((filter, index) => (
+      {(collapseThreshold ? filters.slice(0, collapseThreshold) : filters).map((filter, index) => (
         <AdHocFilterPill
           key={`${index}-${filter.key}`}
           filter={filter}
@@ -37,6 +77,26 @@ export const AdHocFiltersComboboxRenderer = memo(function AdHocFiltersComboboxRe
         />
       ))}
 
+      {collapseThreshold ? (
+        <Tooltip
+          content={
+            <div>
+              {filters.slice(collapseThreshold).map((filter, i) => {
+                const keyLabel = filter.keyLabel ?? filter.key;
+                const valueLabel = filter.valueLabels?.join(', ') || filter.values?.join(', ') || filter.value;
+                return (
+                  <Fragment key={`${keyLabel}-${i}`}>
+                    {keyLabel} {filter.operator} {valueLabel} <br />
+                  </Fragment>
+                );
+              })}
+            </div>
+          }
+        >
+          <div className={cx(styles.basePill)}>+{filters.length - collapseThreshold} filters </div>
+        </Tooltip>
+      ) : null}
+
       {!readOnly ? <AdHocFiltersAlwaysWipCombobox model={model} ref={focusOnWipInputRef} /> : null}
     </div>
   );
@@ -72,4 +132,17 @@ const getStyles = (theme: GrafanaTheme2) => ({
     color: theme.colors.text.secondary,
     alignSelf: 'center',
   }),
+  basePill: css({
+    display: 'flex',
+    alignItems: 'center',
+    background: theme.colors.action.selected,
+    border: `1px solid ${theme.colors.border.weak}`,
+    padding: theme.spacing(0.125, 1, 0.125, 1),
+    color: theme.colors.text.primary,
+    overflow: 'hidden',
+    whiteSpace: 'nowrap',
+    minHeight: theme.spacing(2.75),
+    ...theme.typography.bodySmall,
+    cursor: 'pointer',
+  }),
 });
diff --git a/packages/scenes/src/variables/adhoc/AdHocFiltersCombobox/utils.ts b/packages/scenes/src/variables/adhoc/AdHocFiltersCombobox/utils.ts
index 78f0078d9..327b5bb5a 100644
--- a/packages/scenes/src/variables/adhoc/AdHocFiltersCombobox/utils.ts
+++ b/packages/scenes/src/variables/adhoc/AdHocFiltersCombobox/utils.ts
@@ -211,3 +211,28 @@ 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();
+
+  // without paddings variable wrapper height is 26px
+  //   therefore trigger only when higher than that
+  if (rect.height - 6 > 26) {
+    const componentLineSpan = (rect.height - 6) / 26;
+    // magic number but dividing filters by line span +1 should yield
+    //   number of filters that will fit in 1 line
+    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;