diff --git a/app/client/src/components/autoHeight/AutoHeightContainer.test.tsx b/app/client/src/components/autoHeight/AutoHeightContainer.test.tsx
new file mode 100644
index 0000000000..33098fed23
--- /dev/null
+++ b/app/client/src/components/autoHeight/AutoHeightContainer.test.tsx
@@ -0,0 +1,72 @@
+import React from "react";
+import "@testing-library/jest-dom";
+import { render } from "@testing-library/react";
+import AutoHeightContainer from "./AutoHeightContainer";
+import "jest-styled-components";
+import renderer from "react-test-renderer";
+
+describe("<AutoHeightContainer />", () => {
+  it("should wrap the children in a div whose height is auto.", async () => {
+    const tree = renderer
+      .create(
+        <AutoHeightContainer
+          maxDynamicHeight={0}
+          minDynamicHeight={0}
+          isAutoHeightWithLimits={false}
+          onHeightUpdate={() => {}}
+        >
+          <div data-testid="test" />
+        </AutoHeightContainer>,
+      )
+      .toJSON();
+    expect(tree).toHaveStyleRule("height", "auto");
+  });
+
+  describe("when isAutoHeightWithLimits is false", () => {
+    it("should wrap the children in a simple div with class auto-height-container", async () => {
+      const getTestComponent = () => (
+        <AutoHeightContainer
+          maxDynamicHeight={0}
+          minDynamicHeight={0}
+          isAutoHeightWithLimits={false}
+          onHeightUpdate={() => {}}
+        >
+          <div data-testid="test" />
+        </AutoHeightContainer>
+      );
+      const component = getTestComponent();
+      const renderResult = render(component);
+      const child = await renderResult.findByTestId("test");
+      expect(
+        child.parentElement?.classList.contains("auto-height-container"),
+      ).toBe(true);
+    });
+  });
+
+  describe("when isAutoHeightWithLimits is true", () => {
+    it("should wrap the children in a div of class auto-height-container and then a div with class auto-height-scroll-container", async () => {
+      const getTestComponent = () => (
+        <AutoHeightContainer
+          maxDynamicHeight={0}
+          minDynamicHeight={0}
+          isAutoHeightWithLimits={true}
+          onHeightUpdate={() => {}}
+        >
+          <div data-testid="test" />
+        </AutoHeightContainer>
+      );
+      const component = getTestComponent();
+      const renderResult = render(component);
+      const child = await renderResult.findByTestId("test");
+      expect(child.parentElement?.tagName).toBe("DIV");
+      expect(
+        child.parentElement?.classList.contains("auto-height-container"),
+      ).toBe(true);
+      expect(
+        child.parentElement?.parentElement?.classList.contains(
+          "auto-height-scroll-container",
+        ),
+      ).toBe(true);
+    });
+  });
+});
diff --git a/app/client/src/components/autoHeight/AutoHeightContainer.tsx b/app/client/src/components/autoHeight/AutoHeightContainer.tsx
new file mode 100644
index 0000000000..30b91d1af5
--- /dev/null
+++ b/app/client/src/components/autoHeight/AutoHeightContainer.tsx
@@ -0,0 +1,78 @@
+import React, { PropsWithChildren, useRef, useEffect, useState } from "react";
+import { GridDefaults } from "constants/WidgetConstants";
+import styled from "styled-components";
+
+const StyledAutoHeightContainer = styled.div<{ isOverflow?: boolean }>`
+  overflow-y: ${(props) => (props.isOverflow ? "auto" : "unset")};
+  overflow-x: ${(props) => (props.isOverflow ? "hidden" : "unset")};
+`;
+
+interface AutoHeightContainerProps {
+  maxDynamicHeight: number;
+  minDynamicHeight: number;
+  isAutoHeightWithLimits: boolean;
+  onHeightUpdate: (height: number) => void;
+}
+
+const SimpleContainer = styled.div`
+  height: auto;
+`;
+
+export default function AutoHeightContainer({
+  children,
+  isAutoHeightWithLimits,
+  maxDynamicHeight,
+  minDynamicHeight,
+  onHeightUpdate,
+}: PropsWithChildren<AutoHeightContainerProps>) {
+  const [expectedHeight, setExpectedHeight] = useState(0);
+
+  const ref = useRef<HTMLDivElement>(null);
+
+  const observer = useRef(
+    new ResizeObserver((entries) => {
+      const height = entries[0].contentRect.height;
+      setExpectedHeight(height);
+      onHeightUpdate(height);
+    }),
+  );
+
+  useEffect(() => {
+    if (ref.current) {
+      observer.current.observe(ref.current);
+    }
+
+    return () => {
+      if (ref.current) {
+        observer.current.unobserve(ref.current);
+      }
+    };
+  }, []);
+
+  useEffect(() => {
+    onHeightUpdate(expectedHeight);
+  }, [minDynamicHeight, maxDynamicHeight]);
+
+  if (isAutoHeightWithLimits) {
+    const expectedHeightInRows = Math.ceil(
+      expectedHeight / GridDefaults.DEFAULT_GRID_ROW_HEIGHT,
+    );
+
+    return (
+      <StyledAutoHeightContainer
+        className="auto-height-scroll-container"
+        isOverflow={maxDynamicHeight < expectedHeightInRows}
+      >
+        <SimpleContainer className="auto-height-container" ref={ref}>
+          {children}
+        </SimpleContainer>
+      </StyledAutoHeightContainer>
+    );
+  }
+
+  return (
+    <SimpleContainer className="auto-height-container" ref={ref}>
+      {children}
+    </SimpleContainer>
+  );
+}