diff --git a/assets/js/hooks/virtualized_lines.js b/assets/js/hooks/virtualized_lines.js
index 7b88c1f4ddf..b8b0ca33194 100644
--- a/assets/js/hooks/virtualized_lines.js
+++ b/assets/js/hooks/virtualized_lines.js
@@ -2,6 +2,7 @@ import HyperList from "hyperlist";
 import { parseHookProps } from "../lib/attribute";
 import {
   findChildOrThrow,
+  findClosestOrThrow,
   getLineHeight,
   isScrolledToEnd,
   scrollToEnd,
@@ -16,6 +17,10 @@ import {
  *   * `max-height` - the maximum height of the element, exceeding
  *     this height enables scrolling
  *
+ *   * `max-height-amplified` - the maximum height of the element
+ *      when "Amplify Output" is selected in the UI, exceeding this
+ *      height enables scrolling when selected
+ *
  *   * `follow` - whether to automatically scroll to the bottom as
  *     new lines appear
  *
@@ -40,6 +45,9 @@ const VirtualizedLines = {
     this.lineHeight = getLineHeight(this.el);
     this.templateEl = findChildOrThrow(this.el, "[data-template]");
     this.contentEl = findChildOrThrow(this.el, "[data-content]");
+    this.cellEl = findClosestOrThrow(this.el, "[data-el-cell]");
+    this.amplifyOutput = this.isAmplifyOutput();
+    this.amplifyObserver = this.newAmplifyObserver();
 
     this.capLines();
 
@@ -67,9 +75,14 @@ const VirtualizedLines = {
     }
   },
 
+  destroyed() {
+    this.amplifyObserver.disconnect();
+  },
+
   getProps() {
     return parseHookProps(this.el, [
       "max-height",
+      "max-height-amplified",
       "follow",
       "max-lines",
       "ignore-trailing-empty-line",
@@ -81,7 +94,7 @@ const VirtualizedLines = {
     const numberOfLines = lineEls.length;
 
     const height = Math.min(
-      this.props.maxHeight,
+      this.amplifyOutput ? this.props.maxHeightAmplified : this.props.maxHeight,
       this.lineHeight * numberOfLines,
     );
 
@@ -139,6 +152,25 @@ const VirtualizedLines = {
       }
     }
   },
+
+  newAmplifyObserver() {
+    const observer = new MutationObserver((mutationRecords) => {
+      if (
+        mutationRecords.length != 1 ||
+          mutationRecords[0].target != this.cellEl ||
+          mutationRecords[0].attributeName != "data-js-amplified"
+      ) { throw new Error("unexpected mutation changing Amplify Output"); }
+
+      this.amplifyOutput = this.isAmplifyOutput();
+      this.updated();
+    });
+    observer.observe(this.cellEl, {attributeFilter: ["data-js-amplified"]});
+    return observer;
+  },
+
+  isAmplifyOutput() {
+    return (this.cellEl.getAttribute("data-js-amplified") != null);
+  },
 };
 
 export default VirtualizedLines;
diff --git a/assets/js/lib/utils.js b/assets/js/lib/utils.js
index e58c539899e..a196eedadae 100644
--- a/assets/js/lib/utils.js
+++ b/assets/js/lib/utils.js
@@ -241,6 +241,18 @@ export function findChildOrThrow(element, selector) {
   return child;
 }
 
+export function findClosestOrThrow(element, selector) {
+  const closest = element.closest(selector);
+
+  if (!closest) {
+    throw new Error(
+      `expected closest matching ${selector}, but none was found`,
+    );
+  }
+
+  return closest;
+}
+
 export function cancelEvent(event) {
   // Cancel any default browser behavior.
   event.preventDefault();
diff --git a/lib/livebook_web/live/output/terminal_text_component.ex b/lib/livebook_web/live/output/terminal_text_component.ex
index 3467c66403f..1c7eeadeca6 100644
--- a/lib/livebook_web/live/output/terminal_text_component.ex
+++ b/lib/livebook_web/live/output/terminal_text_component.ex
@@ -64,6 +64,7 @@ defmodule LivebookWeb.Output.TerminalTextComponent do
       class="relative group/root"
       phx-hook="VirtualizedLines"
       data-p-max-height={hook_prop(300)}
+      data-p-max-height-amplified={hook_prop(600)}
       data-p-follow={hook_prop(true)}
       data-p-max-lines={hook_prop(Livebook.Notebook.max_terminal_lines())}
       data-p-ignore-trailing-empty-line={hook_prop(true)}