diff --git a/src/InputHandler.test.ts b/src/InputHandler.test.ts
index ca63bdae..d8defa1c 100644
--- a/src/InputHandler.test.ts
+++ b/src/InputHandler.test.ts
@@ -1248,4 +1248,22 @@ describe('InputHandler', () => {
       assert.deepEqual(getLines(term, term.rows + 1), ['12345', '125', '125', '125', '125', '125']);
     });
   });
+  it('should parse big chunks in smaller subchunks', () => {
+    // max single chunk size is hardcoded as 131072
+    const calls: any[] = [];
+    const term = new TestTerminal({cols: 10, rows: 10});
+    (term as any)._inputHandler._parser.parse = (data: Uint32Array, length: number) => {
+      calls.push([data.length, length]);
+    };
+    term.writeSync('12345');
+    term.writeSync('a'.repeat(10000));
+    term.writeSync('a'.repeat(200000));
+    term.writeSync('a'.repeat(300000));
+    assert.deepEqual(calls, [
+      [4096, 5],
+      [10000, 10000],
+      [131072, 131072], [131072, 200000 - 131072],
+      [131072, 131072], [131072, 131072], [131072, 300000 - 131072 - 131072]
+    ]);
+  });
 });
diff --git a/src/InputHandler.ts b/src/InputHandler.ts
index 21ad8ea0..f0f8d147 100644
--- a/src/InputHandler.ts
+++ b/src/InputHandler.ts
@@ -28,6 +28,11 @@ import { DcsHandler } from 'common/parser/DcsParser';
  */
 const GLEVEL: {[key: string]: number} = {'(': 0, ')': 1, '*': 2, '+': 3, '-': 1, '.': 2};
 
+/**
+ * Max length of the UTF32 input buffer. Real memory consumption is 4 times higher.
+ */
+const MAX_PARSEBUFFER_LENGTH = 131072;
+
 
 /**
  * DCS subparser implementations
@@ -335,14 +340,28 @@ export class InputHandler extends Disposable implements IInputHandler {
 
     this._logService.debug('parsing data', data);
 
+    // resize input buffer if needed
     if (this._parseBuffer.length < data.length) {
-      this._parseBuffer = new Uint32Array(data.length);
+      if (this._parseBuffer.length < MAX_PARSEBUFFER_LENGTH) {
+        this._parseBuffer = new Uint32Array(Math.min(data.length, MAX_PARSEBUFFER_LENGTH));
+      }
     }
-    this._parser.parse(this._parseBuffer,
-      (typeof data === 'string')
+
+    // process big data in smaller chunks
+    if (data.length > MAX_PARSEBUFFER_LENGTH) {
+      for (let i = 0; i < data.length; i += MAX_PARSEBUFFER_LENGTH) {
+        const end = i + MAX_PARSEBUFFER_LENGTH < data.length ? i + MAX_PARSEBUFFER_LENGTH : data.length;
+        const len = (typeof data === 'string')
+          ? this._stringDecoder.decode(data.substring(i, end), this._parseBuffer)
+          : this._utf8Decoder.decode(data.subarray(i, end), this._parseBuffer);
+        this._parser.parse(this._parseBuffer, len);
+      }
+    } else {
+      const len = (typeof data === 'string')
         ? this._stringDecoder.decode(data, this._parseBuffer)
-        : this._utf8Decoder.decode(data, this._parseBuffer)
-    );
+        : this._utf8Decoder.decode(data, this._parseBuffer);
+      this._parser.parse(this._parseBuffer, len);
+    }
 
     buffer = this._bufferService.buffer;
     if (buffer.x !== cursorStartX || buffer.y !== cursorStartY) {