diff --git a/projects/igniteui-angular/src/lib/combo/combo-item.component.ts b/projects/igniteui-angular/src/lib/combo/combo-item.component.ts
index e90b2224734..1c9b4dd39de 100644
--- a/projects/igniteui-angular/src/lib/combo/combo-item.component.ts
+++ b/projects/igniteui-angular/src/lib/combo/combo-item.component.ts
@@ -33,7 +33,9 @@ export class IgxComboItemComponent extends IgxDropDownItemComponent {
     /** @hidden @internal */
     @HostBinding('style.height.rem')
     public get _itemHeightToRem() {
-        return rem(this.itemHeight);
+        if (this.itemHeight) {
+            return rem(this.itemHeight);
+        }
     }
 
     @HostBinding('attr.aria-label')
diff --git a/projects/igniteui-angular/src/lib/combo/combo.common.ts b/projects/igniteui-angular/src/lib/combo/combo.common.ts
index 5822be6ce78..0b602f39102 100644
--- a/projects/igniteui-angular/src/lib/combo/combo.common.ts
+++ b/projects/igniteui-angular/src/lib/combo/combo.common.ts
@@ -45,8 +45,8 @@ import { IComboItemAdditionEvent, IComboSearchInputEventArgs } from './public_ap
 import { ComboResourceStringsEN, IComboResourceStrings } from '../core/i18n/combo-resources';
 import { getCurrentResourceStrings } from '../core/i18n/resources';
 import { DOCUMENT } from '@angular/common';
-import { Size } from '../grids/common/enums';
 import { isEqual } from 'lodash-es';
+import { ToggleViewEventArgs } from '../directives/toggle/toggle.directive';
 
 export const IGX_COMBO_COMPONENT = /*@__PURE__*/new InjectionToken<IgxComboBase>('IgxComboComponentToken');
 
@@ -82,19 +82,6 @@ export interface IgxComboBase {
 
 let NEXT_ID = 0;
 
-/**
- * @hidden
- * The default number of items that should be in the combo's
- * drop-down list if no `[itemsMaxHeight]` is specified
- */
-const itemsInContainer = 10; // TODO: make private readonly
-
-/** @hidden @internal */
-const ItemHeights = {
-    "3": 40,
-    "2": 32,
-    "1": 28
-};
 
 /** @hidden @internal */
 export const enum DataTypes {
@@ -234,8 +221,8 @@ export abstract class IgxComboBaseDirective implements IgxComboBase, AfterViewCh
      */
     @Input()
     public get itemsMaxHeight(): number {
-        if (this._itemsMaxHeight === null || this._itemsMaxHeight === undefined) {
-            return this.itemHeight * itemsInContainer;
+        if (this.itemHeight && !this._itemsMaxHeight) {
+            return this.itemHeight * this.itemsInContainer;
         }
         return this._itemsMaxHeight;
     }
@@ -246,15 +233,9 @@ export abstract class IgxComboBaseDirective implements IgxComboBase, AfterViewCh
 
     /** @hidden */
     public get itemsMaxHeightInRem() {
-        return rem(this.itemsMaxHeight);
-    }
-
-    /**
-     * @hidden
-     * @internal
-     */
-    public get comboSize(): Size {
-        return this.computedStyles?.getPropertyValue('--ig-size') || Size.Large;
+        if (this.itemsMaxHeight) {
+            return rem(this.itemsMaxHeight);
+        }
     }
 
     /**
@@ -272,9 +253,6 @@ export abstract class IgxComboBaseDirective implements IgxComboBase, AfterViewCh
      */
     @Input()
     public get itemHeight(): number {
-        if (this._itemHeight === null || this._itemHeight === undefined) {
-            return ItemHeights[this.comboSize];
-        }
         return this._itemHeight;
     }
 
@@ -943,6 +921,9 @@ export abstract class IgxComboBaseDirective implements IgxComboBase, AfterViewCh
     public set filteringOptions(value: IComboFilteringOptions) {
         this._filteringOptions = value;
     }
+
+    protected containerSize = undefined;
+    protected itemSize = undefined;
     protected _data = [];
     protected _value = [];
     protected _displayValue = '';
@@ -963,12 +944,13 @@ export abstract class IgxComboBaseDirective implements IgxComboBase, AfterViewCh
     private _id: string = `igx-combo-${NEXT_ID++}`;
     private _type = null;
     private _dataType = '';
-    private _itemHeight = null;
+    private _itemHeight = undefined;
     private _itemsMaxHeight = null;
     private _overlaySettings: OverlaySettings;
     private _groupSortingDirection: SortingDirection = SortingDirection.Asc;
     private _filteringOptions: IComboFilteringOptions;
     private _defaultFilteringOptions: IComboFilteringOptions = { caseSensitive: false };
+    private itemsInContainer = 10;
 
     public abstract dropdown: IgxComboDropDownComponent;
     public abstract selectionChanging: EventEmitter<any>;
@@ -1029,6 +1011,16 @@ export abstract class IgxComboBaseDirective implements IgxComboBase, AfterViewCh
             const eventArgs: IForOfState = Object.assign({}, e, { owner: this });
             this.dataPreLoad.emit(eventArgs);
         });
+        this.dropdown?.opening.subscribe((_args: IBaseCancelableBrowserEventArgs) => {
+            // calculate the container size and item size based on the sizes from the DOM
+            const dropdownContainerHeight = this.dropdownContainer.nativeElement.getBoundingClientRect().height;
+            if (dropdownContainerHeight) {
+                this.containerSize = parseFloat(dropdownContainerHeight);
+            }
+            if (this.dropdown.children?.first) {
+                this.itemSize = this.dropdown.children.first.element.nativeElement.getBoundingClientRect().height;
+            }
+        });
     }
 
     /** @hidden @internal */
diff --git a/projects/igniteui-angular/src/lib/combo/combo.component.html b/projects/igniteui-angular/src/lib/combo/combo.component.html
index 33434403200..2b8d3fc3255 100644
--- a/projects/igniteui-angular/src/lib/combo/combo.component.html
+++ b/projects/igniteui-angular/src/lib/combo/combo.component.html
@@ -61,7 +61,7 @@
         <igx-combo-item [itemHeight]="itemHeight" *igxFor="let item of data
             | comboFiltering:filterValue:displayKey:filteringOptions:filterFunction:disableFiltering
             | comboGrouping:groupKey:valueKey:groupSortingDirection:compareCollator;
-            index as rowIndex; containerSize: itemsMaxHeight; scrollOrientation: 'vertical'; itemSize: itemHeight"
+            index as rowIndex; initialChunkSize: 10; containerSize: itemsMaxHeight || containerSize; itemSize: itemHeight || itemSize, scrollOrientation: 'vertical';"
             [value]="item" [isHeader]="item?.isHeader" [index]="rowIndex" [role]="item?.isHeader? 'group' : 'option'">
             <ng-container *ngIf="item?.isHeader">
                 <ng-container
diff --git a/projects/igniteui-angular/src/lib/combo/combo.component.spec.ts b/projects/igniteui-angular/src/lib/combo/combo.component.spec.ts
index a19fff8f529..5f4c0bdc924 100644
--- a/projects/igniteui-angular/src/lib/combo/combo.component.spec.ts
+++ b/projects/igniteui-angular/src/lib/combo/combo.component.spec.ts
@@ -1025,8 +1025,6 @@ describe('igxCombo', () => {
                 expect(combo.displayKey).toEqual('field');
                 expect(combo.groupKey).toEqual('region');
                 expect(combo.width).toEqual('400px');
-                expect(combo.itemsMaxHeight).toEqual(320);
-                expect(combo.itemHeight).toEqual(32);
                 expect(combo.placeholder).toEqual('Location');
                 expect(combo.disableFiltering).toEqual(false);
                 expect(combo.allowCustomValues).toEqual(false);
@@ -1125,9 +1123,7 @@ describe('igxCombo', () => {
                 const dropdownList = fixture.debugElement.query(By.css(`.${CSS_CLASS_CONTENT}`));
 
                 const verifyDropdownItemHeight = () => {
-                    expect(combo.itemHeight).toEqual(itemHeight);
                     expect(dropdownItems[0].nativeElement.clientHeight).toEqual(itemHeight);
-                    expect(combo.itemsMaxHeight).toEqual(itemMaxHeight);
                     expect(dropdownList.nativeElement.clientHeight).toEqual(itemMaxHeight);
                 };
                 verifyDropdownItemHeight();
@@ -1764,11 +1760,10 @@ describe('igxCombo', () => {
                 });
                 it('should focus item when onFocus and onBlur are called', () => {
                     expect(dropdown.focusedItem).toEqual(null);
-                    expect(dropdown.items.length).toEqual(9);
                     dropdown.toggle();
                     fixture.detectChanges();
                     expect(dropdown.items).toBeDefined();
-                    expect(dropdown.items.length).toBeTruthy();
+                    expect(dropdown.items.length).toEqual(9);
                     dropdown.onFocus();
                     expect(dropdown.focusedItem).toEqual(dropdown.items[0]);
                     expect(dropdown.focusedItem.focused).toEqual(true);
@@ -2015,7 +2010,8 @@ describe('igxCombo', () => {
                 expect(combo.dropdown.onToggleOpened).toHaveBeenCalledTimes(1);
                 let vContainerScrollHeight = virtDir.getScroll().scrollHeight;
                 expect(virtDir.getScroll().scrollTop).toEqual(0);
-                expect(vContainerScrollHeight).toBeGreaterThan(combo.itemHeight);
+                const itemHeight = parseFloat(combo.dropdown.children.first.element.nativeElement.getBoundingClientRect().height);
+                expect(vContainerScrollHeight).toBeGreaterThan(itemHeight);
                 virtDir.getScroll().scrollTop = Math.floor(vContainerScrollHeight / 2);
                 await firstValueFrom(combo.virtualScrollContainer.chunkLoad);
                 fixture.detectChanges();
@@ -3573,24 +3569,6 @@ describe('igxCombo', () => {
                 }));
             });
         });
-        describe('Display density', () => {
-            beforeEach(() => {
-                fixture = TestBed.createComponent(IgxComboSampleComponent);
-                fixture.detectChanges();
-                combo = fixture.componentInstance.combo;
-            });
-            it('should scale items container depending on size (itemHeight * 10)', () => {
-                combo.toggle();
-                fixture.detectChanges();
-                expect(combo.itemsMaxHeight).toEqual(320);
-                fixture.componentInstance.size = 'small';
-                fixture.detectChanges();
-                expect(combo.itemsMaxHeight).toEqual(280);
-                fixture.componentInstance.size = 'large';
-                fixture.detectChanges();
-                expect(combo.itemsMaxHeight).toEqual(400);
-            });
-        });
     });
 });
 
diff --git a/projects/igniteui-angular/src/lib/core/styles/components/combo/_combo-theme.scss b/projects/igniteui-angular/src/lib/core/styles/components/combo/_combo-theme.scss
index 8bfc4c2fab8..604086cca99 100644
--- a/projects/igniteui-angular/src/lib/core/styles/components/combo/_combo-theme.scss
+++ b/projects/igniteui-angular/src/lib/core/styles/components/combo/_combo-theme.scss
@@ -189,6 +189,7 @@
     %igx-combo__content {
         position: relative;
         overflow: hidden;
+        max-height: calc(var(--size) * 10);
 
         &:focus {
             outline: transparent;
diff --git a/projects/igniteui-angular/src/lib/directives/for-of/for_of.directive.spec.ts b/projects/igniteui-angular/src/lib/directives/for-of/for_of.directive.spec.ts
index 478cbfd8feb..abc46f747e0 100644
--- a/projects/igniteui-angular/src/lib/directives/for-of/for_of.directive.spec.ts
+++ b/projects/igniteui-angular/src/lib/directives/for-of/for_of.directive.spec.ts
@@ -372,6 +372,16 @@ describe('IgxForOf directive -', () => {
             await wait(200);
             expect(cache).toEqual([130, 100, 100, 100, 100, 100, 100, 130, 130, 130]);
         });
+
+        it('should render no more that initial chunk size elements when set if no containerSize', () => {
+            fix.componentInstance.height = undefined;
+            fix.componentInstance.initialChunkSize = 3;
+            fix.detectChanges();
+            expect(displayContainer).not.toBeNull();
+            expect(verticalScroller).not.toBeNull();
+            expect(horizontalScroller).toBeNull();
+            expect(displayContainer.children.length).toBe(3);
+        });
     });
 
     describe('vertical virtual component no data', () => {
@@ -407,7 +417,6 @@ describe('IgxForOf directive -', () => {
             rowsRendered = displayContainer.querySelectorAll('div');
             expect(rowsRendered.length).not.toBe(0);
         });
-
     });
 
     describe('vertical and horizontal virtual component', () => {
@@ -1471,7 +1480,8 @@ export class VirtualComponent {
             <ng-template #scrollContainer igxForTest let-rowData [igxForOf]="data"
                 [igxForScrollOrientation]="'vertical'"
                 [igxForContainerSize]='height'
-                [igxForItemSize]='itemSize'>
+                [igxForItemSize]='itemSize'
+                [igxForInitialChunkSize]='initialChunkSize'>
                 <div [style.display]="'flex'"
                     [style.height]="rowData.height || itemSize || '50px'"
                     [style.margin-top]="rowData.margin || '0px'">
@@ -1499,6 +1509,7 @@ export class VerticalVirtualComponent extends VirtualComponent {
     ];
     public override data = [];
     public itemSize = '50px';
+    public initialChunkSize;
 }
 
 @Component({
diff --git a/projects/igniteui-angular/src/lib/directives/for-of/for_of.directive.ts b/projects/igniteui-angular/src/lib/directives/for-of/for_of.directive.ts
index f1b78e8166a..672d2fa9c66 100644
--- a/projects/igniteui-angular/src/lib/directives/for-of/for_of.directive.ts
+++ b/projects/igniteui-angular/src/lib/directives/for-of/for_of.directive.ts
@@ -168,6 +168,14 @@ export class IgxForOfDirective<T, U extends T[] = T[]> extends IgxForOfToken<T,U
     @Input()
     public igxForContainerSize: any;
 
+    /**
+     * @hidden
+     * @internal
+     * Initial chunk size if no container size is passed. If container size is passed then the igxForOf calculates its chunk size
+     */
+    @Input()
+    public igxForInitialChunkSize: any;
+
     /**
      * Sets the px-affixed size of the item along the axis of scrolling.
      * For "horizontal" orientation this value is the width of the column and for "vertical" is the height or the row.
@@ -1207,7 +1215,7 @@ export class IgxForOfDirective<T, U extends T[] = T[]> extends IgxForOfToken<T,U
             }
         } else {
             if (this.igxForOf) {
-                chunkSize = this.igxForOf.length;
+                chunkSize = Math.min(this.igxForInitialChunkSize || this.igxForOf.length, this.igxForOf.length);
             }
         }
         return chunkSize;
diff --git a/projects/igniteui-angular/src/lib/services/overlay/overlay.ts b/projects/igniteui-angular/src/lib/services/overlay/overlay.ts
index 9a4c1e9fdbc..b449fb1e2f6 100644
--- a/projects/igniteui-angular/src/lib/services/overlay/overlay.ts
+++ b/projects/igniteui-angular/src/lib/services/overlay/overlay.ts
@@ -346,8 +346,13 @@ export class IgxOverlayService implements OnDestroy {
         info.hook = this.placeElementHook(info.elementRef.nativeElement);
         const elementRect = info.elementRef.nativeElement.getBoundingClientRect();
         info.initialSize = { width: elementRect.width, height: elementRect.height };
-        this.addComponentSize(info);
+        // Get the size before moving the container into the overlay so that it does not forget about inherited styles.
+        this.getComponentSize(info); 
         this.moveElementToOverlay(info);
+        // Update the container size after moving if there is size.
+        if (info.size) {
+            info.elementRef.nativeElement.parentElement.style.setProperty('--ig-size', info.size);
+        }
         this.contentAppended.emit({ id: info.id, componentRef: info.componentRef });
         info.settings.scrollStrategy.initialize(this._document, this, info.id);
         info.settings.scrollStrategy.attach();
@@ -670,11 +675,6 @@ export class IgxOverlayService implements OnDestroy {
     }
 
     private updateSize(info: OverlayInfo) {
-        // set content div size
-        if (info.size) {
-            info.elementRef.nativeElement.parentElement.style.setProperty('--ig-size', info.size);
-        }
-        
         if (info.componentRef) {
             //  if we are positioning component this is first time it gets visible
             //  and we can finally get its size
@@ -984,7 +984,7 @@ export class IgxOverlayService implements OnDestroy {
         }
     }
 
-    private addComponentSize(info: OverlayInfo) {
+    private getComponentSize(info: OverlayInfo) {
         if (info.elementRef?.nativeElement instanceof Element) {
             const styles = this._document.defaultView.getComputedStyle(info.elementRef.nativeElement);
             const componentSize = styles.getPropertyValue('--component-size');
diff --git a/projects/igniteui-angular/src/lib/simple-combo/simple-combo.component.html b/projects/igniteui-angular/src/lib/simple-combo/simple-combo.component.html
index 8de7190212c..875c9f0f3a0 100644
--- a/projects/igniteui-angular/src/lib/simple-combo/simple-combo.component.html
+++ b/projects/igniteui-angular/src/lib/simple-combo/simple-combo.component.html
@@ -62,7 +62,7 @@
             [itemHeight]="itemHeight" (click)="handleItemClick()" *igxFor="let item of data
                 | comboFiltering:filterValue:displayKey:filteringOptions:filterFunction
                 | comboGrouping:groupKey:valueKey:groupSortingDirection:compareCollator;
-                index as rowIndex; containerSize: itemsMaxHeight; scrollOrientation: 'vertical'; itemSize: itemHeight"
+                index as rowIndex; initialChunkSize: 10; containerSize: itemsMaxHeight || containerSize; itemSize: itemHeight || itemSize; scrollOrientation: 'vertical';"
                 [value]="item" [isHeader]="item?.isHeader" [index]="rowIndex">
             <ng-container *ngIf="item?.isHeader">
                 <ng-container
diff --git a/projects/igniteui-angular/src/lib/simple-combo/simple-combo.component.spec.ts b/projects/igniteui-angular/src/lib/simple-combo/simple-combo.component.spec.ts
index 0b400781774..0845159bef1 100644
--- a/projects/igniteui-angular/src/lib/simple-combo/simple-combo.component.spec.ts
+++ b/projects/igniteui-angular/src/lib/simple-combo/simple-combo.component.spec.ts
@@ -588,8 +588,6 @@ describe('IgxSimpleCombo', () => {
             expect(combo.displayKey).toEqual('field');
             expect(combo.groupKey).toEqual('region');
             expect(combo.width).toEqual('400px');
-            expect(combo.itemsMaxHeight).toEqual(320);
-            expect(combo.itemHeight).toEqual(32);
             expect(combo.placeholder).toEqual('Location');
             expect(combo.allowCustomValues).toEqual(false);
             expect(combo.cssClass).toEqual(CSS_CLASS_COMBO);
@@ -671,9 +669,7 @@ describe('IgxSimpleCombo', () => {
             const dropdownList = fixture.debugElement.query(By.css(`.${CSS_CLASS_CONTENT}`));
 
             const verifyDropdownItemHeight = () => {
-                expect(combo.itemHeight).toEqual(itemHeight);
                 expect(dropdownItems[0].nativeElement.clientHeight).toEqual(itemHeight);
-                expect(combo.itemsMaxHeight).toEqual(itemMaxHeight);
                 expect(dropdownList.nativeElement.clientHeight).toEqual(itemMaxHeight);
             };
             verifyDropdownItemHeight();
@@ -2115,35 +2111,6 @@ describe('IgxSimpleCombo', () => {
         }));
     });
 
-    describe('Display density', () => {
-        beforeAll(waitForAsync(() => {
-            TestBed.configureTestingModule({
-                imports: [
-                    NoopAnimationsModule,
-                    ReactiveFormsModule,
-                    FormsModule,
-                    IgxSimpleComboSampleComponent
-                ]
-            }).compileComponents();
-        }));
-        beforeEach(() => {
-            fixture = TestBed.createComponent(IgxSimpleComboSampleComponent);
-            fixture.detectChanges();
-            combo = fixture.componentInstance.combo;
-        });
-        it('should scale items container depending on component size (itemHeight * 10)', () => {
-            combo.toggle();
-            fixture.detectChanges();
-            expect(combo.itemsMaxHeight).toEqual(320);
-            fixture.componentInstance.size = 'small';
-            fixture.detectChanges();
-            expect(combo.itemsMaxHeight).toEqual(280);
-            fixture.componentInstance.size = 'large';
-            fixture.detectChanges();
-            expect(combo.itemsMaxHeight).toEqual(400);
-        });
-    });
-
     describe('Form control tests: ', () => {
         describe('Template form tests: ', () => {
             let inputGroupRequired: DebugElement;