diff --git a/docs/additional-functionality/advanced_configs.md b/docs/additional-functionality/advanced_configs.md
index 033e332b99c..7be166ed5de 100644
--- a/docs/additional-functionality/advanced_configs.md
+++ b/docs/additional-functionality/advanced_configs.md
@@ -60,6 +60,7 @@ Name | Description | Default Value | Applicable at
 <a name="shuffle.ucx.activeMessages.forceRndv"></a>spark.rapids.shuffle.ucx.activeMessages.forceRndv|Set to true to force 'rndv' mode for all UCX Active Messages. This should only be required with UCX 1.10.x. UCX 1.11.x deployments should set to false.|false|Startup
 <a name="shuffle.ucx.managementServerHost"></a>spark.rapids.shuffle.ucx.managementServerHost|The host to be used to start the management server|null|Startup
 <a name="shuffle.ucx.useWakeup"></a>spark.rapids.shuffle.ucx.useWakeup|When set to true, use UCX's event-based progress (epoll) in order to wake up the progress thread when needed, instead of a hot loop.|true|Startup
+<a name="sql.agg.fallbackAlgorithm"></a>spark.rapids.sql.agg.fallbackAlgorithm|When agg cannot be done in a single pass, use sort-based fallback or repartition-based fallback.|sort|Runtime
 <a name="sql.agg.skipAggPassReductionRatio"></a>spark.rapids.sql.agg.skipAggPassReductionRatio|In non-final aggregation stages, if the previous pass has a row reduction ratio greater than this value, the next aggregation pass will be skipped.Setting this to 1 essentially disables this feature.|1.0|Runtime
 <a name="sql.allowMultipleJars"></a>spark.rapids.sql.allowMultipleJars|Allow multiple rapids-4-spark, spark-rapids-jni, and cudf jars on the classpath. Spark will take the first one it finds, so the version may not be expected. Possisble values are ALWAYS: allow all jars, SAME_REVISION: only allow jars with the same revision, NEVER: do not allow multiple jars at all.|SAME_REVISION|Startup
 <a name="sql.castDecimalToFloat.enabled"></a>spark.rapids.sql.castDecimalToFloat.enabled|Casting from decimal to floating point types on the GPU returns results that have tiny difference compared to results returned from CPU.|true|Runtime
diff --git a/integration_tests/src/main/python/hash_aggregate_test.py b/integration_tests/src/main/python/hash_aggregate_test.py
index d1cd70aa43c..d749960020e 100644
--- a/integration_tests/src/main/python/hash_aggregate_test.py
+++ b/integration_tests/src/main/python/hash_aggregate_test.py
@@ -38,6 +38,9 @@
 _float_conf_skipagg = copy_and_update(_float_smallbatch_conf,
         {'spark.rapids.sql.agg.skipAggPassReductionRatio': '0'})
 
+_float_conf_repartition_fallback = copy_and_update(_float_smallbatch_conf,
+        {'spark.rapids.sql.agg.fallbackAlgorithm': 'repartition'})
+
 _float_conf_partial = copy_and_update(_float_conf,
         {'spark.rapids.sql.hashAgg.replaceMode': 'partial'})
 
@@ -225,7 +228,9 @@ def get_params(init_list, marked_params=[]):
 
 
 # Run these tests with in 5 modes, all on the GPU
-_confs = [_float_conf, _float_smallbatch_conf, _float_conf_skipagg, _float_conf_final, _float_conf_partial]
+_confs = [_float_conf, _float_smallbatch_conf,
+          _float_conf_skipagg, _float_conf_repartition_fallback,
+          _float_conf_final, _float_conf_partial]
 
 # Pytest marker for list of operators allowed to run on the CPU,
 # esp. useful in partial and final only modes.
diff --git a/sql-plugin/src/main/scala/com/nvidia/spark/rapids/Arm.scala b/sql-plugin/src/main/scala/com/nvidia/spark/rapids/Arm.scala
index 926f770a683..b0cd798c179 100644
--- a/sql-plugin/src/main/scala/com/nvidia/spark/rapids/Arm.scala
+++ b/sql-plugin/src/main/scala/com/nvidia/spark/rapids/Arm.scala
@@ -16,7 +16,7 @@
 package com.nvidia.spark.rapids
 
 import scala.collection.mutable
-import scala.collection.mutable.ArrayBuffer
+import scala.collection.mutable.{ArrayBuffer, ListBuffer}
 import scala.util.control.ControlThrowable
 
 import com.nvidia.spark.rapids.RapidsPluginImplicits._
@@ -134,6 +134,20 @@ object Arm extends ArmScalaSpecificImpl {
     }
   }
 
+  /** Executes the provided code block, closing the resources only if an exception occurs */
+  def closeOnExcept[T <: AutoCloseable, V](r: ListBuffer[T])(block: ListBuffer[T] => V): V = {
+    try {
+      block(r)
+    } catch {
+      case t: ControlThrowable =>
+        // Don't close for these cases..
+        throw t
+      case t: Throwable =>
+        r.safeClose(t)
+        throw t
+    }
+  }
+
 
   /** Executes the provided code block, closing the resources only if an exception occurs */
   def closeOnExcept[T <: AutoCloseable, V](r: mutable.Queue[T])(block: mutable.Queue[T] => V): V = {
diff --git a/sql-plugin/src/main/scala/com/nvidia/spark/rapids/GpuAggregateExec.scala b/sql-plugin/src/main/scala/com/nvidia/spark/rapids/GpuAggregateExec.scala
index 7e6a1056d01..9137204972b 100644
--- a/sql-plugin/src/main/scala/com/nvidia/spark/rapids/GpuAggregateExec.scala
+++ b/sql-plugin/src/main/scala/com/nvidia/spark/rapids/GpuAggregateExec.scala
@@ -16,11 +16,9 @@
 
 package com.nvidia.spark.rapids
 
-import java.util
-
 import scala.annotation.tailrec
-import scala.collection.JavaConverters.collectionAsScalaIterableConverter
 import scala.collection.mutable
+import scala.collection.mutable.ListBuffer
 
 import ai.rapids.cudf
 import ai.rapids.cudf.{NvtxColor, NvtxRange}
@@ -28,6 +26,7 @@ import com.nvidia.spark.rapids.Arm.{closeOnExcept, withResource}
 import com.nvidia.spark.rapids.GpuAggregateIterator.{computeAggregateAndClose, computeAggregateWithoutPreprocessAndClose, concatenateBatches}
 import com.nvidia.spark.rapids.GpuMetric._
 import com.nvidia.spark.rapids.GpuOverrides.pluginSupportedOrderableSig
+import com.nvidia.spark.rapids.RapidsConf.AggFallbackAlgorithm
 import com.nvidia.spark.rapids.RapidsPluginImplicits._
 import com.nvidia.spark.rapids.RmmRapidsRetryIterator.{splitSpillableInHalfByRows, withRetry, withRetryNoSplit}
 import com.nvidia.spark.rapids.ScalableTaskCompletion.onTaskCompletion
@@ -46,11 +45,11 @@ import org.apache.spark.sql.catalyst.util.truncatedString
 import org.apache.spark.sql.execution.{ExplainUtils, SortExec, SparkPlan}
 import org.apache.spark.sql.execution.aggregate.{BaseAggregateExec, HashAggregateExec, ObjectHashAggregateExec, SortAggregateExec}
 import org.apache.spark.sql.rapids.aggregate.{CpuToGpuAggregateBufferConverter, CudfAggregate, GpuAggregateExpression, GpuToCpuAggregateBufferConverter}
-import org.apache.spark.sql.rapids.execution.{GpuShuffleMeta, TrampolineUtil}
+import org.apache.spark.sql.rapids.execution.{GpuBatchSubPartitioner, GpuShuffleMeta, TrampolineUtil}
 import org.apache.spark.sql.types._
 import org.apache.spark.sql.vectorized.ColumnarBatch
 
-object AggregateUtils {
+object AggregateUtils extends Logging {
 
   private val aggs = List("min", "max", "avg", "sum", "count", "first", "last")
 
@@ -86,9 +85,10 @@ object AggregateUtils {
   /**
    * Computes a target input batch size based on the assumption that computation can consume up to
    * 4X the configured batch size.
-   * @param confTargetSize user-configured maximum desired batch size
-   * @param inputTypes input batch schema
-   * @param outputTypes output batch schema
+   *
+   * @param confTargetSize  user-configured maximum desired batch size
+   * @param inputTypes      input batch schema
+   * @param outputTypes     output batch schema
    * @param isReductionOnly true if this is a reduction-only aggregation without grouping
    * @return maximum target batch size to keep computation under the 4X configured batch limit
    */
@@ -99,6 +99,7 @@ object AggregateUtils {
       isReductionOnly: Boolean): Long = {
     def typesToSize(types: Seq[DataType]): Long =
       types.map(GpuBatchUtils.estimateGpuMemory(_, nullable = false, rowCount = 1)).sum
+
     val inputRowSize = typesToSize(inputTypes)
     val outputRowSize = typesToSize(outputTypes)
     // The cudf hash table implementation allocates four 32-bit integers per input row.
@@ -119,11 +120,140 @@ object AggregateUtils {
     }
 
     // Calculate the max rows that can be processed during computation within the budget
-    val maxRows = totalBudget / computationBytesPerRow
+    val maxRows = Math.max(totalBudget / computationBytesPerRow, 1)
 
     // Finally compute the input target batching size taking into account the cudf row limits
     Math.min(inputRowSize * maxRows, Int.MaxValue)
   }
+
+
+  /**
+   * Concatenate batches together and perform a merge aggregation on the result. The input batches
+   * will be closed as part of this operation.
+   *
+   * @param batches batches to concatenate and merge aggregate
+   * @return lazy spillable batch which has NOT been marked spillable
+   */
+  private def concatenateAndMerge(
+      batches: mutable.ArrayBuffer[SpillableColumnarBatch],
+      metrics: GpuHashAggregateMetrics,
+      concatAndMergeHelper: AggHelper): SpillableColumnarBatch = {
+    // TODO: concatenateAndMerge (and calling code) could output a sequence
+    //   of batches for the partial aggregate case. This would be done in case
+    //   a retry failed a certain number of times.
+    val concatBatch = withResource(batches) { _ =>
+      val concatSpillable = concatenateBatches(metrics, batches.toSeq)
+      withResource(concatSpillable) {
+        _.getColumnarBatch()
+      }
+    }
+    computeAggregateAndClose(metrics, concatBatch, concatAndMergeHelper)
+  }
+
+  /**
+   * Perform a single pass over the aggregated batches attempting to merge adjacent batches.
+   *
+   * @return true if at least one merge operation occurred
+   */
+  private def mergePass(
+      aggregatedBatches: mutable.Buffer[SpillableColumnarBatch],
+      targetMergeBatchSize: Long,
+      helper: AggHelper,
+      metrics: GpuHashAggregateMetrics
+  ): Boolean = {
+    val batchesToConcat: mutable.ArrayBuffer[SpillableColumnarBatch] = mutable.ArrayBuffer.empty
+    var wasBatchMerged = false
+    // Current size in bytes of the batches targeted for the next concatenation
+    var concatSize: Long = 0L
+    var batchesLeftInPass = aggregatedBatches.size
+
+    while (batchesLeftInPass > 0) {
+      closeOnExcept(batchesToConcat) { _ =>
+        var isConcatSearchFinished = false
+        // Old batches are picked up at the front of the queue and freshly merged batches are
+        // appended to the back of the queue. Although tempting to allow the pass to "wrap around"
+        // and pick up batches freshly merged in this pass, it's avoided to prevent changing the
+        // order of aggregated batches.
+        while (batchesLeftInPass > 0 && !isConcatSearchFinished) {
+          val candidate = aggregatedBatches.head
+          val potentialSize = concatSize + candidate.sizeInBytes
+          isConcatSearchFinished = concatSize > 0 && potentialSize > targetMergeBatchSize
+          if (!isConcatSearchFinished) {
+            batchesLeftInPass -= 1
+            batchesToConcat += aggregatedBatches.remove(0)
+            concatSize = potentialSize
+          }
+        }
+      }
+
+      val mergedBatch = if (batchesToConcat.length > 1) {
+        wasBatchMerged = true
+        concatenateAndMerge(batchesToConcat, metrics, helper)
+      } else {
+        // Unable to find a neighboring buffer to produce a valid merge in this pass,
+        // so simply put this buffer back on the queue for other passes.
+        batchesToConcat.remove(0)
+      }
+
+      // Add the merged batch to the end of the aggregated batch queue. Only a single pass over
+      // the batches is being performed due to the batch count check above, so the single-pass
+      // loop will terminate before picking up this new batch.
+      aggregatedBatches += mergedBatch
+      batchesToConcat.clear()
+      concatSize = 0
+    }
+
+    wasBatchMerged
+  }
+
+
+  /**
+   * Attempt to merge adjacent batches in the aggregatedBatches queue until either there is only
+   * one batch or merging adjacent batches would exceed the target batch size.
+   */
+  def tryMergeAggregatedBatches(
+      aggregatedBatches: mutable.Buffer[SpillableColumnarBatch],
+      forceMergeRegardlessOfOversize: Boolean,
+      metrics: GpuHashAggregateMetrics,
+      targetMergeBatchSize: Long,
+      helper: AggHelper
+  ): Unit = {
+    while (aggregatedBatches.size > 1) {
+      val concatTime = metrics.concatTime
+      val opTime = metrics.opTime
+      withResource(new NvtxWithMetrics("agg merge pass", NvtxColor.BLUE, concatTime,
+        opTime)) { _ =>
+        // continue merging as long as some batches are able to be combined
+        if (!mergePass(aggregatedBatches, targetMergeBatchSize, helper, metrics)) {
+          if (aggregatedBatches.size > 1 && forceMergeRegardlessOfOversize) {
+            // We were unable to merge the aggregated batches within the target batch size limit,
+            // which means normally we would fallback to a sort-based approach.
+            // There are two exceptions:
+            // 1. reduction-only aggregation case, there are no keys to use for a sort.
+            // The only way this can work is if all batches are merged. This will exceed
+            // the target batch size limit but at this point it is either risk an OOM/cudf error
+            // and potentially work or not work at all.
+            // 2. re-partition agg case where all batches are have only 1 row each (Usually
+            // this only happens in test cases). Doing more re-partitioning will not help to reduce
+            // the partition size anymore. In this case we should merge all the batches into one
+            // regardless of the target size.
+            logWarning(s"Unable to merge aggregated batches within " +
+              s"target batch limit of $targetMergeBatchSize, attempting to merge remaining " +
+              s"${aggregatedBatches.size} batches beyond limit")
+            withResource(mutable.ArrayBuffer[SpillableColumnarBatch]()) { batchesToConcat =>
+              aggregatedBatches.foreach(b => batchesToConcat += b)
+              aggregatedBatches.clear()
+              val batch = concatenateAndMerge(batchesToConcat, metrics, helper)
+              // batch does not need to be marked spillable since it is the last and only batch
+              // and will be immediately retrieved on the next() call.
+              aggregatedBatches += batch
+            }
+          }
+          return
+        }
+      }
+    }
+  }
 }
 
 /** Utility class to hold all of the metrics related to hash aggregation */
@@ -135,6 +265,7 @@ case class GpuHashAggregateMetrics(
     computeAggTime: GpuMetric,
     concatTime: GpuMetric,
     sortTime: GpuMetric,
+    repartitionTime: GpuMetric,
     numAggOps: GpuMetric,
     numPreSplits: GpuMetric,
     singlePassTasks: GpuMetric,
@@ -711,6 +842,8 @@ object GpuAggFinalPassIterator {
  * @param useTieredProject user-specified option to enable tiered projections
  * @param allowNonFullyAggregatedOutput if allowed to skip third pass Agg
  * @param skipAggPassReductionRatio skip if the ratio of rows after a pass is bigger than this value
+ * @param aggFallbackAlgorithm use sort-based fallback or repartition-based fallback
+ *                             for oversize agg
  * @param localInputRowsCount metric to track the number of input rows processed locally
  */
 class GpuMergeAggregateIterator(
@@ -726,15 +859,17 @@ class GpuMergeAggregateIterator(
     useTieredProject: Boolean,
     allowNonFullyAggregatedOutput: Boolean,
     skipAggPassReductionRatio: Double,
+    aggFallbackAlgorithm: AggFallbackAlgorithm.Value,
     localInputRowsCount: LocalGpuMetric)
     extends Iterator[ColumnarBatch] with AutoCloseable with Logging {
   private[this] val isReductionOnly = groupingExpressions.isEmpty
   private[this] val targetMergeBatchSize = computeTargetMergeBatchSize(configuredTargetBatchSize)
-  private[this] val aggregatedBatches = new util.ArrayDeque[SpillableColumnarBatch]
+  private[this] val aggregatedBatches = ListBuffer.empty[SpillableColumnarBatch]
   private[this] var outOfCoreIter: Option[GpuOutOfCoreSortIterator] = None
+  private[this] var repartitionIter: Option[RepartitionAggregateIterator] = None
 
   /** Iterator for fetching aggregated batches either if:
-   * 1. a sort-based fallback has occurred
+   * 1. a sort-based/repartition-based fallback has occurred
    * 2. skip third pass agg has occurred
    **/
   private[this] var fallbackIter: Option[Iterator[ColumnarBatch]] = None
@@ -752,7 +887,7 @@ class GpuMergeAggregateIterator(
   override def hasNext: Boolean = {
     fallbackIter.map(_.hasNext).getOrElse {
       // reductions produce a result even if the input is empty
-      hasReductionOnlyBatch || !aggregatedBatches.isEmpty || firstPassIter.hasNext
+      hasReductionOnlyBatch || aggregatedBatches.nonEmpty || firstPassIter.hasNext
     }
   }
 
@@ -769,9 +904,11 @@ class GpuMergeAggregateIterator(
         if (isReductionOnly ||
           skipAggPassReductionRatio * localInputRowsCount.value >= rowsAfterFirstPassAgg) {
           // second pass agg
-          tryMergeAggregatedBatches()
+          AggregateUtils.tryMergeAggregatedBatches(
+            aggregatedBatches, isReductionOnly,
+            metrics, targetMergeBatchSize, concatAndMergeHelper)
 
-          val rowsAfterSecondPassAgg = aggregatedBatches.asScala.foldLeft(0L) {
+          val rowsAfterSecondPassAgg = aggregatedBatches.foldLeft(0L) {
             (totalRows, batch) => totalRows + batch.numRows()
           }
           shouldSkipThirdPassAgg =
@@ -784,7 +921,7 @@ class GpuMergeAggregateIterator(
         }
       }
 
-      if (aggregatedBatches.size() > 1) {
+      if (aggregatedBatches.size > 1) {
         // Unable to merge to a single output, so must fall back
         if (allowNonFullyAggregatedOutput && shouldSkipThirdPassAgg) {
           // skip third pass agg, return the aggregated batches directly
@@ -792,17 +929,22 @@ class GpuMergeAggregateIterator(
             s"${skipAggPassReductionRatio * 100}% of " +
             s"rows after first pass, skip the third pass agg")
           fallbackIter = Some(new Iterator[ColumnarBatch] {
-            override def hasNext: Boolean = !aggregatedBatches.isEmpty
+            override def hasNext: Boolean = aggregatedBatches.nonEmpty
 
             override def next(): ColumnarBatch = {
-              withResource(aggregatedBatches.pop()) { spillableBatch =>
+              withResource(aggregatedBatches.remove(0)) { spillableBatch =>
                 spillableBatch.getColumnarBatch()
               }
             }
           })
         } else {
           // fallback to sort agg, this is the third pass agg
-          fallbackIter = Some(buildSortFallbackIterator())
+          aggFallbackAlgorithm match {
+            case AggFallbackAlgorithm.REPARTITION =>
+              fallbackIter = Some(buildRepartitionFallbackIterator())
+            case AggFallbackAlgorithm.SORT =>
+              fallbackIter = Some(buildSortFallbackIterator())
+          }
         }
         fallbackIter.get.next()
       } else if (aggregatedBatches.isEmpty) {
@@ -815,7 +957,7 @@ class GpuMergeAggregateIterator(
       } else {
         // this will be the last batch
         hasReductionOnlyBatch = false
-        withResource(aggregatedBatches.pop()) { spillableBatch =>
+        withResource(aggregatedBatches.remove(0)) { spillableBatch =>
           spillableBatch.getColumnarBatch()
         }
       }
@@ -823,10 +965,12 @@ class GpuMergeAggregateIterator(
   }
 
   override def close(): Unit = {
-    aggregatedBatches.forEach(_.safeClose())
+    aggregatedBatches.foreach(_.safeClose())
     aggregatedBatches.clear()
     outOfCoreIter.foreach(_.close())
     outOfCoreIter = None
+    repartitionIter.foreach(_.close())
+    repartitionIter = None
     fallbackIter = None
     hasReductionOnlyBatch = false
   }
@@ -843,133 +987,167 @@ class GpuMergeAggregateIterator(
     while (firstPassIter.hasNext) {
       val batch = firstPassIter.next()
       rowsAfter += batch.numRows()
-      aggregatedBatches.add(batch)
+      aggregatedBatches += batch
     }
     rowsAfter
   }
 
-  /**
-   * Attempt to merge adjacent batches in the aggregatedBatches queue until either there is only
-   * one batch or merging adjacent batches would exceed the target batch size.
-   */
-  private def tryMergeAggregatedBatches(): Unit = {
-    while (aggregatedBatches.size() > 1) {
-      val concatTime = metrics.concatTime
-      val opTime = metrics.opTime
-      withResource(new NvtxWithMetrics("agg merge pass", NvtxColor.BLUE, concatTime,
-        opTime)) { _ =>
-        // continue merging as long as some batches are able to be combined
-        if (!mergePass()) {
-          if (aggregatedBatches.size() > 1 && isReductionOnly) {
-            // We were unable to merge the aggregated batches within the target batch size limit,
-            // which means normally we would fallback to a sort-based approach. However for
-            // reduction-only aggregation there are no keys to use for a sort. The only way this
-            // can work is if all batches are merged. This will exceed the target batch size limit,
-            // but at this point it is either risk an OOM/cudf error and potentially work or
-            // not work at all.
-            logWarning(s"Unable to merge reduction-only aggregated batches within " +
-                s"target batch limit of $targetMergeBatchSize, attempting to merge remaining " +
-                s"${aggregatedBatches.size()} batches beyond limit")
-            withResource(mutable.ArrayBuffer[SpillableColumnarBatch]()) { batchesToConcat =>
-              aggregatedBatches.forEach(b => batchesToConcat += b)
-              aggregatedBatches.clear()
-              val batch = concatenateAndMerge(batchesToConcat)
-              // batch does not need to be marked spillable since it is the last and only batch
-              // and will be immediately retrieved on the next() call.
-              aggregatedBatches.add(batch)
-            }
-          }
-          return
+  private lazy val concatAndMergeHelper =
+    new AggHelper(inputAttributes, groupingExpressions, aggregateExpressions,
+      forceMerge = true, useTieredProject = useTieredProject)
+
+  private def cbIteratorStealingFromBuffer(input: ListBuffer[SpillableColumnarBatch]) = {
+    val aggregatedBatchIter = new Iterator[ColumnarBatch] {
+      override def hasNext: Boolean = input.nonEmpty
+
+      override def next(): ColumnarBatch = {
+        withResource(input.remove(0)) { spillable =>
+          spillable.getColumnarBatch()
         }
       }
     }
+    aggregatedBatchIter
   }
 
-  /**
-   * Perform a single pass over the aggregated batches attempting to merge adjacent batches.
-   * @return true if at least one merge operation occurred
-   */
-  private def mergePass(): Boolean = {
-    val batchesToConcat: mutable.ArrayBuffer[SpillableColumnarBatch] = mutable.ArrayBuffer.empty
-    var wasBatchMerged = false
-    // Current size in bytes of the batches targeted for the next concatenation
-    var concatSize: Long = 0L
-    var batchesLeftInPass = aggregatedBatches.size()
+  private case class RepartitionAggregateIterator(
+      inputBatches: ListBuffer[SpillableColumnarBatch],
+      hashKeys: Seq[GpuExpression],
+      targetSize: Long,
+      opTime: GpuMetric,
+      repartitionTime: GpuMetric) extends Iterator[ColumnarBatch]
+    with AutoCloseable {
 
-    while (batchesLeftInPass > 0) {
-      closeOnExcept(batchesToConcat) { _ =>
-        var isConcatSearchFinished = false
-        // Old batches are picked up at the front of the queue and freshly merged batches are
-        // appended to the back of the queue. Although tempting to allow the pass to "wrap around"
-        // and pick up batches freshly merged in this pass, it's avoided to prevent changing the
-        // order of aggregated batches.
-        while (batchesLeftInPass > 0 && !isConcatSearchFinished) {
-          val candidate = aggregatedBatches.getFirst
-          val potentialSize = concatSize + candidate.sizeInBytes
-          isConcatSearchFinished = concatSize > 0 && potentialSize > targetMergeBatchSize
-          if (!isConcatSearchFinished) {
-            batchesLeftInPass -= 1
-            batchesToConcat += aggregatedBatches.removeFirst()
-            concatSize = potentialSize
+    case class AggregatePartition(batches: ListBuffer[SpillableColumnarBatch], seed: Int)
+      extends AutoCloseable {
+      override def close(): Unit = {
+        batches.safeClose()
+      }
+
+      def totalRows(): Long = batches.map(_.numRows()).sum
+
+      def totalSize(): Long = batches.map(_.sizeInBytes).sum
+
+      def areAllBatchesSingleRow: Boolean = {
+        batches.forall(_.numRows() == 1)
+      }
+
+      def split(): ListBuffer[AggregatePartition] = {
+        withResource(new NvtxWithMetrics("agg repartition", NvtxColor.CYAN, repartitionTime)) { _ =>
+          if (seed >= hashSeed + 100) {
+            throw new IllegalStateException("repartitioned too many times, please " +
+              "consider disabling repartition-based fallback for aggregation")
+          }
+          val totalSize = batches.map(_.sizeInBytes).sum
+          val newSeed = seed + 7
+          val iter = cbIteratorStealingFromBuffer(batches)
+          withResource(new GpuBatchSubPartitioner(
+            iter, hashKeys, computeNumPartitions(totalSize), newSeed, "aggRepartition")) {
+            partitioner =>
+              closeOnExcept(ListBuffer.empty[AggregatePartition]) { partitions =>
+                preparePartitions(newSeed, partitioner, partitions)
+                partitions
+              }
           }
         }
       }
 
-      val mergedBatch = if (batchesToConcat.length > 1) {
-        wasBatchMerged = true
-        concatenateAndMerge(batchesToConcat)
-      } else {
-        // Unable to find a neighboring buffer to produce a valid merge in this pass,
-        // so simply put this buffer back on the queue for other passes.
-        batchesToConcat.remove(0)
+      private def preparePartitions(
+          newSeed: Int,
+          partitioner: GpuBatchSubPartitioner,
+          partitions: ListBuffer[AggregatePartition]): Unit = {
+        (0 until partitioner.partitionsCount).foreach { id =>
+          val buffer = ListBuffer.empty[SpillableColumnarBatch]
+          buffer ++= partitioner.releaseBatchesByPartition(id)
+          val newPart = AggregatePartition.apply(buffer, newSeed)
+          if (newPart.totalRows() > 0) {
+            partitions += newPart
+          } else {
+            newPart.safeClose()
+          }
+        }
       }
 
-      // Add the merged batch to the end of the aggregated batch queue. Only a single pass over
-      // the batches is being performed due to the batch count check above, so the single-pass
-      // loop will terminate before picking up this new batch.
-      aggregatedBatches.addLast(mergedBatch)
-      batchesToConcat.clear()
-      concatSize = 0
+      private[this] def computeNumPartitions(totalSize: Long): Int = {
+        Math.floorDiv(totalSize, targetMergeBatchSize).toInt + 1
+      }
     }
 
-    wasBatchMerged
-  }
+    private val hashSeed = 100
+    private val aggPartitions = ListBuffer.empty[AggregatePartition]
+    private val deferredAggPartitions = ListBuffer.empty[AggregatePartition]
+    deferredAggPartitions += AggregatePartition.apply(inputBatches, hashSeed)
 
-  private lazy val concatAndMergeHelper =
-    new AggHelper(inputAttributes, groupingExpressions, aggregateExpressions,
-      forceMerge = true, useTieredProject = useTieredProject)
+    override def hasNext: Boolean = aggPartitions.nonEmpty || deferredAggPartitions.nonEmpty
 
-  /**
-   * Concatenate batches together and perform a merge aggregation on the result. The input batches
-   * will be closed as part of this operation.
-   * @param batches batches to concatenate and merge aggregate
-   * @return lazy spillable batch which has NOT been marked spillable
-   */
-  private def concatenateAndMerge(
-      batches: mutable.ArrayBuffer[SpillableColumnarBatch]): SpillableColumnarBatch = {
-    // TODO: concatenateAndMerge (and calling code) could output a sequence
-    //   of batches for the partial aggregate case. This would be done in case
-    //   a retry failed a certain number of times.
-    val concatBatch = withResource(batches) { _ =>
-      val concatSpillable = concatenateBatches(metrics, batches.toSeq)
-      withResource(concatSpillable) { _.getColumnarBatch() }
+    override def next(): ColumnarBatch = {
+      withResource(new NvtxWithMetrics("RepartitionAggregateIterator.next",
+        NvtxColor.BLUE, opTime)) { _ =>
+        if (aggPartitions.isEmpty && deferredAggPartitions.nonEmpty) {
+          val headDeferredPartition = deferredAggPartitions.remove(0)
+          withResource(headDeferredPartition) { _ =>
+            aggPartitions ++= headDeferredPartition.split()
+          }
+          return next()
+        }
+
+        val headPartition = aggPartitions.remove(0)
+        if (!headPartition.areAllBatchesSingleRow &&
+          headPartition.totalSize() > targetMergeBatchSize) {
+          deferredAggPartitions += headPartition
+          return next()
+        }
+
+        withResource(headPartition) { _ =>
+          val batchSizeBeforeMerge = headPartition.batches.size
+          AggregateUtils.tryMergeAggregatedBatches(
+            headPartition.batches, isReductionOnly || headPartition.areAllBatchesSingleRow, metrics,
+            targetMergeBatchSize, concatAndMergeHelper)
+          if (headPartition.batches.size != 1) {
+            throw new IllegalStateException(
+              "Expected a single batch after tryMergeAggregatedBatches, but got " +
+                  s"${headPartition.batches.size} batches. Before merge, there were " +
+                  s"$batchSizeBeforeMerge batches.")
+          }
+          headPartition.batches.head.getColumnarBatch()
+        }
+      }
+    }
+
+    override def close(): Unit = {
+      aggPartitions.foreach(_.safeClose())
+      deferredAggPartitions.foreach(_.safeClose())
     }
-    computeAggregateAndClose(metrics, concatBatch, concatAndMergeHelper)
   }
 
+
   /** Build an iterator that uses a sort-based approach to merge aggregated batches together. */
-  private def buildSortFallbackIterator(): Iterator[ColumnarBatch] = {
-    logInfo(s"Falling back to sort-based aggregation with ${aggregatedBatches.size()} batches")
+  private def buildRepartitionFallbackIterator(): Iterator[ColumnarBatch] = {
+    logInfo(s"Falling back to repartition-based aggregation with " +
+      s"${aggregatedBatches.size} batches")
     metrics.numTasksFallBacked += 1
-    val aggregatedBatchIter = new Iterator[ColumnarBatch] {
-      override def hasNext: Boolean = !aggregatedBatches.isEmpty
 
-      override def next(): ColumnarBatch = {
-        withResource(aggregatedBatches.removeFirst()) { spillable =>
-          spillable.getColumnarBatch()
-        }
-      }
-    }
+    val groupingAttributes = groupingExpressions.map(_.toAttribute)
+    val aggBufferAttributes = groupingAttributes ++
+      aggregateExpressions.flatMap(_.aggregateFunction.aggBufferAttributes)
+
+    val hashKeys: Seq[GpuExpression] =
+      GpuBindReferences.bindGpuReferences(groupingAttributes, aggBufferAttributes.toSeq)
+
+
+    repartitionIter = Some(RepartitionAggregateIterator(
+      aggregatedBatches,
+      hashKeys,
+      targetMergeBatchSize,
+      opTime = metrics.opTime,
+      repartitionTime = metrics.repartitionTime))
+    repartitionIter.get
+  }
+
+  /** Build an iterator that uses a sort-based approach to merge aggregated batches together. */
+  private def buildSortFallbackIterator(): Iterator[ColumnarBatch] = {
+    logInfo(s"Falling back to sort-based aggregation with ${aggregatedBatches.size} batches")
+    metrics.numTasksFallBacked += 1
+    val aggregatedBatchIter = cbIteratorStealingFromBuffer(aggregatedBatches)
 
     if (isReductionOnly) {
       // Normally this should never happen because `tryMergeAggregatedBatches` should have done
@@ -1332,7 +1510,8 @@ abstract class GpuBaseAggregateMeta[INPUT <: SparkPlan](
       conf.forceSinglePassPartialSortAgg,
       allowSinglePassAgg,
       allowNonFullyAggregatedOutput,
-      conf.skipAggPassReductionRatio)
+      conf.skipAggPassReductionRatio,
+      conf.aggFallbackAlgorithm)
   }
 }
 
@@ -1420,7 +1599,8 @@ abstract class GpuTypedImperativeSupportedAggregateExecMeta[INPUT <: BaseAggrega
         false,
         false,
         false,
-        1)
+        1,
+        conf.aggFallbackAlgorithm)
     } else {
       super.convertToGpu()
     }
@@ -1773,6 +1953,8 @@ object GpuHashAggregateExecBase {
  *                                      (can omit non fully aggregated data for non-final
  *                                      stage of aggregation)
  * @param skipAggPassReductionRatio skip if the ratio of rows after a pass is bigger than this value
+ * @param aggFallbackAlgorithm use sort-based fallback or repartition-based fallback for
+ *                             oversize agg
  */
 case class GpuHashAggregateExec(
     requiredChildDistributionExpressions: Option[Seq[Expression]],
@@ -1787,7 +1969,8 @@ case class GpuHashAggregateExec(
     forceSinglePassAgg: Boolean,
     allowSinglePassAgg: Boolean,
     allowNonFullyAggregatedOutput: Boolean,
-    skipAggPassReductionRatio: Double
+    skipAggPassReductionRatio: Double,
+    aggFallbackAlgorithm: AggFallbackAlgorithm.Value
 ) extends ShimUnaryExecNode with GpuExec {
 
   // lifted directly from `BaseAggregateExec.inputAttributes`, edited comment.
@@ -1809,6 +1992,7 @@ case class GpuHashAggregateExec(
     AGG_TIME -> createNanoTimingMetric(DEBUG_LEVEL, DESCRIPTION_AGG_TIME),
     CONCAT_TIME -> createNanoTimingMetric(DEBUG_LEVEL, DESCRIPTION_CONCAT_TIME),
     SORT_TIME -> createNanoTimingMetric(DEBUG_LEVEL, DESCRIPTION_SORT_TIME),
+    REPARTITION_TIME -> createNanoTimingMetric(DEBUG_LEVEL, DESCRIPTION_REPARTITION_TIME),
     "NUM_AGGS" -> createMetric(DEBUG_LEVEL, "num agg operations"),
     "NUM_PRE_SPLITS" -> createMetric(DEBUG_LEVEL, "num pre splits"),
     "NUM_TASKS_SINGLE_PASS" -> createMetric(MODERATE_LEVEL, "number of single pass tasks"),
@@ -1839,6 +2023,7 @@ case class GpuHashAggregateExec(
       computeAggTime = gpuLongMetric(AGG_TIME),
       concatTime = gpuLongMetric(CONCAT_TIME),
       sortTime = gpuLongMetric(SORT_TIME),
+      repartitionTime = gpuLongMetric(REPARTITION_TIME),
       numAggOps = gpuLongMetric("NUM_AGGS"),
       numPreSplits = gpuLongMetric("NUM_PRE_SPLITS"),
       singlePassTasks = gpuLongMetric("NUM_TASKS_SINGLE_PASS"),
@@ -1873,7 +2058,8 @@ case class GpuHashAggregateExec(
         boundGroupExprs, aggregateExprs, aggregateAttrs, resultExprs, modeInfo,
         localEstimatedPreProcessGrowth, alreadySorted, expectedOrdering,
         postBoundReferences, targetBatchSize, aggMetrics, useTieredProject,
-        localForcePre, localAllowPre, allowNonFullyAggregatedOutput, skipAggPassReductionRatio)
+        localForcePre, localAllowPre, allowNonFullyAggregatedOutput, skipAggPassReductionRatio,
+        aggFallbackAlgorithm)
     }
   }
 
@@ -1991,7 +2177,8 @@ class DynamicGpuPartialSortAggregateIterator(
     forceSinglePassAgg: Boolean,
     allowSinglePassAgg: Boolean,
     allowNonFullyAggregatedOutput: Boolean,
-    skipAggPassReductionRatio: Double
+    skipAggPassReductionRatio: Double,
+    aggFallbackAlgorithm: AggFallbackAlgorithm.Value
 ) extends Iterator[ColumnarBatch] {
   private var aggIter: Option[Iterator[ColumnarBatch]] = None
   private[this] val isReductionOnly = boundGroupExprs.outputTypes.isEmpty
@@ -2092,6 +2279,7 @@ class DynamicGpuPartialSortAggregateIterator(
       useTiered,
       allowNonFullyAggregatedOutput,
       skipAggPassReductionRatio,
+      aggFallbackAlgorithm,
       localInputRowsMetrics)
 
     GpuAggFinalPassIterator.makeIter(mergeIter, postBoundReferences, metrics)
diff --git a/sql-plugin/src/main/scala/com/nvidia/spark/rapids/GpuExec.scala b/sql-plugin/src/main/scala/com/nvidia/spark/rapids/GpuExec.scala
index d83f20113b2..98fbff9002a 100644
--- a/sql-plugin/src/main/scala/com/nvidia/spark/rapids/GpuExec.scala
+++ b/sql-plugin/src/main/scala/com/nvidia/spark/rapids/GpuExec.scala
@@ -61,6 +61,7 @@ object GpuMetric extends Logging {
   val COLLECT_TIME = "collectTime"
   val CONCAT_TIME = "concatTime"
   val SORT_TIME = "sortTime"
+  val REPARTITION_TIME = "repartitionTime"
   val AGG_TIME = "computeAggTime"
   val JOIN_TIME = "joinTime"
   val FILTER_TIME = "filterTime"
@@ -95,13 +96,14 @@ object GpuMetric extends Logging {
   val DESCRIPTION_COLLECT_TIME = "collect batch time"
   val DESCRIPTION_CONCAT_TIME = "concat batch time"
   val DESCRIPTION_SORT_TIME = "sort time"
+  val DESCRIPTION_REPARTITION_TIME = "repartition time"
   val DESCRIPTION_AGG_TIME = "aggregation time"
   val DESCRIPTION_JOIN_TIME = "join time"
   val DESCRIPTION_FILTER_TIME = "filter time"
   val DESCRIPTION_BUILD_DATA_SIZE = "build side size"
   val DESCRIPTION_BUILD_TIME = "build time"
   val DESCRIPTION_STREAM_TIME = "stream time"
-  val DESCRIPTION_NUM_TASKS_FALL_BACKED = "number of sort fallback tasks"
+  val DESCRIPTION_NUM_TASKS_FALL_BACKED = "number of fallback tasks"
   val DESCRIPTION_READ_FS_TIME = "time to read fs data"
   val DESCRIPTION_WRITE_BUFFER_TIME = "time to write data to buffer"
   val DESCRIPTION_FILECACHE_FOOTER_HITS = "cached footer hits"
diff --git a/sql-plugin/src/main/scala/com/nvidia/spark/rapids/RapidsConf.scala b/sql-plugin/src/main/scala/com/nvidia/spark/rapids/RapidsConf.scala
index aad4f05b334..32c8ae7b93c 100644
--- a/sql-plugin/src/main/scala/com/nvidia/spark/rapids/RapidsConf.scala
+++ b/sql-plugin/src/main/scala/com/nvidia/spark/rapids/RapidsConf.scala
@@ -1517,6 +1517,17 @@ val GPU_COREDUMP_PIPE_PATTERN = conf("spark.rapids.gpu.coreDump.pipePattern")
     .checkValue(v => v >= 0 && v <= 1, "The ratio value must be in [0, 1].")
     .createWithDefault(1.0)
 
+  val FALLBACK_ALGORITHM_FOR_OVERSIZE_AGG = conf("spark.rapids.sql.agg.fallbackAlgorithm")
+    .doc("When agg cannot be done in a single pass, use sort-based fallback or " +
+      "repartition-based fallback.")
+    .stringConf
+    .checkValues(Set("sort", "repartition"))
+    .createWithDefault("sort")
+
+  object AggFallbackAlgorithm extends Enumeration {
+    val SORT, REPARTITION = Value
+  }
+
   val FORCE_SINGLE_PASS_PARTIAL_SORT_AGG: ConfEntryWithDefault[Boolean] =
     conf("spark.rapids.sql.agg.forceSinglePassPartialSort")
     .doc("Force a single pass partial sort agg to happen in all cases that it could, " +
@@ -3079,6 +3090,15 @@ class RapidsConf(conf: Map[String, String]) extends Logging {
 
   lazy val skipAggPassReductionRatio: Double = get(SKIP_AGG_PASS_REDUCTION_RATIO)
 
+  lazy val aggFallbackAlgorithm: AggFallbackAlgorithm.Value = {
+    get(FALLBACK_ALGORITHM_FOR_OVERSIZE_AGG) match {
+      case "sort" => AggFallbackAlgorithm.SORT
+      case "repartition" => AggFallbackAlgorithm.REPARTITION
+      case other => throw new IllegalArgumentException(s"Internal Error $other is not supported " +
+        s"for ${FALLBACK_ALGORITHM_FOR_OVERSIZE_AGG.key}")
+    }
+  }
+
   lazy val isRegExpEnabled: Boolean = get(ENABLE_REGEXP)
 
   lazy val maxRegExpStateMemory: Long =  {