diff --git a/rust/Cargo.toml b/rust/Cargo.toml
index 25c1ed61b..d43c19223 100644
--- a/rust/Cargo.toml
+++ b/rust/Cargo.toml
@@ -7,7 +7,7 @@ categories = [ "science::robotics", "compression" ]
 repository = "https://github.com/foxglove/mcap"
 documentation = "https://docs.rs/mcap"
 readme = "README.md"
-version = "0.13.1"
+version = "0.13.2"
 edition = "2021"
 license = "MIT"
 
diff --git a/rust/src/sans_io/read.rs b/rust/src/sans_io/read.rs
index cb5f04c09..5d38293f7 100644
--- a/rust/src/sans_io/read.rs
+++ b/rust/src/sans_io/read.rs
@@ -96,6 +96,14 @@ impl RwBuf {
     // returns a mutable view of the un-written part of the buffer, resizing as needed to ensure
     // N bytes are available to write into.
     fn tail_with_size(&mut self, n: usize) -> &mut [u8] {
+        let unread_len = self.end - self.start;
+        // Compact the output buffer if there is sufficient free space and there is more free
+        // than used.
+        if self.start > 4096 && self.start > unread_len {
+            self.data.copy_within(self.start..self.end, 0);
+            self.start = 0;
+            self.end = unread_len;
+        }
         let desired_end = self.end + n;
         self.data.resize(desired_end, 0);
         &mut self.data[self.end..]
@@ -318,10 +326,6 @@ impl LinearReader {
             self.file_data.end += written;
         }
 
-        if self.file_data.len() == 0 {
-            self.file_data.clear();
-        }
-
         /// Macros for loading data into the reader. These return early with NeedMore(n) if
         /// more data is needed.
         ///
@@ -1029,4 +1033,72 @@ mod tests {
         );
         Ok(())
     }
+
+    // Ensures that the internal buffer for the linear reader gets compacted regularly and does not
+    // expand unbounded.
+    #[test]
+    fn test_buffer_compaction() -> McapResult<()> {
+        let mut buf = Vec::new();
+        {
+            let mut cursor = std::io::Cursor::new(buf);
+            let data = Vec::from_iter(std::iter::repeat(0x20u8).take(1024 * 1024 * 4));
+            let mut writer = crate::WriteOptions::new()
+                .compression(None)
+                .chunk_size(None)
+                .create(&mut cursor)?;
+            let channel = std::sync::Arc::new(crate::Channel {
+                topic: "chat".to_owned(),
+                schema: None,
+                message_encoding: "json".to_owned(),
+                metadata: BTreeMap::new(),
+            });
+            writer.add_channel(&channel)?;
+            for n in 0..3 {
+                writer.write(&crate::Message {
+                    channel: channel.clone(),
+                    sequence: n,
+                    log_time: n as u64,
+                    publish_time: n as u64,
+                    data: std::borrow::Cow::Borrowed(&data[..]),
+                })?;
+                if n == 1 {
+                    writer.flush()?;
+                }
+            }
+            writer.finish()?;
+            drop(writer);
+            buf = cursor.into_inner();
+        }
+        let mut reader = LinearReader::new();
+        let mut cursor = std::io::Cursor::new(buf);
+        let mut opcodes: Vec<u8> = Vec::new();
+        let mut iter_count = 0;
+        let mut max_needed: usize = 0;
+        while let Some(action) = reader.next_action() {
+            match action? {
+                ReadAction::NeedMore(n) => {
+                    max_needed = std::cmp::max(max_needed, n);
+                    // read slightly more than requested, such that the data in the buffer does not
+                    // hit zero after the next action.
+                    let written = cursor.read(reader.insert(n + 1))?;
+                    reader.set_written(written);
+                    let buffer_size = reader.file_data.data.len();
+                    assert!(
+                        buffer_size < std::cmp::max(max_needed * 2, 4096),
+                        "max needed: {0}, buffer size: {1}",
+                        max_needed,
+                        buffer_size
+                    );
+                }
+                ReadAction::GetRecord { data, opcode } => {
+                    opcodes.push(opcode);
+                    parse_record(opcode, data)?;
+                }
+            }
+            iter_count += 1;
+            // guard against infinite loop
+            assert!(iter_count < 10000);
+        }
+        Ok(())
+    }
 }