diff --git a/NEW_RELEASE_NOTES.md b/NEW_RELEASE_NOTES.md
index 34616ed36f..2567f9f769 100644
--- a/NEW_RELEASE_NOTES.md
+++ b/NEW_RELEASE_NOTES.md
@@ -14,4 +14,5 @@ appropriate header in [RELEASE_NOTES.md](./RELEASE_NOTES.md).
   depth-only passes. [**Requires recompiling materials**]
 - material: fix specularFactor in `LOW_QUALITY` mode. [**Requires recompiling materials**] to take effect.
 - material: Add CRC32 validation for material packages [⚠️ **New Material Version**]
+- material: Improve LineDictionary compression [⚠️ **New Material Version**]
 - Filament is now targeting c++20 (was previously c++17)
diff --git a/libs/filaflat/src/MaterialChunk.cpp b/libs/filaflat/src/MaterialChunk.cpp
index 7e4f561bdb..cd795444f1 100644
--- a/libs/filaflat/src/MaterialChunk.cpp
+++ b/libs/filaflat/src/MaterialChunk.cpp
@@ -144,10 +144,9 @@ bool MaterialChunk::getTextShader(Unflattener unflattener,
         }
         const auto& content = dictionary[lineIndex];
 
-        // Replace null with newline.
+        // remove the terminating null character.
         memcpy(&shaderContent[cursor], content.data(), content.size() - 1);
         cursor += content.size() - 1;
-        shaderContent[cursor++] = '\n';
     }
 
     // Write the terminating null character.
diff --git a/libs/filamat/src/eiff/DictionaryTextChunk.cpp b/libs/filamat/src/eiff/DictionaryTextChunk.cpp
index 8da09f0226..48b5c82c77 100644
--- a/libs/filamat/src/eiff/DictionaryTextChunk.cpp
+++ b/libs/filamat/src/eiff/DictionaryTextChunk.cpp
@@ -15,19 +15,27 @@
  */
 
 #include "DictionaryTextChunk.h"
+#include "Chunk.h"
+#include "Flattener.h"
+#include "LineDictionary.h"
+
+#include <filament/MaterialChunkType.h>
+
+#include <cstddef>
+#include <utility>
 
 namespace filamat {
 
-DictionaryTextChunk::DictionaryTextChunk(LineDictionary&& dictionary, ChunkType chunkType) :
+DictionaryTextChunk::DictionaryTextChunk(LineDictionary&& dictionary, ChunkType const chunkType) :
         Chunk(chunkType), mDictionary(std::move(dictionary)) {
 }
 
 void DictionaryTextChunk::flatten(Flattener& f) {
     // NumStrings
-    f.writeUint32(mDictionary.getLineCount());
+    f.writeUint32(mDictionary.getDictionaryLineCount());
 
     // Strings
-    for (size_t i = 0 ; i < mDictionary.getLineCount() ; i++) {
+    for (LineDictionary::index_t i = 0, c = mDictionary.getDictionaryLineCount() ; i < c ; i++) {
         f.writeString(mDictionary.getString(i).data());
     }
 }
diff --git a/libs/filamat/src/eiff/LineDictionary.cpp b/libs/filamat/src/eiff/LineDictionary.cpp
index c35a8b565c..ec9bb00ae6 100644
--- a/libs/filamat/src/eiff/LineDictionary.cpp
+++ b/libs/filamat/src/eiff/LineDictionary.cpp
@@ -1,5 +1,5 @@
 /*
- * Copyright (C) 2017 The Android Open Source Project
+ * Copyright (C) 2025 The Android Open Source Project
  *
  * Licensed under the Apache License, Version 2.0 (the "License");
  * you may not use this file except in compliance with the License.
@@ -16,50 +16,229 @@
 
 #include "LineDictionary.h"
 
+#include <utils/debug.h>
+#include <utils/Log.h>
+#include <utils/ostream.h>
+
+#include <algorithm>
+#include <cctype>
+#include <cstddef>
+#include <cstdint>
+#include <iterator>
+#include <memory>
+#include <string>
+#include <string_view>
+#include <utility>
+#include <vector>
+
 namespace filamat {
 
-std::string_view LineDictionary::getString(size_t index) const noexcept {
+LineDictionary::LineDictionary() = default;
+
+LineDictionary::~LineDictionary() noexcept {
+    //printStatistics(utils::slog.d);
+}
+
+std::string const& LineDictionary::getString(index_t const index) const noexcept {
     return *mStrings[index];
 }
 
-size_t LineDictionary::getLineCount() const {
+size_t LineDictionary::getDictionaryLineCount() const {
     return mStrings.size();
 }
-
-size_t LineDictionary::getIndex(std::string_view s) const noexcept {
-    if (auto iter = mLineIndices.find(s); iter != mLineIndices.end()) {
-        return iter->second;
-    }
-    return SIZE_MAX;
-}
-
-void LineDictionary::addText(const std::string& line) noexcept {
-    const char* s = line.c_str();
-
-    size_t cur = 0;
-    size_t pos = 0;
-    size_t len = 0;
-
-    while (s[cur] != '\0') {
-        pos = cur;
-        len = 0;
-        while (s[cur] != '\n') {
-            cur++;
-            len++;
+std::vector<LineDictionary::index_t> LineDictionary::getIndices(
+        std::string_view const& line) const noexcept {
+    std::vector<index_t> result;
+    std::vector<std::string_view> const sublines = splitString(line);
+    for (std::string_view const& subline : sublines) {
+        if (auto iter = mLineIndices.find(subline); iter != mLineIndices.end()) {
+            result.push_back(iter->second.index);
         }
-        std::string newLine(s + pos, len);
-        addLine(std::move(newLine));
-        cur++;
+    }
+    return result;
+}
+
+void LineDictionary::addText(std::string_view const text) noexcept {
+    size_t cur = 0;
+    size_t const len = text.length();
+    const char* s = text.data();
+    while (cur < len) {
+        // Start of the current line
+        size_t const pos = cur;
+        // Find the end of the current line or end of text
+        while (cur < len && s[cur] != '\n') {
+            cur++;
+        }
+        // If we found a newline, advance past it for the next iteration, ensuring '\n' is included
+        if (cur < len) {
+            cur++;
+        }
+        addLine({ s + pos, cur - pos });
     }
 }
 
-void LineDictionary::addLine(const std::string&& line) noexcept {
-    // Never add a line twice.
-    if (mLineIndices.find(line) != mLineIndices.end()) {
-        return;
+void LineDictionary::addLine(std::string_view const line) noexcept {
+    auto const lines = splitString(line);
+    for (std::string_view const& subline : lines) {
+        // Never add a line twice.
+        auto pos = mLineIndices.find(subline);
+        if (pos != mLineIndices.end()) {
+            pos->second.count++;
+            continue;
+        }
+        mStrings.emplace_back(std::make_unique<std::string>(subline));
+        mLineIndices.emplace(*mStrings.back(),
+                LineInfo{
+                    .index = index_t(mStrings.size() - 1),
+                    .count = 1 });
     }
-    mStrings.emplace_back(std::make_unique<std::string>(line));
-    mLineIndices.emplace(*mStrings.back(), mStrings.size() - 1);
+}
+
+std::string_view LineDictionary::ltrim(std::string_view s) {
+    s.remove_prefix(std::distance(s.begin(), std::find_if(s.begin(), s.end(),
+            [](unsigned char const c) { return !std::isspace(c); })));
+    return { s.data(), s.size() };
+}
+
+std::pair<size_t, size_t> LineDictionary::findPattern(
+        std::string_view const line, size_t const offset) {
+    // Patterns are ordered from longest to shortest to ensure correct prefix matching.
+    static constexpr std::string_view kPatterns[] = { "hp_copy_", "mp_copy_", "_" };
+
+    const size_t line_len = line.length();
+    for (size_t i = offset; i < line_len; ++i) {
+        // A pattern must be a whole word (or at the start of the string).
+        if (i > 0 && std::isalnum(line[i - 1])) {
+            continue;
+        }
+
+        for (const auto& prefix : kPatterns) {
+            if (line.size() - i >= prefix.size() && line.substr(i, prefix.size()) == prefix) {
+                // A known prefix has been matched. Now, check for a sequence of digits.
+                size_t const startOfDigits = i + prefix.size();
+                if (startOfDigits < line_len && std::isdigit(line[startOfDigits])) {
+                    size_t j = startOfDigits;
+                    while (j < line_len && (j < startOfDigits + 6) && std::isdigit(line[j])) {
+                        j++;
+                    }
+                    // We have a full pattern match (prefix + digits).
+                    return { i, j - i };
+                }
+                // If a prefix is matched but not followed by digits, it's not a valid pattern.
+                // We break to the outer loop to continue searching from the next character,
+                // because we've already checked the longest possible prefix at this position.
+                break;
+            }
+        }
+    }
+    return { std::string_view::npos, 0 }; // No pattern found
+}
+
+std::vector<std::string_view> LineDictionary::splitString(std::string_view const line) {
+    std::vector<std::string_view> result;
+    size_t current_pos = 0;
+
+    if (line.empty()) {
+        result.push_back({});
+        return result;
+    }
+
+    while (current_pos < line.length()) {
+        auto const [match_pos, match_len] = findPattern(line, current_pos);
+
+        if (match_pos == std::string_view::npos) {
+            // No more patterns found, add the rest of the string.
+            result.push_back(line.substr(current_pos));
+            break;
+        }
+
+        // Add the part before the match.
+        if (match_pos > current_pos) {
+            result.push_back(line.substr(current_pos, match_pos - current_pos));
+        }
+
+        // Add the match itself.
+        result.push_back(line.substr(match_pos, match_len));
+
+        // Move cursor past the match.
+        current_pos = match_pos + match_len;
+    }
+
+    return result;
+}
+
+void LineDictionary::printStatistics(utils::io::ostream& stream) const noexcept {
+    std::vector<std::pair<std::string_view, LineInfo>> info;
+    for (auto const& pair : mLineIndices) {
+        info.push_back(pair);
+    }
+
+    // Sort by count, then by index.
+    std::sort(info.begin(), info.end(),
+            [](auto const& lhs, auto const& rhs) {
+        if (lhs.second.count != rhs.second.count) {
+            return lhs.second.count > rhs.second.count;
+        }
+        return lhs.second.index < rhs.second.index;
+    });
+
+    size_t total_size = 0;
+    size_t compressed_size = 0;
+    size_t total_lines = 0;
+    size_t indices_size = 0;
+    size_t indices_size_if_varlen = 0;
+    size_t indices_size_if_varlen_sorted = 0;
+    size_t i = 0;
+    using namespace utils;
+    // Print the dictionary.
+    stream << "Line dictionary:" << io::endl;
+    for (auto const& pair : info) {
+        compressed_size += pair.first.length();
+        total_size += pair.first.length() * pair.second.count;
+        total_lines += pair.second.count;
+        indices_size += sizeof(uint16_t) * pair.second.count;
+        if (pair.second.index <= 127) {
+            indices_size_if_varlen += sizeof(uint8_t) * pair.second.count;
+        } else {
+            indices_size_if_varlen += sizeof(uint16_t) * pair.second.count;
+        }
+        if (i <= 128) {
+            indices_size_if_varlen_sorted += sizeof(uint8_t) * pair.second.count;
+        } else {
+            indices_size_if_varlen_sorted += sizeof(uint16_t) * pair.second.count;
+        }
+        i++;
+        stream << "  " << pair.second.count << ": " << pair.first << io::endl;
+    }
+    stream << "Total size: " << total_size << ", compressed size: " << compressed_size << io::endl;
+    stream << "Saved size: " << total_size - compressed_size << io::endl;
+    stream << "Unique lines: " << mLineIndices.size() << io::endl;
+    stream << "Total lines: " << total_lines << io::endl;
+    stream << "Compression ratio: " << double(total_size) / compressed_size << io::endl;
+    stream << "Average line length (total): " << double(total_size) / total_lines << io::endl;
+    stream << "Average line length (compressed): " << double(compressed_size) / mLineIndices.size() << io::endl;
+    stream << "Indices size: " << indices_size << io::endl;
+    stream << "Indices size (if varlen): " << indices_size_if_varlen << io::endl;
+    stream << "Indices size (if varlen, sorted): " << indices_size_if_varlen_sorted << io::endl;
+
+    // some data we gathered
+
+    // Total size: 751161, compressed size: 59818
+    // Saved size: 691343
+    // Unique lines: 3659
+    // Total lines: 61686
+    // Compression ratio: 12.557440904075696
+    // Average line length (total): 12.177171481373406
+    // Average line length (compressed): 16.34818256354195
+
+
+    // Total size: 751161, compressed size: 263215
+    // Saved size: 487946
+    // Unique lines: 4672
+    // Total lines: 23258
+    // Compression ratio: 2.8537925270216364
+    // Average line length (total): 32.296887092613296
+    // Average line length (compressed): 56.338827054794521
 }
 
 } // namespace filamat
diff --git a/libs/filamat/src/eiff/LineDictionary.h b/libs/filamat/src/eiff/LineDictionary.h
index 9e4c5d58c7..b9edae4d30 100644
--- a/libs/filamat/src/eiff/LineDictionary.h
+++ b/libs/filamat/src/eiff/LineDictionary.h
@@ -17,38 +17,70 @@
 #ifndef TNT_FILAMAT_LINEDICTIONARY_H
 #define TNT_FILAMAT_LINEDICTIONARY_H
 
+#include <cstddef>
 #include <memory>
 #include <string>
 #include <string_view>
 #include <unordered_map>
+#include <utility>
 #include <vector>
 
+namespace utils::io {
+class ostream;
+}
+
 namespace filamat {
 
-// Establish a line <-> id mapping. Use for shader compression when each shader is sliced in lines
-// and each line encoded into a 16 bit id.
 class LineDictionary {
 public:
-    LineDictionary() = default;
+    using index_t = uint32_t;
+
+    LineDictionary();
+    ~LineDictionary() noexcept;
 
     // Due to the presence of unique_ptr, disallow copy construction but allow move construction.
     LineDictionary(LineDictionary const&) = delete;
     LineDictionary(LineDictionary&&) = default;
 
-    void addText(const std::string& text) noexcept;
-    size_t getLineCount() const;
+    // Adds text to the dictionary, parsing it into lines.
+    void addText(std::string_view text) noexcept;
 
+    // Returns the total number of unique lines stored in the dictionary.
+    size_t getDictionaryLineCount() const;
+
+    // Checks if the dictionary is empty.
     bool isEmpty() const noexcept {
         return mStrings.empty();
     }
 
-    std::string_view getString(size_t index) const noexcept;
-    size_t getIndex(std::string_view s) const noexcept;
+    // Retrieves a string by its index.
+    std::string const& getString(index_t index) const noexcept;
+
+    // Retrieves the indices of lines that match the given string view.
+    std::vector<index_t> getIndices(std::string_view const& line) const noexcept;
+
+    // Prints statistics about the dictionary to the given output stream.
+    void printStatistics(utils::io::ostream& stream) const noexcept;
 
 private:
-    void addLine(const std::string&& line) noexcept;
+    // Adds a single line to the dictionary.
+    void addLine(std::string_view line) noexcept;
 
-    std::unordered_map<std::string_view, size_t> mLineIndices;
+    // Trims leading whitespace from a string view.
+    static std::string_view ltrim(std::string_view s);
+
+    // Splits a string view into a vector of string views based on delimiters.
+    static std::vector<std::string_view> splitString(std::string_view line);
+
+    // Finds a pattern within a string view starting from an offset.
+    static std::pair<size_t, size_t> findPattern(std::string_view line, size_t offset);
+
+    struct LineInfo {
+        index_t index;
+        uint32_t count;
+    };
+
+    std::unordered_map<std::string_view, LineInfo> mLineIndices;
     std::vector<std::unique_ptr<std::string>> mStrings;
 };
 
diff --git a/libs/filamat/src/eiff/MaterialTextChunk.cpp b/libs/filamat/src/eiff/MaterialTextChunk.cpp
index b6acd5b9ae..66d3c1aabc 100644
--- a/libs/filamat/src/eiff/MaterialTextChunk.cpp
+++ b/libs/filamat/src/eiff/MaterialTextChunk.cpp
@@ -15,47 +15,67 @@
  */
 
 #include "MaterialTextChunk.h"
+#include "Flattener.h"
+#include "LineDictionary.h"
+#include "ShaderEntry.h"
+
+#include <exception>
+#include <utils/Log.h>
+#include <utils/ostream.h>
+
+#include <cstdint>
+#include <cassert>
+#include <cstddef>
+#include <string_view>
+#include <unordered_map>
+#include <string>
 
 namespace filamat {
 
-void MaterialTextChunk::writeEntryAttributes(size_t entryIndex, Flattener& f) const noexcept {
+void MaterialTextChunk::writeEntryAttributes(size_t const entryIndex, Flattener& f) const noexcept {
     const TextEntry& entry = mEntries[entryIndex];
     f.writeUint8(uint8_t(entry.shaderModel));
     f.writeUint8(entry.variant.key);
     f.writeUint8(uint8_t(entry.stage));
 }
 
-void compressShader(std::string_view src, Flattener &f, const LineDictionary& dictionary) {
+void compressShader(std::string_view const src, Flattener &f, const LineDictionary& dictionary) {
+    if (dictionary.getDictionaryLineCount() > 65536) {
+        slog.e << "Dictionary is too large!" << io::endl;
+        std::terminate();
+    }
+
     f.writeUint32(static_cast<uint32_t>(src.size() + 1));
     f.writeValuePlaceholder();
 
     size_t numLines = 0;
 
     size_t cur = 0;
-
+    size_t const len = src.length();
     const char* s = src.data();
-    while (s[cur] != '\0') {
-        size_t pos = cur;
-        size_t len = 0;
-
-        while (s[cur] != '\n') {
+    while (cur < len) {
+        // Start of the current line
+        size_t const pos = cur;
+        // Find the end of the current line or end of text
+        while (cur < len && s[cur] != '\n') {
             cur++;
-            len++;
+        }
+        // If we found a newline, advance past it for the next iteration, ensuring '\n' is included
+        if (cur < len) {
+            cur++;
+        }
+        std::string_view const newLine{ s + pos, cur - pos };
+
+        auto const indices = dictionary.getIndices(newLine);
+        if (indices.empty()) {
+            slog.e << "Line not found in dictionary!" << io::endl;
+            std::terminate();
         }
 
-        std::string_view newLine(s + pos, len);
-
-        size_t index = dictionary.getIndex(newLine);
-        if (index > UINT16_MAX) {
-            slog.e << "Dictionary returned line index > UINT16_MAX" << io::endl;
-            assert(false);
-            continue;
+        numLines += indices.size();
+        for (auto const index : indices) {
+            f.writeUint16(static_cast<uint16_t>(index));
         }
-
-        f.writeUint16(static_cast<uint16_t>(index));
-        numLines += 1;
-
-        cur++;
     }
     f.writeValue(numLines);
 }