diff --git a/packages/raystack/components/code-block/__tests__/code-block.test.tsx b/packages/raystack/components/code-block/__tests__/code-block.test.tsx
index 5c3963689..4bd22c031 100644
--- a/packages/raystack/components/code-block/__tests__/code-block.test.tsx
+++ b/packages/raystack/components/code-block/__tests__/code-block.test.tsx
@@ -186,5 +186,35 @@ describe('CodeBlock', () => {
 
       expect(screen.getByText('Show Code')).toBeInTheDocument();
     });
+
+    it('renders maxLines lines when collapsed', () => {
+      const { container } = render(
+        <BasicCodeBlock maxLines={2} hasCollapseTrigger />
+      );
+
+      expect(
+        container.querySelectorAll('[data-slot="code-block-line"]')
+      ).toHaveLength(2);
+    });
+
+    it('hides collapse trigger when code fits in maxLines', () => {
+      render(<BasicCodeBlock maxLines={3} hasCollapseTrigger />);
+
+      expect(screen.queryByText('Show Code')).not.toBeInTheDocument();
+    });
+
+    it('counts bare \\r as a line break', () => {
+      const code = 'a\rb\rc';
+      render(
+        <CodeBlock maxLines={2}>
+          <CodeBlock.Content>
+            <CodeBlock.Code language='jsx'>{code}</CodeBlock.Code>
+            <CodeBlock.CollapseTrigger />
+          </CodeBlock.Content>
+        </CodeBlock>
+      );
+
+      expect(screen.getByText('Show Code')).toBeInTheDocument();
+    });
   });
 });
diff --git a/packages/raystack/components/code-block/code-block-misc.tsx b/packages/raystack/components/code-block/code-block-misc.tsx
index b96e93717..055ae6944 100644
--- a/packages/raystack/components/code-block/code-block-misc.tsx
+++ b/packages/raystack/components/code-block/code-block-misc.tsx
@@ -78,9 +78,9 @@ export function CodeBlockCollapseTrigger({
 }: CodeBlockCollapseTriggerProps) {
   const { maxLines, collapsed, toggleCollapsed, code } = useCodeBlockContext();
   const canCollapse = maxLines && maxLines > 0;
-  const lineCount = code?.split('\n').length ?? 0;
+  const lineCount = code?.split(/\r\n|\r|\n/).length ?? 0;
 
-  if (!canCollapse || lineCount < maxLines) return null;
+  if (!canCollapse || lineCount <= maxLines) return null;
 
   return (
     <Button
diff --git a/packages/raystack/components/code-block/code-block-root.tsx b/packages/raystack/components/code-block/code-block-root.tsx
index 36c059c9b..3d0d43e30 100644
--- a/packages/raystack/components/code-block/code-block-root.tsx
+++ b/packages/raystack/components/code-block/code-block-root.tsx
@@ -95,7 +95,7 @@ export const CodeBlockRoot = ({
         setValue,
         code,
         setCode,
-        maxLines: maxLines && maxLines + 1, // to compensate for the absolute collapse trigger
+        maxLines,
         collapsed,
         toggleCollapsed
       }}
diff --git a/packages/raystack/components/code-block/code-block.module.css b/packages/raystack/components/code-block/code-block.module.css
index db00aa524..263ac1022 100644
--- a/packages/raystack/components/code-block/code-block.module.css
+++ b/packages/raystack/components/code-block/code-block.module.css
@@ -45,9 +45,9 @@
   background-color: var(--rs-color-background-base-secondary);
   border-top: 0.5px solid var(--rs-color-border-base-primary);
 }
-.collapseTrigger.collapsed {
-  position: absolute;
-  bottom: 0;
+/* Collapsed code runs into the trigger, so the cut is visible. */
+.container:has(.collapseTrigger.collapsed) .codeContent {
+  padding-bottom: 0;
 }
 
 /* Code Block Code */