diff --git a/scene/gui/split_container.cpp b/scene/gui/split_container.cpp
index cdf6523c6cb..727c6a96357 100644
--- a/scene/gui/split_container.cpp
+++ b/scene/gui/split_container.cpp
@@ -353,6 +353,7 @@ void SplitContainer::_set_desired_sizes(const PackedInt32Array &p_desired_sizes,
 		real_t min_size = 0;
 		real_t stretch_ratio = 0.0;
 		real_t final_size = 0;
+		bool priority = false;
 	};
 
 	// First pass, determine the total stretch amount.
@@ -364,6 +365,7 @@ void SplitContainer::_set_desired_sizes(const PackedInt32Array &p_desired_sizes,
 		sdata.min_size = child->get_combined_minimum_size()[axis];
 		sdata.final_size = MAX(sdata.min_size, p_desired_sizes.is_empty() ? 0 : p_desired_sizes[i]);
 		total_desired_size += sdata.final_size;
+		sdata.priority = i == p_priority_index;
 		// Treat the priority child as not expanded, so it doesn't shrink with other expanded children.
 		if (i != p_priority_index && child->get_stretch_ratio() > 0 && (vertical ? child->get_v_size_flags() : child->get_h_size_flags()).has_flag(SIZE_EXPAND)) {
 			sdata.stretch_ratio = child->get_stretch_ratio();
@@ -419,13 +421,14 @@ void SplitContainer::_set_desired_sizes(const PackedInt32Array &p_desired_sizes,
 	}
 
 	// Shrink non-expanding children.
+	bool skip_priority_child = true;
 	while (available_space < 0) {
-		// Get largest and target sizes.
+		// Get largest and target sizes. The target size is the second largest size.
 		real_t largest_size = 0;
 		real_t target_size = 0;
 		int largest_count = 0;
 		for (const StretchData &sdata : stretch_data) {
-			if (sdata.final_size <= sdata.min_size) {
+			if (sdata.final_size <= sdata.min_size || (skip_priority_child && sdata.priority)) {
 				continue;
 			}
 			if (sdata.final_size > largest_size) {
@@ -434,18 +437,24 @@ void SplitContainer::_set_desired_sizes(const PackedInt32Array &p_desired_sizes,
 				largest_count = 1;
 			} else if (sdata.final_size == largest_size) {
 				largest_count++;
-			} else if (sdata.final_size < largest_size) {
-				target_size = MAX(sdata.final_size, target_size);
+			} else if (sdata.final_size < largest_size && sdata.final_size > target_size) {
+				target_size = sdata.final_size;
 			}
 		}
 		if (largest_size <= 0) {
-			break;
+			if (skip_priority_child) {
+				// Retry with priority child.
+				skip_priority_child = false;
+				continue;
+			} else {
+				// No more children to shrink.
+				break;
+			}
 		}
 		// Don't shrink smaller than needed.
-		target_size = MAX(target_size, available_space / largest_count);
-		target_size = MIN(target_size, largest_size + (available_space / largest_count));
+		target_size = MAX(target_size, largest_size + available_space / largest_count);
 		for (StretchData &sdata : stretch_data) {
-			if (sdata.final_size <= sdata.min_size) {
+			if (sdata.final_size <= sdata.min_size || (skip_priority_child && sdata.priority)) {
 				continue;
 			}
 			// Shrink all largest elements.
diff --git a/tests/scene/test_split_container.h b/tests/scene/test_split_container.h
index dc4125b8c48..5ccbb576b8e 100644
--- a/tests/scene/test_split_container.h
+++ b/tests/scene/test_split_container.h
@@ -2265,6 +2265,93 @@ TEST_CASE("[SceneTree][SplitContainer] More children") {
 		CHECK_RECTS(get_rects_multi(split_container, pos, sep.x), get_child_rects(split_container));
 	}
 
+	SUBCASE("[SplitContainer] Showing child with not enough space shrinks the largest child first") {
+		set_size_flags(split_container, { -1, -1, -1 }); // None expanded.
+
+		// Second child is largest.
+		child_a->set_visible(false);
+		Vector<int> pos = { 360 };
+		split_container->set_split_offsets(pos);
+
+		MessageQueue::get_singleton()->flush();
+		CHECK(split_container->get_split_offsets() == pos);
+		CHECK_RECTS(get_rects_multi(split_container, pos, sep.x), get_child_rects(split_container));
+
+		child_a->set_size(Vector2(100, 100));
+		MessageQueue::get_singleton()->flush();
+		CHECK(split_container->get_split_offsets() == pos);
+		CHECK_RECTS(get_rects_multi(split_container, pos, sep.x), get_child_rects(split_container));
+
+		child_a->set_visible(true);
+		pos = { 100, 360 };
+		MessageQueue::get_singleton()->flush();
+		CHECK(split_container->get_split_offsets() == pos);
+		CHECK_RECTS(get_rects_multi(split_container, pos, sep.x), get_child_rects(split_container));
+
+		// Last child is largest.
+		child_a->set_visible(false);
+		pos = { 60 };
+		split_container->set_split_offsets(pos);
+
+		MessageQueue::get_singleton()->flush();
+		CHECK(split_container->get_split_offsets() == pos);
+		CHECK_RECTS(get_rects_multi(split_container, pos, sep.x), get_child_rects(split_container));
+
+		child_a->set_size(Vector2(100, 100));
+		MessageQueue::get_singleton()->flush();
+		CHECK(split_container->get_split_offsets() == pos);
+		CHECK_RECTS(get_rects_multi(split_container, pos, sep.x), get_child_rects(split_container));
+
+		child_a->set_visible(true);
+		pos = { 100, 160 + sep.x };
+		MessageQueue::get_singleton()->flush();
+		CHECK(split_container->get_split_offsets() == pos);
+		CHECK_RECTS(get_rects_multi(split_container, pos, sep.x), get_child_rects(split_container));
+
+		// Both visible children are the same size.
+		child_a->set_visible(false);
+		pos = { (int)split_container->get_size().x / 2 - sep.x / 2 };
+		split_container->set_split_offsets(pos);
+
+		MessageQueue::get_singleton()->flush();
+		CHECK(split_container->get_split_offsets() == pos);
+		CHECK_RECTS(get_rects_multi(split_container, pos, sep.x), get_child_rects(split_container));
+		CHECK(child_b->get_size().x == child_c->get_size().x);
+
+		child_a->set_size(Vector2(100, 100));
+		MessageQueue::get_singleton()->flush();
+		CHECK(split_container->get_split_offsets() == pos);
+		CHECK_RECTS(get_rects_multi(split_container, pos, sep.x), get_child_rects(split_container));
+
+		child_a->set_visible(true);
+		pos = { 100, (int)split_container->get_size().x / 2 + 50 };
+		MessageQueue::get_singleton()->flush();
+		CHECK(split_container->get_split_offsets() == pos);
+		CHECK_RECTS(get_rects_multi(split_container, pos, sep.x), get_child_rects(split_container));
+		CHECK(child_b->get_size().x == child_c->get_size().x);
+
+		// Second child is slightly larger than the last child.
+		child_a->set_visible(false);
+		pos = { (int)split_container->get_size().x / 2 - sep.x / 2 + 20 };
+		split_container->set_split_offsets(pos);
+
+		MessageQueue::get_singleton()->flush();
+		CHECK(split_container->get_split_offsets() == pos);
+		CHECK_RECTS(get_rects_multi(split_container, pos, sep.x), get_child_rects(split_container));
+
+		child_a->set_size(Vector2(100, 100));
+		MessageQueue::get_singleton()->flush();
+		CHECK(split_container->get_split_offsets() == pos);
+		CHECK_RECTS(get_rects_multi(split_container, pos, sep.x), get_child_rects(split_container));
+
+		child_a->set_visible(true);
+		pos = { 100, (int)split_container->get_size().x / 2 + 50 };
+		MessageQueue::get_singleton()->flush();
+		CHECK(split_container->get_split_offsets() == pos);
+		CHECK_RECTS(get_rects_multi(split_container, pos, sep.x), get_child_rects(split_container));
+		CHECK(child_b->get_size().x == child_c->get_size().x);
+	}
+
 	memdelete(split_container);
 }