diff --git a/packages/docs/src/.vitepress/theme/components/CodeEditor.vue b/packages/docs/src/.vitepress/theme/components/CodeEditor.vue
index 6ce69dc..1227c58 100644
--- a/packages/docs/src/.vitepress/theme/components/CodeEditor.vue
+++ b/packages/docs/src/.vitepress/theme/components/CodeEditor.vue
@@ -6,8 +6,9 @@
 </template>
 
 <script setup lang="ts">
-import { ref, onMounted, watch } from 'vue';
+import { ref, onMounted, watch, computed } from 'vue';
 import loader, { Monaco } from '@monaco-editor/loader';
+import { type editor } from 'monaco-editor';
 
 import { ImportedLib } from '../utils/useXOCashLibs';
 
@@ -28,16 +29,26 @@ const code = defineModel<string>();
 
 const monacoInstance = ref<Monaco | null>(null);
 const editorContainer = ref<HTMLElement | null>(null);
+const contentHeight = ref(100);
+
+const editorHeight = computed(() => {
+  const codeHeight = contentHeight.value;
+  const height = Math.max(codeHeight, 100);
+  return height;
+})
 
 const emit = defineEmits<{
   (e: 'execute'): void;
 }>();
 
+defineExpose({
+  editorHeight,
+});
+
 watch(props.libs, async () => {
   updateEditorTypes();
 });
 
-
 function updateEditorTypes() {
   monacoInstance.value?.languages.typescript.typescriptDefaults.setExtraLibs(
     Object.entries(props.libs).map(([name, content]) => {
@@ -128,8 +139,34 @@ onMounted(() => {
     editor.onDidChangeModelContent(() => {
       code.value = editor.getValue();
     });
+
+    editor.onDidChangeModelContent(() => {
+      updateEditorHeight(editor);
+    })
+
+    updateEditorHeight(editor);
   });
 })
+
+/**
+ * Update the height of the editor based on the number of lines in the editor.
+ * NOTE: This is a bit of a hack, as 'height: auto' does not work with Monaco Editor
+ * 
+ * @param editor - The editor instance.
+ */
+const updateEditorHeight = (editor: editor.IStandaloneCodeEditor) => {
+  let lineCount = editor.getModel()?.getLineCount();
+  if (!lineCount) return;
+
+  // Add an extra line to the lineCount
+  lineCount += 1;
+
+  // get font size
+  const fontSize = editor.getOption(67);
+
+  const height = lineCount * fontSize
+  contentHeight.value = height;
+}
 </script>
 
 <style scoped>
diff --git a/packages/docs/src/.vitepress/theme/components/CodeSandbox.vue b/packages/docs/src/.vitepress/theme/components/CodeSandbox.vue
index e4bea37..60fc047 100644
--- a/packages/docs/src/.vitepress/theme/components/CodeSandbox.vue
+++ b/packages/docs/src/.vitepress/theme/components/CodeSandbox.vue
@@ -1,13 +1,14 @@
 <template>
   <div class="code-sandbox" :style="sandboxStyle">
+    <!-- Editor Container -->
     <div class="editor-container" :style="editorContainerStyle">
-      <code-editor v-model="code" @execute="executeCode" :style="editorStyle" :libs="libs" :is-dark="isDark"/>
+      <code-editor ref="editorRef" v-model="code" @execute="executeCode" :style="editorStyle" :libs="libs" :is-dark="isDark"/>
       <div class="editor-buttons">
         <button v-if="!hideRunButton" @click="executeCode" class="primary-button ">Run Code</button>
       </div>
     </div>
     
-
+    <!-- Output Container -->
     <div v-if="showLogs || fullHeight" class="output-container" :style="outputContainerStyle">
       <div class="output-container-buttons">
         <button v-if="!fullHeight" @click="showLogs = false" class="secondary-button">Close</button>
@@ -22,6 +23,7 @@
       </div>
     </div>
 
+    <!-- IFrame for running the code -->
     <div class="iframe-container" style="display:none">
       <iframe
         ref="sandboxIframe"
@@ -93,6 +95,7 @@ const code = ref<string>('');
 const logs = ref<ConsoleLog[]>([]);
 const showLogs = ref(false);
 const sandboxIframe = ref<HTMLIFrameElement | null>(null);
+const editorRef = ref<InstanceType<typeof CodeEditor> | null>(null);
 
 // Computed styles based on props
 const sandboxStyle = computed(() => ({
@@ -101,14 +104,29 @@ const sandboxStyle = computed(() => ({
   flexDirection: 'column'
 }));
 
-const editorContainerStyle = computed(() => ({
-  height: props.fullHeight ? props.editorHeight !== 'auto' ? props.editorHeight : '50%' : 'auto',
-  flex: props.fullHeight && props.editorHeight === 'auto' ? '1 0 auto' : 'none',
-  display: 'flex',
-  flexDirection: 'column',
-  position: 'relative',
-  overflow: 'hidden' // Ensure overflowing content doesn't spill out
-}));
+const editorContainerStyle = computed(() => {
+  const baseStyle = {
+    display: 'flex',
+    flexDirection: 'column',
+    position: 'relative',
+    overflow: 'hidden', // Ensure overflowing content doesn't spill out
+    padding: '16px',
+  }
+
+  if (props.fullHeight) {
+    return {
+      ...baseStyle,
+      height: props.editorHeight !== 'auto' ? props.editorHeight : '50%',
+      flex: props.editorHeight === 'auto' ? '1 0 auto' : 'none',
+    }
+  }
+
+  return {
+    ...baseStyle,
+    height: `calc(${editorRef.value?.editorHeight}px + 2 * ${baseStyle.padding})`,
+    flex: props.editorHeight === 'auto' ? '1 0 auto' : 'none',
+  }
+});
 
 const editorStyle = computed(() => ({
   width: '100%',
@@ -379,7 +397,6 @@ defineExpose({
 .editor-container {
   position: relative;
   background: var(--vp-code-block-bg);
-  padding: 16px;
   display: flex;
   flex-direction: column;
   overflow: hidden; /* Contain overflow */
diff --git a/packages/docs/src/tools/sandbox.md b/packages/docs/src/tools/sandbox.md
index 1b5a6cc..1d33898 100644
--- a/packages/docs/src/tools/sandbox.md
+++ b/packages/docs/src/tools/sandbox.md
@@ -26,10 +26,7 @@ The below is Address mess.
 
 <CodeSandbox
 :libs="xocashLibs"
-height="50em"
-editorHeight="30em"
-outputHeight="20em"
-fullHeight>
+>
 
 ```
 import { Address } from '@xocash/stack';
@@ -55,10 +52,7 @@ We can have more than one per page too. For example:
 
 <CodeSandbox
 :libs="xocashLibs"
-height="50em"
-editorHeight="30em"
-outputHeight="20em"
-fullHeight>
+>
 
 ```
 import { BlockchainElectrum } from '@xocash/stack';
@@ -82,10 +76,7 @@ The below demonstrates instantiating a wallet.
 
 <CodeSandbox
 :libs="xocashLibs"
-height="50em"
-editorHeight="30em"
-outputHeight="20em"
-fullHeight>
+>
 
 ```
 import { BlockchainElectrum, WalletP2PKH } from '@xocash/stack';