diff --git a/package-lock.json b/package-lock.json
index fa181d291b..e50741f3a6 100644
--- a/package-lock.json
+++ b/package-lock.json
@@ -36995,9 +36995,9 @@
       }
     },
     "node_modules/react-resizable-panels": {
-      "version": "1.0.1",
-      "resolved": "https://registry.npmjs.org/react-resizable-panels/-/react-resizable-panels-1.0.1.tgz",
-      "integrity": "sha512-bFKrVLO6VCDp9+zXvLybB3Ldd7MF+Q6E+qE6sxlDfVAlIwEWksJ94CD5RNXTN9a0E3YyAZUkhJEw3a9aCgymzA==",
+      "version": "1.0.3",
+      "resolved": "https://registry.npmjs.org/react-resizable-panels/-/react-resizable-panels-1.0.3.tgz",
+      "integrity": "sha512-d54mBF/T6S51ZAU7s8SjLMa9hnLIhBHi35GJkdzC+gsEOpm8IEQ5odJid1AWi8neGfGm2HDANGo8Ndc6C8ISdw==",
       "dev": true,
       "peerDependencies": {
         "react": "^16.14.0 || ^17.0.0 || ^18.0.0",
@@ -46697,7 +46697,7 @@
         "react-i18next": "^13.3.1",
         "react-linkify": "^1.0.0-alpha",
         "react-refresh": "^0.14.0",
-        "react-resizable-panels": "^1.0.1",
+        "react-resizable-panels": "^1.0.3",
         "react2angular": "^4.0.6",
         "react2angular-shared-context": "^1.1.0",
         "requirejs": "^2.3.6",
@@ -55494,7 +55494,7 @@
         "react-i18next": "^13.3.1",
         "react-linkify": "^1.0.0-alpha",
         "react-refresh": "^0.14.0",
-        "react-resizable-panels": "^1.0.1",
+        "react-resizable-panels": "^1.0.3",
         "react2angular": "^4.0.6",
         "react2angular-shared-context": "^1.1.0",
         "recurly": "^4.0.0",
@@ -78807,9 +78807,9 @@
       }
     },
     "react-resizable-panels": {
-      "version": "1.0.1",
-      "resolved": "https://registry.npmjs.org/react-resizable-panels/-/react-resizable-panels-1.0.1.tgz",
-      "integrity": "sha512-bFKrVLO6VCDp9+zXvLybB3Ldd7MF+Q6E+qE6sxlDfVAlIwEWksJ94CD5RNXTN9a0E3YyAZUkhJEw3a9aCgymzA==",
+      "version": "1.0.3",
+      "resolved": "https://registry.npmjs.org/react-resizable-panels/-/react-resizable-panels-1.0.3.tgz",
+      "integrity": "sha512-d54mBF/T6S51ZAU7s8SjLMa9hnLIhBHi35GJkdzC+gsEOpm8IEQ5odJid1AWi8neGfGm2HDANGo8Ndc6C8ISdw==",
       "dev": true,
       "requires": {}
     },
diff --git a/services/web/frontend/js/features/ide-react/components/layout/main-layout.tsx b/services/web/frontend/js/features/ide-react/components/layout/main-layout.tsx
index b874640898..acafa7ab33 100644
--- a/services/web/frontend/js/features/ide-react/components/layout/main-layout.tsx
+++ b/services/web/frontend/js/features/ide-react/components/layout/main-layout.tsx
@@ -65,7 +65,7 @@ export const MainLayout: FC = () => {
             id="panel-sidebar"
             order={1}
             defaultSize={10}
-            minSize={10}
+            minSize={5}
             maxSize={30}
             collapsible
             onCollapse={handleSidebarCollapse}
@@ -114,7 +114,7 @@ export const MainLayout: FC = () => {
                 id="panel-chat"
                 order={2}
                 defaultSize={20}
-                minSize={10}
+                minSize={5}
                 maxSize={30}
                 collapsible
                 onCollapse={handleChatCollapse}
diff --git a/services/web/frontend/js/features/ide-react/hooks/use-collapsible-panel.ts b/services/web/frontend/js/features/ide-react/hooks/use-collapsible-panel.ts
index 9aabe2734c..bc87a3e6fa 100644
--- a/services/web/frontend/js/features/ide-react/hooks/use-collapsible-panel.ts
+++ b/services/web/frontend/js/features/ide-react/hooks/use-collapsible-panel.ts
@@ -5,29 +5,15 @@ export default function useCollapsiblePanel(
   panelIsOpen: boolean,
   panelRef: RefObject<ImperativePanelHandle>
 ) {
-  // store the expanded height in localStorage when collapsing,
-  // so it can be restored when expanding after reloading the page
+  // collapse the panel when it is toggled closed (including on initial layout)
   useEffect(() => {
     const panelHandle = panelRef.current
 
     if (panelHandle) {
-      const storageKey = `ide-panel.expanded-size.${panelHandle.getId()}`
-      if (!panelIsOpen) {
-        // collapsing, so store the current size if > 0
-        const size = panelHandle.getSize()
-        if (size > 0) {
-          localStorage.setItem(storageKey, String(size))
-        }
-
-        panelHandle.collapse()
+      if (panelIsOpen) {
+        panelHandle.expand()
       } else {
-        const storedKey = localStorage.getItem(storageKey)
-
-        if (storedKey) {
-          panelHandle.resize(Number(storedKey))
-        } else {
-          panelHandle.expand()
-        }
+        panelHandle.collapse()
       }
     }
   }, [panelIsOpen, panelRef])
diff --git a/services/web/package.json b/services/web/package.json
index 5d1c02f870..e565bba3ce 100644
--- a/services/web/package.json
+++ b/services/web/package.json
@@ -332,7 +332,7 @@
     "react-i18next": "^13.3.1",
     "react-linkify": "^1.0.0-alpha",
     "react-refresh": "^0.14.0",
-    "react-resizable-panels": "^1.0.1",
+    "react-resizable-panels": "^1.0.3",
     "react2angular": "^4.0.6",
     "react2angular-shared-context": "^1.1.0",
     "requirejs": "^2.3.6",