diff --git a/CHANGELOG.md b/CHANGELOG.md
index 2ba3d34b..46011a60 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -1,3 +1,7 @@
+# 7.8.6 - 2026-02-09
+
+fix: limit collections scanning in code variables
+
 # 7.8.5 - 2026-02-09
 
 fix: further optimize code variables pattern matching
diff --git a/posthog/exception_utils.py b/posthog/exception_utils.py
index 4cec07e4..4cdee77d 100644
--- a/posthog/exception_utils.py
+++ b/posthog/exception_utils.py
@@ -66,6 +66,7 @@
 CODE_VARIABLES_TOO_LONG_VALUE = "$$_posthog_value_too_long_$$"
 
 _MAX_VALUE_LENGTH_FOR_PATTERN_MATCH = 5_000
+_MAX_COLLECTION_ITEMS_TO_SCAN = 100
 _REGEX_METACHARACTERS = frozenset(r"\.^$*+?{}[]|()")
 
 DEFAULT_TOTAL_VARIABLES_SIZE_LIMIT = 20 * 1024
@@ -991,6 +992,8 @@ def _mask_sensitive_data(value, compiled_mask, _seen=None):
         _seen.add(obj_id)
 
     if isinstance(value, dict):
+        if len(value) > _MAX_COLLECTION_ITEMS_TO_SCAN:
+            return CODE_VARIABLES_TOO_LONG_VALUE
         result = {}
         for k, v in value.items():
             key_str = str(k) if not isinstance(k, str) else k
@@ -1002,6 +1005,8 @@ def _mask_sensitive_data(value, compiled_mask, _seen=None):
                 result[k] = _mask_sensitive_data(v, compiled_mask, _seen)
         return result
     elif isinstance(value, (list, tuple)):
+        if len(value) > _MAX_COLLECTION_ITEMS_TO_SCAN:
+            return CODE_VARIABLES_TOO_LONG_VALUE
         masked_items = [
             _mask_sensitive_data(item, compiled_mask, _seen) for item in value
         ]
diff --git a/posthog/test/test_exception_capture.py b/posthog/test/test_exception_capture.py
index a90a000e..3d2f8d08 100644
--- a/posthog/test/test_exception_capture.py
+++ b/posthog/test/test_exception_capture.py
@@ -639,3 +639,51 @@ def test_compile_patterns_fast_path_and_regex_fallback():
 
     # No match
     assert _pattern_matches("safe_var", mixed) is False
+
+
+def test_mask_sensitive_data_large_dict_replaced():
+    from posthog.exception_utils import (
+        CODE_VARIABLES_TOO_LONG_VALUE,
+        _compile_patterns,
+        _mask_sensitive_data,
+    )
+
+    compiled_mask = _compile_patterns([r"(?i)password"])
+
+    large_dict = {f"key_{i}": f"value_{i}" for i in range(300)}
+
+    result = _mask_sensitive_data(large_dict, compiled_mask)
+
+    assert result == CODE_VARIABLES_TOO_LONG_VALUE
+
+
+def test_mask_sensitive_data_large_list_replaced():
+    from posthog.exception_utils import (
+        CODE_VARIABLES_TOO_LONG_VALUE,
+        _compile_patterns,
+        _mask_sensitive_data,
+    )
+
+    compiled_mask = _compile_patterns([r"(?i)password"])
+
+    large_list = [f"item_{i}" for i in range(300)]
+
+    result = _mask_sensitive_data(large_list, compiled_mask)
+
+    assert result == CODE_VARIABLES_TOO_LONG_VALUE
+
+
+def test_mask_sensitive_data_large_tuple_replaced():
+    from posthog.exception_utils import (
+        CODE_VARIABLES_TOO_LONG_VALUE,
+        _compile_patterns,
+        _mask_sensitive_data,
+    )
+
+    compiled_mask = _compile_patterns([r"(?i)password"])
+
+    large_tuple = tuple(f"item_{i}" for i in range(300))
+
+    result = _mask_sensitive_data(large_tuple, compiled_mask)
+
+    assert result == CODE_VARIABLES_TOO_LONG_VALUE
diff --git a/posthog/version.py b/posthog/version.py
index 9581625a..08a3bb39 100644
--- a/posthog/version.py
+++ b/posthog/version.py
@@ -1,4 +1,4 @@
-VERSION = "7.8.5"
+VERSION = "7.8.6"
 
 if __name__ == "__main__":
     print(VERSION, end="")  # noqa: T201