diff --git a/panel/models/html.ts b/panel/models/html.ts
index 773ffa6ea7..77f944d415 100644
--- a/panel/models/html.ts
+++ b/panel/models/html.ts
@@ -44,6 +44,11 @@ export class HTMLView extends PanelMarkupView {
     })
   }
 
+  protected rerender() {
+    this.render()
+    this.invalidate_layout()
+  }
+
   render(): void {
     super.render()
     const html = this.process_tex()
diff --git a/panel/tests/ui/pane/test_markup.py b/panel/tests/ui/pane/test_markup.py
index 6693a6547e..cdcf40ec3b 100644
--- a/panel/tests/ui/pane/test_markup.py
+++ b/panel/tests/ui/pane/test_markup.py
@@ -14,13 +14,26 @@ def test_update_markdown_pane(page, port):
     serve(md, port=port, threaded=True, show=False)
 
     time.sleep(0.2)
-
     page.goto(f"http://localhost:{port}")
 
     assert page.text_content(".bk.markdown") == 'Initial'
-
     md.object = 'Updated'
-
     time.sleep(0.1)
-
     assert page.text_content(".bk.markdown") == 'Updated'
+
+
+def test_update_markdown_pane_resizes(page, port):
+    md = Markdown('Initial')
+
+    serve(md, port=port, threaded=True, show=False)
+
+    time.sleep(0.2)
+    page.goto(f"http://localhost:{port}")
+
+    assert page.locator(".bk.markdown").bounding_box()['height'] == 45
+    md.object = """
+    - Bullet
+    - Points
+    """
+    time.sleep(0.1)
+    assert page.locator(".bk.markdown").bounding_box()['height'] == 64