diff --git a/programs/bpf_loader/src/lib.rs b/programs/bpf_loader/src/lib.rs
index 8478abcc3ca6ee..a730e12fcf19e0 100644
--- a/programs/bpf_loader/src/lib.rs
+++ b/programs/bpf_loader/src/lib.rs
@@ -265,11 +265,6 @@ fn create_vm<'a, 'b>(
                 .touch(index_in_transaction as IndexOfAccount)
                 .map_err(|_| ())?;
 
-            if account.is_shared() {
-                // See BorrowedAccount::make_data_mut() as to why we reserve extra
-                // MAX_PERMITTED_DATA_INCREASE bytes here.
-                account.reserve(MAX_PERMITTED_DATA_INCREASE);
-            }
             Ok(account.data_as_mut_slice().as_mut_ptr() as u64)
         })),
     )?;
diff --git a/programs/bpf_loader/src/serialization.rs b/programs/bpf_loader/src/serialization.rs
index 7511a68d271a6f..614918249ac29b 100644
--- a/programs/bpf_loader/src/serialization.rs
+++ b/programs/bpf_loader/src/serialization.rs
@@ -579,6 +579,13 @@ fn deserialize_parameters_aligned<I: IntoIterator<Item = usize>>(
                         borrowed_account.set_data_length(post_len)?;
                         let allocated_bytes = post_len.saturating_sub(pre_len);
                         if allocated_bytes > 0 {
+                            // Just in time resize of data field within the internal AccountSharedData
+                            //
+                            // NOTE: this is an optimization for CoW account mappings, where the account's
+                            // data is not immediately resized with an extra MAX_PERMITTED_DATA_INCREASE,
+                            // but if the realloc did occur (and this branch was taken) then we need to reserve
+                            // max permitted amount of extra space so the subsequent code will work correctly
+                            borrowed_account.reserve(MAX_PERMITTED_DATA_INCREASE)?;
                             borrowed_account
                                 .get_data_mut()?
                                 .get_mut(pre_len..pre_len.saturating_add(allocated_bytes))
diff --git a/sdk/transaction-context/src/lib.rs b/sdk/transaction-context/src/lib.rs
index 1ba52fdaf874a7..1b1793dec5735f 100644
--- a/sdk/transaction-context/src/lib.rs
+++ b/sdk/transaction-context/src/lib.rs
@@ -974,7 +974,12 @@ impl BorrowedAccount<'_> {
         // memory that holds the account but it doesn't actually change content
         // nor length of the account.
         self.make_data_mut();
-        self.account.reserve(additional);
+        // NOTE: we don't call reserve unnecessarily, as the first call to make_data_mut
+        // has already resized the data to an extra MAX_PERMITTED_DATA_INCREASE bytes
+        if additional > MAX_PERMITTED_DATA_INCREASE {
+            self.account
+                .reserve(additional.saturating_sub(MAX_PERMITTED_DATA_INCREASE));
+        }
 
         Ok(())
     }
@@ -1004,9 +1009,6 @@ impl BorrowedAccount<'_> {
         // buffer with MAX_PERMITTED_DATA_INCREASE capacity so that if the
         // transaction reallocs, we don't have to copy the whole account data a
         // second time to fullfill the realloc.
-        //
-        // NOTE: The account memory region CoW code in bpf_loader::create_vm() implements the same
-        // logic and must be kept in sync.
         if self.account.is_shared() {
             self.account.reserve(MAX_PERMITTED_DATA_INCREASE);
         }