diff --git a/hyperdrive/src/kernel/process.rs b/hyperdrive/src/kernel/process.rs
index b1a1c27aa..f1c2d279d 100644
--- a/hyperdrive/src/kernel/process.rs
+++ b/hyperdrive/src/kernel/process.rs
@@ -1,9 +1,13 @@
 use crate::KERNEL_PROCESS_ID;
+use bytes::{BufMut, Bytes, BytesMut};
 use lib::{types::core as t, v1::ProcessV1};
 use std::{
     collections::{HashMap, VecDeque},
     path::PathBuf,
-    sync::Arc,
+    sync::{
+        atomic::{AtomicUsize, Ordering},
+        Arc, Mutex as StdMutex,
+    },
 };
 use tokio::{fs, sync::Mutex, task::JoinHandle};
 use wasmtime::{
@@ -11,9 +15,13 @@ use wasmtime::{
     Engine, Store,
 };
 use wasmtime_wasi::{
-    p2::{pipe::MemoryOutputPipe, IoView, WasiCtx, WasiCtxBuilder, WasiView},
+    p2::{
+        pipe::MemoryOutputPipe, IoView, StdoutStream, StreamResult, WasiCtx, WasiCtxBuilder,
+        WasiView,
+    },
     DirPerms, FilePerms,
 };
+use wasmtime_wasi_io::{async_trait, poll::Pollable, streams::OutputStream};
 
 use super::RestartBackoff;
 
@@ -78,9 +86,9 @@ impl WasiView for ProcessWasiV1 {
 async fn make_table_and_wasi(
     home_directory_path: PathBuf,
     process_state: &ProcessState,
-) -> (Table, WasiCtx, MemoryOutputPipe) {
+) -> (Table, WasiCtx, RotatingOutputPipe) {
     let table = Table::new();
-    let wasi_stderr = MemoryOutputPipe::new(STACK_TRACE_SIZE);
+    let wasi_stderr = RotatingOutputPipe::new(STACK_TRACE_SIZE);
 
     #[cfg(unix)]
     let tmp_path = home_directory_path
@@ -126,7 +134,7 @@ async fn make_component_v1(
     wasm_bytes: &[u8],
     home_directory_path: PathBuf,
     process_state: ProcessState,
-) -> anyhow::Result<(ProcessV1, Store<ProcessWasiV1>, MemoryOutputPipe)> {
+) -> anyhow::Result<(ProcessV1, Store<ProcessWasiV1>, RotatingOutputPipe)> {
     let our_process_id = process_state.metadata.our.process.clone();
     let send_to_terminal = process_state.send_to_terminal.clone();
 
@@ -483,3 +491,150 @@ pub async fn make_process_loop(
     }
     Ok(())
 }
+
+#[derive(Clone)]
+pub struct RotatingOutputPipe {
+    pipes: Arc<StdMutex<Vec<MemoryOutputPipe>>>,
+    current_pipe: Arc<StdMutex<usize>>,
+    capacity_per_pipe: usize,
+    max_pipes: usize,
+    bytes_written: Arc<AtomicUsize>,
+}
+
+impl RotatingOutputPipe {
+    pub fn new(total_capacity: usize) -> Self {
+        // Use multiple smaller pipes to avoid blocking
+        let max_pipes = 2;
+        let capacity_per_pipe = total_capacity / max_pipes;
+
+        let mut pipes = Vec::new();
+        for _ in 0..max_pipes {
+            pipes.push(MemoryOutputPipe::new(capacity_per_pipe));
+        }
+
+        Self {
+            pipes: Arc::new(StdMutex::new(pipes)),
+            current_pipe: Arc::new(StdMutex::new(0)),
+            capacity_per_pipe,
+            max_pipes,
+            bytes_written: Arc::new(AtomicUsize::new(0)),
+        }
+    }
+
+    pub fn contents(&self) -> Bytes {
+        let pipes = self.pipes.lock().unwrap();
+        let current = *self.current_pipe.lock().unwrap();
+
+        // Collect contents from all pipes
+        let mut all_data = BytesMut::new();
+
+        // Start from the next pipe after current (oldest data)
+        for i in 0..self.max_pipes {
+            let idx = (current + 1 + i) % self.max_pipes;
+            let pipe_contents = pipes[idx].contents();
+            all_data.put_slice(&pipe_contents);
+        }
+
+        all_data.freeze()
+    }
+
+    pub fn try_into_bytes(self) -> Option<Bytes> {
+        Some(self.contents())
+    }
+}
+
+impl StdoutStream for RotatingOutputPipe {
+    fn stream(&self) -> Box<dyn OutputStream> {
+        let pipes = self.pipes.lock().unwrap();
+        let current = *self.current_pipe.lock().unwrap();
+
+        // Create a wrapper that monitors writes and switches pipes when needed
+        Box::new(RotatingWrapperStream {
+            pipes: self.pipes.clone(),
+            current_pipe: self.current_pipe.clone(),
+            current_stream: pipes[current].stream(),
+            capacity_per_pipe: self.capacity_per_pipe,
+            bytes_written_to_current: 0,
+            bytes_written: self.bytes_written.clone(),
+        })
+    }
+
+    fn isatty(&self) -> bool {
+        false
+    }
+}
+
+struct RotatingWrapperStream {
+    pipes: Arc<StdMutex<Vec<MemoryOutputPipe>>>,
+    current_pipe: Arc<StdMutex<usize>>,
+    current_stream: Box<dyn OutputStream>,
+    capacity_per_pipe: usize,
+    bytes_written_to_current: usize,
+    bytes_written: Arc<AtomicUsize>,
+}
+
+impl OutputStream for RotatingWrapperStream {
+    fn write(&mut self, bytes: Bytes) -> StreamResult<()> {
+        let bytes_len = bytes.len();
+
+        // Check if we need to switch to a new pipe
+        if self.bytes_written_to_current + bytes_len > self.capacity_per_pipe * 90 / 100 {
+            // Switch to next pipe (this will overwrite old data in a circular fashion)
+            let mut pipes = self.pipes.lock().unwrap();
+            let mut current = self.current_pipe.lock().unwrap();
+
+            *current = (*current + 1) % pipes.len();
+
+            // Create a fresh pipe at this position (clearing old data)
+            pipes[*current] = MemoryOutputPipe::new(self.capacity_per_pipe);
+            self.current_stream = pipes[*current].stream();
+            self.bytes_written_to_current = 0;
+        }
+
+        // Write to current stream
+        let result = self.current_stream.write(bytes);
+        if result.is_ok() {
+            self.bytes_written_to_current += bytes_len;
+            self.bytes_written.fetch_add(bytes_len, Ordering::Relaxed);
+        }
+
+        result
+    }
+
+    fn flush(&mut self) -> StreamResult<()> {
+        self.current_stream.flush()
+    }
+
+    fn check_write(&mut self) -> StreamResult<usize> {
+        // Always report available space
+        Ok(self.capacity_per_pipe - self.bytes_written_to_current)
+    }
+}
+
+#[async_trait]
+impl Pollable for RotatingWrapperStream {
+    async fn ready(&mut self) {
+        self.current_stream.ready().await
+    }
+}
+
+#[cfg(test)]
+mod tests {
+    use super::*;
+
+    #[test]
+    fn test_wrapper_rotation() {
+        let pipe = RotatingOutputPipeWrapper::new(100);
+        let mut stream = pipe.stream();
+
+        // Write data that will cause rotation
+        for i in 0..20 {
+            let data = format!("data{:02}", i);
+            stream.write(Bytes::from(data)).unwrap();
+        }
+
+        // Should have rotated and kept recent data
+        let contents = pipe.contents();
+        assert!(contents.len() <= 100);
+    }
+}