diff --git a/frontend/lib/src/components/widgets/CustomComponent/ComponentInstance.test.tsx b/frontend/lib/src/components/widgets/CustomComponent/ComponentInstance.test.tsx
index a69a6380e579..572c2179e45e 100644
--- a/frontend/lib/src/components/widgets/CustomComponent/ComponentInstance.test.tsx
+++ b/frontend/lib/src/components/widgets/CustomComponent/ComponentInstance.test.tsx
@@ -146,6 +146,54 @@ describe("ComponentInstance", () => {
     expect(iframe).toHaveAttribute("sandbox", DEFAULT_IFRAME_SANDBOX_POLICY)
   })
 
+  it("displays a skeleton initially with a certain height", () => {
+    const componentRegistry = getComponentRegistry()
+    render(
+      <ComponentInstance
+        element={createElementProp()}
+        registry={componentRegistry}
+        width={100}
+        disabled={false}
+        theme={mockTheme.emotion}
+        widgetMgr={
+          new WidgetStateManager({
+            sendRerunBackMsg: jest.fn(),
+            formsDataChanged: jest.fn(),
+          })
+        }
+      />
+    )
+    const skeleton = screen.getByTestId("stSkeleton")
+    expect(skeleton).toBeInTheDocument()
+    expect(skeleton).toHaveStyle("height: 2.75rem")
+
+    const iframe = screen.getByTitle(MOCK_COMPONENT_NAME)
+    expect(iframe).toHaveAttribute("height", "0")
+  })
+
+  it("will not displays a skeleton when height is explicitly set to 0", () => {
+    const componentRegistry = getComponentRegistry()
+    render(
+      <ComponentInstance
+        element={createElementProp({ height: 0 })}
+        registry={componentRegistry}
+        width={100}
+        disabled={false}
+        theme={mockTheme.emotion}
+        widgetMgr={
+          new WidgetStateManager({
+            sendRerunBackMsg: jest.fn(),
+            formsDataChanged: jest.fn(),
+          })
+        }
+      />
+    )
+    expect(screen.queryByTestId("stSkeleton")).not.toBeInTheDocument()
+
+    const iframe = screen.getByTitle(MOCK_COMPONENT_NAME)
+    expect(iframe).toHaveAttribute("height", "0")
+  })
+
   describe("COMPONENT_READY handler", () => {
     it("posts a RENDER message to the iframe", () => {
       const jsonArgs = { foo: "string", bar: 5 }
@@ -184,6 +232,43 @@ describe("ComponentInstance", () => {
       expect(postMessage).toHaveBeenCalledWith(renderMsg(jsonArgs, []), "*")
     })
 
+    it("hides the skeleton and maintains iframe height of 0", () => {
+      const componentRegistry = getComponentRegistry()
+      render(
+        <ComponentInstance
+          element={createElementProp()}
+          registry={componentRegistry}
+          width={100}
+          disabled={false}
+          theme={mockTheme.emotion}
+          widgetMgr={
+            new WidgetStateManager({
+              sendRerunBackMsg: jest.fn(),
+              formsDataChanged: jest.fn(),
+            })
+          }
+        />
+      )
+
+      const iframe = screen.getByTitle(MOCK_COMPONENT_NAME)
+
+      // SET COMPONENT_READY
+      fireEvent(
+        window,
+        new MessageEvent("message", {
+          data: {
+            isStreamlitMessage: true,
+            apiVersion: 1,
+            type: ComponentMessageType.COMPONENT_READY,
+          },
+          // @ts-expect-error
+          source: iframe.contentWindow,
+        })
+      )
+      expect(screen.queryByTestId("stSkeleton")).not.toBeInTheDocument()
+      expect(iframe).toHaveAttribute("height", "0")
+    })
+
     it("prevents RENDER message until component is ready", () => {
       const jsonArgs = { foo: "string", bar: 5 }
       const componentRegistry = getComponentRegistry()
diff --git a/frontend/lib/src/components/widgets/CustomComponent/ComponentInstance.tsx b/frontend/lib/src/components/widgets/CustomComponent/ComponentInstance.tsx
index 4db1fb805138..36d6e82a35da 100644
--- a/frontend/lib/src/components/widgets/CustomComponent/ComponentInstance.tsx
+++ b/frontend/lib/src/components/widgets/CustomComponent/ComponentInstance.tsx
@@ -119,24 +119,6 @@ function getWarnMessage(componentName: string, url?: string): string {
   return message
 }
 
-type HeightUnit = "px"
-/**
- * Parse the height as a string and add the unit as a suffix, e.g. `(42) => '42px'`
- *
- * @param height height number
- * @returns the height number as a string with suffix or `undefined` if `height` is `undefined`
- */
-function parseToStringWithUnitSuffix(
-  height?: number,
-  unit: HeightUnit = "px"
-): string | undefined {
-  if (!height) {
-    return undefined
-  }
-
-  return `${height}${unit}`
-}
-
 function tryParseArgs(
   jsonArgs: string,
   specialArgs: ISpecialArg[],
@@ -215,7 +197,8 @@ function ComponentInstance(props: Props): ReactElement {
   const [isReadyTimeout, setIsReadyTimeout] = useState<boolean>()
   // By passing the args.height here, we can derive the initial height for
   // custom components that define a height property, e.g. in Python
-  // my_custom_component(height=100)
+  // my_custom_component(height=100). undefined means no explicit height
+  // was specified, but will be set to the default height of 0.
   const [frameHeight, setFrameHeight] = useState<number | undefined>(
     isNaN(parsedNewArgs.height) ? undefined : parsedNewArgs.height
   )
@@ -351,9 +334,15 @@ function ComponentInstance(props: Props): ReactElement {
 
   // Show the loading Skeleton while we have not received the ready message from the custom component
   // but while we also have not waited until the ready timeout
-  const loadingSkeleton = !isReadyRef.current && !isReadyTimeout && (
-    <Skeleton height={parseToStringWithUnitSuffix(frameHeight)} />
-  )
+  const loadingSkeleton = !isReadyRef.current &&
+    !isReadyTimeout &&
+    // if height is explicitly set to 0, we don’t want to show the skeleton at all
+    frameHeight !== 0 && (
+      // Skeletons will have a default height if no frameHeight was specified
+      <Skeleton
+        height={frameHeight === undefined ? undefined : `${frameHeight}px`}
+      />
+    )
 
   // If we've timed out waiting for the READY message from the component,
   // display a warning.
@@ -389,7 +378,8 @@ function ComponentInstance(props: Props): ReactElement {
         ref={iframeRef}
         src={getSrc(componentName, registry, url)}
         width={width}
-        height={frameHeight}
+        // for undefined height we set the height to 0 to avoid inconsistent behavior
+        height={frameHeight ?? 0}
         style={{
           colorScheme: "light dark",
           display: isReadyRef.current ? "initial" : "none",