diff --git a/docs/changelog.md b/docs/changelog.md
index 878fae6df..c5ccb2337 100644
--- a/docs/changelog.md
+++ b/docs/changelog.md
@@ -39,6 +39,7 @@ As features stabilize some brief notes about them will accumulate here.
 * Wayland: transparent gap under tab bar when window is transparent, split and using per-pane color schemes [#1620](https://github.com/wez/wezterm/issues/1620)
 * Tab bar could show a gap to the right when resizing
 * Padding could show window background rather than pane background around split panes at certain window sizes [#2210](https://github.com/wez/wezterm/issues/2210)
+* Loading dynamic escape sequence scripts from the [iTerm2-Color-Scheme dynamic-colors directory](https://github.com/mbadolato/iTerm2-Color-Schemes/tree/master/dynamic-colors) would only apply the first 7 colors
 
 #### Updated
 * Bundled harfbuzz to 4.4.1
diff --git a/termwiz/src/escape/parser/mod.rs b/termwiz/src/escape/parser/mod.rs
index 69e6a0c28..ef0c70155 100644
--- a/termwiz/src/escape/parser/mod.rs
+++ b/termwiz/src/escape/parser/mod.rs
@@ -845,4 +845,201 @@ mod test {
         let mut p = Parser::new();
         p.parse_as_vec(b"\x9d1337\xff;File\x1b");
     }
+
+    /// vtparse's MAX_OSC was set too low to fully parse this escape sequence.
+    /// This test verifies that the correct number of actions comes back.
+    #[test]
+    fn dynamic_colors() {
+        let mut p = Parser::new();
+        let actions = p.parse_as_vec(b"\x1b]4;0;#000000;1;#aa3731;2;#448c27;3;#cb9000;4;#325cc0;5;#7a3e9d;6;#0083b2;7;#f7f7f7;8;#777777;9;#f05050;10;#60cb00;11;#ffbc5d;12;#007acc;13;#e64ce6;14;#00aacb;15;#f7f7f7\x07");
+        k9::snapshot!(
+            actions,
+            "
+[
+    OperatingSystemCommand(
+        ChangeColorNumber(
+            [
+                ChangeColorPair {
+                    palette_index: 0,
+                    color: Color(
+                        SrgbaTuple(
+                            0.0,
+                            0.0,
+                            0.0,
+                            1.0,
+                        ),
+                    ),
+                },
+                ChangeColorPair {
+                    palette_index: 1,
+                    color: Color(
+                        SrgbaTuple(
+                            0.6666667,
+                            0.21568628,
+                            0.19215687,
+                            1.0,
+                        ),
+                    ),
+                },
+                ChangeColorPair {
+                    palette_index: 2,
+                    color: Color(
+                        SrgbaTuple(
+                            0.26666668,
+                            0.54901963,
+                            0.15294118,
+                            1.0,
+                        ),
+                    ),
+                },
+                ChangeColorPair {
+                    palette_index: 3,
+                    color: Color(
+                        SrgbaTuple(
+                            0.79607844,
+                            0.5647059,
+                            0.0,
+                            1.0,
+                        ),
+                    ),
+                },
+                ChangeColorPair {
+                    palette_index: 4,
+                    color: Color(
+                        SrgbaTuple(
+                            0.19607843,
+                            0.36078432,
+                            0.7529412,
+                            1.0,
+                        ),
+                    ),
+                },
+                ChangeColorPair {
+                    palette_index: 5,
+                    color: Color(
+                        SrgbaTuple(
+                            0.47843137,
+                            0.24313726,
+                            0.6156863,
+                            1.0,
+                        ),
+                    ),
+                },
+                ChangeColorPair {
+                    palette_index: 6,
+                    color: Color(
+                        SrgbaTuple(
+                            0.0,
+                            0.5137255,
+                            0.69803923,
+                            1.0,
+                        ),
+                    ),
+                },
+                ChangeColorPair {
+                    palette_index: 7,
+                    color: Color(
+                        SrgbaTuple(
+                            0.96862745,
+                            0.96862745,
+                            0.96862745,
+                            1.0,
+                        ),
+                    ),
+                },
+                ChangeColorPair {
+                    palette_index: 8,
+                    color: Color(
+                        SrgbaTuple(
+                            0.46666667,
+                            0.46666667,
+                            0.46666667,
+                            1.0,
+                        ),
+                    ),
+                },
+                ChangeColorPair {
+                    palette_index: 9,
+                    color: Color(
+                        SrgbaTuple(
+                            0.9411765,
+                            0.3137255,
+                            0.3137255,
+                            1.0,
+                        ),
+                    ),
+                },
+                ChangeColorPair {
+                    palette_index: 10,
+                    color: Color(
+                        SrgbaTuple(
+                            0.3764706,
+                            0.79607844,
+                            0.0,
+                            1.0,
+                        ),
+                    ),
+                },
+                ChangeColorPair {
+                    palette_index: 11,
+                    color: Color(
+                        SrgbaTuple(
+                            1.0,
+                            0.7372549,
+                            0.3647059,
+                            1.0,
+                        ),
+                    ),
+                },
+                ChangeColorPair {
+                    palette_index: 12,
+                    color: Color(
+                        SrgbaTuple(
+                            0.0,
+                            0.47843137,
+                            0.8,
+                            1.0,
+                        ),
+                    ),
+                },
+                ChangeColorPair {
+                    palette_index: 13,
+                    color: Color(
+                        SrgbaTuple(
+                            0.9019608,
+                            0.29803923,
+                            0.9019608,
+                            1.0,
+                        ),
+                    ),
+                },
+                ChangeColorPair {
+                    palette_index: 14,
+                    color: Color(
+                        SrgbaTuple(
+                            0.0,
+                            0.6666667,
+                            0.79607844,
+                            1.0,
+                        ),
+                    ),
+                },
+                ChangeColorPair {
+                    palette_index: 15,
+                    color: Color(
+                        SrgbaTuple(
+                            0.96862745,
+                            0.96862745,
+                            0.96862745,
+                            1.0,
+                        ),
+                    ),
+                },
+            ],
+        ),
+    ),
+]
+"
+        );
+    }
 }
diff --git a/vtparse/src/lib.rs b/vtparse/src/lib.rs
index 0cf74b025..99ff92af6 100644
--- a/vtparse/src/lib.rs
+++ b/vtparse/src/lib.rs
@@ -294,7 +294,7 @@ impl VTActor for CollectingVTActor {
 }
 
 const MAX_INTERMEDIATES: usize = 2;
-const MAX_OSC: usize = 16;
+const MAX_OSC: usize = 64;
 const MAX_PARAMS: usize = 32;
 
 struct OscState {
@@ -779,28 +779,20 @@ mod test {
 
     #[test]
     fn test_osc_too_many_params() {
-        assert_eq!(
-            parse_as_vec(b"\x1b]0;1;2;3;4;5;6;7;8;9;a;b;c;d;e;f;g\x07"),
-            vec![VTAction::OscDispatch(vec![
-                b"0".to_vec(),
-                b"1".to_vec(),
-                b"2".to_vec(),
-                b"3".to_vec(),
-                b"4".to_vec(),
-                b"5".to_vec(),
-                b"6".to_vec(),
-                b"7".to_vec(),
-                b"8".to_vec(),
-                b"9".to_vec(),
-                b"a".to_vec(),
-                b"b".to_vec(),
-                b"c".to_vec(),
-                b"d".to_vec(),
-                b"e".to_vec(),
-                b"f".to_vec(),
-                // g is discarded
-            ])]
-        );
+        let fields = (0..MAX_OSC + 2)
+            .into_iter()
+            .map(|i| i.to_string())
+            .collect::<Vec<_>>();
+        let input = format!("\x1b]{}\x07", fields.join(";"));
+        let actions = parse_as_vec(input.as_bytes());
+        assert_eq!(actions.len(), 1);
+        match &actions[0] {
+            VTAction::OscDispatch(parsed_fields) => {
+                let fields: Vec<_> = fields.into_iter().map(|s| s.as_bytes().to_vec()).collect();
+                assert_eq!(parsed_fields.as_slice(), &fields[0..MAX_OSC]);
+            }
+            other => panic!("Expected OscDispatch but got {:?}", other),
+        }
     }
 
     #[test]