diff --git a/server/world/chunk/block_network_hash.go b/server/world/chunk/block_network_hash.go
new file mode 100644
index 0000000000..8b5a4e8af7
--- /dev/null
+++ b/server/world/chunk/block_network_hash.go
@@ -0,0 +1,77 @@
+package chunk
+
+import "slices"
+
+// ConvertBlockNetworkHashesToRuntimeIDs converts block palette values from network hashes to registry runtime IDs.
+// Unknown hashes are preserved unchanged.
+func (chunk *Chunk) ConvertBlockNetworkHashesToRuntimeIDs() {
+	if chunk == nil {
+		return
+	}
+	for _, sub := range chunk.sub {
+		sub.ConvertBlockNetworkHashesToRuntimeIDs(chunk.br)
+	}
+}
+
+// ConvertBlockNetworkHashesToRuntimeIDs converts block palette values from network hashes to registry runtime IDs.
+// Unknown hashes are preserved unchanged.
+func (sub *SubChunk) ConvertBlockNetworkHashesToRuntimeIDs(br BlockRegistry) {
+	if sub == nil || br == nil {
+		return
+	}
+	for _, storage := range sub.storages {
+		if storage == nil {
+			continue
+		}
+		storage.palette.Replace(func(runtimeID uint32) uint32 {
+			if converted, ok := br.HashToRuntimeID(runtimeID); ok {
+				return converted
+			}
+			return runtimeID
+		})
+	}
+}
+
+// EncodeWithBlockNetworkHashes encodes c for the network with block palette runtime IDs converted to network hashes.
+// The chunk is cloned before conversion, so the source chunk remains in registry runtime-ID form. Unknown runtime IDs
+// are preserved unchanged.
+func EncodeWithBlockNetworkHashes(c *Chunk) SerialisedData {
+	if c == nil {
+		return SerialisedData{}
+	}
+	networkChunk := c.Clone()
+	for _, sub := range networkChunk.sub {
+		sub.convertRuntimeIDsToBlockNetworkHashes(c.br)
+	}
+	return Encode(networkChunk, NetworkEncoding)
+}
+
+// EncodeSubChunkWithBlockNetworkHashes encodes one sub-chunk for the network with block palette runtime IDs converted
+// to network hashes. The chunk is cloned before conversion, so the source chunk remains unchanged.
+func EncodeSubChunkWithBlockNetworkHashes(c *Chunk, index int) []byte {
+	if c == nil || index < 0 || index >= len(c.sub) {
+		return nil
+	}
+	networkChunk := *c
+	networkChunk.sub = slices.Clone(c.sub)
+	networkChunk.sub[index] = c.sub[index].Clone()
+	networkChunk.sub[index].convertRuntimeIDsToBlockNetworkHashes(c.br)
+	return EncodeSubChunk(&networkChunk, NetworkEncoding, index)
+}
+
+func (sub *SubChunk) convertRuntimeIDsToBlockNetworkHashes(br BlockRegistry) {
+	if sub == nil || br == nil {
+		return
+	}
+	for _, storage := range sub.storages {
+		if storage == nil {
+			continue
+		}
+		storage.palette.Replace(func(runtimeID uint32) uint32 {
+			if hash, ok := br.RuntimeIDToHash(runtimeID); ok {
+				return hash
+			}
+			return runtimeID
+		})
+	}
+}
diff --git a/server/world/chunk/chunk.go b/server/world/chunk/chunk.go
index ddee338b51..a23cfe55a6 100644
--- a/server/world/chunk/chunk.go
+++ b/server/world/chunk/chunk.go
@@ -217,6 +217,14 @@ func (chunk *Chunk) Compact() {
 	}
 }
 
+// CompactForRuntimeCache performs cheap in-memory compaction on chunk block storages. It collapses uniform
+// storages and shrinks oversized storage widths, but avoids scanning multi-value storages for unused palette entries.
+func (chunk *Chunk) CompactForRuntimeCache() {
+	for i := range chunk.sub {
+		chunk.sub[i].compactForRuntimeCache()
+	}
+}
+
 // SubChunk finds the correct SubChunk in the Chunk by a Y value.
 func (chunk *Chunk) SubChunk(y int16) *SubChunk {
 	return chunk.sub[chunk.SubIndex(y)]
diff --git a/server/world/chunk/decode.go b/server/world/chunk/decode.go
index 36a229b8fe..10c4a19414 100644
--- a/server/world/chunk/decode.go
+++ b/server/world/chunk/decode.go
@@ -41,7 +41,7 @@ func NetworkDecodeBuffer(br BlockRegistry, buf *bytes.Buffer, count int, r cube.
 		if index > maxIndex {
 			// TODO: This is a work-around for some JE -> BE converters where there are more sub chunks than expected. It is to be determined if this
 			// will have any side-effects. For now, we will just ignore the sub chunks and not insert them. We still have to decode all of them out of the buffer, however.
-			//return nil, nil, fmt.Errorf("sub chunk index %v is greater than max %v", index, maxIndex)
+			// return nil, nil, fmt.Errorf("sub chunk index %v is greater than max %v", index, maxIndex)
 			continue
 		}
 		newChunk.sub[index] = sub
diff --git a/server/world/chunk/paletted_storage.go b/server/world/chunk/paletted_storage.go
index ac49c67c44..e254a8e9c7 100644
--- a/server/world/chunk/paletted_storage.go
+++ b/server/world/chunk/paletted_storage.go
@@ -166,6 +166,69 @@ func (storage *PalettedStorage) resize(newPaletteSize paletteSize) {
 	*storage = *newStorage
 }
 
+// compactForRuntimeCache performs the cheap subset of compact that is useful for chunks kept in memory.
+// It collapses single-value storages and shrinks oversized storage widths, but avoids scanning multi-value
+// storages for unused palette entries.
+func (storage *PalettedStorage) compactForRuntimeCache() {
+	if storage.palette.Len() == 0 {
+		return
+	}
+	if storage.palette.Len() == 1 {
+		storage.collapseToPaletteIndex(0)
+		return
+	}
+	if index, ok := storage.uniformPaletteIndex(); ok {
+		storage.collapseToPaletteIndex(index)
+		return
+	}
+
+	if size := paletteSizeFor(storage.palette.Len()); size < storage.palette.size {
+		storage.resize(size)
+	}
+}
+
+func (storage *PalettedStorage) uniformPaletteIndex() (uint16, bool) {
+	if storage.bitsPerIndex == 0 {
+		return 0, true
+	}
+	indicesPerWord := uint32BitSize / int(storage.bitsPerIndex)
+	fullWords := 4096 / indicesPerWord
+	remainder := 4096 % indicesPerWord
+	if len(storage.indices) != paletteSize(storage.bitsPerIndex).uint32s() {
+		return 0, false
+	}
+
+	index := uint16(storage.indices[0] & storage.indexMask)
+	fullPattern := repeatedPaletteIndexWord(index, storage.bitsPerIndex, indicesPerWord)
+	for _, word := range storage.indices[:fullWords] {
+		if word != fullPattern {
+			return 0, false
+		}
+	}
+	if remainder != 0 && storage.indices[fullWords] != repeatedPaletteIndexWord(index, storage.bitsPerIndex, remainder) {
+		return 0, false
+	}
+	return index, true
+}
+
+func (storage *PalettedStorage) collapseToPaletteIndex(index uint16) {
+	value := storage.palette.Value(index)
+	storage.bitsPerIndex = 0
+	storage.filledBitsPerIndex = 0
+	storage.indexMask = 0
+	storage.indicesStart = nil
+	storage.indices = nil
+	storage.palette = newPalette(0, []uint32{value})
+}
+
+func repeatedPaletteIndexWord(index uint16, bitsPerIndex uint16, count int) uint32 {
+	var word uint32
+	for i := 0; i < count; i++ {
+		word |= uint32(index) << (uint16(i) * bitsPerIndex)
+	}
+	return word
+}
+
 // compact clears unused indexes in the palette by scanning for usages in the PalettedStorage. This is a
 // relatively heavy task which should only happen right before the sub chunk holding this PalettedStorage is
 // saved to disk. compact also shrinks the palette size if possible.
diff --git a/server/world/chunk/sub_chunk.go b/server/world/chunk/sub_chunk.go
index 7a06680deb..74210e332b 100644
--- a/server/world/chunk/sub_chunk.go
+++ b/server/world/chunk/sub_chunk.go
@@ -133,6 +133,21 @@ func (sub *SubChunk) SkyLight(x, y, z byte) uint8 {
 	return (sub.skyLight[index>>1] >> ((index & 1) << 2)) & 0xf
 }
 
+// compactForRuntimeCache performs cheap in-memory compaction on the sub chunk. Unlike compact, it does not scan
+// multi-value storages for unused palette entries unless they are uniform and can be detected from packed words.
+func (sub *SubChunk) compactForRuntimeCache() {
+	storages := sub.storages[:0]
+	for _, storage := range sub.storages {
+		storage.compactForRuntimeCache()
+		if storage.palette.Len() == 1 && storage.palette.Value(0) == sub.air {
+			continue
+		}
+		storages = append(storages, storage)
+	}
+	clear(sub.storages[len(storages):])
+	sub.storages = storages
+}
+
 // Compact cleans the garbage from all block storages that sub chunk contains, so that they may be
 // cleanly written to a database.
 func (sub *SubChunk) compact() {