diff --git a/pkg/vdom/vdom_root.go b/pkg/vdom/vdom_root.go
index cba7871e9..b96490f28 100644
--- a/pkg/vdom/vdom_root.go
+++ b/pkg/vdom/vdom_root.go
@@ -531,87 +531,6 @@ func (r *RootElem) MakeVDom() *VDomElem {
 	return r.makeVDom(r.Root)
 }
 
-func ConvertElemsToTransferElems(elems []VDomElem) []VDomTransferElem {
-	var transferElems []VDomTransferElem
-	textCounter := 0 // Counter for generating unique IDs for #text nodes
-
-	// Helper function to recursively process each VDomElem in preorder
-	var processElem func(elem VDomElem) string
-	processElem = func(elem VDomElem) string {
-		// Handle #text nodes by generating a unique placeholder ID
-		if elem.Tag == "#text" {
-			textId := fmt.Sprintf("text-%d", textCounter)
-			textCounter++
-			transferElems = append(transferElems, VDomTransferElem{
-				WaveId:   textId,
-				Tag:      elem.Tag,
-				Text:     elem.Text,
-				Props:    nil,
-				Children: nil,
-			})
-			return textId
-		}
-
-		// Convert children to WaveId references, handling potential #text nodes
-		childrenIds := make([]string, len(elem.Children))
-		for i, child := range elem.Children {
-			childrenIds[i] = processElem(child) // Children are not roots
-		}
-
-		// Create the VDomTransferElem for the current element
-		transferElem := VDomTransferElem{
-			WaveId:   elem.WaveId,
-			Tag:      elem.Tag,
-			Props:    elem.Props,
-			Children: childrenIds,
-			Text:     elem.Text,
-		}
-		transferElems = append(transferElems, transferElem)
-
-		return elem.WaveId
-	}
-
-	// Start processing each top-level element, marking them as roots
-	for _, elem := range elems {
-		processElem(elem)
-	}
-
-	return transferElems
-}
-
-func DedupTransferElems(elems []VDomTransferElem) []VDomTransferElem {
-	seen := make(map[string]int) // maps WaveId to its index in the result slice
-	var result []VDomTransferElem
-
-	for _, elem := range elems {
-		if idx, exists := seen[elem.WaveId]; exists {
-			// Overwrite the previous element with the latest one
-			result[idx] = elem
-		} else {
-			// Add new element and store its index
-			seen[elem.WaveId] = len(result)
-			result = append(result, elem)
-		}
-	}
-
-	return result
-}
-
-func (beUpdate *VDomBackendUpdate) CreateTransferElems() {
-	var vdomElems []VDomElem
-	for idx, reUpdate := range beUpdate.RenderUpdates {
-		if reUpdate.VDom == nil {
-			continue
-		}
-		vdomElems = append(vdomElems, *reUpdate.VDom)
-		beUpdate.RenderUpdates[idx].VDomWaveId = reUpdate.VDom.WaveId
-		beUpdate.RenderUpdates[idx].VDom = nil
-	}
-	transferElems := ConvertElemsToTransferElems(vdomElems)
-	transferElems = DedupTransferElems(transferElems)
-	beUpdate.TransferElems = transferElems
-}
-
 // SplitBackendUpdate splits a large VDomBackendUpdate into multiple smaller updates
 // The first update contains all the core fields, while subsequent updates only contain
 // array elements that need to be appended
diff --git a/pkg/vdom/vdomclient/vdomclient.go b/pkg/vdom/vdomclient/vdomclient.go
index e31d2f58b..9cd4ae60c 100644
--- a/pkg/vdom/vdomclient/vdomclient.go
+++ b/pkg/vdom/vdomclient/vdomclient.go
@@ -55,6 +55,9 @@ type Client struct {
 	OverrideUrlHandler http.Handler
 	NewBlockFlag       bool
 	SetupFn            func()
+	TransferElemCache  map[string][]byte
+	TextNodeCache      map[string]int
+	TextNodeNextId     int
 }
 
 func (c *Client) GetIsDone() bool {
@@ -90,11 +93,14 @@ func MakeClient(appOpts AppOpts) *Client {
 		appOpts.NewBlockFlag = "n"
 	}
 	client := &Client{
-		Lock:          &sync.Mutex{},
-		AppOpts:       appOpts,
-		Root:          vdom.MakeRoot(),
-		DoneCh:        make(chan struct{}),
-		UrlHandlerMux: mux.NewRouter(),
+		Lock:              &sync.Mutex{},
+		AppOpts:           appOpts,
+		Root:              vdom.MakeRoot(),
+		DoneCh:            make(chan struct{}),
+		UrlHandlerMux:     mux.NewRouter(),
+		TransferElemCache: make(map[string][]byte),
+		TextNodeCache:     make(map[string]int),
+		TextNodeNextId:    1,
 		Opts: vdom.VDomBackendOpts{
 			CloseOnCtrlC:         appOpts.CloseOnCtrlC,
 			GlobalKeyboardEvents: appOpts.GlobalKeyboardEvents,
diff --git a/pkg/vdom/vdomclient/vdomserverimpl.go b/pkg/vdom/vdomclient/vdomserverimpl.go
index d9aabc861..b60bbed51 100644
--- a/pkg/vdom/vdomclient/vdomserverimpl.go
+++ b/pkg/vdom/vdomclient/vdomserverimpl.go
@@ -75,7 +75,7 @@ func (impl *VDomServerImpl) VDomRenderCommand(ctx context.Context, feUpdate vdom
 	} else {
 		update, err = impl.Client.incrementalRender()
 	}
-	update.CreateTransferElems()
+	impl.Client.CreateTransferElems(update)
 
 	if err != nil {
 		respChan <- wshrpc.RespOrErrorUnion[*vdom.VDomBackendUpdate]{
diff --git a/pkg/vdom/vdomclient/vdomtransfer.go b/pkg/vdom/vdomclient/vdomtransfer.go
new file mode 100644
index 000000000..6fe61ff1e
--- /dev/null
+++ b/pkg/vdom/vdomclient/vdomtransfer.go
@@ -0,0 +1,139 @@
+// Copyright 2024, Command Line Inc.
+// SPDX-License-Identifier: Apache-2.0
+
+package vdomclient
+
+import (
+	"bytes"
+	"encoding/json"
+	"fmt"
+	"log"
+
+	"github.com/wavetermdev/waveterm/pkg/vdom"
+)
+
+func transferElemsEqual(t1 *vdom.VDomTransferElem, t2 *vdom.VDomTransferElem) bool {
+	if t1 == nil || t2 == nil {
+		return false
+	}
+	if t1.WaveId != t2.WaveId || t1.Tag != t2.Tag || t1.Text != t2.Text {
+		return false
+	}
+	if len(t1.Children) != len(t2.Children) {
+		return false
+	}
+	for i := range t1.Children {
+		if t1.Children[i] != t2.Children[i] {
+			return false
+		}
+	}
+	return true
+}
+
+func (c *Client) ConvertElemsToTransferElems(elems []vdom.VDomElem) []vdom.VDomTransferElem {
+	var transferElems []vdom.VDomTransferElem
+	var textCacheHits int
+	var teCacheHits int
+	var numTextNodes int
+
+	// Helper function to recursively process each VDomElem in preorder
+	var processElem func(elem vdom.VDomElem) string
+	processElem = func(elem vdom.VDomElem) string {
+		// Handle #text nodes by generating a unique placeholder ID
+		if elem.Tag == "#text" {
+			textId := c.TextNodeCache[elem.Text]
+			if textId == 0 {
+				textId = c.TextNodeNextId
+				c.TextNodeNextId++
+				c.TextNodeCache[elem.Text] = textId
+			} else {
+				textCacheHits++
+			}
+			textIdStr := fmt.Sprintf("text-%d", textId)
+			transferElems = append(transferElems, vdom.VDomTransferElem{
+				WaveId:   textIdStr,
+				Tag:      elem.Tag,
+				Text:     elem.Text,
+				Props:    nil,
+				Children: nil,
+			})
+			return textIdStr
+		}
+
+		// Convert children to WaveId references, handling potential #text nodes
+		childrenIds := make([]string, len(elem.Children))
+		for i, child := range elem.Children {
+			childrenIds[i] = processElem(child) // Children are not roots
+		}
+
+		// Create the VDomTransferElem for the current element
+		transferElem := vdom.VDomTransferElem{
+			WaveId:   elem.WaveId,
+			Tag:      elem.Tag,
+			Props:    elem.Props,
+			Children: childrenIds,
+			Text:     elem.Text,
+		}
+		transferElems = append(transferElems, transferElem)
+
+		return elem.WaveId
+	}
+
+	// Start processing each top-level element, marking them as roots
+	for _, elem := range elems {
+		processElem(elem)
+	}
+
+	for _, te := range transferElems {
+		if te.Tag == "#text" {
+			numTextNodes++
+			continue
+		}
+		if te.WaveId == "" {
+			continue
+		}
+		curTe := c.TransferElemCache[te.WaveId]
+		teBytes, _ := json.Marshal(te)
+		if bytes.Equal(curTe, teBytes) {
+			teCacheHits++
+		} else {
+			c.TransferElemCache[te.WaveId] = teBytes
+		}
+	}
+
+	log.Printf("Converted, transferelems: %d/%d, textcache: %d/%d\n", teCacheHits, len(transferElems)-numTextNodes, textCacheHits, numTextNodes)
+	return transferElems
+}
+
+func (c *Client) DedupTransferElems(elems []vdom.VDomTransferElem) []vdom.VDomTransferElem {
+	seen := make(map[string]int) // maps WaveId to its index in the result slice
+	var result []vdom.VDomTransferElem
+
+	for _, elem := range elems {
+		if idx, exists := seen[elem.WaveId]; exists {
+			// Overwrite the previous element with the latest one
+			result[idx] = elem
+		} else {
+			// Add new element and store its index
+			seen[elem.WaveId] = len(result)
+			result = append(result, elem)
+		}
+	}
+
+	return result
+}
+
+func (c *Client) CreateTransferElems(beUpdate *vdom.VDomBackendUpdate) {
+	var vdomElems []vdom.VDomElem
+	for idx, reUpdate := range beUpdate.RenderUpdates {
+		if reUpdate.VDom == nil {
+			continue
+		}
+		vdomElems = append(vdomElems, *reUpdate.VDom)
+		beUpdate.RenderUpdates[idx].VDomWaveId = reUpdate.VDom.WaveId
+		beUpdate.RenderUpdates[idx].VDom = nil
+	}
+	transferElems := c.ConvertElemsToTransferElems(vdomElems)
+	transferElems = c.DedupTransferElems(transferElems)
+	beUpdate.TransferElems = transferElems
+}