diff --git a/packages/compiler/src/template/pipeline/ir/src/expression.ts b/packages/compiler/src/template/pipeline/ir/src/expression.ts
index a1a5f874cca..2870975e794 100644
--- a/packages/compiler/src/template/pipeline/ir/src/expression.ts
+++ b/packages/compiler/src/template/pipeline/ir/src/expression.ts
@@ -132,6 +132,8 @@ export class ContextExpr extends ExpressionBase {
 export class NextContextExpr extends ExpressionBase {
   override readonly kind = ExpressionKind.NextContext;
 
+  steps = 1;
+
   constructor() {
     super();
   }
@@ -139,7 +141,7 @@ export class NextContextExpr extends ExpressionBase {
   override visitExpression(): void {}
 
   override isEquivalent(e: o.Expression): boolean {
-    return e instanceof NextContextExpr;
+    return e instanceof NextContextExpr && e.steps === this.steps;
   }
 
   override isConstant(): boolean {
diff --git a/packages/compiler/src/template/pipeline/src/emit.ts b/packages/compiler/src/template/pipeline/src/emit.ts
index 7a985f23970..0ac73662aad 100644
--- a/packages/compiler/src/template/pipeline/src/emit.ts
+++ b/packages/compiler/src/template/pipeline/src/emit.ts
@@ -25,6 +25,7 @@ import {phaseResolveNames} from './phases/resolve_names';
 import {phaseResolveContexts} from './phases/resolve_contexts';
 import {phaseVariableOptimization} from './phases/variable_optimization';
 import {phaseChaining} from './phases/chaining';
+import {phaseMergeNextContext} from './phases/next_context_merging';
 
 /**
  * Run all transformation phases in the correct order against a `ComponentCompilation`. After this
@@ -42,6 +43,7 @@ export function transformTemplate(cpl: ComponentCompilation): void {
   phaseGenerateAdvance(cpl);
   phaseNaming(cpl);
   phaseVariableOptimization(cpl, {conservative: true});
+  phaseMergeNextContext(cpl);
   phaseReify(cpl);
   phaseChaining(cpl);
 }
diff --git a/packages/compiler/src/template/pipeline/src/instruction.ts b/packages/compiler/src/template/pipeline/src/instruction.ts
index 258311c551e..5222be1dbd8 100644
--- a/packages/compiler/src/template/pipeline/src/instruction.ts
+++ b/packages/compiler/src/template/pipeline/src/instruction.ts
@@ -80,8 +80,8 @@ export function reference(slot: number): o.Expression {
   ]);
 }
 
-export function nextContext(): o.Expression {
-  return o.importExpr(Identifiers.nextContext).callFn([]);
+export function nextContext(steps: number): o.Expression {
+  return o.importExpr(Identifiers.nextContext).callFn(steps === 1 ? [] : [o.literal(steps)]);
 }
 
 
diff --git a/packages/compiler/src/template/pipeline/src/phases/next_context_merging.ts b/packages/compiler/src/template/pipeline/src/phases/next_context_merging.ts
new file mode 100644
index 00000000000..803e599f9fb
--- /dev/null
+++ b/packages/compiler/src/template/pipeline/src/phases/next_context_merging.ts
@@ -0,0 +1,78 @@
+/**
+ * @license
+ * Copyright Google LLC All Rights Reserved.
+ *
+ * Use of this source code is governed by an MIT-style license that can be
+ * found in the LICENSE file at https://angular.io/license
+ */
+
+import * as o from '../../../../output/output_ast';
+import * as ir from '../../ir';
+
+import type {ComponentCompilation} from '../compilation';
+
+/**
+ * Merges logically sequential `NextContextExpr` operations.
+ *
+ * `NextContextExpr` can be referenced repeatedly, "popping" the runtime's context stack each time.
+ * When two such expressions appear back-to-back, it's possible to merge them together into a single
+ * `NextContextExpr` that steps multiple contexts. This merging is possible if all conditions are
+ * met:
+ *
+ *   * The result of the `NextContextExpr` that's folded into the subsequent one is not stored (that
+ *     is, the call is purely side-effectful).
+ *   * No operations in between them uses the implicit context.
+ */
+export function phaseMergeNextContext(cpl: ComponentCompilation): void {
+  for (const view of cpl.views.values()) {
+    for (const op of view.create) {
+      if (op.kind === ir.OpKind.Listener) {
+        mergeNextContextsInOps(op.handlerOps);
+      }
+    }
+    mergeNextContextsInOps(view.update);
+  }
+}
+
+function mergeNextContextsInOps(ops: ir.OpList<ir.UpdateOp>): void {
+  for (const op of ops) {
+    // Look for a candidate operation to maybe merge.
+    if (op.kind !== ir.OpKind.Statement || !(op.statement instanceof o.ExpressionStatement) ||
+        !(op.statement.expr instanceof ir.NextContextExpr)) {
+      continue;
+    }
+
+    const mergeSteps = op.statement.expr.steps;
+
+    // Try to merge this `ir.NextContextExpr`.
+    let tryToMerge = true;
+    for (let candidate = op.next!; candidate.kind !== ir.OpKind.ListEnd && tryToMerge;
+         candidate = candidate.next!) {
+      ir.visitExpressionsInOp(candidate, (expr, flags) => {
+        if (!tryToMerge) {
+          // Either we've already merged, or failed to merge.
+          return;
+        }
+
+        if (flags & ir.VisitorContextFlag.InChildOperation) {
+          // We cannot merge into child operations.
+          return;
+        }
+
+        switch (expr.kind) {
+          case ir.ExpressionKind.NextContext:
+            // Merge the previous `ir.NextContextExpr` into this one.
+            expr.steps += mergeSteps;
+            ir.OpList.remove(op as ir.UpdateOp);
+            tryToMerge = false;
+            break;
+          case ir.ExpressionKind.GetCurrentView:
+          case ir.ExpressionKind.Reference:
+            // Can't merge past a dependency on the context.
+            tryToMerge = false;
+            break;
+        }
+      });
+    }
+  }
+}
diff --git a/packages/compiler/src/template/pipeline/src/phases/reify.ts b/packages/compiler/src/template/pipeline/src/phases/reify.ts
index 18b18031ea8..e6834a8daa7 100644
--- a/packages/compiler/src/template/pipeline/src/phases/reify.ts
+++ b/packages/compiler/src/template/pipeline/src/phases/reify.ts
@@ -128,7 +128,7 @@ function reifyUpdateOperations(_view: ViewCompilation, ops: ir.OpList<ir.UpdateO
 function reifyIrExpression(expr: ir.Expression): o.Expression {
   switch (expr.kind) {
     case ir.ExpressionKind.NextContext:
-      return ng.nextContext();
+      return ng.nextContext(expr.steps);
     case ir.ExpressionKind.Reference:
       return ng.reference(expr.slot! + 1 + expr.offset);
     case ir.ExpressionKind.LexicalRead: