diff --git a/Source/Engine/Core/Memory/Allocation.h b/Source/Engine/Core/Memory/Allocation.h
index ffd51d96c..f274d37a5 100644
--- a/Source/Engine/Core/Memory/Allocation.h
+++ b/Source/Engine/Core/Memory/Allocation.h
@@ -18,9 +18,7 @@ namespace AllocationUtils
         capacity |= capacity >> 8;
         capacity |= capacity >> 16;
         uint64 capacity64 = (uint64)(capacity + 1) * 2;
-        if (capacity64 > MAX_int32)
-            capacity64 = MAX_int32;
-        return (int32)capacity64;
+        return capacity64 >= MAX_int32 ? MAX_int32 : (int32)capacity64 / 2;
     }
 
     // Aligns the input value to the next power of 2 to be used as bigger memory allocation block.
diff --git a/Source/Engine/Tests/TestCollections.cpp b/Source/Engine/Tests/TestCollections.cpp
index b477140cf..a96c6ce1c 100644
--- a/Source/Engine/Tests/TestCollections.cpp
+++ b/Source/Engine/Tests/TestCollections.cpp
@@ -27,6 +27,19 @@ void CheckBitArray(const BitArray<AllocationType>& array)
 
 TEST_CASE("Array")
 {
+    SECTION("Test Capacity")
+    {
+        // Ensure correct collections capacity growing to meet proper memory usage vs safe slack
+        CHECK(AllocationUtils::CalculateCapacityGrow(1, 0) == 8);
+        CHECK(AllocationUtils::CalculateCapacityGrow(7, 0) == 8);
+        CHECK(AllocationUtils::CalculateCapacityGrow(1, 16) == 16);
+        CHECK(AllocationUtils::CalculateCapacityGrow(31, 0) == 32);
+        CHECK(AllocationUtils::CalculateCapacityGrow(32, 0) == 32);
+        CHECK(AllocationUtils::CalculateCapacityGrow(1000, 0) == 1024);
+        CHECK(AllocationUtils::CalculateCapacityGrow(1024, 0) == 1024);
+        CHECK(AllocationUtils::CalculateCapacityGrow(1025, 0) == 2048);
+    }
+
     SECTION("Test Allocators")
     {
         Array<int32> a1;