diff --git a/src/components/code/AdvancedCodeEditor.tsx b/src/components/code/AdvancedCodeEditor.tsx
index 91fef810..99f08fbe 100644
--- a/src/components/code/AdvancedCodeEditor.tsx
+++ b/src/components/code/AdvancedCodeEditor.tsx
@@ -1,7 +1,8 @@
 'use client';
 
-import React, { useEffect } from 'react';
+import React, { useMemo } from 'react';
 import dynamic from 'next/dynamic';
+import type { EditorProps } from '@monaco-editor/react';
 import {
   Play,
   RotateCcw,
@@ -128,6 +129,30 @@ export const AdvancedCodeEditor: React.FC<AdvancedCodeEditorProps> = ({
   };
 
   const isDark = theme === 'vs-dark';
+  const editorOptions = useMemo<NonNullable<EditorProps['options']>>(
+    () => ({
+      fontSize,
+      minimap: { enabled: true },
+      wordWrap: 'on',
+      lineNumbers: 'on',
+      renderLineHighlight: 'all',
+      scrollBeyondLastLine: false,
+      automaticLayout: true,
+      padding: { top: 12, bottom: 12 },
+      suggestOnTriggerCharacters: autoCompleteEnabled,
+      quickSuggestions: autoCompleteEnabled,
+      tabSize: languageConfig.id === 'python' ? 4 : 2,
+      detectIndentation: false,
+      formatOnPaste: true,
+      smoothScrolling: true,
+      cursorBlinking: 'expand',
+      cursorSmoothCaretAnimation: 'on',
+      bracketPairColorization: { enabled: true },
+      fontFamily: '"Fira Code", "Cascadia Code", "Consolas", monospace',
+      fontLigatures: true,
+    }),
+    [autoCompleteEnabled, fontSize, languageConfig.id],
+  );
 
   return (
     <div
@@ -282,27 +307,7 @@ export const AdvancedCodeEditor: React.FC<AdvancedCodeEditorProps> = ({
           value={code}
           onChange={(val) => setCode(val ?? '')}
           onMount={handleEditorMount}
-          options={{
-            fontSize,
-            minimap: { enabled: true },
-            wordWrap: 'on',
-            lineNumbers: 'on',
-            renderLineHighlight: 'all',
-            scrollBeyondLastLine: false,
-            automaticLayout: true,
-            padding: { top: 12, bottom: 12 },
-            suggestOnTriggerCharacters: autoCompleteEnabled,
-            quickSuggestions: autoCompleteEnabled,
-            tabSize: languageConfig.id === 'python' ? 4 : 2,
-            detectIndentation: false,
-            formatOnPaste: true,
-            smoothScrolling: true,
-            cursorBlinking: 'expand',
-            cursorSmoothCaretAnimation: 'on',
-            bracketPairColorization: { enabled: true },
-            fontFamily: '"Fira Code", "Cascadia Code", "Consolas", monospace',
-            fontLigatures: true,
-          }}
+          options={editorOptions}
           height="100%"
           width="100%"
         />
diff --git a/src/components/code/__tests__/AdvancedCodeEditor.test.tsx b/src/components/code/__tests__/AdvancedCodeEditor.test.tsx
new file mode 100644
index 00000000..bc544b17
--- /dev/null
+++ b/src/components/code/__tests__/AdvancedCodeEditor.test.tsx
@@ -0,0 +1,109 @@
+import React from 'react';
+import { beforeEach, describe, expect, it, vi } from 'vitest';
+import { fireEvent, render, screen } from '@testing-library/react';
+
+const { editorRenders, useCodeEditorMock } = vi.hoisted(() => ({
+  editorRenders: [] as Array<{ options: unknown; value?: string }>,
+  useCodeEditorMock: vi.fn(),
+}));
+
+vi.mock('next/dynamic', () => ({
+  default:
+    () =>
+    ({
+      onChange,
+      options,
+      value,
+    }: {
+      onChange?: (value?: string) => void;
+      options?: unknown;
+      value?: string;
+    }) => {
+      editorRenders.push({ options, value });
+
+      return (
+        <button data-testid="monaco-editor" onClick={() => onChange?.(`${value} updated`)}>
+          Editor
+        </button>
+      );
+    },
+}));
+
+vi.mock('@/hooks/useCodeEditor', () => ({
+  useCodeEditor: useCodeEditorMock,
+}));
+
+vi.mock('../SyntaxHighlighter', () => ({
+  SyntaxHighlighter: () => null,
+}));
+
+vi.mock('../AutoCompletion', () => ({
+  AutoCompletion: () => null,
+}));
+
+vi.mock('../CollaborativeEditing', () => ({
+  CollaborativeEditing: () => null,
+}));
+
+import { AdvancedCodeEditor } from '../AdvancedCodeEditor';
+
+const languageConfig = {
+  id: 'javascript',
+  label: 'JavaScript',
+  extension: 'js',
+  monacoLanguage: 'javascript',
+};
+
+describe('AdvancedCodeEditor', () => {
+  beforeEach(() => {
+    editorRenders.length = 0;
+    useCodeEditorMock.mockImplementation(() => {
+      const [code, setCode] = React.useState('const value = 1;');
+      const [fontSize, setFontSize] = React.useState(14);
+
+      return {
+        code,
+        language: 'javascript',
+        theme: 'vs-dark',
+        fontSize,
+        isRunning: false,
+        output: null,
+        validationErrors: [],
+        collaborators: [],
+        isCollaborationConnected: false,
+        autoCompleteEnabled: true,
+        currentWord: '',
+        languages: [languageConfig],
+        languageConfig,
+        setCode,
+        setLanguage: vi.fn(),
+        toggleTheme: vi.fn(),
+        increaseFontSize: () => setFontSize((size) => size + 1),
+        decreaseFontSize: () => setFontSize((size) => size - 1),
+        runCode: vi.fn(),
+        handleFormat: vi.fn(),
+        resetCode: vi.fn(),
+        clearOutput: vi.fn(),
+        toggleAutoComplete: vi.fn(),
+        handleEditorMount: vi.fn(),
+      };
+    });
+  });
+
+  it('keeps options stable for content changes and updates them for editor settings', () => {
+    render(<AdvancedCodeEditor />);
+
+    const initialOptions = editorRenders.at(-1)?.options;
+
+    fireEvent.click(screen.getByTestId('monaco-editor'));
+
+    expect(editorRenders.at(-1)?.value).toBe('const value = 1; updated');
+    expect(editorRenders.at(-1)?.options).toBe(initialOptions);
+
+    fireEvent.click(screen.getByTitle('Increase font size'));
+
+    const resizedOptions = editorRenders.at(-1)?.options as { fontSize?: number };
+    expect(resizedOptions).not.toBe(initialOptions);
+    expect(resizedOptions.fontSize).toBe(15);
+  });
+});