diff --git a/dxa-framework/dxa-common/src/main/java/com/sdl/dxa/common/dto/DepthCounter.java b/dxa-framework/dxa-common/src/main/java/com/sdl/dxa/common/dto/DepthCounter.java
index 70a73443f..34d384576 100644
--- a/dxa-framework/dxa-common/src/main/java/com/sdl/dxa/common/dto/DepthCounter.java
+++ b/dxa-framework/dxa-common/src/main/java/com/sdl/dxa/common/dto/DepthCounter.java
@@ -29,7 +29,17 @@ public synchronized boolean isNotTooDeep() {
     }
 
     public synchronized boolean depthIncreaseAndCheckIfSafe() {
-        return isNotTooDeep() && counter-- > 0;
+        // Counter must be decremented unconditionally so it stays balanced with
+        // the unconditional increment in depthDecrease() that callers run in
+        // their finally blocks. The previous implementation short-circuited the
+        // decrement via && when counter reached 0, causing every failed check
+        // to leak +1 of budget back into the counter — which allowed the model
+        // expander to recurse past its intended depth limit. See SRQ-31346.
+        if (unlimited) {
+            return true;
+        }
+        counter--;
+        return counter >= 0;
     }
 
     public synchronized boolean depthIncreaseAndCheckIfSafe(int levels) {
diff --git a/dxa-framework/dxa-common/src/test/java/com/sdl/dxa/common/dto/DepthCounterTest.java b/dxa-framework/dxa-common/src/test/java/com/sdl/dxa/common/dto/DepthCounterTest.java
index 9dfbf47f8..7fe748d1c 100644
--- a/dxa-framework/dxa-common/src/test/java/com/sdl/dxa/common/dto/DepthCounterTest.java
+++ b/dxa-framework/dxa-common/src/test/java/com/sdl/dxa/common/dto/DepthCounterTest.java
@@ -45,6 +45,57 @@ public void shouldDecreaseDepth() {
         assertEquals(1, counter.getCounter());
     }
 
+    /**
+     * Regression for SRQ-31346.
+     * <p>
+     * Callers of {@link DepthCounter#depthIncreaseAndCheckIfSafe()} pair each
+     * call with an unconditional {@link DepthCounter#depthDecrease()} in a
+     * finally block. For the counter to stay balanced, the increment-and-check
+     * method must decrement on every call, including when the check fails.
+     * <p>
+     * The previous implementation short-circuited the decrement via {@code &&}
+     * when the counter reached zero. The {@code finally}-block decrement then
+     * leaked +1 of budget back into the counter on every "too deep" event,
+     * letting the page model expander recurse past its intended depth limit
+     * and ultimately overflow the JVM stack on heavily nested page models.
+     */
+    @Test
+    public void depthIncreaseAndCheckIfSafe_doesNotLeakWhenLimitExceeded() {
+        DepthCounter counter = new DepthCounter(2);
+
+        // Budget gets consumed.
+        assertTrue(counter.depthIncreaseAndCheckIfSafe());
+        assertTrue(counter.depthIncreaseAndCheckIfSafe());
+        assertEquals(0, counter.getCounter());
+
+        // Past the limit: check must fail AND counter must still be decremented
+        // so the matching depthDecrease() restores it cleanly.
+        assertFalse(counter.depthIncreaseAndCheckIfSafe());
+        counter.depthDecrease();
+        assertEquals(0, counter.getCounter());
+
+        // Repeated failures stay balanced — no accumulating budget leak.
+        for (int i = 0; i < 100; i++) {
+            assertFalse(counter.depthIncreaseAndCheckIfSafe());
+            counter.depthDecrease();
+        }
+        assertEquals(0, counter.getCounter());
+    }
+
+    /**
+     * Unlimited counters must not be decremented on each call — otherwise
+     * Integer.MAX_VALUE - 1 calls would silently flip them into limited mode.
+     */
+    @Test
+    public void depthIncreaseAndCheckIfSafe_unlimitedAlwaysSafe() {
+        DepthCounter counter = DepthCounter.UNLIMITED_DEPTH;
+
+        for (int i = 0; i < 1000; i++) {
+            assertTrue(counter.depthIncreaseAndCheckIfSafe());
+        }
+        assertEquals(MAX_VALUE, counter.getCounter());
+    }
+
     @Test
     public void shouldBeUnlimited_MaxValue() {
         //given