diff --git a/lib/Consumer/LibCurl.php b/lib/Consumer/LibCurl.php
index 973e960..4bb1838 100644
--- a/lib/Consumer/LibCurl.php
+++ b/lib/Consumer/LibCurl.php
@@ -52,34 +52,91 @@ public function getConsumer()
      * @return boolean whether the request succeeded
      */
     public function flushBatch($messages)
+    {
+        if (empty($messages)) {
+            return true;
+        }
+
+        return $this->sendBatch($messages);
+    }
+
+    /**
+     * Sends a batch of messages, splitting if necessary to fit 32KB limit
+     * @param array $messages
+     * @return boolean success
+     */
+    private function sendBatch($messages)
     {
         $body = $this->payload($messages);
         $payload = json_encode($body);
 
-        // Verify message size is below than 32KB
+        // Check 32KB limit
         if (strlen($payload) >= 32 * 1024) {
-            if ($this->debug()) {
-                $msg = "Message size is larger than 32KB";
-                error_log("[PostHog][" . $this->type . "] " . $msg);
-            }
+            return $this->handleOversizedBatch($messages, strlen($payload));
+        }
+
+        // Send the batch
+        return $this->performHttpRequest($payload, $messages[0]);
+    }
 
+    /**
+     * Handles batches that exceed 32KB limit
+     * @param array $messages
+     * @param int $payloadSize
+     * @return boolean success
+     */
+    private function handleOversizedBatch($messages, $payloadSize)
+    {
+        $messageCount = count($messages);
+        
+        // Single message too large - drop it
+        if ($messageCount === 1) {
+            $this->handleError(
+                'payload_too_large',
+                sprintf(
+                    'Single message payload size (%d bytes) exceeds 32KB limit. Message will be dropped.',
+                    $payloadSize
+                )
+            );
             return false;
         }
 
+        // Split and try both halves
+        $midpoint = intval($messageCount / 2);
+        $firstHalf = array_slice($messages, 0, $midpoint);
+        $secondHalf = array_slice($messages, $midpoint);
+
+        $firstResult = $this->sendBatch($firstHalf);
+        $secondResult = $this->sendBatch($secondHalf);
+
+        return $firstResult && $secondResult;
+    }
+
+    /**
+     * Performs the actual HTTP request
+     * @param string $payload
+     * @param array $sampleMessage
+     * @return boolean success
+     */
+    private function performHttpRequest($payload, $sampleMessage)
+    {
         if ($this->compress_request) {
             $payload = gzencode($payload);
         }
 
-        return $this->httpClient->sendRequest(
+        $response = $this->httpClient->sendRequest(
             '/batch/',
             $payload,
             [
-                // Send user agent in the form of {library_name}/{library_version} as per RFC 7231.
-                "User-Agent: {$messages[0]['library']}/{$messages[0]['library_version']}",
+                "User-Agent: {$sampleMessage['library']}/{$sampleMessage['library_version']}",
             ],
             [
                 'shouldVerify' => $this->options['verify_batch_events_request'] ?? true,
             ]
-        )->getResponse();
+        );
+
+        // Return boolean based on whether we got a response
+        return !empty($response->getResponse());
     }
+
 }
diff --git a/lib/QueueConsumer.php b/lib/QueueConsumer.php
index 354e12c..efa37c0 100644
--- a/lib/QueueConsumer.php
+++ b/lib/QueueConsumer.php
@@ -95,16 +95,22 @@ public function alias(array $message)
     public function flush()
     {
         $count = count($this->queue);
-        $success = true;
+        $overallSuccess = true;
 
-        while ($count > 0 && $success) {
+        while ($count > 0) {
             $batch = array_splice($this->queue, 0, min($this->batch_size, $count));
-            $success = $this->flushBatch($batch);
+            $batchSuccess = $this->flushBatch($batch);
+
+            // Track overall success but continue processing remaining batches
+            // This ensures we attempt to send all queued events even if some batches fail
+            if (!$batchSuccess) {
+                $overallSuccess = false;
+            }
 
             $count = count($this->queue);
         }
 
-        return $success;
+        return $overallSuccess;
     }
 
     /**
diff --git a/test/MockErrorHandler.php b/test/MockErrorHandler.php
new file mode 100644
index 0000000..22e5878
--- /dev/null
+++ b/test/MockErrorHandler.php
@@ -0,0 +1,31 @@
+<?php
+
+namespace PostHog\Test;
+
+/**
+ * Mock error handler to capture and verify error reporting
+ */
+class MockErrorHandler
+{
+    private $errors = [];
+
+    public function handleError($code, $message)
+    {
+        $this->errors[] = ['code' => $code, 'message' => $message];
+    }
+
+    public function hasError($code)
+    {
+        foreach ($this->errors as $error) {
+            if ($error['code'] === $code) {
+                return true;
+            }
+        }
+        return false;
+    }
+
+    public function getErrors()
+    {
+        return $this->errors;
+    }
+}
diff --git a/test/MockedHttpClient.php b/test/MockedHttpClient.php
index b00b297..6fda511 100644
--- a/test/MockedHttpClient.php
+++ b/test/MockedHttpClient.php
@@ -52,6 +52,10 @@ public function sendRequest(string $path, ?string $payload, array $extraHeaders
             return new HttpResponse(json_encode($this->flagEndpointResponse), 200);
         }
 
+        if (str_starts_with($path, "/batch/")) {
+            return new HttpResponse('{"status":"Ok"}', 200);
+        }
+
         return parent::sendRequest($path, $payload, $extraHeaders, $requestOptions);
     }
 }
diff --git a/test/PayloadSizeLimitFixTest.php b/test/PayloadSizeLimitFixTest.php
new file mode 100644
index 0000000..0df93f3
--- /dev/null
+++ b/test/PayloadSizeLimitFixTest.php
@@ -0,0 +1,212 @@
+<?php
+
+namespace PostHog\Test;
+
+use PHPUnit\Framework\TestCase;
+use PostHog\Client;
+use PostHog\Test\MockErrorHandler;
+
+/**
+ * Test suite for the 32KB payload size limit fix.
+ *
+ * This addresses the critical data loss issue where events exceeding 32KB
+ * when batched together were silently dropped instead of being split and sent.
+ */
+class PayloadSizeLimitFixTest extends TestCase
+{
+    private $client;
+    private $mockHttpClient;
+
+    public function setUp(): void
+    {
+        date_default_timezone_set("UTC");
+
+        // Create a mock HTTP client that tracks successful requests
+        $this->mockHttpClient = new MockedHttpClient(
+            "app.posthog.com",
+            true,
+            10000,
+            false,
+            true
+        );
+
+        $this->client = new Client(
+            "test_api_key",
+            [
+                "consumer" => "lib_curl",
+                "debug" => true,
+                "batch_size" => 10, // Small batch size to control test
+            ],
+            $this->mockHttpClient
+        );
+    }
+
+    /**
+     * Helper method to reset and count HTTP requests
+     */
+    private function resetRequestCount(): void
+    {
+        $this->mockHttpClient->calls = [];
+    }
+
+    /**
+     * Helper method to get number of batch requests made
+     */
+    private function getBatchRequestCount(): int
+    {
+        if (!isset($this->mockHttpClient->calls)) {
+            return 0;
+        }
+
+        $batchRequests = 0;
+        foreach ($this->mockHttpClient->calls as $call) {
+            if ($call['path'] === '/batch/') {
+                $batchRequests++;
+            }
+        }
+        return $batchRequests;
+    }
+
+    /**
+     * Test that the fix properly handles oversized batches by splitting them
+     */
+    public function testOversizedBatchSplitting(): void
+    {
+        // Reset request counter
+        $this->resetRequestCount();
+
+        // Create events with large properties to exceed 32KB when batched
+        $largeProperty = str_repeat('A', 4000); // 4KB string
+
+        // Create 8 events, each ~4KB, totaling ~32KB+ (exceeds 32KB limit)
+        for ($i = 0; $i < 8; $i++) {
+            $result = $this->client->capture([
+                "distinctId" => "user-{$i}",
+                "event" => "large_event_{$i}",
+                "properties" => [
+                    "large_data" => $largeProperty,
+                    "event_index" => $i
+                ]
+            ]);
+            $this->assertTrue($result, "Event {$i} should be captured successfully");
+        }
+
+        // Flush remaining events
+        $flushResult = $this->client->flush();
+        $this->assertTrue($flushResult, "Flush should succeed with splitting");
+
+        // Verify that multiple HTTP requests were made due to splitting
+        $requestCount = $this->getBatchRequestCount();
+        $this->assertGreaterThan(1, $requestCount, "Multiple requests should be made when batch is split");
+    }
+
+    /**
+     * Test that single oversized messages are properly handled and reported
+     */
+    public function testSingleOversizedMessage(): void
+    {
+        // Create a single event that exceeds 32KB
+        $veryLargeProperty = str_repeat('X', 33 * 1024); // 33KB string
+
+        // Capture error logs
+        $errorHandler = new MockErrorHandler();
+        $client = new Client(
+            "test_api_key",
+            [
+                "consumer" => "lib_curl",
+                "debug" => true,
+                "error_handler" => [$errorHandler, 'handleError']
+            ],
+            $this->mockHttpClient
+        );
+
+        $result = $client->capture([
+            "distinctId" => "oversized_user",
+            "event" => "oversized_event",
+            "properties" => [
+                "very_large_data" => $veryLargeProperty
+            ]
+        ]);
+
+        // The event should still be accepted initially
+        $this->assertTrue($result, "Oversized event should be accepted initially");
+
+        // But flush should fail and error should be logged
+        $flushResult = $client->flush();
+        $this->assertFalse($flushResult, "Flush should fail for oversized single message");
+
+        // Verify error was reported
+        $this->assertTrue(
+            $errorHandler->hasError('payload_too_large'),
+            "Error should be reported for oversized message"
+        );
+    }
+
+    /**
+     * Test that multiple small events that accumulate to exceed 32KB are handled properly
+     */
+    public function testAccumulativePayloadSizeHandling(): void
+    {
+        $this->resetRequestCount();
+
+        // Each event is small (2KB) but 20 events = 40KB total
+        $smallProperty = str_repeat('Z', 2000);
+
+        $allSuccessful = true;
+        for ($i = 0; $i < 20; $i++) {
+            $result = $this->client->capture([
+                "distinctId" => "accumulative_user_{$i}",
+                "event" => "small_event",
+                "properties" => [
+                    "data" => $smallProperty,
+                    "index" => $i
+                ]
+            ]);
+            if (!$result) {
+                $allSuccessful = false;
+            }
+        }
+
+        $this->assertTrue($allSuccessful, "All small events should be accepted");
+
+        // Final flush should succeed because batches were split appropriately
+        $flushResult = $this->client->flush();
+        $this->assertTrue($flushResult, "Final flush should succeed with proper batch splitting");
+
+        // Verify multiple requests were made
+        $requestCount = $this->getBatchRequestCount();
+        $this->assertGreaterThan(
+            1,
+            $requestCount,
+            "Multiple requests should be made for accumulative payload"
+        );
+    }
+
+    /**
+     * Test that normal-sized batches still work correctly
+     */
+    public function testNormalSizedBatches(): void
+    {
+        $this->resetRequestCount();
+
+        // Create normal-sized events
+        for ($i = 0; $i < 5; $i++) {
+            $result = $this->client->capture([
+                "distinctId" => "normal_user_{$i}",
+                "event" => "normal_event",
+                "properties" => [
+                    "small_data" => "normal data",
+                    "index" => $i
+                ]
+            ]);
+            $this->assertTrue($result, "Normal event {$i} should be captured");
+        }
+
+        $flushResult = $this->client->flush();
+        $this->assertTrue($flushResult, "Normal batch flush should succeed");
+
+        // Should only need one request for normal sized batch
+        $requestCount = $this->getBatchRequestCount();
+        $this->assertEquals(1, $requestCount, "Only one request should be made for normal batch");
+    }
+}