diff --git a/cmd/limactl/disk.go b/cmd/limactl/disk.go
index f940383829c..491d3f19c70 100644
--- a/cmd/limactl/disk.go
+++ b/cmd/limactl/disk.go
@@ -26,7 +26,10 @@ func newDiskCommand() *cobra.Command {
   $ limactl disk ls
 
   Delete a disk:
-  $ limactl disk delete DISK`,
+  $ limactl disk delete DISK
+  
+  Resize a disk:
+  $ limactl disk resize DISK --size SIZE`,
 		SilenceUsage:  true,
 		SilenceErrors: true,
 	}
@@ -35,6 +38,7 @@ func newDiskCommand() *cobra.Command {
 		newDiskListCommand(),
 		newDiskDeleteCommand(),
 		newDiskUnlockCommand(),
+		newDiskResizeCommand(),
 	)
 	return diskCommand
 }
@@ -171,7 +175,7 @@ func diskListAction(cmd *cobra.Command, args []string) error {
 	}
 
 	w := tabwriter.NewWriter(cmd.OutOrStdout(), 4, 8, 4, ' ', 0)
-	fmt.Fprintln(w, "NAME\tSIZE\tDIR\tIN-USE-BY")
+	fmt.Fprintln(w, "NAME\tSIZE\tFORMAT\tDIR\tIN-USE-BY")
 
 	if len(disks) == 0 {
 		logrus.Warn("No disk found. Run `limactl disk create DISK --size SIZE` to create a disk.")
@@ -183,7 +187,7 @@ func diskListAction(cmd *cobra.Command, args []string) error {
 			logrus.WithError(err).Errorf("disk %q does not exist?", diskName)
 			continue
 		}
-		fmt.Fprintf(w, "%s\t%s\t%s\t%s\n", disk.Name, units.BytesSize(float64(disk.Size)), disk.Dir, disk.Instance)
+		fmt.Fprintf(w, "%s\t%s\t%s\t%s\t%s\n", disk.Name, units.BytesSize(float64(disk.Size)), disk.Format, disk.Dir, disk.Instance)
 	}
 
 	return w.Flush()
@@ -331,3 +335,58 @@ func diskUnlockAction(_ *cobra.Command, args []string) error {
 	}
 	return nil
 }
+
+func newDiskResizeCommand() *cobra.Command {
+	diskResizeCommand := &cobra.Command{
+		Use: "resize DISK",
+		Example: `
+Resize a disk:
+$ limactl disk resize DISK --size SIZE`,
+		Short: "Resize existing Lima disk",
+		Args:  WrapArgsError(cobra.ExactArgs(1)),
+		RunE:  diskResizeAction,
+	}
+	diskResizeCommand.Flags().String("size", "", "Disk size")
+	_ = diskResizeCommand.MarkFlagRequired("size")
+	return diskResizeCommand
+}
+
+func diskResizeAction(cmd *cobra.Command, args []string) error {
+	size, err := cmd.Flags().GetString("size")
+	if err != nil {
+		return err
+	}
+
+	diskSize, err := units.RAMInBytes(size)
+	if err != nil {
+		return err
+	}
+
+	diskName := args[0]
+	disk, err := store.InspectDisk(diskName)
+	if err != nil {
+		if errors.Is(err, fs.ErrNotExist) {
+			return fmt.Errorf("disk %q does not exists", diskName)
+		}
+		return err
+	}
+
+	// Shrinking can cause a disk failure
+	if diskSize < disk.Size {
+		return fmt.Errorf("specified size %q is less than the current disk size %q. Disk shrinking is currently unavailable", units.BytesSize(float64(diskSize)), units.BytesSize(float64(disk.Size)))
+	}
+
+	if disk.Instance != "" {
+		inst, err := store.Inspect(disk.Instance)
+		if err == nil {
+			if inst.Status == store.StatusRunning {
+				return fmt.Errorf("cannot resize disk %q used by running instance %q. Please stop the VM instance", diskName, disk.Instance)
+			}
+		}
+	}
+	if err := qemu.ResizeDataDisk(disk.Dir, disk.Format, int(diskSize)); err != nil {
+		return fmt.Errorf("failed to resize disk %q: %w", diskName, err)
+	}
+	logrus.Infof("Resized disk %q (%q)", diskName, disk.Dir)
+	return nil
+}
diff --git a/hack/test-templates.sh b/hack/test-templates.sh
index e1e411dd80f..0b601837252 100755
--- a/hack/test-templates.sh
+++ b/hack/test-templates.sh
@@ -301,6 +301,11 @@ if [[ -n ${CHECKS["restart"]} ]]; then
 	limactl stop "$NAME"
 	sleep 3
 
+	if [[ -n ${CHECKS["disk"]} ]]; then
+		INFO "Resize disk and verify that partition and fs size are increased"
+		limactl disk resize data --size 11G
+	fi
+
 	export ftp_proxy=my.proxy:8021
 	INFO "Restarting \"$NAME\""
 	limactl start "$NAME"
@@ -325,6 +330,10 @@ if [[ -n ${CHECKS["restart"]} ]]; then
 			ERROR "Disk does not persist across restarts"
 			exit 1
 		fi
+		if ! limactl shell "$NAME" sh -c 'df -h /mnt/lima-data/ --output=size | grep -q 11G'; then
+			ERROR "Disk FS does not resized after restart"
+			exit 1
+		fi
 	fi
 fi
 
diff --git a/pkg/cidata/cidata.TEMPLATE.d/boot/05-lima-disks.sh b/pkg/cidata/cidata.TEMPLATE.d/boot/05-lima-disks.sh
index d31750bf692..d92c2c4502a 100644
--- a/pkg/cidata/cidata.TEMPLATE.d/boot/05-lima-disks.sh
+++ b/pkg/cidata/cidata.TEMPLATE.d/boot/05-lima-disks.sh
@@ -30,4 +30,17 @@ for i in $(seq 0 $((LIMA_CIDATA_DISKS - 1))); do
 
 	mkdir -p "/mnt/lima-${DISK_NAME}"
 	mount -t $FORMAT_FSTYPE "/dev/${DEVICE_NAME}1" "/mnt/lima-${DISK_NAME}"
+	if command -v growpart >/dev/null 2>&1 && command -v resize2fs >/dev/null 2>&1; then
+		growpart "/dev/${DEVICE_NAME}" 1 || true
+		# Only resize when filesystem is in a healthy state
+		if command -v "fsck.$FORMAT_FSTYPE" -f -p "/dev/disk/by-label/lima-${DISK_NAME}"; then
+			if [[ $FORMAT_FSTYPE == "ext2" || $FORMAT_FSTYPE == "ext3" || $FORMAT_FSTYPE == "ext4" ]]; then
+				resize2fs "/dev/disk/by-label/lima-${DISK_NAME}" || true
+			elif [ "$FORMAT_FSTYPE" == "xfs" ]; then
+				xfs_growfs "/dev/disk/by-label/lima-${DISK_NAME}" || true
+			else
+				echo >&2 "WARNING: unknown fs '$FORMAT_FSTYPE'. FS will not be grew up automatically"
+			fi
+		fi
+	fi
 done
diff --git a/pkg/qemu/qemu.go b/pkg/qemu/qemu.go
index c6f68c223d8..173cf19d05b 100644
--- a/pkg/qemu/qemu.go
+++ b/pkg/qemu/qemu.go
@@ -137,6 +137,17 @@ func CreateDataDisk(dir, format string, size int) error {
 	return nil
 }
 
+func ResizeDataDisk(dir, format string, size int) error {
+	dataDisk := filepath.Join(dir, filenames.DataDisk)
+
+	args := []string{"resize", "-f", format, dataDisk, strconv.Itoa(size)}
+	cmd := exec.Command("qemu-img", args...)
+	if out, err := cmd.CombinedOutput(); err != nil {
+		return fmt.Errorf("failed to run %v: %q: %w", cmd.Args, string(out), err)
+	}
+	return nil
+}
+
 func newQmpClient(cfg Config) (*qmp.SocketMonitor, error) {
 	qmpSock := filepath.Join(cfg.InstanceDir, filenames.QMPSock)
 	qmpClient, err := qmp.NewSocketMonitor("unix", qmpSock, 5*time.Second)
diff --git a/pkg/store/disk.go b/pkg/store/disk.go
index 8a8ee5c2056..d065be59864 100644
--- a/pkg/store/disk.go
+++ b/pkg/store/disk.go
@@ -15,6 +15,7 @@ import (
 type Disk struct {
 	Name        string `json:"name"`
 	Size        int64  `json:"size"`
+	Format      string `json:"format"`
 	Dir         string `json:"dir"`
 	Instance    string `json:"instance"`
 	InstanceDir string `json:"instanceDir"`
@@ -37,7 +38,7 @@ func InspectDisk(diskName string) (*Disk, error) {
 		return nil, err
 	}
 
-	disk.Size, err = inspectDiskSize(dataDisk)
+	disk.Size, disk.Format, err = inspectDisk(dataDisk)
 	if err != nil {
 		return nil, err
 	}
@@ -57,32 +58,33 @@ func InspectDisk(diskName string) (*Disk, error) {
 	return disk, nil
 }
 
-// inspectDiskSize attempts to inspect the disk size by itself,
-// and falls back to inspectDiskSizeWithQemuImg on an error.
-func inspectDiskSize(fName string) (int64, error) {
+// inspectDisk attempts to inspect the disk size and format by itself,
+// and falls back to inspectDiskWithQemuImg on an error.
+func inspectDisk(fName string) (int64, string, error) {
 	f, err := os.Open(fName)
 	if err != nil {
-		return inspectDiskSizeWithQemuImg(fName)
+		return inspectDiskWithQemuImg(fName)
 	}
 	defer f.Close()
 	img, err := qcow2reader.Open(f)
 	if err != nil {
-		return inspectDiskSizeWithQemuImg(fName)
+		return inspectDiskWithQemuImg(fName)
 	}
 	sz := img.Size()
 	if sz < 0 {
-		return inspectDiskSizeWithQemuImg(fName)
+		return inspectDiskWithQemuImg(fName)
 	}
-	return sz, nil
+
+	return sz, string(img.Type()), nil
 }
 
-// inspectDiskSizeWithQemuImg invokes `qemu-img` binary to inspect the disk size.
-func inspectDiskSizeWithQemuImg(fName string) (int64, error) {
+// inspectDiskSizeWithQemuImg invokes `qemu-img` binary to inspect the disk size and format.
+func inspectDiskWithQemuImg(fName string) (int64, string, error) {
 	info, err := imgutil.GetInfo(fName)
 	if err != nil {
-		return -1, err
+		return -1, "", err
 	}
-	return info.VSize, nil
+	return info.VSize, info.Format, nil
 }
 
 func (d *Disk) Lock(instanceDir string) error {