diff --git a/lib/init-action.js b/lib/init-action.js
index ac85956f06..dc4cd8fb63 100644
--- a/lib/init-action.js
+++ b/lib/init-action.js
@@ -106023,6 +106023,7 @@ var OVERLAY_MINIMUM_AVAILABLE_DISK_SPACE_BYTES = OVERLAY_MINIMUM_AVAILABLE_DISK_
 var OVERLAY_MINIMUM_AVAILABLE_DISK_SPACE_V2_MB = 14e3;
 var OVERLAY_MINIMUM_AVAILABLE_DISK_SPACE_V2_BYTES = OVERLAY_MINIMUM_AVAILABLE_DISK_SPACE_V2_MB * 1e6;
 var OVERLAY_MINIMUM_MEMORY_MB = 5 * 1024;
+var CODEQL_VERSION_REDUCED_OVERLAY_MEMORY_USAGE = "2.24.3";
 async function getSupportedLanguageMap(codeql, logger) {
   const resolveSupportedLanguagesUsingCli = await codeql.supportsFeature(
     "builtinExtractorsSpecifyDefaultQueries" /* BuiltinExtractorsSpecifyDefaultQueries */
@@ -106282,7 +106283,7 @@ async function isOverlayAnalysisFeatureEnabled(features, codeql, languages, code
   }
   return true;
 }
-async function runnerSupportsOverlayAnalysis(diskUsage, ramInput, logger, useV2ResourceChecks) {
+function runnerHasSufficientDiskSpace(diskUsage, logger, useV2ResourceChecks) {
   const minimumDiskSpaceBytes = useV2ResourceChecks ? OVERLAY_MINIMUM_AVAILABLE_DISK_SPACE_V2_BYTES : OVERLAY_MINIMUM_AVAILABLE_DISK_SPACE_BYTES;
   if (diskUsage === void 0 || diskUsage.numAvailableBytes < minimumDiskSpaceBytes) {
     const diskSpaceMb = diskUsage === void 0 ? 0 : Math.round(diskUsage.numAvailableBytes / 1e6);
@@ -106292,6 +106293,18 @@ async function runnerSupportsOverlayAnalysis(diskUsage, ramInput, logger, useV2R
     );
     return false;
   }
+  return true;
+}
+async function runnerHasSufficientMemory(codeql, ramInput, logger) {
+  if (await codeQlVersionAtLeast(
+    codeql,
+    CODEQL_VERSION_REDUCED_OVERLAY_MEMORY_USAGE
+  )) {
+    logger.debug(
+      `Skipping memory check for overlay analysis because CodeQL version is at least ${CODEQL_VERSION_REDUCED_OVERLAY_MEMORY_USAGE}.`
+    );
+    return true;
+  }
   const memoryFlagValue = getCodeQLMemoryLimit(ramInput, logger);
   if (memoryFlagValue < OVERLAY_MINIMUM_MEMORY_MB) {
     logger.info(
@@ -106299,6 +106312,18 @@ async function runnerSupportsOverlayAnalysis(diskUsage, ramInput, logger, useV2R
     );
     return false;
   }
+  logger.debug(
+    `Memory available for CodeQL analysis is ${memoryFlagValue} MB, which is above the minimum of ${OVERLAY_MINIMUM_MEMORY_MB} MB.`
+  );
+  return true;
+}
+async function runnerSupportsOverlayAnalysis(codeql, diskUsage, ramInput, logger, useV2ResourceChecks) {
+  if (!runnerHasSufficientDiskSpace(diskUsage, logger, useV2ResourceChecks)) {
+    return false;
+  }
+  if (!await runnerHasSufficientMemory(codeql, ramInput, logger)) {
+    return false;
+  }
   return true;
 }
 async function getOverlayDatabaseMode(codeql, features, languages, sourceRoot, buildMode, ramInput, codeScanningConfig, repositoryProperties, gitVersion, logger) {
@@ -106335,6 +106360,7 @@ async function getOverlayDatabaseMode(codeql, features, languages, sourceRoot, b
     );
     const diskUsage = performResourceChecks || checkOverlayStatus ? await checkDiskUsage(logger) : void 0;
     if (performResourceChecks && !await runnerSupportsOverlayAnalysis(
+      codeql,
       diskUsage,
       ramInput,
       logger,
diff --git a/src/config-utils.test.ts b/src/config-utils.test.ts
index 7624f1a2da..6f780b29bf 100644
--- a/src/config-utils.test.ts
+++ b/src/config-utils.test.ts
@@ -1365,6 +1365,25 @@ test(
   },
 );
 
+test(
+  getOverlayDatabaseModeMacro,
+  "Overlay-base database on default branch if memory flag is too low but CodeQL >= 2.24.3",
+  {
+    languages: [KnownLanguage.javascript],
+    features: [
+      Feature.OverlayAnalysis,
+      Feature.OverlayAnalysisCodeScanningJavascript,
+    ],
+    isDefaultBranch: true,
+    memoryFlagValue: 3072,
+    codeqlVersion: "2.24.3",
+  },
+  {
+    overlayDatabaseMode: OverlayDatabaseMode.OverlayBase,
+    useOverlayDatabaseCaching: true,
+  },
+);
+
 test(
   getOverlayDatabaseModeMacro,
   "Overlay-base database on default branch if memory flag is too low and skip resource checks flag is enabled",
@@ -1683,6 +1702,25 @@ test(
   },
 );
 
+test(
+  getOverlayDatabaseModeMacro,
+  "Overlay analysis on PR if memory flag is too low but CodeQL >= 2.24.3",
+  {
+    languages: [KnownLanguage.javascript],
+    features: [
+      Feature.OverlayAnalysis,
+      Feature.OverlayAnalysisCodeScanningJavascript,
+    ],
+    isPullRequest: true,
+    memoryFlagValue: 3072,
+    codeqlVersion: "2.24.3",
+  },
+  {
+    overlayDatabaseMode: OverlayDatabaseMode.Overlay,
+    useOverlayDatabaseCaching: true,
+  },
+);
+
 test(
   getOverlayDatabaseModeMacro,
   "Overlay analysis on PR if memory flag is too low and skip resource checks flag is enabled",
diff --git a/src/config-utils.ts b/src/config-utils.ts
index 3b23a12bd7..14274a7238 100644
--- a/src/config-utils.ts
+++ b/src/config-utils.ts
@@ -92,13 +92,23 @@ const OVERLAY_MINIMUM_AVAILABLE_DISK_SPACE_V2_BYTES =
   OVERLAY_MINIMUM_AVAILABLE_DISK_SPACE_V2_MB * 1_000_000;
 
 /**
- * The minimum memory (in MB) that must be available for CodeQL to perform overlay
- * analysis. If CodeQL will be given less memory than this threshold, then the
- * action will not perform overlay analysis unless overlay analysis has been
- * explicitly enabled via environment variable.
+ * The minimum memory (in MB) that must be available for CodeQL to perform overlay analysis. If
+ * CodeQL will be given less memory than this threshold, then the action will not perform overlay
+ * analysis unless overlay analysis has been explicitly enabled via environment variable.
+ *
+ * This check is not performed for CodeQL >= `CODEQL_VERSION_REDUCED_OVERLAY_MEMORY_USAGE` since
+ * improved memory usage in that version makes the check unnecessary.
  */
 const OVERLAY_MINIMUM_MEMORY_MB = 5 * 1024;
 
+/**
+ * Versions 2.24.3+ of CodeQL reduce overlay analysis's peak RAM usage.
+ *
+ * In particular, RAM usage with overlay analysis enabled should generally be no higher than it is
+ * without overlay analysis for these versions.
+ */
+const CODEQL_VERSION_REDUCED_OVERLAY_MEMORY_USAGE = "2.24.3";
+
 export type RegistryConfigWithCredentials = RegistryConfigNoCredentials & {
   // Token to use when downloading packs from this registry.
   token: string;
@@ -683,16 +693,12 @@ async function isOverlayAnalysisFeatureEnabled(
   return true;
 }
 
-/**
- * Checks if the runner supports overlay analysis based on available disk space
- * and the maximum memory CodeQL will be allowed to use.
- */
-async function runnerSupportsOverlayAnalysis(
+/** Checks if the runner has enough disk space for overlay analysis. */
+function runnerHasSufficientDiskSpace(
   diskUsage: DiskUsage | undefined,
-  ramInput: string | undefined,
   logger: Logger,
   useV2ResourceChecks: boolean,
-): Promise<boolean> {
+): boolean {
   const minimumDiskSpaceBytes = useV2ResourceChecks
     ? OVERLAY_MINIMUM_AVAILABLE_DISK_SPACE_V2_BYTES
     : OVERLAY_MINIMUM_AVAILABLE_DISK_SPACE_BYTES;
@@ -711,6 +717,26 @@ async function runnerSupportsOverlayAnalysis(
     );
     return false;
   }
+  return true;
+}
+
+/** Checks if the runner has enough memory for overlay analysis. */
+async function runnerHasSufficientMemory(
+  codeql: CodeQL,
+  ramInput: string | undefined,
+  logger: Logger,
+): Promise<boolean> {
+  if (
+    await codeQlVersionAtLeast(
+      codeql,
+      CODEQL_VERSION_REDUCED_OVERLAY_MEMORY_USAGE,
+    )
+  ) {
+    logger.debug(
+      `Skipping memory check for overlay analysis because CodeQL version is at least ${CODEQL_VERSION_REDUCED_OVERLAY_MEMORY_USAGE}.`,
+    );
+    return true;
+  }
 
   const memoryFlagValue = getCodeQLMemoryLimit(ramInput, logger);
   if (memoryFlagValue < OVERLAY_MINIMUM_MEMORY_MB) {
@@ -721,6 +747,29 @@ async function runnerSupportsOverlayAnalysis(
     return false;
   }
 
+  logger.debug(
+    `Memory available for CodeQL analysis is ${memoryFlagValue} MB, which is above the minimum of ${OVERLAY_MINIMUM_MEMORY_MB} MB.`,
+  );
+  return true;
+}
+
+/**
+ * Checks if the runner supports overlay analysis based on available disk space
+ * and the maximum memory CodeQL will be allowed to use.
+ */
+async function runnerSupportsOverlayAnalysis(
+  codeql: CodeQL,
+  diskUsage: DiskUsage | undefined,
+  ramInput: string | undefined,
+  logger: Logger,
+  useV2ResourceChecks: boolean,
+): Promise<boolean> {
+  if (!runnerHasSufficientDiskSpace(diskUsage, logger, useV2ResourceChecks)) {
+    return false;
+  }
+  if (!(await runnerHasSufficientMemory(codeql, ramInput, logger))) {
+    return false;
+  }
   return true;
 }
 
@@ -812,6 +861,7 @@ export async function getOverlayDatabaseMode(
     if (
       performResourceChecks &&
       !(await runnerSupportsOverlayAnalysis(
+        codeql,
         diskUsage,
         ramInput,
         logger,