diff --git a/crates/bevy_ecs/src/event.rs b/crates/bevy_ecs/src/event.rs
index 22af1b3ed2dff..bb85742f5b372 100644
--- a/crates/bevy_ecs/src/event.rs
+++ b/crates/bevy_ecs/src/event.rs
@@ -57,6 +57,42 @@ struct EventInstance<E: Event> {
     pub event: E,
 }
 
+/// Settings for controlling the general behavior of [`Events<T>`].
+pub struct EventSettings<T> {
+    /// Controls how and when the memory allocated for events will be freed
+    pub garbage_collection: EventGarbageCollection,
+    marker_: PhantomData<fn() -> T>,
+}
+
+impl<T> Default for EventSettings<T> {
+    fn default() -> Self {
+        Self {
+            garbage_collection: Default::default(),
+            marker_: PhantomData,
+        }
+    }
+}
+
+/// Settings for controlling the garbage collection behavior of [`Events<T>`].
+pub enum EventGarbageCollection {
+    /// Exponentially decays the amount of allocated memory for the backing event buffer
+    /// with a configured minimum. This is the default.
+    ExponentialFalloff {
+        /// Each internal vec never goes below this value.
+        /// There are two internal vecs, so the total minimum capacity is 2 * min_capacity.
+        /// This defaults to 0.
+        min_capacity: usize,
+    },
+    /// Disables garbage collection entirely.
+    None,
+}
+
+impl Default for EventGarbageCollection {
+    fn default() -> Self {
+        Self::ExponentialFalloff { min_capacity: 0 }
+    }
+}
+
 /// An event collection that represents the events that occurred within the last two
 /// [`Events::update`] calls.
 /// Events can be written to using an [`EventWriter`]
@@ -82,7 +118,7 @@ struct EventInstance<E: Event> {
 ///
 /// # Example
 /// ```
-/// use bevy_ecs::event::Events;
+/// use bevy_ecs::event::*;
 ///
 /// struct MyEvent {
 ///     value: usize
@@ -91,9 +127,10 @@ struct EventInstance<E: Event> {
 /// // setup
 /// let mut events = Events::<MyEvent>::default();
 /// let mut reader = events.get_reader();
+/// let settings = EventSettings::<MyEvent>::default();
 ///
 /// // run this once per update/frame
-/// events.update();
+/// events.update(&settings);
 ///
 /// // somewhere else: send an event
 /// events.send(MyEvent { value: 1 });
@@ -437,9 +474,19 @@ impl<E: Event> Events<E> {
 
     /// Swaps the event buffers and clears the oldest event buffer. In general, this should be
     /// called once per frame/update.
-    pub fn update(&mut self) {
+    pub fn update(&mut self, settings: &EventSettings<E>) {
         std::mem::swap(&mut self.events_a, &mut self.events_b);
+        // Garbage collect unused event space. Shrink after clear to avoid a copy.
+        let new_capacity = match settings.garbage_collection {
+            EventGarbageCollection::ExponentialFalloff { min_capacity } => self
+                .events_b
+                .len()
+                .max(self.events_b.capacity() / 2)
+                .max(min_capacity),
+            EventGarbageCollection::None => self.events_b.capacity(),
+        };
         self.events_b.clear();
+        self.events_b.shrink_to(new_capacity);
         self.events_b.start_event_count = self.event_count;
         debug_assert_eq!(
             self.events_a.start_event_count + self.events_a.len(),
@@ -448,8 +495,12 @@ impl<E: Event> Events<E> {
     }
 
     /// A system that calls [`Events::update`] once per frame.
-    pub fn update_system(mut events: ResMut<Self>) {
-        events.update();
+    pub fn update_system(mut events: ResMut<Self>, settings: Option<Res<EventSettings<E>>>) {
+        if let Some(settings) = settings {
+            events.update(&settings);
+        } else {
+            events.update(&Default::default());
+        }
     }
 
     #[inline]
@@ -598,7 +649,7 @@ mod tests {
             "reader_a receives next unread event"
         );
 
-        events.update();
+        events.update(&Default::default());
 
         let mut reader_d = events.get_reader();
 
@@ -620,7 +671,7 @@ mod tests {
             "reader_d receives all events created before and after update"
         );
 
-        events.update();
+        events.update(&Default::default());
 
         assert_eq!(
             get_events(&events, &mut reader_missed),
@@ -654,7 +705,7 @@ mod tests {
         assert!(reader.iter(&events).next().is_none());
 
         events.send(E(2));
-        events.update();
+        events.update(&Default::default());
         events.send(E(3));
 
         assert!(reader.iter(&events).eq([E(2), E(3)].iter()));
@@ -691,12 +742,12 @@ mod tests {
         events.send(TestEvent { i: 0 });
         assert!(!events.is_empty());
 
-        events.update();
+        events.update(&Default::default());
         assert!(!events.is_empty());
 
         // events are only empty after the second call to update
         // due to double buffering.
-        events.update();
+        events.update(&Default::default());
         assert!(events.is_empty());
     }
 
@@ -750,12 +801,12 @@ mod tests {
         events.send(TestEvent { i: 0 });
         let reader = events.get_reader();
         assert_eq!(reader.len(&events), 2);
-        events.update();
+        events.update(&Default::default());
         events.send(TestEvent { i: 0 });
         assert_eq!(reader.len(&events), 3);
-        events.update();
+        events.update(&Default::default());
         assert_eq!(reader.len(&events), 1);
-        events.update();
+        events.update(&Default::default());
         assert!(reader.is_empty(&events));
     }