diff --git a/hscontrol/policy/v2/filter.go b/hscontrol/policy/v2/filter.go
index 7029b107c..54d93b4fb 100644
--- a/hscontrol/policy/v2/filter.go
+++ b/hscontrol/policy/v2/filter.go
@@ -254,29 +254,105 @@ func sshCheck(baseURL string) tailcfg.SSHAction {
 	}
 }
 
-//nolint:gocyclo // SSH compilation walks per-rule branches with intertwined autogroup:self handling
-func (pol *Policy) compileSSHPolicy(
-	baseURL string,
-	users types.Users,
-	node types.NodeView,
-	nodes views.Slice[types.NodeView],
-) (*tailcfg.SSHPolicy, error) {
-	// Never nil: clients read a nil SSHPolicy as "keep the previous
-	// rules", so revoked access would stay. SaaS sends "rules":[].
-	if pol == nil || len(pol.SSHs) == 0 {
-		return &tailcfg.SSHPolicy{Rules: []*tailcfg.SSHRule{}}, nil
+// compiledSSHRule is an [SSH] rule with everything that does not depend on
+// the node it is delivered to already resolved, as [compiledGrant] is for
+// grants. It is read-only once built: the SSH policies of all nodes point
+// into it, so what a rule expands to is kept once and not once per node.
+type compiledSSHRule struct {
+	srcs *sshSources
+
+	sshUsers        map[string]string
+	localpartByUser map[uint]string
+	action          *tailcfg.SSHAction
+	acceptEnv       []string
+
+	hasLocalpart bool
+	hasSelfDest  bool
+
+	// userRules holds the rules scoped to one source user's own nodes,
+	// for autogroup:self destinations and localpart self-access.
+	userRules map[uint][]*tailcfg.SSHRule
+
+	// dests holds the destinations other than autogroup:self, nil if
+	// there are none. Every node in it gets destRules.
+	dests     *netipx.IPSet
+	destRules []*tailcfg.SSHRule
+}
+
+// sshSources is what the sources of an [SSH] rule resolve to. It is
+// read-only once built: rules with the same source addresses share it.
+type sshSources struct {
+	ips              ResolvedAddresses
+	userIDs          []uint
+	principalsByUser map[uint][]*tailcfg.SSHPrincipal
+	taggedPrincipals []*tailcfg.SSHPrincipal
+
+	// allPrincipals merges user and tagged principals into a single
+	// list. Tagged principals preserve per-tag duplication (a node with
+	// N tags appears N times, matching SaaS behavior).
+	allPrincipals []*tailcfg.SSHPrincipal
+}
+
+// rules emits a common rule and, if the user has a localpart match, a
+// per-user localpart rule.
+func (r *compiledSSHRule) rules(
+	principals []*tailcfg.SSHPrincipal,
+	uid uint,
+	hasUID bool,
+) []*tailcfg.SSHRule {
+	rules := []*tailcfg.SSHRule{{
+		Principals: principals,
+		SSHUsers:   r.sshUsers,
+		Action:     r.action,
+		AcceptEnv:  r.acceptEnv,
+	}}
+
+	if hasUID {
+		if lp, ok := r.localpartByUser[uid]; ok {
+			rules = append(rules, &tailcfg.SSHRule{
+				Principals: principals,
+				SSHUsers:   map[string]string{lp: lp},
+				Action:     r.action,
+				AcceptEnv:  r.acceptEnv,
+			})
+		}
 	}
 
-	log.Trace().Caller().Msgf("compiling SSH policy for node %q", node.Hostname())
+	return rules
+}
 
-	rules := []*tailcfg.SSHRule{}
+// compileSSHRules resolves all SSH rules of the policy into
+// [compiledSSHRule] structs. Rules whose sources resolve to nothing are
+// left out.
+//
+//nolint:gocyclo // SSH compilation walks per-rule branches with intertwined autogroup:self handling
+func (pol *Policy) compileSSHRules(
+	baseURL string,
+	users types.Users,
+	nodes views.Slice[types.NodeView],
+) ([]compiledSSHRule, error) {
+	if pol == nil {
+		return nil, nil
+	}
+
+	compiled := make([]compiledSSHRule, 0, len(pol.SSHs))
+
+	// There is one principal per source address and the policy author
+	// decides how many rules there are, so rules whose sources resolve to
+	// the same addresses share their principals.
+	sources := make(map[string]*sshSources)
 
 	for index, rule := range pol.SSHs {
-		var autogroupSelfDests, otherDests []Alias
+		var otherDests []Alias
+
+		cr := compiledSSHRule{
+			hasLocalpart: rule.Users.ContainsLocalpart(),
+			acceptEnv:    rule.AcceptEnv,
+		}
 
 		for _, dst := range rule.Destinations {
 			if ag, ok := dst.(*AutoGroup); ok && ag.Is(AutoGroupSelf) {
-				autogroupSelfDests = append(autogroupSelfDests, dst)
+				cr.hasSelfDest = true
 			} else {
 				otherDests = append(otherDests, dst)
 			}
@@ -307,73 +383,64 @@ func (pol *Policy) compileSSHPolicy(
 			)
 		}
 
-		acceptEnv := rule.AcceptEnv
+		cr.action = &action
 
 		// Build the common userMap (always has at least a root entry).
 		const rootUser = "root"
 
-		baseUserMap := make(map[string]string, len(rule.Users))
+		cr.sshUsers = make(map[string]string, len(rule.Users))
 		if rule.Users.ContainsNonRoot() {
-			baseUserMap["*"] = "="
+			cr.sshUsers["*"] = "="
 		}
 
 		if rule.Users.ContainsRoot() {
-			baseUserMap[rootUser] = rootUser
+			cr.sshUsers[rootUser] = rootUser
 		} else {
-			baseUserMap[rootUser] = ""
+			cr.sshUsers[rootUser] = ""
 		}
 
 		for _, u := range rule.Users.NormalUsers() {
-			baseUserMap[u.String()] = u.String()
+			cr.sshUsers[u.String()] = u.String()
 		}
 
-		hasLocalpart := rule.Users.ContainsLocalpart()
-
-		var localpartByUser map[uint]string
-		if hasLocalpart {
-			localpartByUser = resolveLocalparts(
+		if cr.hasLocalpart {
+			cr.localpartByUser = resolveLocalparts(
 				rule.Users.LocalpartEntries(), users,
 			)
 		}
 
-		userIDs, principalsByUser, taggedPrincipals := groupSourcesByUser(
-			nodes, srcIPs,
-		)
+		srcKey := strings.Join(srcIPs.Strings(), ",")
 
-		// appendRules emits a common rule and, if the user has a
-		// localpart match, a per-user localpart rule.
-		appendRules := func(principals []*tailcfg.SSHPrincipal, uid uint, hasUID bool) {
-			rules = append(rules, &tailcfg.SSHRule{
-				Principals: principals,
-				SSHUsers:   baseUserMap,
-				Action:     &action,
-				AcceptEnv:  acceptEnv,
-			})
+		srcs, ok := sources[srcKey]
+		if !ok {
+			userIDs, byUser, tagged := groupSourcesByUser(nodes, srcIPs)
+			srcs = &sshSources{
+				ips:              srcIPs,
+				userIDs:          userIDs,
+				principalsByUser: byUser,
+				taggedPrincipals: tagged,
+			}
 
-			if hasUID {
-				if lp, ok := localpartByUser[uid]; ok {
-					rules = append(rules, &tailcfg.SSHRule{
-						Principals: principals,
-						SSHUsers:   map[string]string{lp: lp},
-						Action:     &action,
-						AcceptEnv:  acceptEnv,
-					})
-				}
+			for _, uid := range srcs.userIDs {
+				srcs.allPrincipals = append(
+					srcs.allPrincipals, srcs.principalsByUser[uid]...,
+				)
+			}
+
+			srcs.allPrincipals = append(srcs.allPrincipals, srcs.taggedPrincipals...)
+
+			sources[srcKey] = srcs
+		}
+
+		cr.srcs = srcs
+
+		if cr.hasSelfDest || cr.hasLocalpart {
+			cr.userRules = make(map[uint][]*tailcfg.SSHRule, len(srcs.userIDs))
+			for _, uid := range srcs.userIDs {
+				cr.userRules[uid] = cr.rules(srcs.principalsByUser[uid], uid, true)
 			}
 		}
 
-		// Handle autogroup:self destinations.
-		// Tagged nodes can't match autogroup:self.
-		if len(autogroupSelfDests) > 0 &&
-			!node.IsTagged() && node.User().Valid() {
-			uid := node.User().ID()
-
-			if principals := principalsByUser[uid]; len(principals) > 0 {
-				appendRules(principals, uid, true)
-			}
-		}
-
-		// Handle other destinations.
 		if len(otherDests) > 0 {
 			var dest netipx.IPSetBuilder
 
@@ -391,60 +458,78 @@ func (pol *Policy) compileSSHPolicy(
 				}
 			}
 
-			destSet, err := dest.IPSet()
+			cr.dests, err = dest.IPSet()
 			if err != nil {
 				return nil, err
 			}
 
-			if node.InIPSet(destSet) {
-				// Node is a destination — emit rules.
-				// When localpart entries exist, interleave common
-				// and localpart rules per source user to match
-				// Tailscale SaaS first-match-wins ordering.
-				if hasLocalpart {
-					for _, uid := range userIDs {
-						appendRules(principalsByUser[uid], uid, true)
-					}
+			// When localpart entries exist, interleave common
+			// and localpart rules per source user to match
+			// Tailscale SaaS first-match-wins ordering.
+			if cr.hasLocalpart {
+				for _, uid := range srcs.userIDs {
+					cr.destRules = append(cr.destRules, cr.userRules[uid]...)
+				}
 
-					if len(taggedPrincipals) > 0 {
-						appendRules(taggedPrincipals, 0, false)
-					}
-				} else {
-					// Merge user and tagged principals into a
-					// single list. Tagged principals preserve
-					// per-tag duplication (a node with N tags
-					// appears N times, matching SaaS behavior).
-					var allPrincipals []*tailcfg.SSHPrincipal
-					for _, uid := range userIDs {
-						allPrincipals = append(allPrincipals, principalsByUser[uid]...)
-					}
+				if len(srcs.taggedPrincipals) > 0 {
+					cr.destRules = append(
+						cr.destRules, cr.rules(srcs.taggedPrincipals, 0, false)...,
+					)
+				}
+			} else if len(srcs.allPrincipals) > 0 {
+				cr.destRules = cr.rules(srcs.allPrincipals, 0, false)
+			}
+		}
 
-					allPrincipals = append(allPrincipals, taggedPrincipals...)
+		compiled = append(compiled, cr)
+	}
 
-					if len(allPrincipals) > 0 {
-						appendRules(allPrincipals, 0, false)
-					}
-				}
-			} else if hasLocalpart && slices.ContainsFunc(node.IPs(), srcIPs.Contains) {
-				// Self-access: source node not in destination set
-				// receives rules scoped to its own user.
-				if node.IsTagged() {
-					var builder netipx.IPSetBuilder
-
-					node.AppendToIPSet(&builder)
-
-					ipSet, err := builder.IPSet()
-					if err == nil && ipSet != nil {
-						if principals := ipSetToPrincipals(ipSet); len(principals) > 0 {
-							appendRules(principals, 0, false)
-						}
-					}
-				} else if node.User().Valid() {
-					uid := node.User().ID()
-					if principals := principalsByUser[uid]; len(principals) > 0 {
-						appendRules(principals, uid, true)
+	return compiled, nil
+}
+
+// sshPolicyForNode picks the rules that apply to node out of compiled.
+func sshPolicyForNode(
+	compiled []compiledSSHRule,
+	node types.NodeView,
+) *tailcfg.SSHPolicy {
+	// Never nil: clients read a nil SSHPolicy as "keep the previous
+	// rules", so revoked access would stay. SaaS sends "rules":[].
+	rules := []*tailcfg.SSHRule{}
+
+	for i := range compiled {
+		cr := &compiled[i]
+
+		// Handle autogroup:self destinations.
+		// Tagged nodes can't match autogroup:self.
+		if cr.hasSelfDest && !node.IsTagged() && node.User().Valid() {
+			rules = append(rules, cr.userRules[node.User().ID()]...)
+		}
+
+		// Handle other destinations.
+		if cr.dests == nil {
+			continue
+		}
+
+		if node.InIPSet(cr.dests) {
+			// Node is a destination — emit rules.
+			rules = append(rules, cr.destRules...)
+		} else if cr.hasLocalpart &&
+			slices.ContainsFunc(node.IPs(), cr.srcs.ips.Contains) {
+			// Self-access: source node not in destination set
+			// receives rules scoped to its own user.
+			if node.IsTagged() {
+				var builder netipx.IPSetBuilder
+
+				node.AppendToIPSet(&builder)
+
+				ipSet, err := builder.IPSet()
+				if err == nil && ipSet != nil {
+					if principals := ipSetToPrincipals(ipSet); len(principals) > 0 {
+						rules = append(rules, cr.rules(principals, 0, false)...)
 					}
 				}
+			} else if node.User().Valid() {
+				rules = append(rules, cr.userRules[node.User().ID()]...)
 			}
 		}
 	}
@@ -468,7 +553,26 @@ func (pol *Policy) compileSSHPolicy(
 
 	return &tailcfg.SSHPolicy{
 		Rules: rules,
-	}, nil
+	}
+}
+
+// compileSSHPolicy compiles the SSH policy of a single node.
+// [PolicyManager.SSHPolicy], which is asked for every node, keeps the
+// result of [Policy.compileSSHRules] instead.
+func (pol *Policy) compileSSHPolicy(
+	baseURL string,
+	users types.Users,
+	node types.NodeView,
+	nodes views.Slice[types.NodeView],
+) (*tailcfg.SSHPolicy, error) {
+	log.Trace().Caller().Msgf("compiling SSH policy for node %q", node.Hostname())
+
+	compiled, err := pol.compileSSHRules(baseURL, users, nodes)
+	if err != nil {
+		return nil, err
+	}
+
+	return sshPolicyForNode(compiled, node), nil
 }
 
 // ipSetToPrincipals converts an [netipx.IPSet] into SSH principals, one per address.
@@ -617,7 +721,15 @@ func mergeFilterRules(rules []tailcfg.FilterRule) []tailcfg.FilterRule {
 		return rules
 	}
 
+	// sharedSrcIPs identifies a SrcIPs slice by its backing array.
+	type sharedSrcIPs struct {
+		first   *string
+		n       int
+		ipProto string
+	}
+
 	keyToIdx := make(map[string]int)
+	sharedToIdx := make(map[sharedSrcIPs]int)
 	result := make([]tailcfg.FilterRule, 0, len(rules))
 
 	for _, rule := range rules {
@@ -629,14 +741,35 @@ func mergeFilterRules(rules []tailcfg.FilterRule) []tailcfg.FilterRule {
 			continue
 		}
 
-		key := filterRuleKey(rule)
+		// An ACL compiles to one rule per destination, all with the same
+		// SrcIPs slice. Build the key of a slice once, or merging them is
+		// len(src) × len(dst) work.
+		shared := sharedSrcIPs{
+			n:       len(rule.SrcIPs),
+			ipProto: fmt.Sprint(rule.IPProto),
+		}
+		if len(rule.SrcIPs) > 0 {
+			shared.first = &rule.SrcIPs[0]
+		}
 
-		if idx, exists := keyToIdx[key]; exists {
+		idx, exists := sharedToIdx[shared]
+		if !exists {
+			key := filterRuleKey(rule)
+
+			idx, exists = keyToIdx[key]
+			if !exists {
+				idx = len(result)
+				keyToIdx[key] = idx
+			}
+
+			sharedToIdx[shared] = idx
+		}
+
+		if exists {
 			// Merge: append DstPorts to existing rule
 			result[idx].DstPorts = append(result[idx].DstPorts, rule.DstPorts...)
 		} else {
 			// New unique combination
-			keyToIdx[key] = len(result)
 			result = append(result, tailcfg.FilterRule{
 				SrcIPs:   rule.SrcIPs,
 				DstPorts: slices.Clone(rule.DstPorts),
diff --git a/hscontrol/policy/v2/filter_test.go b/hscontrol/policy/v2/filter_test.go
index 4daa314a0..4ae4f1639 100644
--- a/hscontrol/policy/v2/filter_test.go
+++ b/hscontrol/policy/v2/filter_test.go
@@ -2,7 +2,9 @@ package v2
 
 import (
 	"encoding/json"
+	"fmt"
 	"net/netip"
+	"runtime"
 	"slices"
 	"strings"
 	"testing"
@@ -4283,3 +4285,94 @@ func TestACLSourcesResolvedOnce(t *testing.T) {
 	require.Len(t, rules, 1)
 	require.Len(t, rules[0].DstPorts, 3)
 }
+
+// TestMergeFilterRulesSharedSrcIPs pins that recognising a shared SrcIPs
+// slice merges exactly the rules that comparing its content would.
+func TestMergeFilterRulesSharedSrcIPs(t *testing.T) {
+	t.Parallel()
+
+	shared := []string{"100.64.0.1", "100.64.0.2"}
+	rule := func(srcIPs []string, proto int, port uint16) tailcfg.FilterRule {
+		return tailcfg.FilterRule{
+			SrcIPs: srcIPs,
+			DstPorts: []tailcfg.NetPortRange{
+				{IP: "100.64.0.3", Ports: tailcfg.PortRange{First: port, Last: port}},
+			},
+			IPProto: []int{proto},
+		}
+	}
+
+	got := mergeFilterRules([]tailcfg.FilterRule{
+		rule(shared, ProtocolTCP, 1),
+		rule(shared, ProtocolUDP, 2),
+		rule(shared[:1], ProtocolTCP, 3),
+		rule(shared, ProtocolTCP, 4),
+		rule(slices.Clone(shared), ProtocolTCP, 5),
+		rule(shared, ProtocolUDP, 6),
+	})
+
+	want := []tailcfg.FilterRule{
+		rule(shared, ProtocolTCP, 1),
+		rule(shared, ProtocolUDP, 2),
+		rule(shared[:1], ProtocolTCP, 3),
+	}
+	want[0].DstPorts = append(
+		want[0].DstPorts, rule(nil, 0, 4).DstPorts[0], rule(nil, 0, 5).DstPorts[0],
+	)
+	want[1].DstPorts = append(want[1].DstPorts, rule(nil, 0, 6).DstPorts[0])
+
+	if diff := cmp.Diff(want, got); diff != "" {
+		t.Errorf("mergeFilterRules() mismatch (-want +got):\n%s", diff)
+	}
+}
+
+// TestMergeFilterRulesKeysSharedSrcIPsOnce bounds what merging the rules of
+// one wide ACL allocates: their shared SrcIPs are keyed once, not once per
+// rule. It reads the heap counters, so it does not run in parallel.
+func TestMergeFilterRulesKeysSharedSrcIPsOnce(t *testing.T) {
+	const numRules = 100
+
+	rulesSharing := func(numSrcs int) []tailcfg.FilterRule {
+		srcIPs := make([]string, numSrcs)
+		for i := range srcIPs {
+			srcIPs[i] = fmt.Sprintf("100.64.%d.%d", i/256, i%256)
+		}
+
+		rules := make([]tailcfg.FilterRule, numRules)
+		for i := range rules {
+			rules[i] = tailcfg.FilterRule{
+				SrcIPs: srcIPs,
+				DstPorts: []tailcfg.NetPortRange{
+					{IP: "100.100.0.1", Ports: tailcfg.PortRangeAny},
+				},
+				IPProto: []int{ProtocolTCP},
+			}
+		}
+
+		return rules
+	}
+
+	bytesPerMerge := func(rules []tailcfg.FilterRule) int64 {
+		const runs = 10
+
+		var before, after runtime.MemStats
+
+		runtime.ReadMemStats(&before)
+
+		for range runs {
+			mergeFilterRules(rules)
+		}
+
+		runtime.ReadMemStats(&after)
+
+		return int64(after.TotalAlloc-before.TotalAlloc) / runs //nolint:gosec
+	}
+
+	wide := rulesSharing(1024)
+	keyBytes := int64(len(filterRuleKey(wide[0])))
+
+	// Only the key, built once, may grow with the sources.
+	extra := bytesPerMerge(wide) - bytesPerMerge(rulesSharing(1))
+	assert.Less(t, extra, 8*keyBytes,
+		"merging %d rules that share %d sources", numRules, len(wide[0].SrcIPs))
+}
diff --git a/hscontrol/policy/v2/policy.go b/hscontrol/policy/v2/policy.go
index ede844fbe..d9070dde9 100644
--- a/hscontrol/policy/v2/policy.go
+++ b/hscontrol/policy/v2/policy.go
@@ -40,6 +40,12 @@ type PolicyManager struct {
 	// nodesByID indexes nodes; see [PolicyManager.cacheableLocked].
 	nodesByID map[types.NodeID]types.NodeView
 
+	// resolvedPol is pol with its tags indexed and its groups resolved
+	// against users and nodes, see [Policy.withNodesByTag] and
+	// [Policy.withResolvedGroups]. Readers that resolve aliases on demand
+	// go through it; pol itself is what is hashed.
+	resolvedPol *Policy
+
 	filterHash deephash.Sum
 	filter     []tailcfg.FilterRule
 	matchers   []matcher.Match
@@ -64,6 +70,15 @@ type PolicyManager struct {
 	// Lazy map of SSH policies
 	sshPolicyMap *xsync.Map[types.NodeID, *tailcfg.SSHPolicy]
 
+	// sshRules are the SSH rules with sources and destinations
+	// pre-resolved, shared by every node's policy in sshPolicyMap so
+	// the principal lists exist once rather than once per rule and
+	// node. They are reset to nil wherever sshPolicyMap is cleared
+	// and filled by the first SSHPolicy call after that; sshRulesMu
+	// serialises that fill between readers of mu.
+	sshRulesMu sync.Mutex
+	sshRules   []compiledSSHRule
+
 	// compiledGrants are the grants with sources pre-resolved.
 	// The single source of truth for filter compilation. Both
 	// global and per-node filter rules are derived from these.
@@ -246,8 +261,10 @@ func NewPolicyManager(b []byte, users []types.User, nodes views.Slice[types.Node
 // pm is written, so a caller that restores its own input on error leaves pm
 // as it was, and a retry with the same input recompiles.
 func (pm *PolicyManager) updateLocked() (bool, error) {
-	// One tag index serves every resolution in this compile.
-	pol := pm.pol.withNodesByTag(pm.nodes)
+	// One tag index and one resolution of every group serve this whole
+	// compile; each step below would otherwise resolve them again for
+	// every rule naming them.
+	pol := pm.pol.withNodesByTag(pm.nodes).withResolvedGroups(pm.users, pm.nodes)
 
 	// Compile all grants once. Both global and per-node filter
 	// rules are derived from these compiled grants.
@@ -288,6 +305,7 @@ func (pm *PolicyManager) updateLocked() (bool, error) {
 		}
 	}
 
+	pm.resolvedPol = pol
 	pm.compiledGrants = grants
 	pm.userNodeIdx = buildUserNodeIndex(pm.nodes)
 	pm.needsPerNodeFilter = hasPerNodeGrants(pm.compiledGrants)
@@ -394,6 +412,7 @@ func (pm *PolicyManager) updateLocked() (bool, error) {
 		// policies for nodes that have changed. Particularly if the only difference is
 		// that nodes has been added or removed.
 		pm.sshPolicyMap.Clear()
+		pm.sshRules = nil
 		pm.filterRulesMap.Clear()
 		pm.matchersForNodeMap.Clear()
 	}
@@ -468,11 +487,13 @@ func (pm *PolicyManager) SSHPolicy(baseURL string, node types.NodeView) (*tailcf
 		return sshPol, nil
 	}
 
-	sshPol, err := pm.pol.compileSSHPolicy(baseURL, pm.users, node, pm.nodes)
+	rules, err := pm.sshRulesLocked(baseURL)
 	if err != nil {
 		return nil, fmt.Errorf("compiling SSH policy: %w", err)
 	}
 
+	sshPol := sshPolicyForNode(rules, node)
+
 	if pm.cacheableLocked(node) {
 		pm.sshPolicyMap.Store(node.ID(), sshPol)
 	}
@@ -480,6 +501,26 @@ func (pm *PolicyManager) SSHPolicy(baseURL string, node types.NodeView) (*tailcf
 	return sshPol, nil
 }
 
+// sshRulesLocked returns the compiled SSH rules, compiling them on first
+// access. It must be called with pm.mu held, for reading or writing;
+// writers reset pm.sshRules directly. The rules keep the baseURL of the
+// call that compiled them; [state.State] always passes the server URL.
+func (pm *PolicyManager) sshRulesLocked(baseURL string) ([]compiledSSHRule, error) {
+	pm.sshRulesMu.Lock()
+	defer pm.sshRulesMu.Unlock()
+
+	if pm.sshRules == nil {
+		rules, err := pm.resolvedPol.compileSSHRules(baseURL, pm.users, pm.nodes)
+		if err != nil {
+			return nil, err
+		}
+
+		pm.sshRules = rules
+	}
+
+	return pm.sshRules, nil
+}
+
 // SSHCheckParams resolves the SSH check period for src logging in to dst
 // as localUser by looking up the current policy. This avoids trusting URL
 // parameters that a client could tamper with. First-match wins across
@@ -529,7 +570,7 @@ func (pm *PolicyManager) SSHCheckParams(
 		}
 
 		// Resolve sources and check if src node matches.
-		srcIPs, err := rule.Sources.Resolve(pm.pol, pm.users, pm.nodes)
+		srcIPs, err := rule.Sources.Resolve(pm.resolvedPol, pm.users, pm.nodes)
 		if err != nil || srcIPs == nil {
 			continue
 		}
@@ -556,7 +597,7 @@ func (pm *PolicyManager) SSHCheckParams(
 
 			hasOtherDests = true
 
-			dstIPs, err := dst.Resolve(pm.pol, pm.users, pm.nodes)
+			dstIPs, err := dst.Resolve(pm.resolvedPol, pm.users, pm.nodes)
 			if err != nil || dstIPs == nil {
 				continue
 			}
@@ -989,6 +1030,7 @@ func (pm *PolicyManager) SetUsers(users []types.User) (bool, bool, error) {
 	// the self sources are outside the filter hash, so updateLocked can
 	// report no change while per-node results moved.
 	pm.sshPolicyMap.Clear()
+	pm.sshRules = nil
 	pm.filterRulesMap.Clear()
 	pm.matchersForNodeMap.Clear()
 
@@ -1071,6 +1113,7 @@ func (pm *PolicyManager) SetNodes(nodes views.Slice[types.NodeView]) (bool, erro
 		if !needsUpdate {
 			// This ensures fresh filter rules are generated for all nodes
 			pm.sshPolicyMap.Clear()
+			pm.sshRules = nil
 			pm.filterRulesMap.Clear()
 			pm.matchersForNodeMap.Clear()
 		}
@@ -1477,7 +1520,7 @@ func (pm *PolicyManager) ViaRoutesForPeer(viewer, peer types.NodeView) types.Via
 		resolved[i] = true
 
 		for _, src := range grants[i].Sources {
-			ips, err := src.Resolve(pm.pol, pm.users, pm.nodes)
+			ips, err := src.Resolve(pm.resolvedPol, pm.users, pm.nodes)
 			if err != nil {
 				continue
 			}
@@ -1491,7 +1534,7 @@ func (pm *PolicyManager) ViaRoutesForPeer(viewer, peer types.NodeView) types.Via
 
 		if viewerMatchesGrant[i] {
 			resolvedDstPrefixes[i], grantHasAutoGroupInternet[i] = resolveViaDestinations(
-				pm.pol, pm.users, pm.nodes, grants[i].Destinations,
+				pm.resolvedPol, pm.users, pm.nodes, grants[i].Destinations,
 			)
 		}
 
diff --git a/hscontrol/policy/v2/policy_test.go b/hscontrol/policy/v2/policy_test.go
index 3f7485ed7..cc13857a0 100644
--- a/hscontrol/policy/v2/policy_test.go
+++ b/hscontrol/policy/v2/policy_test.go
@@ -1055,6 +1055,52 @@ func TestSSHPolicyRemovalClearsRules(t *testing.T) {
 	}
 }
 
+// TestSSHPolicySharedBetweenNodes pins that what an SSH rule expands to is
+// kept once, not once per rule and destination node. There is one principal
+// per source address, so separate copies grow with rules × nodes².
+func TestSSHPolicySharedBetweenNodes(t *testing.T) {
+	users := types.Users{{Name: "user1", Email: "user1@headscale.net"}}
+	users[0].ID = 1
+
+	nodes := types.Nodes{
+		node("node1", "100.64.0.1", "fd7a:115c:a1e0::1", users[0]),
+		node("node2", "100.64.0.2", "fd7a:115c:a1e0::2", users[0]),
+		node("node3", "100.64.0.3", "fd7a:115c:a1e0::3", users[0]),
+	}
+	for i, n := range nodes {
+		n.ID = types.NodeID(i + 1) //nolint:gosec // small test value
+	}
+
+	pm, err := NewPolicyManager([]byte(`{"ssh": [
+		{"action": "accept", "src": ["autogroup:member"], "dst": ["autogroup:member"], "users": ["a"]},
+		{"action": "accept", "src": ["user1@headscale.net"], "dst": ["autogroup:member"], "users": ["b"]}
+	]}`), users, nodes[:2].ViewSlice())
+	require.NoError(t, err)
+
+	first, err := pm.SSHPolicy("", nodes[0].View())
+	require.NoError(t, err)
+	second, err := pm.SSHPolicy("", nodes[1].View())
+	require.NoError(t, err)
+
+	require.Len(t, first.Rules, 2)
+	require.Len(t, first.Rules[0].Principals, 4)
+	require.Equal(t, first, second)
+
+	require.Same(t, first.Rules[0], second.Rules[0], "between nodes")
+	require.Same(t, first.Rules[0].Principals[0], first.Rules[1].Principals[0],
+		"between rules whose sources resolve to the same addresses")
+
+	// The shared rules are dropped together with the per-node policies.
+	changed, err := pm.SetNodes(nodes.ViewSlice())
+	require.NoError(t, err)
+	require.True(t, changed)
+
+	after, err := pm.SSHPolicy("", nodes[0].View())
+	require.NoError(t, err)
+	require.Len(t, after.Rules, 2)
+	require.Len(t, after.Rules[0].Principals, 6)
+}
+
 // TestTagPropagationToPeerMap tests that when a node's tags change,
 // the peer map is correctly updated. This is a regression test for
 // https://github.com/juanfont/headscale/issues/2389
@@ -4465,3 +4511,155 @@ func BenchmarkCompileWideACL(b *testing.B) {
 		}
 	})
 }
+
+// TestWithResolvedGroups checks that the copy answers for a group exactly
+// as resolving it member by member does, without looking at users and
+// nodes again, and that the policy it was made from is left untouched.
+func TestWithResolvedGroups(t *testing.T) {
+	users := types.Users{
+		{ID: 1, Name: "alice"},
+		{ID: 2, Name: "bob"},
+		{ID: 3, Name: "twin"},
+		{ID: 4, Name: "twin"},
+	}
+	nodes := types.Nodes{
+		node("alice1", "100.64.0.1", "fd7a:115c:a1e0::1", users[0]),
+		node("bob1", "100.64.0.2", "fd7a:115c:a1e0::2", users[1]),
+	}.ViewSlice()
+
+	pol := &Policy{
+		Groups: Groups{
+			"group:dev":       Usernames{"alice@", "bob@", "missing@"},
+			"group:ambiguous": Usernames{"alice@", "twin@"},
+			"group:empty":     Usernames{},
+		},
+	}
+
+	resolved := pol.withResolvedGroups(users, nodes)
+	require.Nil(t, pol.resolvedGroups,
+		"the parsed policy is hashed and must stay as is")
+	require.Len(t, resolved.resolvedGroups, len(pol.Groups))
+
+	for g := range pol.Groups {
+		want, wantErr := g.resolve(pol, users, nodes)
+		got, gotErr := g.resolve(resolved, nil, views.Slice[types.NodeView]{})
+
+		require.Equal(t, want.Prefixes(), got.Prefixes(), g)
+
+		if wantErr != nil {
+			require.EqualError(t, gotErr, wantErr.Error(), g)
+		} else {
+			require.NoError(t, gotErr, g)
+		}
+	}
+
+	require.ErrorIs(t,
+		resolved.resolvedGroups["group:ambiguous"].err, ErrMultipleUsersFound)
+
+	unknown := Group("group:unknown")
+	got, err := unknown.resolve(resolved, users, nodes)
+	require.NoError(t, err)
+	require.Empty(t, got.Prefixes())
+
+	require.Nil(t, (*Policy)(nil).withResolvedGroups(users, nodes))
+}
+
+// TestResolvedGroupsFollowUsersAndNodes checks that readers resolving
+// aliases on demand through the groups resolved by updateLocked see the
+// users and nodes of the latest SetUsers, SetNodes and SetPolicy.
+func TestResolvedGroupsFollowUsersAndNodes(t *testing.T) {
+	alice := types.User{ID: 1, Name: "alice"}
+	bob := types.User{ID: 2, Name: "bob"}
+
+	srv := node("srv", "100.64.0.10", "fd7a:115c:a1e0::10", alice)
+	srv.ID = 10
+	srv.Tags = []string{"tag:srv"}
+	alice1 := node("alice1", "100.64.0.1", "fd7a:115c:a1e0::1", alice)
+	alice1.ID = 1
+	bob1 := node("bob1", "100.64.0.3", "fd7a:115c:a1e0::3", bob)
+	bob1.ID = 2
+
+	pol := func(members string) []byte {
+		return []byte(`{
+			"groups": {"group:dev": [` + members + `]},
+			"tagOwners": {"tag:srv": ["group:dev"]},
+			"acls": [{"action": "accept", "src": ["group:dev"], "dst": ["tag:srv:22"]}],
+			"ssh": [{"action": "accept", "src": ["group:dev"], "dst": ["tag:srv"], "users": ["root"]}]
+		}`)
+	}
+
+	pm, err := NewPolicyManager(
+		pol(`"alice@", "bob@"`),
+		types.Users{alice},
+		types.Nodes{srv, alice1}.ViewSlice(),
+	)
+	require.NoError(t, err)
+
+	sshSources := func() []string {
+		t.Helper()
+
+		sshPol, err := pm.SSHPolicy("", srv.View())
+		require.NoError(t, err)
+
+		var ips []string
+
+		for _, rule := range sshPol.Rules {
+			for _, principal := range rule.Principals {
+				ips = append(ips, principal.NodeIP)
+			}
+		}
+
+		slices.Sort(ips)
+
+		return ips
+	}
+
+	filterSources := func() []string {
+		t.Helper()
+
+		filter, _ := pm.Filter()
+		require.Len(t, filter, 1)
+
+		ips := slices.Clone(filter[0].SrcIPs)
+		slices.Sort(ips)
+
+		return ips
+	}
+
+	aliceIPs := []string{"100.64.0.1", "fd7a:115c:a1e0::1"}
+	bothIPs := []string{
+		"100.64.0.1", "100.64.0.3", "fd7a:115c:a1e0::1", "fd7a:115c:a1e0::3",
+	}
+
+	require.Equal(t, aliceIPs, filterSources())
+	require.Equal(t, aliceIPs, sshSources())
+
+	_, _, err = pm.SetUsers(types.Users{alice, bob})
+	require.NoError(t, err)
+
+	_, err = pm.SetNodes(types.Nodes{srv, alice1, bob1}.ViewSlice())
+	require.NoError(t, err)
+	require.Equal(t, bothIPs, filterSources())
+	require.Equal(t, bothIPs, sshSources())
+
+	_, err = pm.SetPolicy(pol(`"alice@"`))
+	require.NoError(t, err)
+	require.Equal(t, aliceIPs, filterSources())
+	require.Equal(t, aliceIPs, sshSources())
+}
+
+// TestResolvedPolicyKeepsTagIndex checks that the copy readers resolve
+// through carries both the tag index and the resolved groups.
+func TestResolvedPolicyKeepsTagIndex(t *testing.T) {
+	users := types.Users{{ID: 1, Name: "alice"}}
+	nodes := types.Nodes{node("a", "100.64.0.1", "fd7a:115c:a1e0::1", users[0])}
+
+	pm, err := NewPolicyManager([]byte(`{
+		"groups": {"group:a": ["alice@"]},
+		"tagOwners": {"tag:x": ["alice@"]},
+		"acls": [{"action": "accept", "src": ["group:a"], "dst": ["tag:x:*"]}]
+	}`), users, nodes.ViewSlice())
+	require.NoError(t, err)
+	require.NotNil(t, pm.resolvedPol.nodesByTag)
+	require.NotNil(t, pm.resolvedPol.resolvedGroups)
+}
diff --git a/hscontrol/policy/v2/sshtest.go b/hscontrol/policy/v2/sshtest.go
index 23da92aac..5d01d29d6 100644
--- a/hscontrol/policy/v2/sshtest.go
+++ b/hscontrol/policy/v2/sshtest.go
@@ -141,7 +141,7 @@ func (pm *PolicyManager) RunSSHTests() error {
 	defer pm.mu.RUnlock()
 
 	cache := make(map[types.NodeID]*tailcfg.SSHPolicy)
-	results := runSSHPolicyTests(pm.pol, pm.users, pm.nodes, cache)
+	results := runSSHPolicyTests(pm.resolvedPol, pm.users, pm.nodes, cache)
 
 	return wrapTestResult(errSSHPolicyTestsFailed, results.AllPassed, results)
 }
@@ -156,6 +156,7 @@ func evaluateSSHTests(
 		return nil
 	}
 
+	pol = pol.withResolvedGroups(users, nodes)
 	cache := make(map[types.NodeID]*tailcfg.SSHPolicy)
 	results := runSSHPolicyTests(pol, users, nodes, cache)
 
diff --git a/hscontrol/policy/v2/test.go b/hscontrol/policy/v2/test.go
index 96ee1445a..51816f6a2 100644
--- a/hscontrol/policy/v2/test.go
+++ b/hscontrol/policy/v2/test.go
@@ -260,7 +260,7 @@ func (pm *PolicyManager) RunTests() error {
 	pm.mu.RLock()
 	defer pm.mu.RUnlock()
 
-	results := runPolicyTests(pm.pol, pm.filter, pm.users, pm.nodes)
+	results := runPolicyTests(pm.resolvedPol, pm.filter, pm.users, pm.nodes)
 
 	return wrapTestResult(errPolicyTestsFailed, results.AllPassed, results)
 }
@@ -273,6 +273,7 @@ func evaluateTests(pol *Policy, users []types.User, nodes views.Slice[types.Node
 		return nil
 	}
 
+	pol = pol.withResolvedGroups(users, nodes)
 	grants := pol.compileGrants(users, nodes)
 
 	var filter []tailcfg.FilterRule
diff --git a/hscontrol/policy/v2/types.go b/hscontrol/policy/v2/types.go
index c37225624..10819e8bf 100644
--- a/hscontrol/policy/v2/types.go
+++ b/hscontrol/policy/v2/types.go
@@ -519,6 +519,13 @@ func (g *Group) resolve(p *Policy, users types.Users, nodes views.Slice[types.No
 		errs []error
 	)
 
+	// A policy compiled through [Policy.withResolvedGroups] has already
+	// resolved every group once; answer from that instead of walking
+	// users and nodes again for each rule that names the group.
+	if r, ok := p.resolvedGroups[*g]; ok {
+		return r.ips, r.err
+	}
+
 	for _, user := range p.Groups[*g] {
 		uips, err := user.resolve(nil, users, nodes)
 		if err != nil {
@@ -1958,6 +1965,11 @@ type Policy struct {
 	// callers using it should panic if not
 	validated bool `json:"-"`
 
+	// resolvedGroups is only set on the copy returned by
+	// [Policy.withResolvedGroups]; a parsed policy never carries it,
+	// as the policy is hashed for change detection.
+	resolvedGroups map[Group]resolvedGroup `json:"-"`
+
 	Groups              Groups             `json:"groups,omitempty"`
 	Hosts               Hosts              `json:"hosts,omitempty"`
 	TagOwners           TagOwners          `json:"tagOwners,omitempty"`
@@ -2001,6 +2013,41 @@ func (pol *Policy) withNodesByTag(nodes views.Slice[types.NodeView]) *Policy {
 // MarshalJSON is deliberately not implemented for [Policy].
 // We use the default JSON marshalling behavior provided by the Go runtime.
 
+// resolvedGroup is what [Group.resolve] returns for one group.
+type resolvedGroup struct {
+	ips *netipx.IPSet
+	err error
+}
+
+// withResolvedGroups returns a shallow copy of pol on which every group
+// is already resolved against users and nodes, so that [Group.resolve]
+// is a map lookup. Resolving a group walks users and nodes once per
+// member, and a group is typically named by many rules; resolving it per
+// mention makes compilation quadratic in the policy size. The copy is
+// only valid for the users and nodes it was built from, and must not be
+// hashed in place of pol.
+func (pol *Policy) withResolvedGroups(
+	users types.Users,
+	nodes views.Slice[types.NodeView],
+) *Policy {
+	if pol == nil || len(pol.Groups) == 0 {
+		return pol
+	}
+
+	cp := *pol
+	cp.resolvedGroups = nil
+
+	resolved := make(map[Group]resolvedGroup, len(pol.Groups))
+	for g := range pol.Groups {
+		ips, err := g.resolve(&cp, users, nodes)
+		resolved[g] = resolvedGroup{ips: ips, err: err}
+	}
+
+	cp.resolvedGroups = resolved
+
+	return &cp
+}
+
 var (
 	// TODO(kradalby): Add these checks for tagOwners and autoApprovers.
 	autogroupForSrc       = []AutoGroup{AutoGroupMember, AutoGroupTagged, AutoGroupDangerAll}