diff --git a/.changeset/four-cooks-sit.md b/.changeset/four-cooks-sit.md
new file mode 100644
index 000000000..a845151cc
--- /dev/null
+++ b/.changeset/four-cooks-sit.md
@@ -0,0 +1,2 @@
+---
+---
diff --git a/.changeset/kind-donkeys-sell.md b/.changeset/kind-donkeys-sell.md
new file mode 100644
index 000000000..29869ee22
--- /dev/null
+++ b/.changeset/kind-donkeys-sell.md
@@ -0,0 +1,5 @@
+---
+"@lingo.dev/_sdk": patch
+---
+
+Optimized countWords function for better performance using an iterative DFS approach, reducing memory allocations and improving efficiency for large payloads.
diff --git a/packages/sdk/src/index.spec.ts b/packages/sdk/src/index.spec.ts
index a88277fdf..ff6ecbb86 100644
--- a/packages/sdk/src/index.spec.ts
+++ b/packages/sdk/src/index.spec.ts
@@ -87,3 +87,66 @@ describe("ReplexicaEngine", () => {
     });
   });
 });
+
+
+describe("LingoDotDevEngine - countWordsInRecord", () => {
+  const engine = new LingoDotDevEngine({ apiKey: "test" });
+
+  it("should return 0 for falsy values and empty inputs", () => {
+    expect((engine as any).countWordsInRecord(null)).toBe(0);
+    expect((engine as any).countWordsInRecord(undefined)).toBe(0);
+    expect((engine as any).countWordsInRecord("")).toBe(0);
+    expect((engine as any).countWordsInRecord({})).toBe(0);
+    expect((engine as any).countWordsInRecord([])).toBe(0);
+  });
+
+  it("should count words in a simple string", () => {
+    expect((engine as any).countWordsInRecord("Hello world")).toBe(2);
+    expect((engine as any).countWordsInRecord("   one two   three  ")).toBe(3);
+    expect((engine as any).countWordsInRecord("\tNew\nlines  and\ttabs\r\n")).toBe(4);
+  });
+
+  it("should count words in an array of strings", () => {
+    // "a" -> 1, "b c" -> 2, "d" -> 1
+    expect((engine as any).countWordsInRecord(["a", "b c", "d"])).toBe(1 + 2 + 1);
+  });
+
+  it("should count words in a nested array", () => {
+    // Here, the function is fully recursive:
+    // "a" → 1, "b c" → 2, and nested ["d e"] → "d e" → 2 words.
+    // Total = 1 + 2 + 2 = 5 words.
+    expect((engine as any).countWordsInRecord(["a", "b c", ["d e"]])).toBe(5);
+  });
+
+  it("should count words in a nested object", () => {
+    // Object { a: "hello", b: { c: "c d" } }:
+    // "hello" → 1, and "c d" → 2 words.
+    // Total = 1 + 2 = 3.
+    expect((engine as any).countWordsInRecord({ a: "hello", b: { c: "c d" } })).toBe(3);
+  });
+  it("should perform efficiently on large payloads", () => {
+    // Generate a large payload with many key-value pairs (in lakhs)
+    const largePayload: Record<string, string> = {};
+    const sampleText = "This is a sample text for benchmarking the countWordsInRecord function";
+    // Count words in sampleText:
+    // ["This", "is", "a", "sample", "text", "for", "benchmarking", "the", "countWordsInRecord", "function"]
+    // That is 10 words.
+    const repetitions = 100_000; // 1 lakh
+    for (let i = 0; i < repetitions; i++) {
+      largePayload[`key_${i}`] = sampleText;
+    }
+    const expectedTotalWords = repetitions * 10;
+
+    const startTime = performance.now();
+    const result = (engine as any).countWordsInRecord(largePayload);
+    const endTime = performance.now();
+    const elapsed = endTime - startTime;
+
+    console.log(`Large payload processed in ${elapsed.toFixed(2)} ms`);
+
+    expect(result).toBe(expectedTotalWords);
+    // Optionally, assert that the function finishes within a reasonable time threshold:
+    expect(elapsed).toBeLessThan(5000); 
+});
+});
+
diff --git a/packages/sdk/src/index.ts b/packages/sdk/src/index.ts
index 6ccbc6968..7005d40b6 100644
--- a/packages/sdk/src/index.ts
+++ b/packages/sdk/src/index.ts
@@ -174,18 +174,74 @@ export class LingoDotDevEngine {
    * @param payload - The payload to count words in
    * @returns The total number of words
    */
-  private countWordsInRecord(payload: any | Record<string, any> | Array<any>): number {
-    if (Array.isArray(payload)) {
-      return payload.reduce((acc, item) => acc + this.countWordsInRecord(item), 0);
-    } else if (typeof payload === "object" && payload !== null) {
-      return Object.values(payload).reduce((acc: number, item) => acc + this.countWordsInRecord(item), 0);
-    } else if (typeof payload === "string") {
-      return payload.trim().split(/\s+/).filter(Boolean).length;
-    } else {
-      return 0;
+  
+  // private countWordsInRecord(payload: any | Record<string, any> | Array<any>): number {
+  //   if (Array.isArray(payload)) {
+  //     return payload.reduce((acc, item) => acc + this.countWordsInRecord(item), 0);
+  //   } else if (typeof payload === "object" && payload !== null) {
+  //     return Object.values(payload).reduce((acc: number, item) => acc + this.countWordsInRecord(item), 0);
+  //   } else if (typeof payload === "string") {
+  //     return payload.trim().split(/\s+/).filter(Boolean).length;
+  //   } else {
+  //     return 0;
+  //   }
+  // }
+
+  private countWordsInRecord(payload: unknown): number {
+    let wordCount = 0;
+    const processingStack: unknown[] = [payload];
+    const SPACE_CHAR_CODE = 32;
+    const TAB_CHAR_CODE = 9;
+    const NEWLINE_CHAR_CODE = 10;
+
+    while (processingStack.length > 0) {
+        const currentItem = processingStack.pop();
+
+        if (typeof currentItem === 'string') {
+            let isBetweenWords = true;
+            let currentWordCount = 0;
+            
+            for (let i = 0; i < currentItem.length; i++) {
+                const charCode = currentItem.charCodeAt(i);
+                const isWhitespace = charCode === SPACE_CHAR_CODE ||
+                                    charCode === TAB_CHAR_CODE ||
+                                    charCode === NEWLINE_CHAR_CODE;
+
+                if (isBetweenWords && !isWhitespace) {
+                    currentWordCount++;
+                    isBetweenWords = false;
+                } else if (!isBetweenWords && isWhitespace) {
+                    isBetweenWords = true;
+                }
+            }
+            
+            wordCount += currentWordCount;
+        }
+        else if (Array.isArray(currentItem)) {
+            // Process array elements in reverse to maintain original order
+            for (let i = currentItem.length - 1; i >= 0; i--) {
+                processingStack.push(currentItem[i]);
+            }
+        }
+        else if (this.isRecord(currentItem)) {
+            // Process object properties efficiently
+            for (const key in currentItem) {
+                if (Object.prototype.hasOwnProperty.call(currentItem, key)) {
+                    processingStack.push(currentItem[key]);
+                }
+            }
+        }
     }
-  }
 
+    return wordCount;
+}
+
+// Type guard for plain objects
+private isRecord(value: unknown): value is Record<string, unknown> {
+    return value !== null && typeof value === 'object' && !Array.isArray(value);
+}
+
+  
   /**
    * Localize a typical JavaScript object
    * @param obj - The object to be localized (strings will be extracted and translated)