diff --git a/CHANGELOG.md b/CHANGELOG.md
index 38a6cb0c2b..c1666869d1 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -18,6 +18,7 @@ and this project adheres to [Semantic Versioning](http://semver.org/).
 - Change default quit key to `ctrl+q` https://github.com/Textualize/textual/pull/5352
 - Changed delete line binding on TextArea to use `ctrl+shift+x` https://github.com/Textualize/textual/pull/5352
 - The command palette will now select the top item automatically https://github.com/Textualize/textual/pull/5361
+- Implemented a better matching algorithm for the command palette https://github.com/Textualize/textual/pull/5365
 
 ### Fixed
 
diff --git a/src/textual/containers.py b/src/textual/containers.py
index 18a46d1455..a6f655a177 100644
--- a/src/textual/containers.py
+++ b/src/textual/containers.py
@@ -267,7 +267,7 @@ def __init__(
         stretch_height: bool = True,
         regular: bool = False,
     ) -> None:
-        """Initialize a Widget.
+        """
 
         Args:
             *children: Child widgets.
diff --git a/src/textual/fuzzy.py b/src/textual/fuzzy.py
index 1f88feb742..337ad29b4d 100644
--- a/src/textual/fuzzy.py
+++ b/src/textual/fuzzy.py
@@ -7,13 +7,151 @@
 
 from __future__ import annotations
 
-from re import IGNORECASE, compile, escape
+from operator import itemgetter
+from re import IGNORECASE, escape, finditer, search
+from typing import Iterable, NamedTuple
 
 import rich.repr
 from rich.style import Style
 from rich.text import Text
 
-from textual.cache import LRUCache
+
+class _Search(NamedTuple):
+    """Internal structure to keep track of a recursive search."""
+
+    candidate_offset: int = 0
+    query_offset: int = 0
+    offsets: tuple[int, ...] = ()
+
+    def branch(self, offset: int) -> tuple[_Search, _Search]:
+        """Branch this search when an offset is found.
+
+        Args:
+            offset: Offset of a matching letter in the query.
+
+        Returns:
+            A pair of search objects.
+        """
+        _, query_offset, offsets = self
+        return (
+            _Search(offset + 1, query_offset + 1, offsets + (offset,)),
+            _Search(offset + 1, query_offset, offsets),
+        )
+
+    @property
+    def groups(self) -> int:
+        """Number of groups in offsets."""
+        groups = 1
+        last_offset = self.offsets[0]
+        for offset in self.offsets[1:]:
+            if offset != last_offset + 1:
+                groups += 1
+            last_offset = offset
+        return groups
+
+
+class FuzzySearch:
+    """Performs a fuzzy search.
+
+    Unlike a regex solution, this will finds all possible matches.
+    """
+
+    def __init__(self, case_sensitive: bool = False) -> None:
+        """Initialize fuzzy search.
+
+        Args:
+            case_sensitive: Is the match case sensitive?
+        """
+        self.cache: dict[tuple[str, str, bool], tuple[float, tuple[int, ...]]] = {}
+        self.case_sensitive = case_sensitive
+
+    def match(self, query: str, candidate: str) -> tuple[float, tuple[int, ...]]:
+        """Match against a query.
+
+        Args:
+            query: The fuzzy query.
+            candidate: A candidate to check,.
+
+        Returns:
+            A pair of (score, tuple of offsets). `(0, ())` for no result.
+        """
+
+        query_regex = ".*?".join(f"({escape(character)})" for character in query)
+        if not search(
+            query_regex, candidate, flags=0 if self.case_sensitive else IGNORECASE
+        ):
+            # Bail out early if there is no possibility of a match
+            return (0.0, ())
+
+        cache_key = (query, candidate, self.case_sensitive)
+        if cache_key in self.cache:
+            return self.cache[cache_key]
+        result = max(
+            self._match(query, candidate), key=itemgetter(0), default=(0.0, ())
+        )
+        self.cache[cache_key] = result
+        return result
+
+    def _match(
+        self, query: str, candidate: str
+    ) -> Iterable[tuple[float, tuple[int, ...]]]:
+        """Generator to do the matching.
+
+        Args:
+            query: Query to match.
+            candidate: Candidate to check against.
+
+        Yields:
+            Pairs of score and tuple of offsets.
+        """
+        if not self.case_sensitive:
+            query = query.lower()
+            candidate = candidate.lower()
+
+        # We need this to give a bonus to first letters.
+        first_letters = {match.start() for match in finditer(r"\w+", candidate)}
+
+        def score(search: _Search) -> float:
+            """Sore a search.
+
+            Args:
+                search: Search object.
+
+            Returns:
+                Score.
+
+            """
+            # This is a heuristic, and can be tweaked for better results
+            # Boost first letter matches
+            score: float = sum(
+                (2.0 if offset in first_letters else 1.0) for offset in search.offsets
+            )
+            # Boost to favor less groups
+            offset_count = len(search.offsets)
+            normalized_groups = (offset_count - (search.groups - 1)) / offset_count
+            score *= 1 + (normalized_groups**2)
+            return score
+
+        stack: list[_Search] = [_Search()]
+        push = stack.append
+        pop = stack.pop
+        query_size = len(query)
+        find = candidate.find
+        # Limit the number of loops out of an abundance of caution.
+        # This would be hard to reach without contrived data.
+        remaining_loops = 200
+
+        while stack and (remaining_loops := remaining_loops - 1):
+            search = pop()
+            offset = find(query[search.query_offset], search.candidate_offset)
+            if offset != -1:
+                advance_branch, branch = search.branch(offset)
+                if advance_branch.query_offset == query_size:
+                    yield score(advance_branch), advance_branch.offsets
+                    push(branch)
+                else:
+                    push(advance_branch)
+                    push(branch)
 
 
 @rich.repr.auto
@@ -36,11 +174,8 @@ def __init__(
         """
         self._query = query
         self._match_style = Style(reverse=True) if match_style is None else match_style
-        self._query_regex = compile(
-            ".*?".join(f"({escape(character)})" for character in query),
-            flags=0 if case_sensitive else IGNORECASE,
-        )
-        self._cache: LRUCache[str, float] = LRUCache(1024 * 4)
+        self._case_sensitive = case_sensitive
+        self.fuzzy_search = FuzzySearch()
 
     @property
     def query(self) -> str:
@@ -52,15 +187,10 @@ def match_style(self) -> Style:
         """The style that will be used to highlight hits in the matched text."""
         return self._match_style
 
-    @property
-    def query_pattern(self) -> str:
-        """The regular expression pattern built from the query."""
-        return self._query_regex.pattern
-
     @property
     def case_sensitive(self) -> bool:
         """Is this matcher case sensitive?"""
-        return not bool(self._query_regex.flags & IGNORECASE)
+        return self._case_sensitive
 
     def match(self, candidate: str) -> float:
         """Match the candidate against the query.
@@ -71,27 +201,7 @@ def match(self, candidate: str) -> float:
         Returns:
             Strength of the match from 0 to 1.
         """
-        cached = self._cache.get(candidate)
-        if cached is not None:
-            return cached
-        match = self._query_regex.search(candidate)
-        if match is None:
-            score = 0.0
-        else:
-            assert match.lastindex is not None
-            offsets = [
-                match.span(group_no)[0] for group_no in range(1, match.lastindex + 1)
-            ]
-            group_count = 0
-            last_offset = -2
-            for offset in offsets:
-                if offset > last_offset + 1:
-                    group_count += 1
-                last_offset = offset
-
-            score = 1.0 - ((group_count - 1) / len(candidate))
-        self._cache[candidate] = score
-        return score
+        return self.fuzzy_search.match(self.query, candidate)[0]
 
     def highlight(self, candidate: str) -> Text:
         """Highlight the candidate with the fuzzy match.
@@ -102,20 +212,11 @@ def highlight(self, candidate: str) -> Text:
         Returns:
             A [rich.text.Text][`Text`] object with highlighted matches.
         """
-        match = self._query_regex.search(candidate)
         text = Text.from_markup(candidate)
-        if match is None:
+        score, offsets = self.fuzzy_search.match(self.query, candidate)
+        if not score:
             return text
-        assert match.lastindex is not None
-        if self._query in text.plain:
-            # Favor complete matches
-            offset = text.plain.index(self._query)
-            text.stylize(self._match_style, offset, offset + len(self._query))
-        else:
-            offsets = [
-                match.span(group_no)[0] for group_no in range(1, match.lastindex + 1)
-            ]
-            for offset in offsets:
+        for offset in offsets:
+            if not candidate[offset].isspace():
                 text.stylize(self._match_style, offset, offset + 1)
-
         return text
diff --git a/tests/snapshot_tests/test_snapshots.py b/tests/snapshot_tests/test_snapshots.py
index a6723b8be2..c3c9791068 100644
--- a/tests/snapshot_tests/test_snapshots.py
+++ b/tests/snapshot_tests/test_snapshots.py
@@ -1510,7 +1510,7 @@ def test_example_color_command(snap_compare):
     """Test the color_command example."""
     assert snap_compare(
         EXAMPLES_DIR / "color_command.py",
-        press=[App.COMMAND_PALETTE_BINDING, "r", "e", "d", "down", "enter"],
+        press=[App.COMMAND_PALETTE_BINDING, "r", "e", "d", "enter"],
     )
 
 
diff --git a/tests/test_fuzzy.py b/tests/test_fuzzy.py
index d2ab460c9a..dc3c8ccd92 100644
--- a/tests/test_fuzzy.py
+++ b/tests/test_fuzzy.py
@@ -4,25 +4,24 @@
 from textual.fuzzy import Matcher
 
 
-def test_match():
-    matcher = Matcher("foo.bar")
+def test_no_match():
+    """Check non matching score of zero."""
+    matcher = Matcher("x")
+    assert matcher.match("foo") == 0
+
 
-    # No match
-    assert matcher.match("egg") == 0
-    assert matcher.match("") == 0
+def test_match_single_group():
+    """Check that single groups rang higher."""
+    matcher = Matcher("abc")
+    assert matcher.match("foo abc bar") > matcher.match("fooa barc")
 
-    # Perfect match
-    assert matcher.match("foo.bar") == 1.0
-    # Perfect match (with superfluous characters)
-    assert matcher.match("foo.bar sdf") == 1.0
-    assert matcher.match("xz foo.bar sdf") == 1.0
 
-    # Partial matches
-    # 2 Groups
-    assert matcher.match("foo egg.bar") == 1.0 - 1 / 11
+def test_boosted_matches():
+    """Check first word matchers rank higher."""
+    matcher = Matcher("ss")
 
-    # 3 Groups
-    assert matcher.match("foo .ba egg r") == 1.0 - 2 / 13
+    # First word matchers should score higher
+    assert matcher.match("Save Screenshot") > matcher.match("Show Keys abcde")
 
 
 def test_highlight():