A method, system and program product for dynamically adjusting trace buffer capacity based on execution history. The method includes receiving, by a module configured to trace, a plurality of traces pertaining to one or more trace events generated during execution of a program being traced, the trace events generated including panel data and sequence data. The method further includes determining, using trace data captured from the plurality of traces received, whether or not a path for a trace event is a new path. If the path for the trace event is determined to be a new path, the method includes dynamically adjusting, by the module, an initial size of a trace buffer configured to store the trace data captured, such that, the module increases the initial size of the trace buffer upon making a determination that the trace event is a new trace event based on execution history.