diff --git a/acceptance/bundle/state/databricks.yml b/acceptance/bundle/state/databricks.yml
new file mode 100644
index 000000000..4775ba33d
--- /dev/null
+++ b/acceptance/bundle/state/databricks.yml
@@ -0,0 +1,21 @@
+bundle:
+  name: state
+
+resources:
+  jobs:
+    test:
+      name: "test"
+      tasks:
+        - task_key: "test-task"
+          spark_python_task:
+            python_file: ./test.py
+          new_cluster:
+            spark_version: 15.4.x-scala2.12
+            node_type_id: i3.xlarge
+            data_security_mode: SINGLE_USER
+            num_workers: 0
+            spark_conf:
+                spark.master: "local[*, 4]"
+                spark.databricks.cluster.profile: singleNode
+            custom_tags:
+              ResourceClass: SingleNode
diff --git a/acceptance/bundle/state/out.state.txt b/acceptance/bundle/state/out.state.txt
new file mode 100644
index 000000000..96966812b
--- /dev/null
+++ b/acceptance/bundle/state/out.state.txt
@@ -0,0 +1,4 @@
+{
+  "method": "GET",
+  "path": "/api/2.0/workspace-files/Workspace/Users/[USERNAME]/.bundle/state/default/state/terraform.tfstate"
+}
diff --git a/acceptance/bundle/state/output.txt b/acceptance/bundle/state/output.txt
new file mode 100644
index 000000000..ac13a7ba4
--- /dev/null
+++ b/acceptance/bundle/state/output.txt
@@ -0,0 +1,12 @@
+
+>>> [CLI] bundle deploy
+Uploading bundle files to /Workspace/Users/[USERNAME]/.bundle/state/default/files...
+Deploying resources...
+Updating deployment state...
+Deployment complete!
+
+>>> [CLI] bundle deploy
+Uploading bundle files to /Workspace/Users/[USERNAME]/.bundle/state/default/files...
+Deploying resources...
+Updating deployment state...
+Deployment complete!
diff --git a/acceptance/bundle/state/script b/acceptance/bundle/state/script
new file mode 100644
index 000000000..9977f7d52
--- /dev/null
+++ b/acceptance/bundle/state/script
@@ -0,0 +1,4 @@
+trace $CLI bundle deploy
+trace $CLI bundle deploy # We do 2 deploys because only 2nd deploy will pull state from remote after 1st created it
+jq 'select(.path == "/api/2.0/workspace-files/Workspace/Users/[USERNAME]/.bundle/state/default/state/terraform.tfstate")' out.requests.txt > out.state.txt
+rm out.requests.txt
diff --git a/acceptance/bundle/state/test.py b/acceptance/bundle/state/test.py
new file mode 100644
index 000000000..f1a18139c
--- /dev/null
+++ b/acceptance/bundle/state/test.py
@@ -0,0 +1 @@
+print("Hello world!")
diff --git a/acceptance/bundle/state/test.toml b/acceptance/bundle/state/test.toml
new file mode 100644
index 000000000..7061886de
--- /dev/null
+++ b/acceptance/bundle/state/test.toml
@@ -0,0 +1,2 @@
+Cloud = false
+RecordRequests = true
diff --git a/acceptance/server_test.go b/acceptance/server_test.go
index 402e3ca5f..7ef705931 100644
--- a/acceptance/server_test.go
+++ b/acceptance/server_test.go
@@ -111,6 +111,11 @@ func AddHandlers(server *testserver.Server) {
 		return ""
 	})
 
+	server.Handle("GET", "/api/2.0/workspace-files/{path:.*}", func(req testserver.Request) any {
+		path := req.Vars["path"]
+		return req.Workspace.WorkspaceFilesExportFile(path)
+	})
+
 	server.Handle("GET", "/api/2.1/unity-catalog/current-metastore-assignment", func(req testserver.Request) any {
 		return testMetastore
 	})
diff --git a/bundle/deploy/filer.go b/bundle/deploy/filer.go
index c0fd839ef..b65f08a67 100644
--- a/bundle/deploy/filer.go
+++ b/bundle/deploy/filer.go
@@ -1,14 +1,94 @@
 package deploy
 
 import (
+	"bytes"
+	"context"
+	"fmt"
+	"io"
+	"io/fs"
+	"net/http"
+	"net/url"
+	"strings"
+
 	"github.com/databricks/cli/bundle"
 	"github.com/databricks/cli/libs/filer"
+	"github.com/databricks/databricks-sdk-go/client"
 )
 
 // FilerFactory is a function that returns a filer.Filer.
 type FilerFactory func(b *bundle.Bundle) (filer.Filer, error)
 
-// StateFiler returns a filer.Filer that can be used to read/write state files.
-func StateFiler(b *bundle.Bundle) (filer.Filer, error) {
-	return filer.NewWorkspaceFilesClient(b.WorkspaceClient(), b.Config.Workspace.StatePath)
+type stateFiler struct {
+	filer filer.Filer
+
+	apiClient *client.DatabricksClient
+	root      filer.WorkspaceRootPath
+}
+
+func (s stateFiler) Delete(ctx context.Context, path string, mode ...filer.DeleteMode) error {
+	return s.filer.Delete(ctx, path, mode...)
+}
+
+// Mkdir implements filer.Filer.
+func (s stateFiler) Mkdir(ctx context.Context, path string) error {
+	return s.filer.Mkdir(ctx, path)
+}
+
+func (s stateFiler) Read(ctx context.Context, path string) (io.ReadCloser, error) {
+	absPath, err := s.root.Join(path)
+	if err != nil {
+		return nil, err
+	}
+
+	stat, err := s.Stat(ctx, path)
+	if err != nil {
+		return nil, err
+	}
+	if stat.IsDir() {
+		return nil, fmt.Errorf("not a file: %s", absPath)
+	}
+
+	var buf bytes.Buffer
+	urlPath := "/api/2.0/workspace-files/" + url.PathEscape(strings.TrimLeft(absPath, "/"))
+	err = s.apiClient.Do(ctx, http.MethodGet, urlPath, nil, nil, nil, &buf)
+	if err != nil {
+		return nil, err
+	}
+
+	return io.NopCloser(&buf), nil
+}
+
+func (s stateFiler) ReadDir(ctx context.Context, path string) ([]fs.DirEntry, error) {
+	return s.filer.ReadDir(ctx, path)
+}
+
+func (s stateFiler) Stat(ctx context.Context, name string) (fs.FileInfo, error) {
+	return s.filer.Stat(ctx, name)
+}
+
+func (s stateFiler) Write(ctx context.Context, path string, reader io.Reader, mode ...filer.WriteMode) error {
+	return s.filer.Write(ctx, path, reader, mode...)
+}
+
+// StateFiler returns a filer.Filer that can be used to read/write state files.
+// We use a custom workspace filer which uses workspace-files API to read state files.
+// This API has a higher than 10 MB limits and allows to export large state files.
+// We don't use the same API for read because it doesn't correct get the file content for notebooks and returns
+// "File Not Found" error instead.
+func StateFiler(b *bundle.Bundle) (filer.Filer, error) {
+	f, err := filer.NewWorkspaceFilesClient(b.WorkspaceClient(), b.Config.Workspace.StatePath)
+	if err != nil {
+		return nil, err
+	}
+
+	apiClient, err := client.New(b.WorkspaceClient().Config)
+	if err != nil {
+		return nil, fmt.Errorf("failed to create API client: %w", err)
+	}
+
+	return stateFiler{
+		filer:     f,
+		root:      filer.NewWorkspaceRootPath(b.Config.Workspace.StatePath),
+		apiClient: apiClient,
+	}, nil
 }
diff --git a/bundle/deploy/state_push.go b/bundle/deploy/state_push.go
index 6912414c1..176a907c8 100644
--- a/bundle/deploy/state_push.go
+++ b/bundle/deploy/state_push.go
@@ -10,8 +10,6 @@ import (
 	"github.com/databricks/cli/libs/log"
 )
 
-const MaxStateFileSize = 10 * 1024 * 1024 // 10MB
-
 type statePush struct {
 	filerFactory FilerFactory
 }
@@ -37,17 +35,6 @@ func (s *statePush) Apply(ctx context.Context, b *bundle.Bundle) diag.Diagnostic
 	}
 	defer local.Close()
 
-	if !b.Config.Bundle.Force {
-		state, err := local.Stat()
-		if err != nil {
-			return diag.FromErr(err)
-		}
-
-		if state.Size() > MaxStateFileSize {
-			return diag.Errorf("Deployment state file size exceeds the maximum allowed size of %d bytes. Please reduce the number of resources in your bundle, split your bundle into multiple or re-run the command with --force flag.", MaxStateFileSize)
-		}
-	}
-
 	log.Infof(ctx, "Writing local deployment state file to remote state directory")
 	err = f.Write(ctx, DeploymentStateFileName, local, filer.CreateParentDirectories, filer.OverwriteIfExists)
 	if err != nil {
diff --git a/bundle/deploy/terraform/state_push.go b/bundle/deploy/terraform/state_push.go
index 84d8e7670..6cdde1371 100644
--- a/bundle/deploy/terraform/state_push.go
+++ b/bundle/deploy/terraform/state_push.go
@@ -47,17 +47,6 @@ func (l *statePush) Apply(ctx context.Context, b *bundle.Bundle) diag.Diagnostic
 	}
 	defer local.Close()
 
-	if !b.Config.Bundle.Force {
-		state, err := local.Stat()
-		if err != nil {
-			return diag.FromErr(err)
-		}
-
-		if state.Size() > deploy.MaxStateFileSize {
-			return diag.Errorf("Terraform state file size exceeds the maximum allowed size of %d bytes. Please reduce the number of resources in your bundle, split your bundle into multiple or re-run the command with --force flag", deploy.MaxStateFileSize)
-		}
-	}
-
 	// Upload state file from local cache directory to filer.
 	cmdio.LogString(ctx, "Updating deployment state...")
 	log.Infof(ctx, "Writing local state file to remote state directory")
diff --git a/bundle/deploy/terraform/state_push_test.go b/bundle/deploy/terraform/state_push_test.go
index 54e7f621c..e022dee1b 100644
--- a/bundle/deploy/terraform/state_push_test.go
+++ b/bundle/deploy/terraform/state_push_test.go
@@ -3,7 +3,6 @@ package terraform
 import (
 	"context"
 	"encoding/json"
-	"fmt"
 	"io"
 	"testing"
 
@@ -60,29 +59,3 @@ func TestStatePush(t *testing.T) {
 	diags := bundle.Apply(ctx, b, m)
 	assert.NoError(t, diags.Error())
 }
-
-func TestStatePushLargeState(t *testing.T) {
-	mock := mockfiler.NewMockFiler(t)
-	m := &statePush{
-		identityFiler(mock),
-	}
-
-	ctx := context.Background()
-	b := statePushTestBundle(t)
-
-	largeState := map[string]any{}
-	for i := range 1000000 {
-		largeState[fmt.Sprintf("field_%d", i)] = i
-	}
-
-	// Write a stale local state file.
-	writeLocalState(t, ctx, b, largeState)
-	diags := bundle.Apply(ctx, b, m)
-	assert.ErrorContains(t, diags.Error(), "Terraform state file size exceeds the maximum allowed size of 10485760 bytes. Please reduce the number of resources in your bundle, split your bundle into multiple or re-run the command with --force flag")
-
-	// Force the write.
-	b = statePushTestBundle(t)
-	b.Config.Bundle.Force = true
-	diags = bundle.Apply(ctx, b, m)
-	assert.NoError(t, diags.Error())
-}
diff --git a/libs/testserver/fake_workspace.go b/libs/testserver/fake_workspace.go
index 4e943f828..80e88941d 100644
--- a/libs/testserver/fake_workspace.go
+++ b/libs/testserver/fake_workspace.go
@@ -83,6 +83,13 @@ func (s *FakeWorkspace) WorkspaceFilesImportFile(path string, body []byte) {
 	s.files[path] = body
 }
 
+func (s *FakeWorkspace) WorkspaceFilesExportFile(path string) []byte {
+	if !strings.HasPrefix(path, "/") {
+		path = "/" + path
+	}
+	return s.files[path]
+}
+
 func (s *FakeWorkspace) JobsCreate(request jobs.CreateJob) Response {
 	jobId := s.nextJobId
 	s.nextJobId++