diff --git a/distribution/changelog.txt b/distribution/changelog.txt
index 3186b92c52..5cff6843f8 100644
--- a/distribution/changelog.txt
+++ b/distribution/changelog.txt
@@ -4,6 +4,7 @@
 - Improved: [#23590] Title bars are now drawn bigger when “Enlarged UI” is enabled.
 - Improved: [#23626] Add small, medium and large flat and sloped turns, S-bends and diagonal track to the Go-Karts.
 - Improved: [#23982] The scenario objective window has been merged into the scenario options window.
+- Improved: [#24260] Better performance on parks that have a lot of Guests and Entertainers.
 - Change: [#23803] Lightning strikes and thunder happen at the same frequency independently of the game speed.
 - Change: [#23857] Replace display options tab with custom sprites.
 - Change: [#24069] [Plugin] Plugins are now available in the scenario editor and track designer.
diff --git a/src/openrct2/entity/Staff.cpp b/src/openrct2/entity/Staff.cpp
index b03b35573b..8608f87ff5 100644
--- a/src/openrct2/entity/Staff.cpp
+++ b/src/openrct2/entity/Staff.cpp
@@ -866,32 +866,42 @@ bool Staff::IsMechanicHeadingToFixRideBlockingPath()
  */
 void Staff::EntertainerUpdateNearbyPeeps() const
 {
-    for (auto guest : EntityList<Guest>())
+    // Iterate over tiles within a 3-tile radius (96 units)
+    constexpr auto kTileRadius = 3;
+    constexpr auto kLookupRadius = kCoordsXYStep * kTileRadius;
+
+    for (int32_t tileX = x - kLookupRadius; tileX <= x + kLookupRadius; tileX += kCoordsXYStep)
     {
-        if (guest->x == kLocationNull)
-            continue;
-
-        int16_t z_dist = abs(z - guest->z);
-        if (z_dist > 48)
-            continue;
-
-        int16_t x_dist = abs(x - guest->x);
-        int16_t y_dist = abs(y - guest->y);
-
-        if (x_dist > 96)
-            continue;
-
-        if (y_dist > 96)
-            continue;
-
-        if (guest->State == PeepState::Walking)
+        for (int32_t tileY = y - kLookupRadius; tileY <= y + kLookupRadius; tileY += kCoordsXYStep)
         {
-            guest->HappinessTarget = std::min(guest->HappinessTarget + 4, kPeepMaxHappiness);
-        }
-        else if (guest->State == PeepState::Queuing)
-        {
-            guest->TimeInQueue = std::max(0, guest->TimeInQueue - 200);
-            guest->HappinessTarget = std::min(guest->HappinessTarget + 3, kPeepMaxHappiness);
+            for (auto* guest : EntityTileList<Guest>({ tileX, tileY }))
+            {
+                if (guest->x == kLocationNull)
+                    continue;
+
+                int16_t z_dist = std::abs(z - guest->z);
+                if (z_dist > 48)
+                    continue;
+
+                int16_t x_dist = std::abs(x - guest->x);
+                int16_t y_dist = std::abs(y - guest->y);
+
+                if (x_dist > kLookupRadius)
+                    continue;
+
+                if (y_dist > kLookupRadius)
+                    continue;
+
+                if (guest->State == PeepState::Walking)
+                {
+                    guest->HappinessTarget = std::min(guest->HappinessTarget + 4, kPeepMaxHappiness);
+                }
+                else if (guest->State == PeepState::Queuing)
+                {
+                    guest->TimeInQueue = std::max(0, guest->TimeInQueue - 200);
+                    guest->HappinessTarget = std::min(guest->HappinessTarget + 3, kPeepMaxHappiness);
+                }
+            }
         }
     }
 }