This paper introduces Dynamic Context Switching (DCS) as an extension of the Context Switching (CS) paradigm for gaze-based interaction. CS replicates information in each context. The user can freely explore one context without worrying about the Midas touch problem, and a saccade to the other context triggers the selection of the item under focus. Because CS has to display two contexts simultaneously, the amount of useful screen space is limited. DCS dynamically adjusts the context sizes, where the context that has the focus is displayed in full size, while the other is minimized, thus improving useful screen space. A saccade to the minimized context triggers selection, and properly readjusts the sizes of the contexts. Results from a pilot user experiment show that DCS improves user performance and do not cause disorientation due to the dynamic context resizing.