diff --git a/src/server/common.cc b/src/server/common.cc
index e33ade8dc..3de826c4b 100644
--- a/src/server/common.cc
+++ b/src/server/common.cc
@@ -24,6 +24,7 @@ extern "C" {
 #include "server/journal/journal.h"
 #include "server/server_state.h"
 #include "server/transaction.h"
+#include "strings/human_readable.h"
 
 ABSL_FLAG(bool, lock_on_hashtags, false,
           "When true, locks are done in the {hashtag} level instead of key level. "
@@ -373,4 +374,19 @@ GenericError Context::ReportErrorInternal(GenericError&& err) {
   return err_;
 }
 
+bool AbslParseFlag(std::string_view in, dfly::MemoryBytesFlag* flag, std::string* err) {
+  int64_t val;
+  if (dfly::ParseHumanReadableBytes(in, &val) && val >= 0) {
+    flag->value = val;
+    return true;
+  }
+
+  *err = "Use human-readable format, eg.: 500MB, 1G, 1TB";
+  return false;
+}
+
+std::string AbslUnparseFlag(const dfly::MemoryBytesFlag& flag) {
+  return strings::HumanReadableNumBytes(flag.value);
+}
+
 }  // namespace dfly
diff --git a/src/server/common.h b/src/server/common.h
index 5a95f99b4..19644c1d8 100644
--- a/src/server/common.h
+++ b/src/server/common.h
@@ -359,4 +359,11 @@ inline uint32_t MemberTimeSeconds(uint64_t now_ms) {
   return (now_ms / 1000) - kMemberExpiryBase;
 }
 
+struct MemoryBytesFlag {
+  uint64_t value = 0;
+};
+
+bool AbslParseFlag(std::string_view in, dfly::MemoryBytesFlag* flag, std::string* err);
+std::string AbslUnparseFlag(const dfly::MemoryBytesFlag& flag);
+
 }  // namespace dfly
diff --git a/src/server/engine_shard_set.cc b/src/server/engine_shard_set.cc
index 45f086833..a8e86df9a 100644
--- a/src/server/engine_shard_set.cc
+++ b/src/server/engine_shard_set.cc
@@ -10,6 +10,9 @@ extern "C" {
 #include "redis/object.h"
 #include "redis/zmalloc.h"
 }
+#include <sys/statvfs.h>
+
+#include <filesystem>
 
 #include "base/flags.h"
 #include "base/logging.h"
@@ -19,6 +22,7 @@ extern "C" {
 #include "server/server_state.h"
 #include "server/tiered_storage.h"
 #include "server/transaction.h"
+#include "strings/human_readable.h"
 #include "util/varz.h"
 
 using namespace std;
@@ -29,6 +33,11 @@ ABSL_FLAG(string, spill_file_prefix, "",
           " associated with tiered storage. E.g,"
           "spill_file_prefix=/path/to/file-prefix");
 
+ABSL_FLAG(dfly::MemoryBytesFlag, tiered_max_file_size, dfly::MemoryBytesFlag{},
+          "Limit on maximum file size that is used by the database for tiered storage. "
+          "0 - means the program will automatically determine its maximum file size. "
+          "default: 0");
+
 ABSL_FLAG(uint32_t, hz, 100,
           "Base frequency at which the server performs other background tasks. "
           "Warning: not advised to decrease in production.");
@@ -57,6 +66,7 @@ namespace dfly {
 
 using namespace util;
 using absl::GetFlag;
+using strings::HumanReadableNumBytes;
 
 namespace {
 
@@ -390,7 +400,7 @@ void EngineShard::StartPeriodicFiber(util::ProactorBase* pb) {
   });
 }
 
-void EngineShard::InitThreadLocal(ProactorBase* pb, bool update_db_time) {
+void EngineShard::InitThreadLocal(ProactorBase* pb, bool update_db_time, size_t max_file_size) {
   CHECK(shard_ == nullptr) << pb->GetPoolIndex();
 
   mi_heap_t* data_heap = ServerState::tlocal()->data_heap();
@@ -407,7 +417,7 @@ void EngineShard::InitThreadLocal(ProactorBase* pb, bool update_db_time) {
       exit(1);
     }
 
-    shard_->tiered_storage_.reset(new TieredStorage(&shard_->db_slice_));
+    shard_->tiered_storage_.reset(new TieredStorage(&shard_->db_slice_, max_file_size));
     error_code ec = shard_->tiered_storage_->Open(backing_prefix);
     CHECK(!ec) << ec.message();  // TODO
   }
@@ -778,14 +788,52 @@ auto EngineShard::AnalyzeTxQueue() -> TxQueueInfo {
 
  */
 
+uint64_t GetFsLimit() {
+  std::filesystem::path file_path(GetFlag(FLAGS_spill_file_prefix));
+  std::string dir_name_str = file_path.parent_path().string();
+
+  struct statvfs stat;
+  if (statvfs(dir_name_str.c_str(), &stat) == 0) {
+    uint64_t limit = stat.f_frsize * stat.f_blocks;
+    return limit;
+  }
+  LOG(WARNING) << "Error getting filesystem information";
+  return 0;
+}
+
 void EngineShardSet::Init(uint32_t sz, bool update_db_time) {
   CHECK_EQ(0u, size());
   cached_stats.resize(sz);
   shard_queue_.resize(sz);
 
+  string file_prefix = GetFlag(FLAGS_spill_file_prefix);
+  size_t max_shard_file_size = 0;
+  if (!file_prefix.empty()) {
+    size_t max_file_size = absl::GetFlag(FLAGS_tiered_max_file_size).value;
+    size_t max_file_size_limit = GetFsLimit();
+    if (max_file_size == 0) {
+      LOG(INFO) << "max_file_size has not been specified. Deciding myself....";
+      max_file_size = (max_file_size_limit * 0.8);
+    } else {
+      if (max_file_size_limit < max_file_size) {
+        LOG(WARNING) << "Got max file size " << HumanReadableNumBytes(max_file_size)
+                     << ", however only " << HumanReadableNumBytes(max_file_size_limit)
+                     << " disk space was found.";
+      }
+    }
+    max_shard_file_size = max_file_size / shard_queue_.size();
+    if (max_shard_file_size < 256_MB) {
+      LOG(ERROR) << "Max tiering file size is too small. Setting: "
+                 << HumanReadableNumBytes(max_file_size) << " Required at least "
+                 << HumanReadableNumBytes(256_MB * shard_queue_.size()) << ". Exiting..";
+      exit(1);
+    }
+    LOG(INFO) << "Max file size is: " << HumanReadableNumBytes(max_file_size);
+  }
+
   pp_->AwaitFiberOnAll([&](uint32_t index, ProactorBase* pb) {
     if (index < shard_queue_.size()) {
-      InitThreadLocal(pb, update_db_time);
+      InitThreadLocal(pb, update_db_time, max_shard_file_size);
     }
   });
 }
@@ -794,8 +842,8 @@ void EngineShardSet::Shutdown() {
   RunBlockingInParallel([](EngineShard*) { EngineShard::DestroyThreadLocal(); });
 }
 
-void EngineShardSet::InitThreadLocal(ProactorBase* pb, bool update_db_time) {
-  EngineShard::InitThreadLocal(pb, update_db_time);
+void EngineShardSet::InitThreadLocal(ProactorBase* pb, bool update_db_time, size_t max_file_size) {
+  EngineShard::InitThreadLocal(pb, update_db_time, max_file_size);
   EngineShard* es = EngineShard::tlocal();
   shard_queue_[es->shard_id()] = es->GetFiberQueue();
 }
diff --git a/src/server/engine_shard_set.h b/src/server/engine_shard_set.h
index d45eb42c6..2e3555989 100644
--- a/src/server/engine_shard_set.h
+++ b/src/server/engine_shard_set.h
@@ -49,7 +49,7 @@ class EngineShard {
 
   // Sets up a new EngineShard in the thread.
   // If update_db_time is true, initializes periodic time update for its db_slice.
-  static void InitThreadLocal(util::ProactorBase* pb, bool update_db_time);
+  static void InitThreadLocal(util::ProactorBase* pb, bool update_db_time, size_t max_file_size);
 
   static void DestroyThreadLocal();
 
@@ -332,7 +332,7 @@ class EngineShardSet {
   void TEST_EnableCacheMode();
 
  private:
-  void InitThreadLocal(util::ProactorBase* pb, bool update_db_time);
+  void InitThreadLocal(util::ProactorBase* pb, bool update_db_time, size_t max_file_size);
 
   util::ProactorPool* pp_;
   std::vector<FiberQueue*> shard_queue_;
diff --git a/src/server/main_service.cc b/src/server/main_service.cc
index a988bf24e..38cd7ac7f 100644
--- a/src/server/main_service.cc
+++ b/src/server/main_service.cc
@@ -59,13 +59,6 @@ using namespace std;
 using facade::ErrorReply;
 using dfly::operator""_KB;
 
-struct MaxMemoryFlag {
-  uint64_t value = 0;
-};
-
-static bool AbslParseFlag(std::string_view in, MaxMemoryFlag* flag, std::string* err);
-static std::string AbslUnparseFlag(const MaxMemoryFlag& flag);
-
 ABSL_FLAG(int32_t, port, 6379,
           "Redis port. 0 disables the port, -1 will bind on a random available port.");
 
@@ -88,7 +81,7 @@ ABSL_FLAG(bool, admin_nopass, false,
           "If set, would enable open admin access to console on the assigned port, without "
           "authorization needed.");
 
-ABSL_FLAG(MaxMemoryFlag, maxmemory, MaxMemoryFlag{},
+ABSL_FLAG(dfly::MemoryBytesFlag, maxmemory, dfly::MemoryBytesFlag{},
           "Limit on maximum-memory that is used by the database. "
           "0 - means the program will automatically determine its maximum memory usage. "
           "default: 0");
@@ -96,21 +89,6 @@ ABSL_FLAG(double, oom_deny_ratio, 1.1,
           "commands with flag denyoom will return OOM when the ratio between maxmemory and used "
           "memory is above this value");
 
-bool AbslParseFlag(std::string_view in, MaxMemoryFlag* flag, std::string* err) {
-  int64_t val;
-  if (dfly::ParseHumanReadableBytes(in, &val) && val >= 0) {
-    flag->value = val;
-    return true;
-  }
-
-  *err = "Use human-readable format, eg.: 500MB, 1G, 1TB";
-  return false;
-}
-
-std::string AbslUnparseFlag(const MaxMemoryFlag& flag) {
-  return strings::HumanReadableNumBytes(flag.value);
-}
-
 namespace dfly {
 
 #if defined(__linux__)
@@ -787,7 +765,7 @@ void Service::Init(util::AcceptServer* acceptor, std::vector<facade::Listener*>
   InitRedisTables();
 
   config_registry.RegisterMutable("maxmemory", [](const absl::CommandLineFlag& flag) {
-    auto res = flag.TryGet<MaxMemoryFlag>();
+    auto res = flag.TryGet<MemoryBytesFlag>();
     if (!res)
       return false;
 
diff --git a/src/server/tiered_storage.cc b/src/server/tiered_storage.cc
index 75f5c491a..d5f9947da 100644
--- a/src/server/tiered_storage.cc
+++ b/src/server/tiered_storage.cc
@@ -298,7 +298,8 @@ void TieredStorage::InflightWriteRequest::Undo(PerDb::BinRecord* bin_record, DbS
   }
 }
 
-TieredStorage::TieredStorage(DbSlice* db_slice) : db_slice_(*db_slice) {
+TieredStorage::TieredStorage(DbSlice* db_slice, size_t max_file_size)
+    : db_slice_(*db_slice), max_file_size_(max_file_size) {
 }
 
 TieredStorage::~TieredStorage() {
@@ -312,8 +313,10 @@ error_code TieredStorage::Open(const string& base) {
 
   error_code ec = io_mgr_.Open(path);
   if (!ec) {
-    if (io_mgr_.Span()) {  // Add initial storage.
-      alloc_.AddStorage(0, io_mgr_.Span());
+    size_t initial_size = io_mgr_.Span();
+    if (initial_size) {  // Add initial storage.
+      allocated_size_ += initial_size;
+      alloc_.AddStorage(0, initial_size);
     }
   }
   return ec;
@@ -611,7 +614,7 @@ bool TieredStorage::FlushPending(DbIndex db_index, unsigned bin_index) {
 }
 
 void TieredStorage::InitiateGrow(size_t grow_size) {
-  if (io_mgr_.grow_pending())
+  if (io_mgr_.grow_pending() || allocated_size_ + grow_size > max_file_size_)
     return;
   DCHECK_GT(grow_size, 0u);
 
@@ -620,6 +623,7 @@ void TieredStorage::InitiateGrow(size_t grow_size) {
   auto cb = [start, grow_size, this](int io_res) {
     if (io_res == 0) {
       alloc_.AddStorage(start, grow_size);
+      allocated_size_ += grow_size;
     } else {
       LOG_FIRST_N(ERROR, 10) << "Error enlarging storage " << io_res;
     }
diff --git a/src/server/tiered_storage.h b/src/server/tiered_storage.h
index 719886cab..21ce982b6 100644
--- a/src/server/tiered_storage.h
+++ b/src/server/tiered_storage.h
@@ -21,7 +21,7 @@ class TieredStorage {
  public:
   enum : uint16_t { kMinBlobLen = 64 };
 
-  explicit TieredStorage(DbSlice* db_slice);
+  explicit TieredStorage(DbSlice* db_slice, size_t max_file_size);
   ~TieredStorage();
 
   std::error_code Open(const std::string& path);
@@ -69,6 +69,8 @@ class TieredStorage {
   absl::flat_hash_map<uint32_t, uint8_t> page_refcnt_;
 
   TieredStats stats_;
+  size_t max_file_size_;
+  size_t allocated_size_ = 0;
 };
 
 }  // namespace dfly