diff --git a/configure.py b/configure.py
index 790cd0825e..fdc8c1cc4b 100755
--- a/configure.py
+++ b/configure.py
@@ -246,6 +246,7 @@ scylla_tests = [
     'tests/vint_serialization_test',
     'tests/compress_test',
     'tests/chunked_vector_test',
+    'tests/restricted_reader_test',
 ]
 
 apps = [
@@ -666,6 +667,7 @@ for t in scylla_tests:
 
 deps['tests/sstable_test'] += ['tests/sstable_datafile_test.cc', 'tests/sstable_utils.cc']
 deps['tests/combined_mutation_reader_test'] += ['tests/sstable_utils.cc']
+deps['tests/restricted_reader_test'] += ['tests/sstable_utils.cc']
 
 deps['tests/bytes_ostream_test'] = ['tests/bytes_ostream_test.cc', 'utils/managed_bytes.cc', 'utils/logalloc.cc', 'utils/dynamic_bitset.cc']
 deps['tests/input_stream_test'] = ['tests/input_stream_test.cc']
diff --git a/test.py b/test.py
index 4f9fb6f363..514461aabd 100755
--- a/test.py
+++ b/test.py
@@ -89,6 +89,7 @@ boost_tests = [
     'clustering_ranges_walker_test',
     'vint_serialization_test',
     'duration_test',
+    'restricted_reader_test',
 ]
 
 other_tests = [
diff --git a/tests/restricted_reader_test.cc b/tests/restricted_reader_test.cc
new file mode 100644
index 0000000000..2cf692325a
--- /dev/null
+++ b/tests/restricted_reader_test.cc
@@ -0,0 +1,431 @@
+/*
+ * Copyright (C) 2017 ScyllaDB
+ */
+
+/*
+ * This file is part of Scylla.
+ *
+ * Scylla is free software: you can redistribute it and/or modify
+ * it under the terms of the GNU Affero General Public License as published by
+ * the Free Software Foundation, either version 3 of the License, or
+ * (at your option) any later version.
+ *
+ * Scylla is distributed in the hope that it will be useful,
+ * but WITHOUT ANY WARRANTY; without even the implied warranty of
+ * MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE.  See the
+ * GNU General Public License for more details.
+ *
+ * You should have received a copy of the GNU General Public License
+ * along with Scylla.  If not, see <http://www.gnu.org/licenses/>.
+ */
+
+#include "core/thread.hh"
+#include "core/sleep.hh"
+
+#include "cell_locking.hh"
+#include "mutation_reader.hh"
+#include "sstables/sstables.hh"
+#include "sstable_mutation_readers.hh"
+
+#include "tests/simple_schema.hh"
+#include "tests/sstable_utils.hh"
+#include "tests/test-utils.hh"
+#include "tests/tmpdir.hh"
+
+
+thread_local disk_error_signal_type commit_error;
+thread_local disk_error_signal_type general_disk_error;
+
+
+static const std::size_t new_reader_base_cost{16 * 1024};
+
+
+using namespace seastar;
+
+template<typename EventuallySucceedingFunction>
+static bool eventually_true(EventuallySucceedingFunction&& f) {
+    const unsigned max_attempts = 10;
+    unsigned attempts = 0;
+    while (true) {
+        if (f()) {
+            return true;
+        }
+
+        if (++attempts < max_attempts) {
+            sleep(std::chrono::milliseconds(1 << attempts)).get0();
+        } else {
+            return false;
+        }
+    }
+
+    return false;
+}
+
+#define REQUIRE_EVENTUALLY_EQUAL(a, b) BOOST_REQUIRE(eventually_true([&] { return a == b; }))
+
+
+sstables::shared_sstable create_sstable(simple_schema& sschema, const sstring& path) {
+    std::vector<mutation> mutations;
+    mutations.reserve(1 << 14);
+
+    for (std::size_t p = 0; p < (1 << 10); ++p) {
+        mutation m(sschema.make_pkey(p), sschema.schema());
+        sschema.add_static_row(m, sprint("%i_static_val", p));
+
+        for (std::size_t c = 0; c < (1 << 4); ++c) {
+            sschema.add_row(m, sschema.make_ckey(c), sprint("val_%i", c));
+        }
+
+        mutations.emplace_back(std::move(m));
+        thread::yield();
+    }
+
+    return make_sstable_containing([&] {
+            return make_lw_shared<sstables::sstable>(sschema.schema(), path, 0, sstables::sstable::version_types::la, sstables::sstable::format_types::big);
+        }
+        , mutations);
+}
+
+
+class tracking_reader : public mutation_reader::impl {
+    mutation_reader _reader;
+    std::size_t _call_count{0};
+    std::size_t _ff_count{0};
+public:
+    tracking_reader(semaphore* resources_sem, schema_ptr schema, lw_shared_ptr<sstables::sstable> sst)
+        : _reader(make_mutation_reader<sstable_range_wrapping_reader>(
+                        std::move(sst),
+                        std::move(schema),
+                        query::full_partition_range,
+                        query::full_slice,
+                        default_priority_class(),
+                        reader_resource_tracker(resources_sem),
+                        streamed_mutation::forwarding::no,
+                        mutation_reader::forwarding::yes)) {
+    }
+
+    virtual future<streamed_mutation_opt> operator()() override {
+        ++_call_count;
+        return _reader();
+    }
+
+    virtual future<> fast_forward_to(const dht::partition_range& pr) override {
+        ++_ff_count;
+        // Don't forward this to the underlying reader, it will force us
+        // to come up with meaningful partition-ranges which is hard and
+        // unecessary for these tests.
+        return make_ready_future<>();
+    }
+
+    std::size_t call_count() const {
+        return _call_count;
+    }
+
+    std::size_t ff_count() const {
+        return _ff_count;
+    }
+};
+
+class reader_wrapper {
+    mutation_reader _reader;
+    tracking_reader* _tracker{nullptr};
+
+public:
+    reader_wrapper(
+            const restricted_mutation_reader_config& config,
+            schema_ptr schema,
+            lw_shared_ptr<sstables::sstable> sst) {
+        auto ms = mutation_source([this, &config, sst=std::move(sst)] (schema_ptr schema, const dht::partition_range&) {
+            auto tracker_ptr = std::make_unique<tracking_reader>(config.resources_sem, std::move(schema), std::move(sst));
+            _tracker = tracker_ptr.get();
+            return mutation_reader(std::move(tracker_ptr));
+        });
+
+        _reader = make_restricted_reader(config, std::move(ms), std::move(schema));
+    }
+
+    future<streamed_mutation_opt> operator()() {
+        return _reader();
+    }
+
+    future<> fast_forward_to(const dht::partition_range& pr) {
+        return _reader.fast_forward_to(pr);
+    }
+
+    std::size_t call_count() const {
+        return _tracker ? _tracker->call_count() : 0;
+    }
+
+    std::size_t ff_count() const {
+        return _tracker ? _tracker->ff_count() : 0;
+    }
+
+    bool created() const {
+        return bool(_tracker);
+    }
+};
+
+struct restriction_data {
+    std::unique_ptr<semaphore> reader_semaphore;
+    restricted_mutation_reader_config config;
+
+    restriction_data(std::size_t units,
+            std::chrono::nanoseconds timeout = {},
+            std::size_t max_queue_length = std::numeric_limits<std::size_t>::max())
+        : reader_semaphore(std::make_unique<semaphore>(units)) {
+        config.resources_sem = reader_semaphore.get();
+        config.timeout = timeout;
+        config.max_queue_length = max_queue_length;
+    }
+};
+
+
+class dummy_file_impl : public file_impl {
+    virtual future<size_t> write_dma(uint64_t pos, const void* buffer, size_t len, const io_priority_class& pc) override {
+        return make_ready_future<size_t>(0);
+    }
+
+    virtual future<size_t> write_dma(uint64_t pos, std::vector<iovec> iov, const io_priority_class& pc) override {
+        return make_ready_future<size_t>(0);
+    }
+
+    virtual future<size_t> read_dma(uint64_t pos, void* buffer, size_t len, const io_priority_class& pc) override {
+        return make_ready_future<size_t>(0);
+    }
+
+    virtual future<size_t> read_dma(uint64_t pos, std::vector<iovec> iov, const io_priority_class& pc) override {
+        return make_ready_future<size_t>(0);
+    }
+
+    virtual future<> flush(void) override {
+        return make_ready_future<>();
+    }
+
+    virtual future<struct stat> stat(void) override {
+        return make_ready_future<struct stat>();
+    }
+
+    virtual future<> truncate(uint64_t length) override {
+        return make_ready_future<>();
+    }
+
+    virtual future<> discard(uint64_t offset, uint64_t length) override {
+        return make_ready_future<>();
+    }
+
+    virtual future<> allocate(uint64_t position, uint64_t length) override {
+        return make_ready_future<>();
+    }
+
+    virtual future<uint64_t> size(void) override {
+        return make_ready_future<uint64_t>(0);
+    }
+
+    virtual future<> close() override {
+        return make_ready_future<>();
+    }
+
+    virtual subscription<directory_entry> list_directory(std::function<future<> (directory_entry de)> next) override {
+        throw std::bad_function_call();
+    }
+
+    virtual future<temporary_buffer<uint8_t>> dma_read_bulk(uint64_t offset, size_t range_size, const io_priority_class& pc) override {
+        temporary_buffer<uint8_t> buf(1024);
+
+        memset(buf.get_write(), 0xff, buf.size());
+
+        return make_ready_future<temporary_buffer<uint8_t>>(std::move(buf));
+    }
+};
+
+
+SEASTAR_TEST_CASE(reader_restriction_file_tracking) {
+    return async([&] {
+        restriction_data rd(4 * 1024);
+
+        {
+            reader_resource_tracker resource_tracker(rd.config.resources_sem);
+
+            auto tracked_file = resource_tracker.track(
+                    file(shared_ptr<file_impl>(make_shared<dummy_file_impl>())));
+
+            BOOST_REQUIRE_EQUAL(4 * 1024, rd.reader_semaphore->available_units());
+
+            auto buf1 = tracked_file.dma_read_bulk<char>(0, 0).get0();
+            BOOST_REQUIRE_EQUAL(3 * 1024, rd.reader_semaphore->available_units());
+
+            auto buf2 = tracked_file.dma_read_bulk<char>(0, 0).get0();
+            BOOST_REQUIRE_EQUAL(2 * 1024, rd.reader_semaphore->available_units());
+
+            auto buf3 = tracked_file.dma_read_bulk<char>(0, 0).get0();
+            BOOST_REQUIRE_EQUAL(1 * 1024, rd.reader_semaphore->available_units());
+
+            auto buf4 = tracked_file.dma_read_bulk<char>(0, 0).get0();
+            BOOST_REQUIRE_EQUAL(0 * 1024, rd.reader_semaphore->available_units());
+
+            auto buf5 = tracked_file.dma_read_bulk<char>(0, 0).get0();
+            BOOST_REQUIRE_EQUAL(-1 * 1024, rd.reader_semaphore->available_units());
+
+            // Reassing buf1, should still have the same amount of units.
+            buf1 = tracked_file.dma_read_bulk<char>(0, 0).get0();
+            BOOST_REQUIRE_EQUAL(-1 * 1024, rd.reader_semaphore->available_units());
+
+            // Move buf1 to the heap, so that we can safely destroy it
+            auto buf1_ptr = std::make_unique<temporary_buffer<char>>(std::move(buf1));
+            BOOST_REQUIRE_EQUAL(-1 * 1024, rd.reader_semaphore->available_units());
+
+            buf1_ptr.reset();
+            BOOST_REQUIRE_EQUAL(0 * 1024, rd.reader_semaphore->available_units());
+
+            // Move tracked_file to the heap, so that we can safely destroy it.
+            auto tracked_file_ptr = std::make_unique<file>(std::move(tracked_file));
+            tracked_file_ptr.reset();
+
+            // Move buf4 to the heap, so that we can safely destroy it
+            auto buf4_ptr = std::make_unique<temporary_buffer<char>>(std::move(buf4));
+            BOOST_REQUIRE_EQUAL(0 * 1024, rd.reader_semaphore->available_units());
+
+            // Releasing buffers that overlived the tracked-file they
+            // originated from should succeed.
+            buf4_ptr.reset();
+            BOOST_REQUIRE_EQUAL(1 * 1024, rd.reader_semaphore->available_units());
+        }
+
+        // All units should have been deposited back.
+        REQUIRE_EVENTUALLY_EQUAL(4 * 1024, rd.reader_semaphore->available_units());
+    });
+}
+
+SEASTAR_TEST_CASE(restricted_reader_reading) {
+    return async([&] {
+        restriction_data rd(new_reader_base_cost);
+
+        {
+            simple_schema s;
+            auto tmp = make_lw_shared<tmpdir>();
+            auto sst = create_sstable(s, tmp->path);
+
+            auto reader1 = reader_wrapper(rd.config, s.schema(), sst);
+
+            reader1().get();
+
+            BOOST_REQUIRE_LE(rd.reader_semaphore->available_units(), 0);
+            BOOST_REQUIRE_EQUAL(reader1.call_count(), 1);
+
+            auto reader2 = reader_wrapper(rd.config, s.schema(), sst);
+            auto read_fut = reader2();
+
+            // reader2 shouldn't be allowed just yet.
+            BOOST_REQUIRE_EQUAL(reader2.call_count(), 0);
+
+            // Move reader1 to the heap, so that we can safely destroy it.
+            auto reader1_ptr = std::make_unique<reader_wrapper>(std::move(reader1));
+            reader1_ptr.reset();
+
+            // reader1's destruction should've made some space for reader2 by now.
+            REQUIRE_EVENTUALLY_EQUAL(reader2.call_count(), 1);
+            read_fut.get();
+
+            {
+                // Consume all available units.
+                const auto consume_guard = consume_units(*rd.reader_semaphore, rd.reader_semaphore->current());
+
+                // Already allowed readers should not be blocked anymore even if
+                // there are no more units available.
+                read_fut = reader2();
+                BOOST_REQUIRE_EQUAL(reader2.call_count(), 2);
+                read_fut.get();
+            }
+        }
+
+        // All units should have been deposited back.
+        REQUIRE_EVENTUALLY_EQUAL(new_reader_base_cost, rd.reader_semaphore->available_units());
+    });
+}
+
+SEASTAR_TEST_CASE(restricted_reader_timeout) {
+    return async([&] {
+        restriction_data rd(new_reader_base_cost, std::chrono::duration_cast<std::chrono::nanoseconds>(std::chrono::milliseconds{10}));
+
+        {
+            simple_schema s;
+            auto tmp = make_lw_shared<tmpdir>();
+            auto sst = create_sstable(s, tmp->path);
+
+            auto reader1 = reader_wrapper(rd.config, s.schema(), sst);
+            reader1().get();
+
+            auto reader2 = reader_wrapper(rd.config, s.schema(), sst);
+            auto read_fut = reader2();
+
+            seastar::sleep(std::chrono::milliseconds(20)).get();
+
+            // The read should have timed out.
+            BOOST_REQUIRE(read_fut.failed());
+            BOOST_REQUIRE_THROW(std::rethrow_exception(read_fut.get_exception()), semaphore_timed_out);
+        }
+
+        // All units should have been deposited back.
+        REQUIRE_EVENTUALLY_EQUAL(new_reader_base_cost, rd.reader_semaphore->available_units());
+    });
+}
+
+SEASTAR_TEST_CASE(restricted_reader_max_queue_length) {
+    return async([&] {
+        restriction_data rd(new_reader_base_cost, {}, 1);
+
+        {
+            simple_schema s;
+            auto tmp = make_lw_shared<tmpdir>();
+            auto sst = create_sstable(s, tmp->path);
+
+            auto reader1_ptr = std::make_unique<reader_wrapper>(rd.config, s.schema(), sst);
+            (*reader1_ptr)().get();
+
+            auto reader2_ptr = std::make_unique<reader_wrapper>(rd.config, s.schema(), sst);
+            auto read_fut = (*reader2_ptr)();
+
+            // The queue should now be full.
+            BOOST_REQUIRE_THROW(reader_wrapper(rd.config, s.schema(), sst), std::runtime_error);
+
+            reader1_ptr.reset();
+            read_fut.get();
+        }
+
+        REQUIRE_EVENTUALLY_EQUAL(new_reader_base_cost, rd.reader_semaphore->available_units());
+    });
+}
+
+SEASTAR_TEST_CASE(restricted_reader_create_reader) {
+    return async([&] {
+        restriction_data rd(new_reader_base_cost);
+
+        {
+            simple_schema s;
+            auto tmp = make_lw_shared<tmpdir>();
+            auto sst = create_sstable(s, tmp->path);
+
+            {
+                auto reader = reader_wrapper(rd.config, s.schema(), sst);
+                // This fast-forward is stupid, I know but the
+                // underlying dummy reader won't care, so it's fine.
+                reader.fast_forward_to(query::full_partition_range).get();
+
+                BOOST_REQUIRE(reader.created());
+                BOOST_REQUIRE_EQUAL(reader.call_count(), 0);
+                BOOST_REQUIRE_EQUAL(reader.ff_count(), 1);
+            }
+
+            {
+                auto reader = reader_wrapper(rd.config, s.schema(), sst);
+                reader().get();
+
+                BOOST_REQUIRE(reader.created());
+                BOOST_REQUIRE_EQUAL(reader.call_count(), 1);
+                BOOST_REQUIRE_EQUAL(reader.ff_count(), 0);
+            }
+        }
+
+        REQUIRE_EVENTUALLY_EQUAL(new_reader_base_cost, rd.reader_semaphore->available_units());
+    });
+}
diff --git a/tests/sstable_utils.cc b/tests/sstable_utils.cc
index 094aa158a3..33d44c541a 100644
--- a/tests/sstable_utils.cc
+++ b/tests/sstable_utils.cc
@@ -32,8 +32,17 @@ sstables::shared_sstable make_sstable_containing(std::function<sstables::shared_
     auto sst = sst_factory();
     schema_ptr s = muts[0].schema();
     auto mt = make_lw_shared<memtable>(s);
+
+    std::size_t i{0};
     for (auto&& m : muts) {
         mt->apply(m);
+        ++i;
+
+        // Give the reactor some time to breathe
+        if(i == 10) {
+            seastar::thread::yield();
+            i = 0;
+        }
     }
     write_memtable_to_sstable(*mt, sst).get();
     sst->open_data().get();