diff --git a/tests/Makefile.am b/tests/Makefile.am
index ebf2df92..e612aa68 100644
--- a/tests/Makefile.am
+++ b/tests/Makefile.am
@@ -45,6 +45,7 @@ check_PROGRAMS = \
 	test_block_header \
 	test_index \
 	test_bcj_exact_size \
+	test_memlimit \
 	test_vli
 
 TESTS = \
@@ -55,6 +56,7 @@ TESTS = \
 	test_block_header \
 	test_index \
 	test_bcj_exact_size \
+	test_memlimit \
 	test_vli \
 	test_files.sh \
 	test_compress_prepared_bcj_sparc \
diff --git a/tests/test_memlimit.c b/tests/test_memlimit.c
new file mode 100644
index 00000000..24b7f6e1
--- /dev/null
+++ b/tests/test_memlimit.c
@@ -0,0 +1,151 @@
+///////////////////////////////////////////////////////////////////////////////
+//
+/// \file       test_memlimit.c
+/// \brief      Tests memory usage limit in decoders
+//
+//  Author:     Lasse Collin
+//
+//  This file has been put into the public domain.
+//  You can do whatever you want with this file.
+//
+///////////////////////////////////////////////////////////////////////////////
+
+#include "tests.h"
+
+
+#define MEMLIMIT_TOO_LOW 1234U
+#define MEMLIMIT_HIGH_ENOUGH (2U << 20)
+
+
+static uint8_t *in;
+static size_t in_size;
+static uint8_t out[8192];
+
+
+static void
+test_memlimit_stream_decoder(void)
+{
+	lzma_stream strm = LZMA_STREAM_INIT;
+	assert_lzma_ret(lzma_stream_decoder(&strm, MEMLIMIT_TOO_LOW, 0),
+			LZMA_OK);
+
+	strm.next_in = in;
+	strm.avail_in = in_size;
+	strm.next_out = out;
+	strm.avail_out = sizeof(out);
+
+	assert_lzma_ret(lzma_code(&strm, LZMA_FINISH), LZMA_MEMLIMIT_ERROR);
+
+	assert_uint_eq(lzma_memlimit_get(&strm), MEMLIMIT_TOO_LOW);
+	assert_lzma_ret(lzma_memlimit_set(&strm, MEMLIMIT_TOO_LOW + 1),
+			LZMA_MEMLIMIT_ERROR);
+	assert_lzma_ret(lzma_memlimit_set(&strm, MEMLIMIT_HIGH_ENOUGH),
+			LZMA_OK);
+
+	// This fails before commit 660739f99ab211edec4071de98889fb32ed04e98
+	// (liblzma <= 5.2.6, liblzma <= 5.3.3alpha). It was fixed in 5.2.7.
+	assert_lzma_ret(lzma_code(&strm, LZMA_FINISH), LZMA_STREAM_END);
+
+	lzma_end(&strm);
+}
+
+
+static void
+test_memlimit_stream_decoder_mt(void)
+{
+	lzma_stream strm = LZMA_STREAM_INIT;
+	lzma_mt mt = {
+		.flags = 0,
+		.threads = 1,
+		.timeout = 0,
+		.memlimit_threading = 0,
+		.memlimit_stop = MEMLIMIT_TOO_LOW,
+	};
+
+	assert_lzma_ret(lzma_stream_decoder_mt(&strm, &mt), LZMA_OK);
+
+	strm.next_in = in;
+	strm.avail_in = in_size;
+	strm.next_out = out;
+	strm.avail_out = sizeof(out);
+
+	assert_lzma_ret(lzma_code(&strm, LZMA_FINISH), LZMA_MEMLIMIT_ERROR);
+
+	assert_uint_eq(lzma_memlimit_get(&strm), MEMLIMIT_TOO_LOW);
+	assert_lzma_ret(lzma_memlimit_set(&strm, MEMLIMIT_TOO_LOW + 1),
+			LZMA_MEMLIMIT_ERROR);
+	assert_lzma_ret(lzma_memlimit_set(&strm, MEMLIMIT_HIGH_ENOUGH),
+			LZMA_OK);
+
+	assert_lzma_ret(lzma_code(&strm, LZMA_FINISH), LZMA_STREAM_END);
+	lzma_end(&strm);
+}
+
+
+static void
+test_memlimit_alone_decoder(void)
+{
+	size_t alone_size;
+	uint8_t *alone_buf = tuktest_file_from_srcdir(
+			"files/good-unknown_size-with_eopm.lzma", &alone_size);
+
+	lzma_stream strm = LZMA_STREAM_INIT;
+	assert_lzma_ret(lzma_alone_decoder(&strm, MEMLIMIT_TOO_LOW), LZMA_OK);
+
+	strm.next_in = alone_buf;
+	strm.avail_in = alone_size;
+	strm.next_out = out;
+	strm.avail_out = sizeof(out);
+
+	assert_lzma_ret(lzma_code(&strm, LZMA_FINISH), LZMA_MEMLIMIT_ERROR);
+
+	assert_uint_eq(lzma_memlimit_get(&strm), MEMLIMIT_TOO_LOW);
+	assert_lzma_ret(lzma_memlimit_set(&strm, MEMLIMIT_TOO_LOW + 1),
+			LZMA_MEMLIMIT_ERROR);
+	assert_lzma_ret(lzma_memlimit_set(&strm, MEMLIMIT_HIGH_ENOUGH),
+			LZMA_OK);
+
+	assert_lzma_ret(lzma_code(&strm, LZMA_FINISH), LZMA_STREAM_END);
+	lzma_end(&strm);
+}
+
+
+static void
+test_memlimit_auto_decoder(void)
+{
+	lzma_stream strm = LZMA_STREAM_INIT;
+	assert_lzma_ret(lzma_auto_decoder(&strm, MEMLIMIT_TOO_LOW, 0),
+			LZMA_OK);
+
+	strm.next_in = in;
+	strm.avail_in = in_size;
+	strm.next_out = out;
+	strm.avail_out = sizeof(out);
+
+	assert_lzma_ret(lzma_code(&strm, LZMA_FINISH), LZMA_MEMLIMIT_ERROR);
+
+	assert_uint_eq(lzma_memlimit_get(&strm), MEMLIMIT_TOO_LOW);
+	assert_lzma_ret(lzma_memlimit_set(&strm, MEMLIMIT_TOO_LOW + 1),
+			LZMA_MEMLIMIT_ERROR);
+	assert_lzma_ret(lzma_memlimit_set(&strm, MEMLIMIT_HIGH_ENOUGH),
+			LZMA_OK);
+
+	assert_lzma_ret(lzma_code(&strm, LZMA_FINISH), LZMA_STREAM_END);
+	lzma_end(&strm);
+}
+
+
+extern int
+main(int argc, char **argv)
+{
+	tuktest_start(argc, argv);
+
+	in = tuktest_file_from_srcdir("files/good-1-check-crc32.xz", &in_size);
+
+	tuktest_run(test_memlimit_stream_decoder);
+	tuktest_run(test_memlimit_stream_decoder_mt);
+	tuktest_run(test_memlimit_alone_decoder);
+	tuktest_run(test_memlimit_auto_decoder);
+
+	return tuktest_end();
+}