diff --git a/integration-tests/worker/CHANGELOG.md b/integration-tests/worker/CHANGELOG.md
index 0dde8b32c..c9890bd50 100644
--- a/integration-tests/worker/CHANGELOG.md
+++ b/integration-tests/worker/CHANGELOG.md
@@ -1,5 +1,18 @@
 # @openfn/integration-tests-worker
 
+## 1.1.0
+
+### Minor Changes
+
+- 8ebc086: Add support for state memory limit via worker
+
+### Patch Changes
+
+- Updated dependencies [8ebc086]
+  - @openfn/engine-multi@1.12.0
+  - @openfn/ws-worker@1.27.0
+  - @openfn/lightning-mock@2.4.20
+
 ## 1.0.96
 
 ### Patch Changes
diff --git a/integration-tests/worker/package.json b/integration-tests/worker/package.json
index 7b88e3a83..01cd47ca2 100644
--- a/integration-tests/worker/package.json
+++ b/integration-tests/worker/package.json
@@ -1,7 +1,7 @@
 {
   "name": "@openfn/integration-tests-worker",
   "private": true,
-  "version": "1.0.96",
+  "version": "1.1.0",
   "description": "Lightning WOrker integration tests",
   "author": "Open Function Group <admin@openfn.org>",
   "license": "ISC",
diff --git a/integration-tests/worker/test/exit-reasons.test.ts b/integration-tests/worker/test/exit-reasons.test.ts
index f378c6ecd..d2bc91fa6 100644
--- a/integration-tests/worker/test/exit-reasons.test.ts
+++ b/integration-tests/worker/test/exit-reasons.test.ts
@@ -226,6 +226,92 @@ test.serial('kill: oom (large, kill vm)', async (t) => {
   t.is(error_message, 'Run exceeded maximum memory usage');
 });
 
+test.serial('kill: state exceeds the configured state limit', async (t) => {
+  const attempt = {
+    id: crypto.randomUUID(),
+    jobs: [
+      {
+        adaptor: '@openfn/language-common@latest',
+        // ~2mb string for a 1mb limit
+        body: `fn((s) => {
+          s.data = new Array(2 * 1024 * 1024).fill('a').join('');
+          return s;
+        })`,
+      },
+    ],
+    options: {
+      state_limit_mb: 1,
+    },
+  };
+
+  const result = await run(attempt);
+
+  const { reason, error_type, error_message } = result;
+  t.is(reason, 'kill');
+  t.is(error_type, 'StateTooLargeError');
+  t.regex(error_message, /State exceeds the limit of 1mb/);
+});
+
+test.serial(
+  'kill: state limit is enforced between jobs (downstream job does not run)',
+  async (t) => {
+    const jobOne = {
+      id: crypto.randomUUID(),
+      adaptor: '@openfn/language-common@latest',
+      // ~2mb state, over the 1mb limit set below
+      body: `fn((s) => {
+        s.data = new Array(2 * 1024 * 1024).fill('a').join('');
+        return s;
+      })`,
+    };
+
+    // not expected to run because the first job is expected to trigger state size crash
+    const jobTwo = {
+      id: crypto.randomUUID(),
+      adaptor: '@openfn/language-common@latest',
+      body: `fn(() => ({ data: 'ok' }))`,
+    };
+
+    const attempt = {
+      id: crypto.randomUUID(),
+      jobs: [jobOne, jobTwo],
+      edges: [
+        {
+          id: crypto.randomUUID(),
+          source_job_id: jobOne.id,
+          target_job_id: jobTwo.id,
+          condition: 'always',
+        },
+      ],
+      options: {
+        state_limit_mb: 1,
+      },
+    };
+
+    const startedJobs: string[] = [];
+    const unsubscribe = lightning.onSocketEvent(
+      'step:start',
+      attempt.id,
+      (evt) => {
+        if (evt.runId === attempt.id) {
+          startedJobs.push(evt.payload.job_id);
+        }
+      },
+      false
+    );
+
+    const result = await run(attempt);
+    unsubscribe();
+
+    const { reason, error_type, error_message } = result;
+    t.is(reason, 'kill');
+    t.is(error_type, 'StateTooLargeError');
+    t.regex(error_message, /State exceeds the limit of 1mb/);
+
+    t.deepEqual(startedJobs, [jobOne.id]);
+  }
+);
+
 test.serial('crash: process.exit() triggered by postgres', async (t) => {
   const attempt = {
     id: crypto.randomUUID(),
diff --git a/packages/engine-multi/CHANGELOG.md b/packages/engine-multi/CHANGELOG.md
index 7687e6f44..287d80d6b 100644
--- a/packages/engine-multi/CHANGELOG.md
+++ b/packages/engine-multi/CHANGELOG.md
@@ -1,5 +1,17 @@
 # engine-multi
 
+## 1.12.0
+
+### Minor Changes
+
+- 8ebc086: Add support for state memory limit via worker
+- reduce default size of state objects
+
+### Patch Changes
+
+- Updated dependencies [8ebc086]
+  - @openfn/lexicon@2.3.0
+
 ## 1.11.4
 
 ### Patch Changes
diff --git a/packages/engine-multi/package.json b/packages/engine-multi/package.json
index 1e4a1f6c4..35ef12543 100644
--- a/packages/engine-multi/package.json
+++ b/packages/engine-multi/package.json
@@ -1,6 +1,6 @@
 {
   "name": "@openfn/engine-multi",
-  "version": "1.11.4",
+  "version": "1.12.0",
   "description": "Multi-process runtime engine",
   "main": "dist/index.js",
   "type": "module",
diff --git a/packages/engine-multi/src/api/execute.ts b/packages/engine-multi/src/api/execute.ts
index 4281eae9f..57f5fa561 100644
--- a/packages/engine-multi/src/api/execute.ts
+++ b/packages/engine-multi/src/api/execute.ts
@@ -50,7 +50,7 @@ const execute = async (context: ExecutionContext) => {
       // This must be fairly high to prevent crashes
       stateLimitMb:
         options.stateLimitMb ??
-        Math.max((options.memoryLimitMb ?? 1000) * 0.25),
+        Math.max(50, options.memoryLimitMb ?? 1000 * 0.15),
     } as RunOptions;
 
     logger.debug(
diff --git a/packages/engine-multi/src/engine.ts b/packages/engine-multi/src/engine.ts
index 9360d5c82..38467b97c 100644
--- a/packages/engine-multi/src/engine.ts
+++ b/packages/engine-multi/src/engine.ts
@@ -74,6 +74,7 @@ export type EngineOptions = {
   logger: Logger;
   maxWorkers?: number;
   memoryLimitMb?: number;
+  stateLimitMb?: number;
   payloadLimitMb?: number;
   logPayloadLimitMb?: number;
   repoDir: string;
@@ -169,7 +170,7 @@ const createEngine = async (
       callWorker,
       options: {
         ...options,
-        stateLimitMb: opts.stateLimitMb,
+        stateLimitMb: opts.stateLimitMb ?? options.stateLimitMb,
         sanitize: opts.sanitize,
         resolvers: opts.resolvers,
         runTimeoutMs: opts.runTimeoutMs ?? defaultTimeout,
diff --git a/packages/lexicon/CHANGELOG.md b/packages/lexicon/CHANGELOG.md
index a7a38c52e..85715c9ec 100644
--- a/packages/lexicon/CHANGELOG.md
+++ b/packages/lexicon/CHANGELOG.md
@@ -1,5 +1,11 @@
 # lexicon
 
+## 2.3.0
+
+### Minor Changes
+
+- 8ebc086: Add support for state memory limit via worker
+
 ## 2.2.1
 
 ### Patch Changes
diff --git a/packages/lexicon/lightning.d.ts b/packages/lexicon/lightning.d.ts
index aa93a7304..8554c0fb6 100644
--- a/packages/lexicon/lightning.d.ts
+++ b/packages/lexicon/lightning.d.ts
@@ -59,6 +59,7 @@ export type LightningPlanOptions = {
   output_dataclips?: boolean;
 
   run_memory_limit_mb?: number;
+  state_limit_mb?: number;
   payload_limit_mb?: number;
   log_payload_limit_mb?: number;
   job_log_level?: LogLevel;
diff --git a/packages/lexicon/package.json b/packages/lexicon/package.json
index b8671c947..7ea4cc990 100644
--- a/packages/lexicon/package.json
+++ b/packages/lexicon/package.json
@@ -1,6 +1,6 @@
 {
   "name": "@openfn/lexicon",
-  "version": "2.2.1",
+  "version": "2.3.0",
   "description": "Central repo of names and type definitions",
   "author": "Open Function Group <admin@openfn.org>",
   "license": "ISC",
diff --git a/packages/lightning-mock/CHANGELOG.md b/packages/lightning-mock/CHANGELOG.md
index bef369a56..b26ec2745 100644
--- a/packages/lightning-mock/CHANGELOG.md
+++ b/packages/lightning-mock/CHANGELOG.md
@@ -1,5 +1,13 @@
 # @openfn/lightning-mock
 
+## 2.4.20
+
+### Patch Changes
+
+- Updated dependencies [8ebc086]
+  - @openfn/engine-multi@1.12.0
+  - @openfn/lexicon@2.3.0
+
 ## 2.4.19
 
 ### Patch Changes
diff --git a/packages/lightning-mock/package.json b/packages/lightning-mock/package.json
index 649bfbb18..6f92f16ed 100644
--- a/packages/lightning-mock/package.json
+++ b/packages/lightning-mock/package.json
@@ -1,6 +1,6 @@
 {
   "name": "@openfn/lightning-mock",
-  "version": "2.4.19",
+  "version": "2.4.20",
   "private": true,
   "description": "A mock Lightning server",
   "main": "dist/index.js",
diff --git a/packages/runtime/src/execute/step.ts b/packages/runtime/src/execute/step.ts
index e5ef79a52..1b80106ba 100644
--- a/packages/runtime/src/execute/step.ts
+++ b/packages/runtime/src/execute/step.ts
@@ -91,7 +91,7 @@ const prepareFinalState = async (
   if (isNullState(state)) return undefined;
   if (state) {
     try {
-      await ensureStateSize(state, stateLimit_mb);
+      await ensureStateSize(state, stateLimit_mb, logger);
     } catch (e: any) {
       logger.error('Critical error processing state: ', e.message);
       throw e;
diff --git a/packages/runtime/src/util/ensure-state-size.ts b/packages/runtime/src/util/ensure-state-size.ts
index 84ab9744b..98096a9e6 100644
--- a/packages/runtime/src/util/ensure-state-size.ts
+++ b/packages/runtime/src/util/ensure-state-size.ts
@@ -1,5 +1,6 @@
 import { JsonStreamStringify } from 'json-stream-stringify';
 import { StateTooLargeError } from '../errors';
+import { Logger } from '@openfn/logger';
 
 const replacer = (_key: string, value: any) => {
   // Ignore non serializable keys
@@ -15,7 +16,7 @@ const replacer = (_key: string, value: any) => {
 };
 
 // throws if state exceeds a particular size limit
-export default async (value: any, limit_mb: number = 500) => {
+export default async (value: any, limit_mb: number = 500, logger?: Logger) => {
   if (value && !isNaN(limit_mb) && limit_mb > 0) {
     const limitBytes = limit_mb * 1024 * 1024;
     let size_bytes = 0;
@@ -25,8 +26,20 @@ export default async (value: any, limit_mb: number = 500) => {
       size_bytes += Buffer.byteLength(chunk, 'utf8');
 
       if (size_bytes > limitBytes) {
+        logger?.info(
+          `state object exceeds limit ${limit_mb} (${
+            size_bytes / 1024 / 1024
+          }mb)`
+        );
         throw new StateTooLargeError(limit_mb);
       }
     }
+    if (size_bytes < 1024 * 1024) {
+      logger?.debug(`State object serializes to less than 1mb`);
+    } else {
+      logger?.debug(
+        `State object serializes to ${(size_bytes / 1024 / 1024).toFixed(2)}mb`
+      );
+    }
   }
 };
diff --git a/packages/ws-worker/CHANGELOG.md b/packages/ws-worker/CHANGELOG.md
index 479a569e1..aad53806e 100644
--- a/packages/ws-worker/CHANGELOG.md
+++ b/packages/ws-worker/CHANGELOG.md
@@ -1,5 +1,18 @@
 # ws-worker
 
+## 1.27.0
+
+### Minor Changes
+
+- 8ebc086: Add support for state memory limit via worker
+- reduce default size of state objects
+
+### Patch Changes
+
+- Updated dependencies [8ebc086]
+  - @openfn/engine-multi@1.12.0
+  - @openfn/lexicon@2.3.0
+
 ## 1.26.1
 
 ### Patch Changes
diff --git a/packages/ws-worker/package.json b/packages/ws-worker/package.json
index 8739662d3..affd051da 100644
--- a/packages/ws-worker/package.json
+++ b/packages/ws-worker/package.json
@@ -1,6 +1,6 @@
 {
   "name": "@openfn/ws-worker",
-  "version": "1.26.1",
+  "version": "1.27.0",
   "description": "A Websocket Worker to connect Lightning to a Runtime Engine",
   "main": "dist/index.js",
   "type": "module",
diff --git a/packages/ws-worker/src/start.ts b/packages/ws-worker/src/start.ts
index 9d901c7af..4e08e2601 100644
--- a/packages/ws-worker/src/start.ts
+++ b/packages/ws-worker/src/start.ts
@@ -111,6 +111,7 @@ if (args.mock) {
   const engineOptions = {
     repoDir: args.repoDir,
     memoryLimitMb: args.runMemory,
+    stateLimitMb: args.stateMemory,
     maxWorkers: effectiveCapacity,
     statePropsToRemove: args.statePropsToRemove,
     runTimeoutMs: args.maxRunDurationSeconds * 1000,
diff --git a/packages/ws-worker/src/util/cli.ts b/packages/ws-worker/src/util/cli.ts
index ebae7ccb5..f2850a383 100644
--- a/packages/ws-worker/src/util/cli.ts
+++ b/packages/ws-worker/src/util/cli.ts
@@ -38,6 +38,7 @@ type Args = {
   profilePollIntervalMs?: number;
   repoDir?: string;
   runMemory?: number;
+  stateMemory?: number;
   secret?: string;
   sentryDsn?: string;
   sentryEnv?: string;
@@ -91,6 +92,7 @@ export default function parseArgs(argv: string[]): Args {
     WORKER_MAX_LOG_PAYLOAD_MB,
     WORKER_MAX_RUN_DURATION_SECONDS,
     WORKER_MAX_RUN_MEMORY_MB,
+    WORKER_MAX_STATE_MEMORY_MB,
     WORKER_MESSAGE_TIMEOUT_SECONDS,
     WORKER_PORT,
     WORKER_PROFILE_POLL_INTERVAL_MS,
@@ -219,6 +221,11 @@ export default function parseArgs(argv: string[]): Args {
         'Maximum memory allocated to a single run, in mb. Env: WORKER_MAX_RUN_MEMORY_MB',
       type: 'number',
     })
+    .option('state-memory', {
+      description:
+        'Maximum size of the state object returned by each step, in mb. Defaults to 25% of run-memory. Env: WORKER_MAX_STATE_MEMORY_MB',
+      type: 'number',
+    })
     .option('payload-memory', {
       description:
         'Maximum memory allocated to a single run, in mb. Env: WORKER_MAX_PAYLOAD_MB',
@@ -326,6 +333,12 @@ export default function parseArgs(argv: string[]): Args {
       ['configuration', 'response']
     ),
     runMemory: setArg(args.runMemory, WORKER_MAX_RUN_MEMORY_MB, 500),
+    // No default: when unset the engine derives the limit from run-memory (25%)
+    stateMemory:
+      args.stateMemory ??
+      (WORKER_MAX_STATE_MEMORY_MB
+        ? parseInt(WORKER_MAX_STATE_MEMORY_MB, 10)
+        : undefined),
     payloadMemory: setArg(args.payloadMemory, WORKER_MAX_PAYLOAD_MB, 10),
     logPayloadMemory: setArg(
       args.logPayloadMemory,
diff --git a/packages/ws-worker/src/util/convert-lightning-plan.ts b/packages/ws-worker/src/util/convert-lightning-plan.ts
index 4307e7dbe..f9fe2180b 100644
--- a/packages/ws-worker/src/util/convert-lightning-plan.ts
+++ b/packages/ws-worker/src/util/convert-lightning-plan.ts
@@ -146,6 +146,9 @@ export default (
     if ('run_memory_limit_mb' in run.options) {
       engineOpts.memoryLimitMb = run.options.run_memory_limit_mb;
     }
+    if ('state_limit_mb' in run.options) {
+      engineOpts.stateLimitMb = run.options.state_limit_mb;
+    }
     if ('sanitize' in run.options) {
       engineOpts.sanitize = run.options.sanitize;
     }
diff --git a/packages/ws-worker/test/api/execute.test.ts b/packages/ws-worker/test/api/execute.test.ts
index 8d0e70686..1e33e615d 100644
--- a/packages/ws-worker/test/api/execute.test.ts
+++ b/packages/ws-worker/test/api/execute.test.ts
@@ -301,8 +301,11 @@ test('loadDataclip report to sentry on fail', async (t) => {
   } catch (e) {}
 
   const reports = await waitForSentryReport(testkit);
-  t.is(reports.length, 1);
-  t.is(reports[0].error.name, 'LightningSocketError');
+  const dataclip_report = reports.find((r: any) =>
+    /fetch\:dataclip.+not_found/i.test(r.error.message)
+  );
+  t.truthy(dataclip_report);
+  t.is(dataclip_report.error.name, 'LightningSocketError');
 });
 
 test('loadCredential should fetch a credential', async (t) => {
diff --git a/packages/ws-worker/test/util/cli.test.ts b/packages/ws-worker/test/util/cli.test.ts
index 698008dc8..be156dd72 100644
--- a/packages/ws-worker/test/util/cli.test.ts
+++ b/packages/ws-worker/test/util/cli.test.ts
@@ -62,6 +62,7 @@ test('cli should set default values for unspecified options', (t) => {
   t.falsy(args.sentryDsn);
   t.deepEqual(args.statePropsToRemove, ['configuration', 'response']);
   t.is(args.runMemory, 500);
+  t.is(args.stateMemory, undefined);
   t.is(args.maxRunDurationSeconds, 300);
   t.is(args.engineValidationRetries, 3);
   t.is(args.engineValidationTimeoutMs, 5000);
diff --git a/packages/ws-worker/test/util/convert-lightning-plan.test.ts b/packages/ws-worker/test/util/convert-lightning-plan.test.ts
index 12a11a0e4..224855125 100644
--- a/packages/ws-worker/test/util/convert-lightning-plan.test.ts
+++ b/packages/ws-worker/test/util/convert-lightning-plan.test.ts
@@ -123,6 +123,25 @@ test('convert a single job with options', (t) => {
   });
 });
 
+test('convert a single job with state_limit_mb', (t) => {
+  const run: Partial<LightningPlan> = {
+    id: 'w',
+    jobs: [createNode()],
+    triggers: [],
+    edges: [],
+    options: {
+      run_memory_limit_mb: 500,
+      state_limit_mb: 50,
+    },
+  };
+  const { options } = convertPlan(run as LightningPlan);
+
+  t.deepEqual(options, {
+    memoryLimitMb: 500,
+    stateLimitMb: 50,
+  });
+});
+
 test('convert a single job with log_payload_limit_mb', (t) => {
   const run: Partial<LightningPlan> = {
     id: 'w',