diff --git a/client/modules/IDE/actions/uploader.js b/client/modules/IDE/actions/uploader.js
index b861b58928..10b48d906f 100644
--- a/client/modules/IDE/actions/uploader.js
+++ b/client/modules/IDE/actions/uploader.js
@@ -3,6 +3,7 @@ import { apiClient } from '../../../utils/apiClient';
 import { getConfig } from '../../../utils/getConfig';
 import { isTestEnvironment } from '../../../utils/checkTestEnv';
 import { handleCreateFile } from './files';
+import { showErrorModal } from './ide';
 
 const s3BucketUrlBase = getConfig('S3_BUCKET_URL_BASE');
 const awsRegion = getConfig('AWS_REGION');
@@ -22,7 +23,7 @@ function isS3Upload(file) {
   return !TEXT_FILE_REGEX.test(file.name) || file.size >= MAX_LOCAL_FILE_SIZE;
 }
 
-export async function dropzoneAcceptCallback(userId, file, done) {
+export async function dropzoneAcceptCallback(userId, file, done, dispatch) {
   // if a user would want to edit this file as text, local interceptor
   if (!isS3Upload(file)) {
     try {
@@ -51,6 +52,13 @@ export async function dropzoneAcceptCallback(userId, file, done) {
       file.postData = response.data;
       done();
     } catch (error) {
+      if (error?.response?.status === 403) {
+        if (dispatch) {
+          dispatch(showErrorModal('uploadLimit'));
+        }
+        done('Upload limit reached.');
+        return;
+      }
       done(
         error?.response?.data?.responseText?.message ||
           error?.message ||
diff --git a/client/modules/IDE/components/ErrorModal.jsx b/client/modules/IDE/components/ErrorModal.jsx
index 66dd374c52..fa8aa3ca41 100644
--- a/client/modules/IDE/components/ErrorModal.jsx
+++ b/client/modules/IDE/components/ErrorModal.jsx
@@ -2,6 +2,12 @@ import PropTypes from 'prop-types';
 import React from 'react';
 import { Link } from 'react-router-dom';
 import { useTranslation } from 'react-i18next';
+import prettyBytes from 'pretty-bytes';
+import { getConfig } from '../../../utils/getConfig';
+import { parseNumber } from '../../../utils/parseStringToType';
+
+const uploadLimit = parseNumber(getConfig('UPLOAD_LIMIT')) || 250000000;
+const uploadLimitText = prettyBytes(uploadLimit);
 
 const ErrorModal = ({ type, service, closeModal }) => {
   const { t } = useTranslation();
@@ -51,6 +57,18 @@ const ErrorModal = ({ type, service, closeModal }) => {
     return <p>{t('ErrorModal.SavedDifferentWindow')}</p>;
   }
 
+  function uploadLimitReached() {
+    return (
+      <p>
+        {t('UploadFileModal.SizeLimitError', { sizeLimit: uploadLimitText })}
+        <Link to="/assets" onClick={closeModal}>
+          assets
+        </Link>
+        .
+      </p>
+    );
+  }
+
   return (
     <div className="error-modal__content">
       {(() => { // eslint-disable-line
@@ -60,6 +78,8 @@ const ErrorModal = ({ type, service, closeModal }) => {
           return staleSession();
         } else if (type === 'staleProject') {
           return staleProject();
+        } else if (type === 'uploadLimit') {
+          return uploadLimitReached();
         } else if (type === 'oauthError') {
           return oauthError();
         }
@@ -73,7 +93,8 @@ ErrorModal.propTypes = {
     'forceAuthentication',
     'staleSession',
     'staleProject',
-    'oauthError'
+    'oauthError',
+    'uploadLimit'
   ]).isRequired,
   closeModal: PropTypes.func.isRequired,
   service: PropTypes.oneOf(['google', 'github'])
diff --git a/client/modules/IDE/components/FileUploader.jsx b/client/modules/IDE/components/FileUploader.jsx
index fcb754c9bd..46f88647e1 100644
--- a/client/modules/IDE/components/FileUploader.jsx
+++ b/client/modules/IDE/components/FileUploader.jsx
@@ -69,7 +69,7 @@ function FileUploader() {
       acceptedFiles: fileExtensionsAndMimeTypes,
       dictDefaultMessage: t('FileUploader.DictDefaultMessage'),
       accept: (file, done) => {
-        dropzoneAcceptCallback(userId, file, done);
+        dropzoneAcceptCallback(userId, file, done, dispatch);
       },
       sending: dropzoneSendingCallback
     });
diff --git a/client/modules/IDE/selectors/users.js b/client/modules/IDE/selectors/users.js
index 14f81fd114..f7bfb27b23 100644
--- a/client/modules/IDE/selectors/users.js
+++ b/client/modules/IDE/selectors/users.js
@@ -13,10 +13,11 @@ export const getCanUploadMedia = createSelector(
   getAuthenticated,
   getTotalSize,
   (authenticated, totalSize) => {
+    const currentSize = totalSize || 0;
     if (!authenticated) return false;
     // eventually do the same thing for verified when
     // email verification actually works
-    if (totalSize > limit) return false;
+    if (currentSize >= limit) return false;
     return true;
   }
 );
@@ -25,8 +26,8 @@ export const getreachedTotalSizeLimit = createSelector(
   getTotalSize,
   getAssetsTotalSize,
   (totalSize, assetsTotalSize) => {
-    const currentSize = totalSize || assetsTotalSize;
-    if (currentSize && currentSize > limit) return true;
+    const currentSize = totalSize || assetsTotalSize || 0;
+    if (currentSize >= limit) return true;
     // if (totalSize > 1000) return true;
     return false;
   }
diff --git a/server/controllers/aws.controller.js b/server/controllers/aws.controller.js
index 41bc627a51..b6e03db13c 100644
--- a/server/controllers/aws.controller.js
+++ b/server/controllers/aws.controller.js
@@ -78,28 +78,97 @@ export async function deleteObjectFromS3(req, res) {
   }
 }
 
-export function signS3(req, res) {
-  const limit = process.env.UPLOAD_LIMIT || 250000000;
-  if (req.user.totalSize > limit) {
-    res
-      .status(403)
-      .send({ message: 'user has uploaded the maximum size of assets.' });
-    return;
+export async function listObjectsInS3ForUser(userId) {
+  try {
+    let assets = [];
+    const params = {
+      Bucket: process.env.S3_BUCKET,
+      Prefix: `${userId}/`
+    };
+
+    const data = await s3Client.send(new ListObjectsCommand(params));
+
+    assets = data.Contents?.map((object) => ({
+      key: object.Key,
+      size: object.Size
+    }));
+
+    const projects = await Project.getProjectsForUserId(userId);
+    const projectAssets = [];
+    let totalSize = 0;
+
+    assets?.forEach((asset) => {
+      const name = asset.key.split('/').pop();
+      const foundAsset = {
+        key: asset.key,
+        name,
+        size: asset.size,
+        url: `${process.env.S3_BUCKET_URL_BASE}${asset.key}`
+      };
+      totalSize += asset.size;
+
+      const wasMatched = projects.some((project) =>
+        project.files.some((file) => {
+          if (!file.url) return false;
+          if (file.url.includes(asset.key)) {
+            foundAsset.name = file.name;
+            foundAsset.sketchName = project.name;
+            foundAsset.sketchId = project.id;
+            foundAsset.url = file.url;
+            return true;
+          }
+          return false;
+        })
+      );
+
+      if (wasMatched) {
+        projectAssets.push(foundAsset);
+      }
+    });
+
+    return { assets: projectAssets, totalSize };
+  } catch (error) {
+    if (error instanceof TypeError) {
+      return null;
+    }
+    console.error('Got an error: ', error);
+    throw error;
+  }
+}
+
+export async function signS3(req, res) {
+  const limit = Number(process.env.UPLOAD_LIMIT) || 250000000;
+
+  try {
+    const objects = await listObjectsInS3ForUser(req.user.id);
+    const currentSize = Number(objects?.totalSize ?? req.user.totalSize) || 0;
+    const incomingSize = Number(req.body.size) || 0;
+
+    if (currentSize >= limit || currentSize + incomingSize > limit) {
+      res
+        .status(403)
+        .send({ message: 'user has uploaded the maximum size of assets.' });
+      return;
+    }
+
+    const fileExtension = getExtension(req.body.name);
+    const filename = uuidv4() + fileExtension;
+    const acl = 'public-read';
+    const policy = S3Policy.generate({
+      acl,
+      key: `${req.body.userId}/${filename}`,
+      bucket: process.env.S3_BUCKET,
+      contentType: req.body.type,
+      region: process.env.AWS_REGION,
+      accessKey: process.env.AWS_ACCESS_KEY,
+      secretKey: process.env.AWS_SECRET_KEY,
+      metadata: []
+    });
+    res.json(policy);
+  } catch (error) {
+    console.error('Error signing upload policy:', error);
+    res.status(500).json({ error: 'Failed to sign upload policy' });
   }
-  const fileExtension = getExtension(req.body.name);
-  const filename = uuidv4() + fileExtension;
-  const acl = 'public-read';
-  const policy = S3Policy.generate({
-    acl,
-    key: `${req.body.userId}/${filename}`,
-    bucket: process.env.S3_BUCKET,
-    contentType: req.body.type,
-    region: process.env.AWS_REGION,
-    accessKey: process.env.AWS_ACCESS_KEY,
-    secretKey: process.env.AWS_SECRET_KEY,
-    metadata: []
-  });
-  res.json(policy);
 }
 
 export async function copyObjectInS3(url, userId) {
@@ -182,64 +251,6 @@ export async function moveObjectToUserInS3(url, userId) {
   return `${s3Bucket}${userId}/${newFilename}`;
 }
 
-export async function listObjectsInS3ForUser(userId) {
-  try {
-    let assets = [];
-    const params = {
-      Bucket: process.env.S3_BUCKET,
-      Prefix: `${userId}/`
-    };
-
-    const data = await s3Client.send(new ListObjectsCommand(params));
-
-    assets = data.Contents?.map((object) => ({
-      key: object.Key,
-      size: object.Size
-    }));
-
-    const projects = await Project.getProjectsForUserId(userId);
-    const projectAssets = [];
-    let totalSize = 0;
-
-    assets?.forEach((asset) => {
-      const name = asset.key.split('/').pop();
-      const foundAsset = {
-        key: asset.key,
-        name,
-        size: asset.size,
-        url: `${process.env.S3_BUCKET_URL_BASE}${asset.key}`
-      };
-      totalSize += asset.size;
-
-      const wasMatched = projects.some((project) =>
-        project.files.some((file) => {
-          if (!file.url) return false;
-          if (file.url.includes(asset.key)) {
-            foundAsset.name = file.name;
-            foundAsset.sketchName = project.name;
-            foundAsset.sketchId = project.id;
-            foundAsset.url = file.url;
-            return true;
-          }
-          return false;
-        })
-      );
-
-      if (wasMatched) {
-        projectAssets.push(foundAsset);
-      }
-    });
-
-    return { assets: projectAssets, totalSize };
-  } catch (error) {
-    if (error instanceof TypeError) {
-      return null;
-    }
-    console.error('Got an error: ', error);
-    throw error;
-  }
-}
-
 export async function listObjectsInS3ForUserRequestHandler(req, res) {
   const { username } = req.user;