diff --git a/pkg/settings/limits/resource.go b/pkg/settings/limits/resource.go
index 02b2d27305..04f68ea512 100644
--- a/pkg/settings/limits/resource.go
+++ b/pkg/settings/limits/resource.go
@@ -90,6 +90,10 @@ type resourcePoolLimiter[N Number] struct {
 	recordDenied    func(context.Context, N, ...metric.RecordOption)       // optional
 }
 
+func (l *resourcePoolLimiter[N]) setOnLimitUpdate(fn func(ctx context.Context)) {
+	l.updater.onLimitUpdate = fn
+}
+
 func (l *resourcePoolLimiter[N]) createGauges(meter metric.Meter, unit string) error {
 	if l.key == "" {
 		return errors.New("metrics require Key to be set")
@@ -172,6 +176,14 @@ type resourcePoolUsage[N Number] struct {
 	cancelSub func() // optional
 }
 
+// onLimitUpdate is invoked when the configured limit changes. It attempts to
+// wake queued waiters using the new limit.
+func (u *resourcePoolUsage[N]) onLimitUpdate() {
+	u.mu.Lock()
+	defer u.mu.Unlock()
+	u.tryWakeWaiters()
+}
+
 func (l *resourcePoolLimiter[N]) newLimitUsage(opts ...metric.RecordOption) *resourcePoolUsage[N] {
 	u := resourcePoolUsage[N]{
 		resourcePoolLimiter: l,
@@ -367,6 +379,9 @@ func newUnscopedResourcePoolLimiter[N Number](defaultLimit N) *unscopedResourceP
 		},
 	}
 	l.resourcePoolUsage = l.newLimitUsage()
+	l.setOnLimitUpdate(func(context.Context) {
+		l.resourcePoolUsage.onLimitUpdate()
+	})
 	return l
 }
 
@@ -489,6 +504,15 @@ func newScopedResourcePoolLimiter[N Number](scope settings.Scope, key string, de
 		},
 		scope: scope,
 	}
+	l.setOnLimitUpdate(func(ctx context.Context) {
+		tenant := l.scope.Value(ctx)
+		if tenant == "" {
+			return
+		}
+		if usage, ok := l.used.Load(tenant); ok {
+			usage.(*resourcePoolUsage[N]).onLimitUpdate()
+		}
+	})
 	return l
 }
 
diff --git a/pkg/settings/limits/resource_test.go b/pkg/settings/limits/resource_test.go
index f5aed65444..ac568aa4ec 100644
--- a/pkg/settings/limits/resource_test.go
+++ b/pkg/settings/limits/resource_test.go
@@ -8,6 +8,8 @@ import (
 	"testing"
 	"time"
 
+	"sync/atomic"
+
 	"github.com/stretchr/testify/assert"
 	"github.com/stretchr/testify/require"
 	"go.opentelemetry.io/otel/attribute"
@@ -453,6 +455,57 @@ func TestResourcePoolLimiter_BasicUsage(t *testing.T) {
 	assert.Equal(t, 5, avail)
 }
 
+// TestResourcePoolLimiter_LimitFlapToZeroDoesNotDeadlock verifies that a waiter
+// is woken up when the limit is reduced to zero and then increased again.
+func TestResourcePoolLimiter_LimitFlapToZeroDoesNotDeadlock(t *testing.T) {
+	t.Parallel()
+
+	var limit atomic.Int64
+	limit.Store(1)
+
+	limiter := newUnscopedResourcePoolLimiter(1)
+	limiter.getLimitFn = func(context.Context) (int, error) {
+		return int(limit.Load()), nil
+	}
+	go limiter.updateLoop(contexts.CRE{})
+	t.Cleanup(func() { assert.NoError(t, limiter.Close()) })
+
+	ctx := t.Context()
+
+	// Consume the single available resource to force the next waiter to enqueue.
+	freeFirst, err := limiter.Wait(ctx, 1)
+	require.NoError(t, err)
+
+	enqueued := make(chan struct{}, 1)
+	limiter.resourcePoolUsage.setOnEnqueue(func() { enqueued <- struct{}{} })
+
+	waitErr := make(chan error, 1)
+	go func() {
+		_, err := limiter.Wait(t.Context(), 1)
+		waitErr <- err
+	}()
+
+	// Ensure the waiter is queued before mutating the limit.
+	<-enqueued
+
+	// Drop the limit to zero, then free the first resource. The queued waiter
+	// remains blocked because tryWakeWaiters sees a zero limit.
+	limit.Store(0)
+	freeFirst()
+
+	// Raise the limit again; the queued waiter should be woken by the update.
+	limit.Store(1)
+
+	select {
+	case err := <-waitErr:
+		require.NoError(t, err)
+		// release to avoid affecting subsequent waits
+		_ = limiter.Free(ctx, 1)
+	case <-time.After(pollPeriod * 3):
+		t.Fatal("waiter did not return after limit flap")
+	}
+}
+
 // setOnEnqueue sets a callback that is invoked each time a waiter is added to the queue.
 // The callback is called with the mutex held. Used for testing to synchronize without sleeps.
 func (u *resourcePoolUsage[N]) setOnEnqueue(fn func()) {
diff --git a/pkg/settings/limits/updater.go b/pkg/settings/limits/updater.go
index 3d2b9971a7..b1ac35343b 100644
--- a/pkg/settings/limits/updater.go
+++ b/pkg/settings/limits/updater.go
@@ -15,10 +15,11 @@ import (
 // updater monitors limit updates via subscriptions or polling and reports them via recordLimit.
 // If an updateLoop goroutine is spawned, then Close must be called.
 type updater[N any] struct {
-	lggr        logger.Logger
-	getLimitFn  func(context.Context) (N, error)
-	subFn       func(ctx context.Context) (<-chan settings.Update[N], func()) // optional
-	recordLimit func(context.Context, N)
+	lggr          logger.Logger
+	getLimitFn    func(context.Context) (N, error)
+	subFn         func(ctx context.Context) (<-chan settings.Update[N], func()) // optional
+	recordLimit   func(context.Context, N)
+	onLimitUpdate func(context.Context)
 
 	creCh chan struct{}
 	cre   atomic.Value
@@ -99,13 +100,21 @@ func (u *updater[N]) updateLoop(cre contexts.CRE) {
 			if err != nil {
 				u.lggr.Errorw("Failed to get limit. Using default value", "default", limit, "err", err)
 			}
-			u.recordLimit(contexts.WithCRE(ctx, cre), limit)
+			rcCtx := contexts.WithCRE(ctx, cre)
+			u.recordLimit(rcCtx, limit)
+			if u.onLimitUpdate != nil {
+				u.onLimitUpdate(rcCtx)
+			}
 
 		case update := <-updates:
 			if update.Err != nil {
 				u.lggr.Errorw("Failed to update limit. Using default value", "default", update.Value, "err", update.Err)
 			}
-			u.recordLimit(contexts.WithCRE(ctx, cre), update.Value)
+			rcCtx := contexts.WithCRE(ctx, cre)
+			u.recordLimit(rcCtx, update.Value)
+			if u.onLimitUpdate != nil {
+				u.onLimitUpdate(rcCtx)
+			}
 
 		case <-u.creCh:
 			cre = u.cre.Load().(contexts.CRE)