diff --git a/cmd.go b/cmd.go
index 2ad885b..29d804a 100644
--- a/cmd.go
+++ b/cmd.go
@@ -182,7 +182,11 @@ func walletMain() error {
 	// Start account manager and open accounts.
 	AcctMgr.Start()
 
-	server, err = newRPCServer(cfg.SvrListeners)
+	server, err = newRPCServer(
+		cfg.SvrListeners,
+		cfg.RPCMaxClients,
+		cfg.RPCMaxWebsockets,
+	)
 	if err != nil {
 		log.Errorf("Unable to create HTTP server: %v", err)
 		return err
diff --git a/config.go b/config.go
index acf09fe..66e9a69 100644
--- a/config.go
+++ b/config.go
@@ -30,14 +30,16 @@ import (
 )
 
 const (
-	defaultCAFilename     = "btcd.cert"
-	defaultConfigFilename = "btcwallet.conf"
-	defaultBtcNet         = btcwire.TestNet3
-	defaultLogLevel       = "info"
-	defaultLogDirname     = "logs"
-	defaultLogFilename    = "btcwallet.log"
-	defaultKeypoolSize    = 100
-	defaultDisallowFree   = false
+	defaultCAFilename       = "btcd.cert"
+	defaultConfigFilename   = "btcwallet.conf"
+	defaultBtcNet           = btcwire.TestNet3
+	defaultLogLevel         = "info"
+	defaultLogDirname       = "logs"
+	defaultLogFilename      = "btcwallet.log"
+	defaultKeypoolSize      = 100
+	defaultDisallowFree     = false
+	defaultRPCMaxClients    = 10
+	defaultRPCMaxWebsockets = 25
 )
 
 var (
@@ -52,28 +54,30 @@ var (
 )
 
 type config struct {
-	ShowVersion  bool     `short:"V" long:"version" description:"Display version information and exit"`
-	CAFile       string   `long:"cafile" description:"File containing root certificates to authenticate a TLS connections with btcd"`
-	RPCConnect   string   `short:"c" long:"rpcconnect" description:"Hostname/IP and port of btcd RPC server to connect to (default localhost:18334, mainnet: localhost:8334, simnet: localhost:18556)"`
-	DebugLevel   string   `short:"d" long:"debuglevel" description:"Logging level {trace, debug, info, warn, error, critical}"`
-	ConfigFile   string   `short:"C" long:"configfile" description:"Path to configuration file"`
-	SvrListeners []string `long:"rpclisten" description:"Listen for RPC/websocket connections on this interface/port (default port: 18332, mainnet: 8332, simnet: 18554)"`
-	DataDir      string   `short:"D" long:"datadir" description:"Directory to store wallets and transactions"`
-	LogDir       string   `long:"logdir" description:"Directory to log output."`
-	Username     string   `short:"u" long:"username" description:"Username for client and btcd authorization"`
-	Password     string   `short:"P" long:"password" default-mask:"-" description:"Password for client and btcd authorization"`
-	BtcdUsername string   `long:"btcdusername" description:"Alternative username for btcd authorization"`
-	BtcdPassword string   `long:"btcdpassword" default-mask:"-" description:"Alternative password for btcd authorization"`
-	RPCCert      string   `long:"rpccert" description:"File containing the certificate file"`
-	RPCKey       string   `long:"rpckey" description:"File containing the certificate key"`
-	MainNet      bool     `long:"mainnet" description:"Use the main Bitcoin network (default testnet3)"`
-	SimNet       bool     `long:"simnet" description:"Use the simulation test network (default testnet3)"`
-	KeypoolSize  uint     `short:"k" long:"keypoolsize" description:"Maximum number of addresses in keypool"`
-	DisallowFree bool     `long:"disallowfree" description:"Force transactions to always include a fee"`
-	Proxy        string   `long:"proxy" description:"Connect via SOCKS5 proxy (eg. 127.0.0.1:9050)"`
-	ProxyUser    string   `long:"proxyuser" description:"Username for proxy server"`
-	ProxyPass    string   `long:"proxypass" default-mask:"-" description:"Password for proxy server"`
-	Profile      string   `long:"profile" description:"Enable HTTP profiling on given port -- NOTE port must be between 1024 and 65536"`
+	ShowVersion      bool     `short:"V" long:"version" description:"Display version information and exit"`
+	CAFile           string   `long:"cafile" description:"File containing root certificates to authenticate a TLS connections with btcd"`
+	RPCConnect       string   `short:"c" long:"rpcconnect" description:"Hostname/IP and port of btcd RPC server to connect to (default localhost:18334, mainnet: localhost:8334, simnet: localhost:18556)"`
+	DebugLevel       string   `short:"d" long:"debuglevel" description:"Logging level {trace, debug, info, warn, error, critical}"`
+	ConfigFile       string   `short:"C" long:"configfile" description:"Path to configuration file"`
+	SvrListeners     []string `long:"rpclisten" description:"Listen for RPC/websocket connections on this interface/port (default port: 18332, mainnet: 8332, simnet: 18554)"`
+	DataDir          string   `short:"D" long:"datadir" description:"Directory to store wallets and transactions"`
+	LogDir           string   `long:"logdir" description:"Directory to log output."`
+	Username         string   `short:"u" long:"username" description:"Username for client and btcd authorization"`
+	Password         string   `short:"P" long:"password" default-mask:"-" description:"Password for client and btcd authorization"`
+	BtcdUsername     string   `long:"btcdusername" description:"Alternative username for btcd authorization"`
+	BtcdPassword     string   `long:"btcdpassword" default-mask:"-" description:"Alternative password for btcd authorization"`
+	RPCCert          string   `long:"rpccert" description:"File containing the certificate file"`
+	RPCKey           string   `long:"rpckey" description:"File containing the certificate key"`
+	RPCMaxClients    int64    `long:"rpcmaxclients" description:"Max number of RPC clients for standard connections"`
+	RPCMaxWebsockets int64    `long:"rpcmaxwebsockets" description:"Max number of RPC websocket connections"`
+	MainNet          bool     `long:"mainnet" description:"Use the main Bitcoin network (default testnet3)"`
+	SimNet           bool     `long:"simnet" description:"Use the simulation test network (default testnet3)"`
+	KeypoolSize      uint     `short:"k" long:"keypoolsize" description:"Maximum number of addresses in keypool"`
+	DisallowFree     bool     `long:"disallowfree" description:"Force transactions to always include a fee"`
+	Proxy            string   `long:"proxy" description:"Connect via SOCKS5 proxy (eg. 127.0.0.1:9050)"`
+	ProxyUser        string   `long:"proxyuser" description:"Username for proxy server"`
+	ProxyPass        string   `long:"proxypass" default-mask:"-" description:"Password for proxy server"`
+	Profile          string   `long:"profile" description:"Enable HTTP profiling on given port -- NOTE port must be between 1024 and 65536"`
 }
 
 // cleanAndExpandPath expands environement variables and leading ~ in the
@@ -233,14 +237,16 @@ func normalizeAddress(addr, defaultPort string) string {
 func loadConfig() (*config, []string, error) {
 	// Default config.
 	cfg := config{
-		DebugLevel:   defaultLogLevel,
-		ConfigFile:   defaultConfigFile,
-		DataDir:      defaultDataDir,
-		LogDir:       defaultLogDir,
-		RPCKey:       defaultRPCKeyFile,
-		RPCCert:      defaultRPCCertFile,
-		KeypoolSize:  defaultKeypoolSize,
-		DisallowFree: defaultDisallowFree,
+		DebugLevel:       defaultLogLevel,
+		ConfigFile:       defaultConfigFile,
+		DataDir:          defaultDataDir,
+		LogDir:           defaultLogDir,
+		RPCKey:           defaultRPCKeyFile,
+		RPCCert:          defaultRPCCertFile,
+		KeypoolSize:      defaultKeypoolSize,
+		DisallowFree:     defaultDisallowFree,
+		RPCMaxClients:    defaultRPCMaxClients,
+		RPCMaxWebsockets: defaultRPCMaxWebsockets,
 	}
 
 	// A config file in the current directory takes precedence.
diff --git a/rpcserver.go b/rpcserver.go
index d1bcb02..e8b1e39 100644
--- a/rpcserver.go
+++ b/rpcserver.go
@@ -35,6 +35,7 @@ import (
 	"path/filepath"
 	"runtime"
 	"sync"
+	"sync/atomic"
 	"time"
 
 	"github.com/conformal/btcec"
@@ -206,10 +207,12 @@ func genCertPair(certFile, keyFile string) error {
 // rpcServer holds the items the RPC server may need to access (auth,
 // config, shutdown, etc.)
 type rpcServer struct {
-	wg        sync.WaitGroup
-	listeners []net.Listener
-	authsha   [sha256.Size]byte
-	wsClients map[*websocketClient]struct{}
+	wg            sync.WaitGroup
+	maxClients    int64 // Maximum number of concurrent active RPC HTTP clients
+	maxWebsockets int64 // Maximum number of concurrent active RPC WS clients
+	listeners     []net.Listener
+	authsha       [sha256.Size]byte
+	wsClients     map[*websocketClient]struct{}
 
 	upgrader websocket.Upgrader
 
@@ -224,12 +227,14 @@ type rpcServer struct {
 
 // newRPCServer creates a new server for serving RPC client connections, both
 // HTTP POST and websocket.
-func newRPCServer(listenAddrs []string) (*rpcServer, error) {
+func newRPCServer(listenAddrs []string, maxClients, maxWebsockets int64) (*rpcServer, error) {
 	login := cfg.Username + ":" + cfg.Password
 	auth := "Basic " + base64.StdEncoding.EncodeToString([]byte(login))
 	s := rpcServer{
-		authsha:   sha256.Sum256([]byte(auth)),
-		wsClients: map[*websocketClient]struct{}{},
+		authsha:       sha256.Sum256([]byte(auth)),
+		maxClients:    maxClients,
+		maxWebsockets: maxWebsockets,
+		wsClients:     map[*websocketClient]struct{}{},
 		upgrader: websocket.Upgrader{
 			// Allow all origins.
 			CheckOrigin: func(r *http.Request) bool { return true },
@@ -303,6 +308,7 @@ func (s *rpcServer) Start() {
 
 	serveMux := http.NewServeMux()
 	const rpcAuthTimeoutSeconds = 10
+
 	httpServer := &http.Server{
 		Handler: serveMux,
 
@@ -310,45 +316,50 @@ func (s *rpcServer) Start() {
 		// handshake within the allowed timeframe.
 		ReadTimeout: time.Second * rpcAuthTimeoutSeconds,
 	}
-	serveMux.HandleFunc("/", func(w http.ResponseWriter, r *http.Request) {
-		w.Header().Set("Connection", "close")
-		w.Header().Set("Content-Type", "application/json")
-		r.Close = true
 
-		// TODO: Limit number of active connections.
+	serveMux.Handle("/",
+		throttledFn(s.maxClients, func(w http.ResponseWriter, r *http.Request) {
+			w.Header().Set("Connection", "close")
+			w.Header().Set("Content-Type", "application/json")
+			r.Close = true
 
-		if err := s.checkAuthHeader(r); err != nil {
-			log.Warnf("Unauthorized client connection attempt")
-			http.Error(w, "401 Unauthorized.", http.StatusUnauthorized)
-			return
-		}
-		s.PostClientRPC(w, r)
-	})
-	serveMux.HandleFunc("/ws", func(w http.ResponseWriter, r *http.Request) {
-		authenticated := false
-		switch s.checkAuthHeader(r) {
-		case nil:
-			authenticated = true
-		case ErrNoAuth:
-			// nothing
-		default:
-			// If auth was supplied but incorrect, rather than simply
-			// being missing, immediately terminate the connection.
-			log.Warnf("Disconnecting improperly authorized " +
-				"websocket client")
-			http.Error(w, "401 Unauthorized.", http.StatusUnauthorized)
-			return
-		}
+			if err := s.checkAuthHeader(r); err != nil {
+				log.Warnf("Unauthorized client connection attempt")
+				http.Error(w, "401 Unauthorized.", http.StatusUnauthorized)
+				return
+			}
+			s.PostClientRPC(w, r)
+		}),
+	)
+
+	serveMux.Handle("/ws",
+		throttledFn(s.maxWebsockets, func(w http.ResponseWriter, r *http.Request) {
+			authenticated := false
+			switch s.checkAuthHeader(r) {
+			case nil:
+				authenticated = true
+			case ErrNoAuth:
+				// nothing
+			default:
+				// If auth was supplied but incorrect, rather than simply
+				// being missing, immediately terminate the connection.
+				log.Warnf("Disconnecting improperly authorized " +
+					"websocket client")
+				http.Error(w, "401 Unauthorized.", http.StatusUnauthorized)
+				return
+			}
+
+			conn, err := s.upgrader.Upgrade(w, r, nil)
+			if err != nil {
+				log.Warnf("Cannot websocket upgrade client %s: %v",
+					r.RemoteAddr, err)
+				return
+			}
+			wsc := newWebsocketClient(conn, authenticated, r.RemoteAddr)
+			s.WebsocketClientRPC(wsc)
+		}),
+	)
 
-		conn, err := s.upgrader.Upgrade(w, r, nil)
-		if err != nil {
-			log.Warnf("Cannot websocket upgrade client %s: %v",
-				r.RemoteAddr, err)
-			return
-		}
-		wsc := newWebsocketClient(conn, authenticated, r.RemoteAddr)
-		s.WebsocketClientRPC(wsc)
-	})
 	for _, listener := range s.listeners {
 		s.wg.Add(1)
 		go func(listener net.Listener) {
@@ -428,6 +439,31 @@ func (s *rpcServer) checkAuthHeader(r *http.Request) error {
 	return nil
 }
 
+// throttledFn wraps an http.HandlerFunc with throttling of concurrent active
+// clients by responding with an HTTP 429 when the threshold is crossed.
+func throttledFn(threshold int64, f http.HandlerFunc) http.Handler {
+	return throttled(threshold, f)
+}
+
+// throttled wraps an http.Handler with throttling of concurrent active
+// clients by responding with an HTTP 429 when the threshold is crossed.
+func throttled(threshold int64, h http.Handler) http.Handler {
+	var active int64
+
+	return http.HandlerFunc(func(w http.ResponseWriter, r *http.Request) {
+		current := atomic.AddInt64(&active, 1)
+		defer atomic.AddInt64(&active, -1)
+
+		if current-1 >= threshold {
+			log.Warnf("Reached threshold of %d concurrent active clients", threshold)
+			http.Error(w, "429 Too Many Requests", 429)
+			return
+		}
+
+		h.ServeHTTP(w, r)
+	})
+}
+
 func (s *rpcServer) WebsocketClientRead(wsc *websocketClient) {
 	for {
 		_, request, err := wsc.conn.ReadMessage()
@@ -746,6 +782,8 @@ func (s *rpcServer) WebsocketClientRPC(wsc *websocketClient) {
 	// Send initial unsolicited notifications.
 	// TODO: these should be requested by the client first.
 	s.NotifyConnectionStatus(wsc)
+
+	<-wsc.quit
 }
 
 // maxRequestSize specifies the maximum number of bytes in the request body
diff --git a/rpcserver_test.go b/rpcserver_test.go
new file mode 100644
index 0000000..5a86fee
--- /dev/null
+++ b/rpcserver_test.go
@@ -0,0 +1,56 @@
+/*
+ * Copyright (c) 2013, 2014 Conformal Systems LLC <info@conformal.com>
+ *
+ * Permission to use, copy, modify, and distribute this software for any
+ * purpose with or without fee is hereby granted, provided that the above
+ * copyright notice and this permission notice appear in all copies.
+ *
+ * THE SOFTWARE IS PROVIDED "AS IS" AND THE AUTHOR DISCLAIMS ALL WARRANTIES
+ * WITH REGARD TO THIS SOFTWARE INCLUDING ALL IMPLIED WARRANTIES OF
+ * MERCHANTABILITY AND FITNESS. IN NO EVENT SHALL THE AUTHOR BE LIABLE FOR
+ * ANY SPECIAL, DIRECT, INDIRECT, OR CONSEQUENTIAL DAMAGES OR ANY DAMAGES
+ * WHATSOEVER RESULTING FROM LOSS OF USE, DATA OR PROFITS, WHETHER IN AN
+ * ACTION OF CONTRACT, NEGLIGENCE OR OTHER TORTIOUS ACTION, ARISING OUT OF
+ * OR IN CONNECTION WITH THE USE OR PERFORMANCE OF THIS SOFTWARE.
+ */
+
+package main
+
+import (
+	"net/http"
+	"net/http/httptest"
+	"reflect"
+	"testing"
+	"time"
+)
+
+func TestThrottle(t *testing.T) {
+	const threshold = 1
+
+	srv := httptest.NewServer(throttledFn(threshold,
+		func(w http.ResponseWriter, r *http.Request) {
+			time.Sleep(20 * time.Millisecond)
+		}),
+	)
+
+	codes := make(chan int, 2)
+	for i := 0; i < cap(codes); i++ {
+		go func() {
+			res, err := http.Get(srv.URL)
+			if err != nil {
+				t.Fatal(err)
+			}
+			codes <- res.StatusCode
+		}()
+	}
+
+	got := make(map[int]int, cap(codes))
+	for i := 0; i < cap(codes); i++ {
+		got[<-codes]++
+	}
+
+	want := map[int]int{200: 1, 429: 1}
+	if !reflect.DeepEqual(want, got) {
+		t.Fatalf("status codes: want: %v, got: %v", want, got)
+	}
+}