diff --git a/src/ert/scheduler/job.py b/src/ert/scheduler/job.py
index 662b1b8f28e..be26b443952 100644
--- a/src/ert/scheduler/job.py
+++ b/src/ert/scheduler/job.py
@@ -2,7 +2,7 @@
 
 import asyncio
 from enum import Enum
-from typing import TYPE_CHECKING
+from typing import TYPE_CHECKING, Callable, Optional
 
 from cloudevents.conversion import to_json
 from cloudevents.http import CloudEvent
@@ -47,12 +47,18 @@ class Job:
     (LSF, PBS, SLURM, etc.)
     """
 
-    def __init__(self, scheduler: Scheduler, real: Realization) -> None:
+    def __init__(
+        self,
+        scheduler: Scheduler,
+        real: Realization,
+        callback_timeout: Optional[Callable[[int], None]] = None,
+    ) -> None:
         self.real = real
         self.started = asyncio.Event()
         self.returncode: asyncio.Future[int] = asyncio.Future()
         self.aborted = asyncio.Event()
         self._scheduler = scheduler
+        self._callback_timeout: Optional[Callable[[int], None]] = callback_timeout
 
     @property
     def iens(self) -> int:
@@ -67,6 +73,7 @@ async def __call__(
     ) -> None:
         await start.wait()
         await sem.acquire()
+        cancel_task: Optional[asyncio.Task[None]] = None
 
         try:
             await self._send(State.SUBMITTING)
@@ -78,6 +85,8 @@ async def __call__(
             await self.started.wait()
 
             await self._send(State.RUNNING)
+            if self.real.max_runtime is not None and self.real.max_runtime > 0:
+                cancel_task = asyncio.create_task(self._cancel_from_timeout())
             returncode = await self.returncode
             if (
                 returncode == 0
@@ -89,14 +98,25 @@ async def __call__(
                 await self._send(State.FAILED)
 
         except asyncio.CancelledError:
-            await self._send(State.ABORTING)
-            await self.driver.kill(self.iens)
-
-            await self.aborted.wait()
-            await self._send(State.ABORTED)
+            await self._cancel()
         finally:
+            if cancel_task and not cancel_task.done():
+                cancel_task.cancel()
             sem.release()
 
+    async def _cancel_from_timeout(self) -> None:
+        assert self.real.max_runtime is not None
+        await asyncio.sleep(self.real.max_runtime)
+        if self._callback_timeout is not None:
+            self._callback_timeout(self.real.iens)
+        self.returncode.cancel()  # Triggers CancelledError
+
+    async def _cancel(self) -> None:
+        await self._send(State.ABORTING)
+        await self.driver.kill(self.iens)
+        await self.aborted.wait()
+        await self._send(State.ABORTED)
+
     async def _send(self, state: State) -> None:
         status = STATE_TO_LEGACY[state]
         event = CloudEvent(
diff --git a/src/ert/scheduler/scheduler.py b/src/ert/scheduler/scheduler.py
index 82307222afa..219ecbaaf3d 100644
--- a/src/ert/scheduler/scheduler.py
+++ b/src/ert/scheduler/scheduler.py
@@ -63,9 +63,11 @@ async def ainit(self) -> None:
             self._events = asyncio.Queue()
 
     def add_realization(
-        self, real: Realization, callback_timeout: Callable[[int], None]
+        self,
+        real: Realization,
+        callback_timeout: Optional[Callable[[int], None]] = None,
     ) -> None:
-        self._jobs[real.iens] = Job(self, real)
+        self._jobs[real.iens] = Job(self, real, callback_timeout=callback_timeout)
 
     def kill_all_jobs(self) -> None:
         for task in self._tasks.values():
diff --git a/tests/unit_tests/scheduler/test_scheduler.py b/tests/unit_tests/scheduler/test_scheduler.py
index d9813b5e3ee..9e526e137a0 100644
--- a/tests/unit_tests/scheduler/test_scheduler.py
+++ b/tests/unit_tests/scheduler/test_scheduler.py
@@ -92,7 +92,7 @@ async def test_cancel(tmp_path: Path, realization):
     realization.forward_models = [step]
 
     sch = scheduler.Scheduler()
-    sch.add_realization(realization, callback_timeout=lambda _: None)
+    sch.add_realization(realization)
 
     create_jobs_json(tmp_path, [step])
     sch.add_dispatch_information_to_jobs_file()
@@ -108,3 +108,25 @@ async def test_cancel(tmp_path: Path, realization):
 
     assert (tmp_path / "a").exists()
     assert not (tmp_path / "b").exists()
+
+
+async def test_max_runtime_with_callback_timeout(tmp_path: Path, realization):
+    step = create_bash_step("touch a; sleep 10; touch b")
+    realization.forward_models = [step]
+    realization.max_runtime = 1
+
+    def mocked_callback(iens: int):
+        Path("from_callback").write_text(str(iens), encoding="utf-8")
+
+    sch = scheduler.Scheduler()
+    sch.add_realization(realization, callback_timeout=mocked_callback)
+
+    create_jobs_json(tmp_path, [step])
+    sch.add_dispatch_information_to_jobs_file()
+
+    scheduler_task = asyncio.create_task(sch.execute())
+    await scheduler_task
+
+    assert (tmp_path / "a").exists()
+    assert not (tmp_path / "b").exists()
+    assert Path("from_callback").read_text(encoding="utf-8") == str(realization.iens)