diff --git a/src/ert/scheduler/scheduler.py b/src/ert/scheduler/scheduler.py
index deadf123935..03917e0296a 100644
--- a/src/ert/scheduler/scheduler.py
+++ b/src/ert/scheduler/scheduler.py
@@ -119,7 +119,7 @@ async def execute(
             cancel_when_execute_is_done(self.driver.poll())
 
             start = asyncio.Event()
-            sem = asyncio.BoundedSemaphore(self._max_running)
+            sem = asyncio.BoundedSemaphore(self._max_running or len(self._jobs))
             for iens, job in self._jobs.items():
                 self._tasks[iens] = asyncio.create_task(
                     job(start, sem, self._max_submit)
diff --git a/tests/unit_tests/scheduler/test_scheduler.py b/tests/unit_tests/scheduler/test_scheduler.py
index c32588db69f..c3113914714 100644
--- a/tests/unit_tests/scheduler/test_scheduler.py
+++ b/tests/unit_tests/scheduler/test_scheduler.py
@@ -204,6 +204,39 @@ async def wait():
     assert timeouteventfound
 
 
+@pytest.mark.parametrize("max_running", [0, 1, 2, 10])
+async def test_max_running(max_running, mock_driver, storage, tmp_path):
+    currently_running = 0
+    max_running_observed = 0
+
+    async def wait():
+        nonlocal currently_running
+        currently_running += 1
+        await asyncio.sleep(0.01)
+        currently_running -= 1
+
+    ensemble_size = max_running * 3 if max_running > 0 else 10
+
+    ensemble = storage.create_experiment().create_ensemble(
+        name="foo", ensemble_size=ensemble_size
+    )
+    realizations = [
+        create_stub_realization(ensemble, tmp_path, iens)
+        for iens in range(ensemble_size)
+    ]
+
+    sch = scheduler.Scheduler(
+        mock_driver(wait=wait), realizations, max_running=max_running
+    )
+    task = asyncio.create_task(sch.execute())
+    effective_max_running = max_running if max_running else ensemble_size
+    while not task.done():
+        max_running_observed = max(currently_running, max_running_observed)
+        assert currently_running <= effective_max_running
+        await asyncio.sleep(0)
+    assert max_running_observed == effective_max_running
+
+
 @pytest.mark.timeout(6)
 async def test_max_runtime_while_killing(realization, mock_driver):
     wait_started = asyncio.Event()