diff --git a/lib/common/defaults.js b/lib/common/defaults.js
index f51efc1..8dded64 100644
--- a/lib/common/defaults.js
+++ b/lib/common/defaults.js
@@ -7,6 +7,7 @@ Defaults.MIN_FEE_PER_KB = 0;
 Defaults.MAX_FEE_PER_KB = 1000000;
 Defaults.MIN_TX_FEE = 0;
 Defaults.MAX_TX_FEE = 0.1 * 1e8;
+Defaults.MAX_TX_SIZE_IN_KB = 100;
 
 Defaults.MAX_KEYS = 100;
 
diff --git a/lib/errors/errordefinitions.js b/lib/errors/errordefinitions.js
index 180f53b..62f0081 100644
--- a/lib/errors/errordefinitions.js
+++ b/lib/errors/errordefinitions.js
@@ -24,6 +24,7 @@ var errors = {
   TX_ALREADY_BROADCASTED: 'The transaction proposal is already broadcasted',
   TX_CANNOT_CREATE: 'Cannot create TX proposal during backoff time',
   TX_CANNOT_REMOVE: 'Cannot remove this tx proposal during locktime',
+  TX_MAX_SIZE_EXCEEDED: 'TX exceeds maximum allowed size',
   TX_NOT_ACCEPTED: 'The transaction proposal is not accepted',
   TX_NOT_FOUND: 'Transaction proposal not found',
   TX_NOT_PENDING: 'The transaction proposal is not pending',
diff --git a/lib/server.js b/lib/server.js
index 60c0be6..af90246 100644
--- a/lib/server.js
+++ b/lib/server.js
@@ -1305,21 +1305,23 @@ WalletService.prototype._selectTxInputs = function(txp, utxosToExclude, cb) {
 
     var bitcoreTx, bitcoreError;
 
-    while (i < inputs.length) {
-      selected.push(inputs[i]);
-      total += inputs[i].satoshis;
-      i++;
+    function select() {
+      if (i >= inputs.length) return cb(bitcoreError || new Error('Could not select tx inputs'));
 
+      var input = inputs[i++];
+      selected.push(input);
+      total += input.satoshis;
       if (total >= txp.getTotalAmount()) {
         txp.setInputs(selected);
         bitcoreError = self._checkTxAndEstimateFee(txp);
-        if (!bitcoreError) {
-          return cb();
-        }
+        if (!bitcoreError) return cb();
+        if (txp.getEstimatedSize() / 1000 > Defaults.MAX_TX_SIZE_IN_KB)
+          return cb(Errors.TX_MAX_SIZE_EXCEEDED);
       }
-    }
+      setTimeout(select, 0);
+    };
 
-    return cb(bitcoreError || new Error('Could not select tx inputs'));
+    select();
   });
 };
 
diff --git a/test/integration/server.js b/test/integration/server.js
index 6dc14a6..1aa8028 100644
--- a/test/integration/server.js
+++ b/test/integration/server.js
@@ -2287,6 +2287,20 @@ describe('Wallet service', function() {
         });
       });
 
+      it('should fail to create a tx exceeding max size in kb', function(done) {
+        helpers.stubUtxos(server, wallet, _.range(1, 10, 0), function() {
+          var txOpts = helpers.createSimpleProposalOpts('18PzpUFkFZE8zKWUPvfykkTxmB9oMR8qP7', 9, TestData.copayers[0].privKey_1H_0);
+          var _oldDefault = Defaults.MAX_TX_SIZE_IN_KB;
+          Defaults.MAX_TX_SIZE_IN_KB = 1;
+          server.createTxLegacy(txOpts, function(err, tx) {
+            should.exist(err);
+            err.code.should.equal('TX_MAX_SIZE_EXCEEDED');
+            Defaults.MAX_TX_SIZE_IN_KB = _oldDefault;
+            done();
+          });
+        });
+      });
+
       it('should fail to create tx for dust amount', function(done) {
         helpers.stubUtxos(server, wallet, [1], function() {
           var txOpts = helpers.createSimpleProposalOpts('18PzpUFkFZE8zKWUPvfykkTxmB9oMR8qP7', 0.00000001, TestData.copayers[0].privKey_1H_0);