diff --git a/docs/local-http-api.md b/docs/local-http-api.md
index b45f44c3..80dfc859 100644
--- a/docs/local-http-api.md
+++ b/docs/local-http-api.md
@@ -92,4 +92,6 @@ Error responses use this shape:
 }
 ```
 
-Possible error codes: `provider_not_found`, `not_found`, `method_not_allowed`.
+Possible error codes: `provider_not_found`, `not_found`, `method_not_allowed`, `server_busy`.
+
+`server_busy` returns **503 Service Unavailable** when the local API is already handling the maximum number of concurrent connections. Clients should back off and retry later.
diff --git a/src-tauri/src/local_http_api/server.rs b/src-tauri/src/local_http_api/server.rs
index 7a68b03f..cc60233f 100644
--- a/src-tauri/src/local_http_api/server.rs
+++ b/src-tauri/src/local_http_api/server.rs
@@ -1,8 +1,60 @@
 use super::cache::{cache_state, enabled_snapshots_ordered};
 use std::io::{Read, Write};
 use std::net::{TcpListener, TcpStream};
+use std::sync::atomic::{AtomicUsize, Ordering};
+use std::sync::Arc;
+use std::time::Duration;
 
 const BIND_ADDR: &str = "127.0.0.1:6736";
+const MAX_CONCURRENT_CONNECTIONS: usize = 16;
+const CONNECTION_TIMEOUT: Duration = Duration::from_secs(5);
+
+struct ConnectionLimiter {
+    active: Arc<AtomicUsize>,
+    max: usize,
+}
+
+struct ConnectionPermit {
+    active: Arc<AtomicUsize>,
+}
+
+impl ConnectionLimiter {
+    fn new(max: usize) -> Self {
+        Self {
+            active: Arc::new(AtomicUsize::new(0)),
+            max,
+        }
+    }
+
+    fn acquire(&self) -> Option<ConnectionPermit> {
+        loop {
+            let active = self.active.load(Ordering::Acquire);
+            if active >= self.max {
+                return None;
+            }
+            if self
+                .active
+                .compare_exchange(active, active + 1, Ordering::AcqRel, Ordering::Acquire)
+                .is_ok()
+            {
+                return Some(ConnectionPermit {
+                    active: Arc::clone(&self.active),
+                });
+            }
+        }
+    }
+
+    #[cfg(test)]
+    fn active_count(&self) -> usize {
+        self.active.load(Ordering::Acquire)
+    }
+}
+
+impl Drop for ConnectionPermit {
+    fn drop(&mut self) {
+        self.active.fetch_sub(1, Ordering::AcqRel);
+    }
+}
 
 // ---------------------------------------------------------------------------
 // HTTP server
@@ -25,10 +77,21 @@ pub fn start_server() {
             }
         };
 
+        let limiter = ConnectionLimiter::new(MAX_CONCURRENT_CONNECTIONS);
         for stream in listener.incoming() {
             match stream {
-                Ok(stream) => {
-                    std::thread::spawn(move || handle_connection(stream));
+                Ok(mut stream) => {
+                    let Some(permit) = limiter.acquire() else {
+                        log::warn!(
+                            "local HTTP API connection limit reached (max={})",
+                            MAX_CONCURRENT_CONNECTIONS
+                        );
+                        let _ = stream.set_write_timeout(Some(CONNECTION_TIMEOUT));
+                        let _ = stream.write_all(response_service_unavailable().as_bytes());
+                        let _ = stream.flush();
+                        continue;
+                    };
+                    std::thread::spawn(move || handle_connection(stream, permit));
                 }
                 Err(e) => log::debug!("local HTTP API accept error: {}", e),
             }
@@ -36,8 +99,9 @@ pub fn start_server() {
     });
 }
 
-fn handle_connection(mut stream: TcpStream) {
-    let _ = stream.set_read_timeout(Some(std::time::Duration::from_secs(5)));
+fn handle_connection(mut stream: TcpStream, _permit: ConnectionPermit) {
+    let _ = stream.set_read_timeout(Some(CONNECTION_TIMEOUT));
+    let _ = stream.set_write_timeout(Some(CONNECTION_TIMEOUT));
 
     // Read request (up to 4 KB is plenty for a request line + headers)
     let mut buf = [0u8; 4096];
@@ -153,6 +217,11 @@ fn response_method_not_allowed() -> String {
     response_json(405, "Method Not Allowed", body)
 }
 
+fn response_service_unavailable() -> String {
+    let body = r#"{"error":"server_busy"}"#;
+    response_json(503, "Service Unavailable", body)
+}
+
 #[cfg(test)]
 mod tests {
     use super::super::cache::{cache_state, CachedPluginSnapshot};
@@ -250,4 +319,32 @@ mod tests {
         assert!(resp.contains("Access-Control-Allow-Origin: *"));
         assert!(resp.contains("Content-Type: application/json; charset=utf-8"));
     }
+
+    #[test]
+    fn connection_limiter_rejects_above_capacity_and_releases_on_drop() {
+        let limiter = ConnectionLimiter::new(2);
+        let first = limiter.acquire().expect("first permit");
+        let second = limiter.acquire().expect("second permit");
+
+        assert!(limiter.acquire().is_none());
+        assert_eq!(limiter.active_count(), 2);
+
+        drop(first);
+
+        let third = limiter.acquire().expect("permit after release");
+        assert_eq!(limiter.active_count(), 2);
+
+        drop(second);
+        drop(third);
+        assert_eq!(limiter.active_count(), 0);
+    }
+
+    #[test]
+    fn response_service_unavailable_returns_503_json() {
+        let resp = response_service_unavailable();
+
+        assert!(resp.starts_with("HTTP/1.1 503"));
+        assert!(resp.contains(r#""error":"server_busy""#));
+        assert!(resp.contains("Access-Control-Allow-Origin: *"));
+    }
 }