diff --git a/gradle.properties b/gradle.properties
index 7d4bbe29..1d322f2a 100644
--- a/gradle.properties
+++ b/gradle.properties
@@ -40,7 +40,7 @@ testcontainersVersion=1.15.3
 
 # Version and base tags can be overridden at build time.
 connectorVersion=0.13.0-SNAPSHOT
-pravegaVersion=0.13.0-3151.28c485f-SNAPSHOT
+pravegaVersion=0.13.0-3184.23d8ef6-SNAPSHOT
 schemaRegistryVersion=0.6.0-88.65039cd-SNAPSHOT
 apacheCommonsVersion=3.7
 
diff --git a/src/main/java/io/pravega/connectors/flink/ReaderCheckpointHook.java b/src/main/java/io/pravega/connectors/flink/ReaderCheckpointHook.java
index 91a0883f..d1b449c1 100644
--- a/src/main/java/io/pravega/connectors/flink/ReaderCheckpointHook.java
+++ b/src/main/java/io/pravega/connectors/flink/ReaderCheckpointHook.java
@@ -21,6 +21,7 @@
 import io.pravega.client.stream.ReaderGroup;
 import io.pravega.client.stream.ReaderGroupConfig;
 import io.pravega.client.stream.ReaderGroupNotFoundException;
+import io.pravega.client.stream.impl.MaxNumberOfCheckpointsExceededException;
 import io.pravega.connectors.flink.serialization.CheckpointSerializer;
 import org.apache.flink.api.common.time.Time;
 import org.apache.flink.core.io.SimpleVersionedSerializer;
@@ -113,7 +114,13 @@ public CompletableFuture<Checkpoint> triggerCheckpoint(
         final String checkpointName = createCheckpointName(checkpointId);
 
         final CompletableFuture<Checkpoint> checkpointResult =
-                this.readerGroup.initiateCheckpoint(checkpointName, scheduledExecutorService);
+                this.readerGroup.initiateCheckpoint(checkpointName, scheduledExecutorService)
+                        .exceptionally(e -> {
+                            if (e instanceof MaxNumberOfCheckpointsExceededException) {
+                                readerGroup.cancelOutstandingCheckpoints();
+                            }
+                            return null;
+                        });
 
         // Add a timeout to the future, to prevent long blocking calls
         scheduledExecutorService.schedule(() -> checkpointResult.cancel(false), triggerTimeout.toMilliseconds(), TimeUnit.MILLISECONDS);
diff --git a/src/test/java/io/pravega/connectors/flink/ReaderCheckpointHookTest.java b/src/test/java/io/pravega/connectors/flink/ReaderCheckpointHookTest.java
index 21e194fd..77a878e9 100644
--- a/src/test/java/io/pravega/connectors/flink/ReaderCheckpointHookTest.java
+++ b/src/test/java/io/pravega/connectors/flink/ReaderCheckpointHookTest.java
@@ -24,6 +24,7 @@
 import io.pravega.client.stream.Stream;
 import io.pravega.client.stream.StreamCut;
 import io.pravega.client.stream.impl.CheckpointImpl;
+import io.pravega.client.stream.impl.MaxNumberOfCheckpointsExceededException;
 import io.pravega.client.stream.impl.StreamCutImpl;
 import io.pravega.connectors.flink.serialization.CheckpointSerializer;
 import org.apache.flink.api.common.time.Time;
@@ -95,6 +96,24 @@ public void testTriggerCheckpointTimeout() throws Exception {
         assertThat(checkpointFuture.isCancelled()).isTrue();
     }
 
+    @Test
+    public void testCancelWhenExceedingMaxOutstandingCheckpoints() throws Exception {
+        ReaderGroupConfig readerGroupConfig = mock(ReaderGroupConfig.class);
+        ClientConfig clientConfig = mock(ClientConfig.class);
+        CompletableFuture<Checkpoint> checkpointPromise = new CompletableFuture<>();
+        checkpointPromise.completeExceptionally(new MaxNumberOfCheckpointsExceededException("test"));
+
+        TestableReaderCheckpointHook hook = new TestableReaderCheckpointHook(HOOK_UID, READER_GROUP_NAME, SCOPE, Time.minutes(1), clientConfig, readerGroupConfig);
+        when(hook.readerGroup.initiateCheckpoint(anyString(), any())).thenReturn(checkpointPromise);
+
+        CompletableFuture<Checkpoint> checkpointFuture = hook.triggerCheckpoint(1L, 1L, Executors.directExecutor());
+        assertThat(checkpointFuture).isNotNull();
+        verify(hook.readerGroup).initiateCheckpoint(anyString(), any());
+
+        // invoke the cancelOutstandingCheckpoints
+        verify(hook.readerGroup).cancelOutstandingCheckpoints();
+    }
+
     @Test
     public void testReset() {
         ReaderGroupConfig readerGroupConfig = mock(ReaderGroupConfig.class);