diff --git a/t/t1005-max-jobs-limits.t b/t/t1005-max-jobs-limits.t
new file mode 100755
index 000000000..b4c6a4616
--- /dev/null
+++ b/t/t1005-max-jobs-limits.t
@@ -0,0 +1,58 @@
+#!/bin/bash
+
+test_description='Test per-user max jobs limits'
+
+. `dirname $0`/sharness.sh
+MULTI_FACTOR_PRIORITY=${FLUX_BUILD_DIR}/src/plugins/.libs/mf_priority.so
+SUBMIT_AS=${FLUX_BUILD_DIR}/t/scripts/submit_as.py
+SEND_PAYLOAD=${FLUX_BUILD_DIR}/t/scripts/send_payload.py
+
+export TEST_UNDER_FLUX_NO_JOB_EXEC=y
+export TEST_UNDER_FLUX_SCHED_SIMPLE_MODE="limited=1"
+test_under_flux 1 job
+
+flux setattr log-stderr-level 1
+
+test_expect_success 'load multi-factor priority plugin' '
+	flux jobtap load -r .priority-default ${MULTI_FACTOR_PRIORITY}
+'
+
+test_expect_success 'check that mf_priority plugin is loaded' '
+	flux jobtap list | grep mf_priority
+'
+
+test_expect_success 'create fake_user.json' '
+	cat <<-EOF >fake_user.json
+	{
+		"users" : [
+			{"userid": "5011", "bank": "account3", "default_bank": "account3", "fairshare": "0.45321", "max_jobs": "3"},
+			{"userid": "5011", "bank": "account2", "default_bank": "account3", "fairshare": "0.11345", "max_jobs": "3"}
+		]
+	}
+	EOF
+'
+
+test_expect_success 'update plugin with sample test data' '
+	flux python ${SEND_PAYLOAD} fake_user.json
+'
+
+test_expect_success 'stop the queue' '
+	flux queue stop
+'
+
+test_expect_success 'submit jobs as each user' '
+	jobid1=$(flux python ${SUBMIT_AS} 5011 sleep 60) &&
+	jobid2=$(flux python ${SUBMIT_AS} 5011 sleep 60) &&
+	jobid3=$(flux python ${SUBMIT_AS} 5011 sleep 60)
+'
+
+test_expect_success 'submit a job while already having max number of active jobs' '
+	test_must_fail flux python ${SUBMIT_AS} 5011 sleep 60 > max_jobs.out 2>&1 &&
+	test_debug "cat max_jobs.out" &&
+	grep "user has max number of jobs submitted" max_jobs.out &&
+	flux job cancel $jobid1 &&
+	flux job cancel $jobid2 &&
+	flux job cancel $jobid3
+'
+
+test_done