diff --git a/src/connection-manager/index.ts b/src/connection-manager/index.ts
index a9d32a98d1..53615a2bb3 100644
--- a/src/connection-manager/index.ts
+++ b/src/connection-manager/index.ts
@@ -512,6 +512,13 @@ export class DefaultConnectionManager extends EventEmitter<ConnectionManagerEven
       }
     }
 
+    if ((this.getConnections().length + 1) > this.opts.maxOutgoingConnections) {
+      throw errCode(
+        new Error('Connection Manager maxOutgoing connections exceeded'),
+        codes.ERR_CONNECTION_DENIED
+      )
+    }
+
     let timeoutController: TimeoutController | undefined
 
     if (options?.signal == null) {
diff --git a/test/connection-manager/index.spec.ts b/test/connection-manager/index.spec.ts
index b494b518e0..72f548cd1f 100644
--- a/test/connection-manager/index.spec.ts
+++ b/test/connection-manager/index.spec.ts
@@ -371,8 +371,26 @@ describe('Connection Manager', () => {
       .to.eventually.be.false()
   })
 
-  it.skip('should deny connections when maxOutgoingConnections is exceeded', async () => {
+  it('should throw an error when attempting to connect and maxOutgoingConnections is exceeded', async () => {
+    const dialer = stubInterface<Dialer>()
+    dialer.dial.resolves(stubInterface<Connection>())
+
+    const connectionManager = new DefaultConnectionManager({
+      peerId: libp2p.peerId,
+      upgrader: stubInterface<Upgrader>(),
+      peerStore: stubInterface<PeerStore>(),
+      dialer
+    }, {
+      ...defaultOptions,
+      maxOutgoingConnections: 1
+    })
+
+    // max out the connection limit
+    await connectionManager.openConnection(await createEd25519PeerId())
+    expect(connectionManager.getConnections()).to.have.lengthOf(1)
 
+    await expect(connectionManager.openConnection(await createEd25519PeerId())).to.eventually.be.rejected()
+      .and.to.have.property('code', ErrorCodes.ERR_CONNECTION_DENIED)
   })
 
   it('should deny connections from peers that connect too frequently', async () => {