diff --git a/environment.yml b/environment.yml
index 079cf66..18d78b9 100644
--- a/environment.yml
+++ b/environment.yml
@@ -9,3 +9,4 @@ dependencies:
   - pyinotify
   - pre-commit
   - python-build
+  - psutil
diff --git a/scripts/livereduce.py b/scripts/livereduce.py
index 8eb90f2..64b28fa 100644
--- a/scripts/livereduce.py
+++ b/scripts/livereduce.py
@@ -3,15 +3,19 @@
 import os
 import signal
 import sys
+import threading
 import time
 from hashlib import md5
 
 import mantid  # for clearer error message
+import psutil
 import pyinotify
-from mantid.simpleapi import StartLiveData
+from mantid.simpleapi import StartLiveData, mtd
 from mantid.utils.logging import log_to_python as mtd_log_to_python
 from packaging.version import parse as parse_version
 
+CONVERSION_FACTOR_BYTES_TO_MB = 1.0 / (1024 * 1024)
+
 # ##################
 # configure logging
 # ##################
@@ -79,6 +83,13 @@ def stop(cls):
         else:
             cls.logger.info("mantid not initialized - nothing to cleanup")
 
+    def restart_and_clear(self):
+        self.logger.info("Restarting Live Data and clearing workspaces")
+        self.stop()
+        time.sleep(1.0)
+        mtd.clear()
+        self.start()
+
 
 # ##################
 # register a signal handler so we can exit gracefully if someone kills us
@@ -157,6 +168,10 @@ def __init__(self, filename):
         self.accumMethod = str(json_doc.get("accum_method", "Add"))
         self.periods = json_doc.get("periods", None)
         self.spectra = json_doc.get("spectra", None)
+        self.system_mem_limit_perc = json_doc.get("system_mem_limit_perc", 25)  # set to 0 to disable
+        self.mem_check_interval_sec = json_doc.get("mem_check_interval_sec", 1)
+        self.mem_limit = psutil.virtual_memory().total * self.system_mem_limit_perc / 100
+        self.proc_pid = psutil.Process(os.getpid())
 
         # location of the scripts
         self.script_dir = json_doc.get("script_dir")
@@ -321,9 +336,16 @@ def process_default(self, event):
                 self.scriptfiles[event.pathname] = newmd5
                 # restart the service
                 self.logger.info(f'Processing script "{event.pathname}" changed - restarting ' '"StartLiveData"')
-                self.livemanager.stop()
-                time.sleep(1.0)  # seconds
-                self.livemanager.start()
+                self.livemanager.restart_and_clear()
+
+
+def memory_checker(config, livemanager):
+    while True:
+        mem_used = config.proc_pid.memory_info().rss
+        if mem_used > config.mem_limit:
+            logger.error(f"Memory usage {mem_used * CONVERSION_FACTOR_BYTES_TO_MB:.2f} MB exceeds limit")
+            livemanager.restart_and_clear()
+        time.sleep(config.mem_check_interval_sec)
 
 
 # determine the configuration file
@@ -355,6 +377,11 @@ def process_default(self, event):
 # start up the live data
 liveDataMgr.start()
 
+# start the memory checker
+if config.system_mem_limit_perc > 0:
+    memory_thread = threading.Thread(target=memory_checker, args=(config, liveDataMgr), daemon=True)
+    memory_thread.start()
+
 # inotify will keep the program running
 notifier.loop()
 
diff --git a/test/README.md b/test/README.md
index a48ad51..f8a43a3 100644
--- a/test/README.md
+++ b/test/README.md
@@ -24,3 +24,11 @@ Once the first chunk of live data is processed, `ctrl-C` will
 interrupt the process and it will close cleanly.
 
 In testing mode, the logging will go to `${PWD}/livereduce.log` and can be watched with `tail -F livereduce.log`
+
+
+Example using event data, to test memory monitoring
+----------------------------------------------------
+
+This test case will continuously accumulate events until it fails.
+
+Start the server using `test/fake_event_server.py` and use the configuration `test/fake_event.conf`.
diff --git a/test/fake_event.conf b/test/fake_event.conf
new file mode 100644
index 0000000..aea13b7
--- /dev/null
+++ b/test/fake_event.conf
@@ -0,0 +1,9 @@
+{
+  "instrument": "ISIS_Event",
+  "script_dir": "test",
+  "update_every": 3,
+  "CONDA_ENV": "livereduce",
+  "accum_method":"Add",
+  "system_mem_limit_perc": 25,
+  "mem_check_interval_sec": 1
+}
diff --git a/test/fake_event_server.py b/test/fake_event_server.py
new file mode 100644
index 0000000..1fe58b7
--- /dev/null
+++ b/test/fake_event_server.py
@@ -0,0 +1,24 @@
+from threading import Thread
+
+from mantid import AlgorithmManager, ConfigService
+from mantid.simpleapi import FakeISISEventDAE
+
+facility = ConfigService.getFacility().name()
+ConfigService.setFacility("TEST_LIVE")
+
+
+def startServer():
+    FakeISISEventDAE(NEvents=1000000)
+
+
+try:
+    thread = Thread(target=startServer)
+    thread.start()
+    thread.join()
+except Exception as e:  # noqa: BLE001
+    print(e)
+    alg = AlgorithmManager.newestInstanceOf("FakeISISEventDAE")
+    if alg.isRunning():
+        alg.cancel()
+finally:
+    ConfigService.setFacility(facility)
diff --git a/test/reduce_ISIS_Event_live_proc.py b/test/reduce_ISIS_Event_live_proc.py
new file mode 100644
index 0000000..6ad56a1
--- /dev/null
+++ b/test/reduce_ISIS_Event_live_proc.py
@@ -0,0 +1 @@
+print("Running proc script")