diff --git a/docs/node-configuration.md b/docs/node-configuration.md
index 10a8e9db9..1ff7fc01f 100644
--- a/docs/node-configuration.md
+++ b/docs/node-configuration.md
@@ -139,6 +139,7 @@ RPC:
   SessionEnabled: false
   SessionExpirationTime: 15
   SessionBackedByMPT: false
+  SessionPoolSize: 20
   StartWhenSynchronized: false
   TLSConfig:
     Address: ""
@@ -190,6 +191,10 @@ where:
   recommended to enable `SessionBackedByMPT` needlessly. `SessionBackedByMPT` is
   set to `false` by default and is relevant only if `SessionEnabled` is set to
   `true`.
+- `SessionPoolSize` is the maximum number of concurrent iterator sessions. It is
+  set to `20` by default. If the subsequent session can't be added to the session
+  pool, then invocation result will contain corresponding error inside the
+  `FaultException` field.
 - `StartWhenSynchronized` controls when RPC server will be started, by default
   (`false` setting) it's started immediately and RPC is availabe during node
   synchronization. Setting it to `true` will make the node start RPC service only
diff --git a/pkg/rpc/response/result/invoke.go b/pkg/rpc/response/result/invoke.go
index 438ba240e..65100693f 100644
--- a/pkg/rpc/response/result/invoke.go
+++ b/pkg/rpc/response/result/invoke.go
@@ -32,7 +32,7 @@ type Invoke struct {
 }
 
 // RegisterIterator is a callback used to register new iterator on the server side.
-type RegisterIterator func(sessionID string, item stackitem.Item, id int, finalize func()) uuid.UUID
+type RegisterIterator func(sessionID string, item stackitem.Item, id int, finalize func()) (uuid.UUID, error)
 
 // InvokeDiag is an additional diagnostic data for invocation.
 type InvokeDiag struct {
@@ -136,7 +136,12 @@ arrloop:
 				if sessionID == "" {
 					sessionID = uuid.NewString()
 				}
-				iteratorID := r.registerIterator(sessionID, r.Stack[i], i, r.finalize)
+				iteratorID, err := r.registerIterator(sessionID, r.Stack[i], i, r.finalize)
+				if err != nil {
+					// Call finalizer immediately, there can't be race between server and marshaller because session wasn't added to server's session pool.
+					r.Finalize()
+					return nil, fmt.Errorf("failed to register iterator session: %w", err)
+				}
 				data, err = json.Marshal(iteratorAux{
 					Type:      stackitem.InteropT.String(),
 					Interface: iteratorInterfaceName,
diff --git a/pkg/rpc/rpc_config.go b/pkg/rpc/rpc_config.go
index d1ba9a78b..1e3a3f1d0 100644
--- a/pkg/rpc/rpc_config.go
+++ b/pkg/rpc/rpc_config.go
@@ -20,6 +20,7 @@ type (
 		SessionEnabled         bool          `yaml:"SessionEnabled"`
 		SessionExpirationTime  int           `yaml:"SessionExpirationTime"`
 		SessionBackedByMPT     bool          `yaml:"SessionBackedByMPT"`
+		SessionPoolSize        int           `yaml:"SessionPoolSize"`
 		StartWhenSynchronized  bool          `yaml:"StartWhenSynchronized"`
 		TLSConfig              TLSConfig     `yaml:"TLSConfig"`
 	}
diff --git a/pkg/rpc/server/server.go b/pkg/rpc/server/server.go
index fd8d5e3c8..39ed8a909 100644
--- a/pkg/rpc/server/server.go
+++ b/pkg/rpc/server/server.go
@@ -143,6 +143,9 @@ const (
 
 	// Maximum number of elements for get*transfers requests.
 	maxTransfersLimit = 1000
+
+	// defaultSessionPoolSize is the number of concurrently running iterator sessions.
+	defaultSessionPoolSize = 20
 )
 
 var rpcHandlers = map[string]func(*Server, request.Params) (interface{}, *response.Error){
@@ -225,9 +228,15 @@ func New(chain blockchainer.Blockchainer, conf rpc.Config, coreServer *network.S
 		orc.SetBroadcaster(broadcaster.New(orc.MainCfg, log))
 	}
 	protoCfg := chain.GetConfig()
-	if conf.SessionEnabled && conf.SessionExpirationTime <= 0 {
-		conf.SessionExpirationTime = protoCfg.SecondsPerBlock
-		log.Info("SessionExpirationTime is not set or wrong, setting default value", zap.Int("SessionExpirationTime", protoCfg.SecondsPerBlock))
+	if conf.SessionEnabled {
+		if conf.SessionExpirationTime <= 0 {
+			conf.SessionExpirationTime = protoCfg.SecondsPerBlock
+			log.Info("SessionExpirationTime is not set or wrong, setting default value", zap.Int("SessionExpirationTime", protoCfg.SecondsPerBlock))
+		}
+		if conf.SessionPoolSize <= 0 {
+			conf.SessionPoolSize = defaultSessionPoolSize
+			log.Info("SessionPoolSize is not set or wrong, setting default value", zap.Int("SessionPoolSize", defaultSessionPoolSize))
+		}
 	}
 	return Server{
 		Server:           httpServer,
@@ -1998,11 +2007,14 @@ func (s *Server) runScriptInVM(t trigger.Type, script []byte, contractScriptHash
 	}
 	var registerIterator result.RegisterIterator
 	if s.config.SessionEnabled {
-		registerIterator = func(sessionID string, item stackitem.Item, stackIndex int, finalize func()) uuid.UUID {
+		registerIterator = func(sessionID string, item stackitem.Item, stackIndex int, finalize func()) (uuid.UUID, error) {
 			iterID := uuid.New()
 			s.sessionsLock.Lock()
 			sess, ok := s.sessions[sessionID]
 			if !ok {
+				if len(s.sessions) >= s.config.SessionPoolSize {
+					return uuid.UUID{}, errors.New("max capacity reached")
+				}
 				timer := time.AfterFunc(time.Second*time.Duration(s.config.SessionExpirationTime), func() {
 					s.sessionsLock.Lock()
 					defer s.sessionsLock.Unlock()
@@ -2047,7 +2059,7 @@ func (s *Server) runScriptInVM(t trigger.Type, script []byte, contractScriptHash
 			})
 			s.sessions[sessionID] = sess
 			s.sessionsLock.Unlock()
-			return iterID
+			return iterID, nil
 		}
 	}
 	return result.NewInvoke(ic, script, faultException, registerIterator, s.config.MaxIteratorResultItems), nil