diff --git a/de/heat-templates/scripts/functions.sh b/de/heat-templates/scripts/functions.sh
index ae06d97..609a6be 100644
--- a/de/heat-templates/scripts/functions.sh
+++ b/de/heat-templates/scripts/functions.sh
@@ -576,6 +576,13 @@
     sysctl -p /etc/sysctl.d/99-disable-rp-filter.conf
 }
 
+function configure_sysctl_limits {
+    cat << EOF > /etc/sysctl.d/99-limits.conf
+fs.inotify.max_user_instances = 8192
+EOF
+    sysctl -p /etc/sysctl.d/99-limits.conf
+}
+
 function configure_contrack {
     cat << EOF > /etc/sysctl.d/100-contrackd.conf
 net.netfilter.nf_conntrack_log_invalid=255
diff --git a/de/heat-templates/scripts/launch.sh b/de/heat-templates/scripts/launch.sh
index 66d3a13..9b1834c 100644
--- a/de/heat-templates/scripts/launch.sh
+++ b/de/heat-templates/scripts/launch.sh
@@ -123,6 +123,7 @@
         # Please keep the "prepare_metadata_files", "disable-rp-filter", "network_config" and "prepare_network" functions
         # at the very beginning in the same order.
         ucp)
+            configure_sysctl_limits
             disable_unattended_upgr
             setup_bind_mounts
             wait_for_external_network
@@ -165,6 +166,7 @@
             cron_disable_calico_offloading
             ;;
         master)
+            configure_sysctl_limits
             disable_unattended_upgr
             setup_bind_mounts
             wait_for_external_network
@@ -199,6 +201,7 @@
             increase_iscsi_timeout
             ;;
         worker)
+            configure_sysctl_limits
             disable_unattended_upgr
             setup_bind_mounts
             wait_for_external_network
@@ -242,6 +245,7 @@
             increase_iscsi_timeout
             ;;
         frr)
+            configure_sysctl_limits
             disable_unattended_upgr
             wait_for_external_network
             prepare_metadata_files