diff --git a/pkg/util/sync/semaphore.go b/pkg/util/sync/semaphore.go
index 2b5dd1b74d..38a9813607 100644
--- a/pkg/util/sync/semaphore.go
+++ b/pkg/util/sync/semaphore.go
@@ -32,6 +32,17 @@ func NewDynamicSemaphore(n int64) *DynamicSemaphore {
 func (s *DynamicSemaphore) SetSize(n int64) {
 	s.mu.Lock()
 	defer s.mu.Unlock()
+
+	// If capacity increased, wake up waiters that can now acquire
+	if n > s.size {
+		for s.cur < n && s.waiters.Len() > 0 {
+			s.cur++
+			next := s.waiters.Front()
+			s.waiters.Remove(next)
+			close(next.Value.(chan struct{}))
+		}
+	}
+
 	s.size = n
 }
 
@@ -110,7 +121,7 @@ func (s *DynamicSemaphore) Release() {
 
 	// And trigger it's chan before we release the lock
 	close(next.Value.(chan struct{}))
-	// Note we _don't_ decrement inflight since the slot was yielded directly.
+	// Note we _don't_ decrement cur since the slot was yielded directly.
 }
 
 func (s *DynamicSemaphore) IsFull() bool {
diff --git a/pkg/util/sync/semaphore_test.go b/pkg/util/sync/semaphore_test.go
index e200fc8380..e3bfbe14e5 100644
--- a/pkg/util/sync/semaphore_test.go
+++ b/pkg/util/sync/semaphore_test.go
@@ -7,6 +7,7 @@ package sync
 
 import (
 	"context"
+	"fmt"
 	"math/rand"
 	"runtime"
 	"sync"
@@ -74,6 +75,56 @@ func checkAcquire(t *testing.T, sem *DynamicSemaphore, wantAcquire bool) {
 	}
 }
 
+func TestDynamicSemaphore_SetSize(t *testing.T) {
+	t.Parallel()
+
+	t.Run("should wake waiter when setting larger size", func(t *testing.T) {
+		s := NewDynamicSemaphore(1)
+		require.NoError(t, s.Acquire(context.Background()))
+
+		var wg sync.WaitGroup
+		wg.Add(2)
+		go func() {
+			_ = s.Acquire(context.Background())
+			fmt.Println("done")
+			wg.Done()
+		}()
+		go func() {
+			_ = s.Acquire(context.Background())
+			fmt.Println("done")
+			wg.Done()
+		}()
+
+		assert.Eventually(t, func() bool {
+			return s.Waiters() == 2
+		}, 100*time.Millisecond, 10*time.Millisecond)
+		require.Equal(t, 2, s.Waiters())
+
+		// Increase size which should release waiters
+		s.SetSize(3)
+		wg.Wait()
+		assert.Equal(t, 0, s.Waiters())
+	})
+
+	t.Run("should block acquires when setting smaller size", func(t *testing.T) {
+		s := NewDynamicSemaphore(3)
+		for i := 0; i < 3; i++ {
+			require.NoError(t, s.Acquire(context.Background()))
+		}
+
+		s.SetSize(1)
+		for i := 0; i < 3; i++ {
+			s.Release()
+		}
+
+		require.NoError(t, s.Acquire(context.Background()))
+
+		// Should timeout while acquiring permit
+		ctx, _ := context.WithTimeout(context.Background(), 10*time.Millisecond)
+		require.Error(t, s.Acquire(ctx))
+	})
+}
+
 func TestDynamicSemaphore_Acquire(t *testing.T) {
 	t.Parallel()
 
@@ -203,12 +254,10 @@ func TestDynamicSemaphore_IsFull(t *testing.T) {
 }
 
 func TestDynamicSemaphore_Waiters(t *testing.T) {
-	overloadDuration := 100 * time.Millisecond
 	s := NewDynamicSemaphore(1)
 	err := s.Acquire(context.Background())
 	require.NoError(t, err)
 
-	// When
 	go func() {
 		_ = s.Acquire(context.Background())
 	}()
@@ -216,8 +265,9 @@ func TestDynamicSemaphore_Waiters(t *testing.T) {
 		_ = s.Acquire(context.Background())
 	}()
 
-	time.Sleep(overloadDuration)
-	assert.Equal(t, 2, s.Waiters())
+	assert.Eventually(t, func() bool {
+		return s.Waiters() == 2
+	}, 100*time.Millisecond, 10*time.Millisecond)
 	s.Release()
 	assert.Equal(t, 1, s.Waiters())
 	s.Release()