diff --git a/libs/binder/RpcSession.cpp b/libs/binder/RpcSession.cpp
index ce6ef2b..1a821f1 100644
--- a/libs/binder/RpcSession.cpp
+++ b/libs/binder/RpcSession.cpp
@@ -90,7 +90,7 @@
     return mMaxIncomingThreads;
 }
 
-void RpcSession::setMaxOutgoingThreads(size_t threads) {
+void RpcSession::setMaxOutgoingConnections(size_t threads) {
     RpcMutexLockGuard _l(mMutex);
     LOG_ALWAYS_FATAL_IF(mStartedSetup,
                         "Must set max outgoing threads before setting up connections");
@@ -932,7 +932,8 @@
                   (session->server()
                            ? "This is a server session, so see RpcSession::setMaxIncomingThreads "
                              "for the corresponding client"
-                           : "This is a client session, so see RpcSession::setMaxOutgoingThreads "
+                           : "This is a client session, so see "
+                             "RpcSession::setMaxOutgoingConnections "
                              "for this client or RpcServer::setMaxThreads for the corresponding "
                              "server"));
             return WOULD_BLOCK;
diff --git a/libs/binder/ServiceManagerHost.cpp b/libs/binder/ServiceManagerHost.cpp
index 194254a..2b67f03 100644
--- a/libs/binder/ServiceManagerHost.cpp
+++ b/libs/binder/ServiceManagerHost.cpp
@@ -159,8 +159,8 @@
     LOG_ALWAYS_FATAL_IF(!forwardResult->hostPort().has_value());
 
     auto rpcSession = RpcSession::make();
-    if (options.maxOutgoingThreads.has_value()) {
-        rpcSession->setMaxOutgoingThreads(*options.maxOutgoingThreads);
+    if (options.maxOutgoingConnections.has_value()) {
+        rpcSession->setMaxOutgoingConnections(*options.maxOutgoingConnections);
     }
 
     if (status_t status = rpcSession->setupInetClient("127.0.0.1", *forwardResult->hostPort());
diff --git a/libs/binder/include/binder/IServiceManager.h b/libs/binder/include/binder/IServiceManager.h
index c78f870..55167a7 100644
--- a/libs/binder/include/binder/IServiceManager.h
+++ b/libs/binder/include/binder/IServiceManager.h
@@ -224,12 +224,12 @@
 //    }
 // Resources are cleaned up when the object is destroyed.
 //
-// For each returned binder object, at most |maxOutgoingThreads| outgoing threads are instantiated.
-// Hence, only |maxOutgoingThreads| calls can be made simultaneously. Additional calls are blocked
-// if there are |maxOutgoingThreads| ongoing calls. See RpcSession::setMaxOutgoingThreads.
-// If |maxOutgoingThreads| is not set, default is |RpcSession::kDefaultMaxOutgoingThreads|.
+// For each returned binder object, at most |maxOutgoingConnections| outgoing connections are
+// instantiated, depending on how many the service on the device is configured with.
+// Hence, only |maxOutgoingConnections| calls can be made simultaneously.
+// See also RpcSession::setMaxOutgoingConnections.
 struct RpcDelegateServiceManagerOptions {
-    std::optional<size_t> maxOutgoingThreads;
+    std::optional<size_t> maxOutgoingConnections;
 };
 sp<IServiceManager> createRpcDelegateServiceManager(
         const RpcDelegateServiceManagerOptions& options);
diff --git a/libs/binder/include/binder/RpcServer.h b/libs/binder/include/binder/RpcServer.h
index 25193a3..1001b64 100644
--- a/libs/binder/include/binder/RpcServer.h
+++ b/libs/binder/include/binder/RpcServer.h
@@ -119,7 +119,10 @@
     [[nodiscard]] status_t setupExternalServer(base::unique_fd serverFd);
 
     /**
-     * This must be called before adding a client session.
+     * This must be called before adding a client session. This corresponds
+     * to the number of incoming connections to RpcSession objects in the
+     * server, which will correspond to the number of outgoing connections
+     * in client RpcSession objects.
      *
      * If this is not specified, this will be a single-threaded server.
      *
diff --git a/libs/binder/include/binder/RpcSession.h b/libs/binder/include/binder/RpcSession.h
index 40faf2c..e301569 100644
--- a/libs/binder/include/binder/RpcSession.h
+++ b/libs/binder/include/binder/RpcSession.h
@@ -67,26 +67,30 @@
     /**
      * Set the maximum number of incoming threads allowed to be made (for things like callbacks).
      * By default, this is 0. This must be called before setting up this connection as a client.
-     * Server sessions will inherits this value from RpcServer.
+     * Server sessions will inherits this value from RpcServer. Each thread will serve a
+     * connection to the remote RpcSession.
      *
      * If this is called, 'shutdown' on this session must also be called.
      * Otherwise, a threadpool will leak.
      *
-     * TODO(b/189955605): start these dynamically
+     * TODO(b/189955605): start these lazily - currently all are started
      */
     void setMaxIncomingThreads(size_t threads);
     size_t getMaxIncomingThreads();
 
     /**
-     * Set the maximum number of outgoing threads allowed to be made.
+     * Set the maximum number of outgoing connections allowed to be made.
      * By default, this is |kDefaultMaxOutgoingThreads|. This must be called before setting up this
      * connection as a client.
      *
-     * This limits the number of outgoing threads on top of the remote peer setting. This RpcSession
-     * will only instantiate |min(maxOutgoingThreads, remoteMaxThreads)| outgoing threads, where
-     * |remoteMaxThreads| can be retrieved from the remote peer via |getRemoteMaxThreads()|.
+     * For an RpcSession client, if you are connecting to a server which starts N threads,
+     * then this must be set to >= N. If you set the maximum number of outgoing connections
+     * to 1, but the server requests 10, then it would be considered an error. If you set a
+     * maximum number of connections to 10, and the server requests 1, then only 1 will be
+     * created. This API is used to limit the amount of resources a server can request you
+     * create.
      */
-    void setMaxOutgoingThreads(size_t threads);
+    void setMaxOutgoingConnections(size_t threads);
     size_t getMaxOutgoingThreads();
 
     /**
diff --git a/libs/binder/include_rpc_unstable/binder_rpc_unstable.hpp b/libs/binder/include_rpc_unstable/binder_rpc_unstable.hpp
index 42d226b..e273dff 100644
--- a/libs/binder/include_rpc_unstable/binder_rpc_unstable.hpp
+++ b/libs/binder/include_rpc_unstable/binder_rpc_unstable.hpp
@@ -126,11 +126,11 @@
 void ARpcSession_setFileDescriptorTransportMode(ARpcSession* session,
                                                 ARpcSession_FileDescriptorTransportMode mode);
 
-// Sets the maximum number of incoming threads.
+// Sets the maximum number of incoming threads, to service connections.
 void ARpcSession_setMaxIncomingThreads(ARpcSession* session, size_t threads);
 
-// Sets the maximum number of outgoing threads.
-void ARpcSession_setMaxOutgoingThreads(ARpcSession* session, size_t threads);
+// Sets the maximum number of outgoing connections.
+void ARpcSession_setMaxOutgoingConnections(ARpcSession* session, size_t threads);
 
 // Decrements the refcount of the underlying RpcSession object.
 void ARpcSession_free(ARpcSession* session);
diff --git a/libs/binder/libbinder_rpc_unstable.cpp b/libs/binder/libbinder_rpc_unstable.cpp
index daff8c1..971b3a0 100644
--- a/libs/binder/libbinder_rpc_unstable.cpp
+++ b/libs/binder/libbinder_rpc_unstable.cpp
@@ -265,8 +265,8 @@
     session->setMaxIncomingThreads(threads);
 }
 
-void ARpcSession_setMaxOutgoingThreads(ARpcSession* handle, size_t threads) {
+void ARpcSession_setMaxOutgoingConnections(ARpcSession* handle, size_t threads) {
     auto session = handleToStrongPointer<RpcSession>(handle);
-    session->setMaxOutgoingThreads(threads);
+    session->setMaxOutgoingConnections(threads);
 }
 }
diff --git a/libs/binder/rust/rpcbinder/src/session.rs b/libs/binder/rust/rpcbinder/src/session.rs
index 0b517cf..28c5390 100644
--- a/libs/binder/rust/rpcbinder/src/session.rs
+++ b/libs/binder/rust/rpcbinder/src/session.rs
@@ -75,11 +75,14 @@
         };
     }
 
-    /// Sets the maximum number of outgoing threads.
-    pub fn set_max_outgoing_threads(&self, threads: usize) {
+    /// Sets the maximum number of outgoing connections.
+    pub fn set_max_outgoing_connections(&self, connections: usize) {
         // SAFETY - Only passes the 'self' pointer as an opaque handle.
         unsafe {
-            binder_rpc_unstable_bindgen::ARpcSession_setMaxOutgoingThreads(self.as_ptr(), threads)
+            binder_rpc_unstable_bindgen::ARpcSession_setMaxOutgoingConnections(
+                self.as_ptr(),
+                connections,
+            )
         };
     }
 
diff --git a/libs/binder/tests/binderHostDeviceTest.cpp b/libs/binder/tests/binderHostDeviceTest.cpp
index 464da60..77a5fa8 100644
--- a/libs/binder/tests/binderHostDeviceTest.cpp
+++ b/libs/binder/tests/binderHostDeviceTest.cpp
@@ -66,7 +66,7 @@
 void initHostRpcServiceManagerOnce() {
     static std::once_flag gSmOnce;
     std::call_once(gSmOnce, [] {
-        setDefaultServiceManager(createRpcDelegateServiceManager({.maxOutgoingThreads = 1}));
+        setDefaultServiceManager(createRpcDelegateServiceManager({.maxOutgoingConnections = 1}));
     });
 }
 
diff --git a/libs/binder/tests/binderRpcTest.cpp b/libs/binder/tests/binderRpcTest.cpp
index 84c93dd..846d945 100644
--- a/libs/binder/tests/binderRpcTest.cpp
+++ b/libs/binder/tests/binderRpcTest.cpp
@@ -350,7 +350,7 @@
     for (const auto& session : sessions) {
         CHECK(session->setProtocolVersion(clientVersion));
         session->setMaxIncomingThreads(options.numIncomingConnections);
-        session->setMaxOutgoingThreads(options.numOutgoingConnections);
+        session->setMaxOutgoingConnections(options.numOutgoingConnections);
         session->setFileDescriptorTransportMode(options.clientFileDescriptorTransportMode);
 
         switch (socketType) {
diff --git a/libs/binder/tests/binderRpcTestTrusty.cpp b/libs/binder/tests/binderRpcTestTrusty.cpp
index b3bb5eb..84abbac 100644
--- a/libs/binder/tests/binderRpcTestTrusty.cpp
+++ b/libs/binder/tests/binderRpcTestTrusty.cpp
@@ -71,7 +71,7 @@
         auto session = android::RpcSession::make(std::move(factory));
 
         EXPECT_TRUE(session->setProtocolVersion(clientVersion));
-        session->setMaxOutgoingThreads(options.numOutgoingConnections);
+        session->setMaxOutgoingConnections(options.numOutgoingConnections);
         session->setFileDescriptorTransportMode(options.clientFileDescriptorTransportMode);
 
         status = session->setupPreconnectedClient({}, [&]() {