diff --git a/payload_generator/delta_diff_generator.cc b/payload_generator/delta_diff_generator.cc
index ee5a79b..f960377 100644
--- a/payload_generator/delta_diff_generator.cc
+++ b/payload_generator/delta_diff_generator.cc
@@ -63,6 +63,13 @@
 const size_t kBlockSize = 4096;  // bytes
 const char kEmptyPath[] = "";
 
+// The maximum destination size allowed for bsdiff. In general, bsdiff should
+// work for arbitrary big files, but the payload generation and payload
+// application requires a significant amount of RAM. We put a hard-limit of
+// 200 MiB that should not affect any released board, but will limit the
+// Chrome binary in ASan builders.
+const off_t kMaxBsdiffDestinationSize = 200 * 1024 * 1024;  // bytes
+
 static const char* kInstallOperationTypes[] = {
   "REPLACE",
   "REPLACE_BZ",
@@ -132,6 +139,9 @@
   // TODO(dgarrett): chromium-os:15274 connect this test to the command line.
   bool bsdiff_allowed = true;
 
+  if (utils::FileSize(new_root + path) > kMaxBsdiffDestinationSize)
+    bsdiff_allowed = false;
+
   if (!bsdiff_allowed)
     LOG(INFO) << "bsdiff blacklisting: " << path;