diff --git a/rs/execution_environment/tests/execution_test.rs b/rs/execution_environment/tests/execution_test.rs
index 21466424583..ddabb128835 100644
--- a/rs/execution_environment/tests/execution_test.rs
+++ b/rs/execution_environment/tests/execution_test.rs
@@ -9,8 +9,9 @@ use ic_config::{
 };
 use ic_management_canister_types_private::{
     CanisterIdRecord, CanisterSettingsArgs, CanisterSettingsArgsBuilder, CanisterStatusResultV2,
-    CreateCanisterArgs, DerivationPath, EcdsaKeyId, EmptyBlob, MasterPublicKeyId, Method, Payload,
-    SignWithECDSAArgs, TakeCanisterSnapshotArgs, UpdateSettingsArgs, IC_00,
+    CreateCanisterArgs, DerivationPath, EcdsaKeyId, EmptyBlob, LoadCanisterSnapshotArgs,
+    MasterPublicKeyId, Method, Payload, SignWithECDSAArgs, TakeCanisterSnapshotArgs,
+    UpdateSettingsArgs, IC_00,
 };
 use ic_registry_subnet_type::SubnetType;
 use ic_replicated_state::NumWasmPages;
@@ -789,6 +790,86 @@ fn take_canister_snapshot_request_fails_when_subnet_capacity_reached() {
     assert_eq!(error.code(), ErrorCode::SubnetOversubscribed);
 }
 
+#[test]
+fn load_canister_snapshot_request_fails_when_subnet_capacity_reached() {
+    let mut subnet_config = SubnetConfig::new(SubnetType::Application);
+    subnet_config.scheduler_config.scheduler_cores = 2;
+    let env = StateMachine::new_with_config(StateMachineConfig::new(
+        subnet_config,
+        HypervisorConfig {
+            subnet_memory_capacity: NumBytes::from(100 * MIB),
+            subnet_memory_reservation: NumBytes::from(0),
+            ..Default::default()
+        },
+    ));
+
+    let now = std::time::SystemTime::now();
+    env.set_time(now);
+    env.set_checkpoints_enabled(false);
+
+    let canister_id = create_universal_canister_with_cycles(
+        &env,
+        Some(CanisterSettingsArgsBuilder::new().build()),
+        INITIAL_CYCLES_BALANCE,
+    );
+    env.execute_ingress(
+        canister_id,
+        "update",
+        wasm()
+            // As there are 2 scheduler cores, the memory capacity is 100 / 2 = 50 MiB per core.
+            .memory_size_is_at_least(30 * MIB)
+            .reply_data(&[42])
+            .build(),
+    )
+    .expect("Error increasing the canister memory size");
+
+    let other_canister_id = create_universal_canister_with_cycles(
+        &env,
+        Some(CanisterSettingsArgsBuilder::new().build()),
+        INITIAL_CYCLES_BALANCE,
+    );
+    env.execute_ingress(
+        other_canister_id,
+        "update",
+        wasm()
+            // The memory capacity is (100 - 30) / 2 = 35 MiB per core.
+            .memory_size_is_at_least(25 * MIB)
+            .reply_data(&[42])
+            .build(),
+    )
+    .expect("Error increasing the canister memory size");
+
+    // This should take another 30 MiB on top of the 30 MiB of the canister state.
+    // The available memory at this point is 100 - 30 - 25 = 45 MiB.
+    let snapshot_id = env
+        .take_canister_snapshot(TakeCanisterSnapshotArgs::new(canister_id, None))
+        .unwrap()
+        .snapshot_id();
+
+    // Ensure that at least one round has passed between the attempts to take a snapshot.
+    env.tick();
+
+    // Uninstall the first canister to free up some memory. This should free up 30MiB.
+    // The available memory at this point should be 100 - 30 - 25 - 30 + 30 = 45 MiB.
+    env.uninstall_code(canister_id).unwrap();
+
+    // Taking a snapshot of the second canister should take another 25MiB,
+    // making the available memory 100 - 30 - 25 - 30 + 30 - 25 = 20 MiB.
+    env.take_canister_snapshot(TakeCanisterSnapshotArgs::new(other_canister_id, None))
+        .unwrap();
+
+    // Loading the snapshot back to the first canister should fail as there
+    // is not enough memory available.
+    let err = env
+        .load_canister_snapshot(LoadCanisterSnapshotArgs::new(
+            canister_id,
+            snapshot_id,
+            None,
+        ))
+        .unwrap_err();
+    assert_eq!(err.code(), ErrorCode::SubnetOversubscribed);
+}
+
 #[test]
 fn canister_snapshot_metrics_are_observed() {
     let mut subnet_config = SubnetConfig::new(SubnetType::Application);