diff --git a/elasticapm/instrumentation/packages/dbapi2.py b/elasticapm/instrumentation/packages/dbapi2.py
index fb49723c28..4f3f031799 100644
--- a/elasticapm/instrumentation/packages/dbapi2.py
+++ b/elasticapm/instrumentation/packages/dbapi2.py
@@ -34,6 +34,7 @@
 """
 
 import re
+import string
 
 import wrapt
 
@@ -65,6 +66,7 @@ def look_for_table(sql, keyword):
 def _scan_for_table_with_tokens(tokens, keyword):
     seen_keyword = False
     for idx, lexeme in scan(tokens):
+        print(idx, lexeme)
         if seen_keyword:
             if lexeme == "(":
                 return _scan_for_table_with_tokens(tokens[idx:], keyword)
@@ -85,6 +87,7 @@ def scan(tokens):
     literal_started = None
     prev_was_escape = False
     lexeme = []
+    digits = set(string.digits)
 
     i = 0
     while i < len(tokens):
@@ -114,6 +117,11 @@ def scan(tokens):
                 literal_start_idx = i
                 literal_started = token
             elif token == "$":
+                # exclude query parameters that have a digit following the dollar
+                if True and len(tokens) > i + 1 and tokens[i + 1] in digits:
+                    yield i, token
+                    i += 1
+                    continue
                 # Postgres can use arbitrary characters between two $'s as a
                 # literal separation token, e.g.: $fish$ literal $fish$
                 # This part will detect that and skip over the literal.
@@ -125,6 +133,7 @@ def scan(tokens):
                     pass
                 else:
                     quote = tokens[i : closing_dollar_idx + 1]
+
                     length = len(quote)
                     # Opening dollar of the closing quote,
                     # i.e. the first $ in the second $fish$
diff --git a/tests/instrumentation/dbapi2_tests.py b/tests/instrumentation/dbapi2_tests.py
index 3d72b66327..2faaf462d6 100644
--- a/tests/instrumentation/dbapi2_tests.py
+++ b/tests/instrumentation/dbapi2_tests.py
@@ -122,6 +122,20 @@ def test_extract_signature_bytes():
     assert actual == expected
 
 
+def test_extract_signature_pathological():
+    # tune for performance testing
+    multiplier = 10
+    values = []   
+    for chunk in range(multiplier):
+        i = chunk * 3
+        values.append(f" (${1+i}::varchar, ${2+i}::varchar, ${3+i}::varchar), ")
+
+    sql = f"SELECT * FROM (VALUES {''.join(values)})\n"
+    actual = extract_signature(sql)
+    expected = "SELECT FROM"
+    assert actual == expected
+
+
 @pytest.mark.parametrize(
     ["sql", "expected"],
     [