diff --git a/airflow/jobs.py b/airflow/jobs.py
index c07c4115629d3..95804350cd315 100644
--- a/airflow/jobs.py
+++ b/airflow/jobs.py
@@ -1057,6 +1057,10 @@ def _process_dags(self, dagbag, dags, tis_out):
         """
         for dag in dags:
             dag = dagbag.get_dag(dag.dag_id)
+            if dag.reached_max_runs:
+                self.logger.info("Not processing DAG {} since its max runs has been reached"
+                                .format(dag.dag_id))
+                continue
             if dag.is_paused:
                 self.logger.info("Not processing DAG {} since it's paused"
                                  .format(dag.dag_id))
diff --git a/airflow/models.py b/airflow/models.py
index 182f7cc364018..4ccf2a1baa3eb 100644
--- a/airflow/models.py
+++ b/airflow/models.py
@@ -2879,6 +2879,15 @@ def subdags(self):
                 l += task.subdag.subdags
         return l
 
+    @property
+    def reached_max_runs(self):
+        active_runs = DagRun.find(
+            dag_id=self.dag_id,
+            state=State.RUNNING,
+            external_trigger=False
+        )
+        return len(active_runs) >= self.max_active_runs
+
     def resolve_template_files(self):
         for t in self.tasks:
             t.resolve_template_files()
diff --git a/tests/jobs.py b/tests/jobs.py
index e86b9dadd18af..351268a59293a 100644
--- a/tests/jobs.py
+++ b/tests/jobs.py
@@ -20,6 +20,7 @@
 import datetime
 import logging
 import os
+import time
 import unittest
 
 from airflow import AirflowException, settings
@@ -609,14 +610,23 @@ def test_scheduler_verify_max_active_runs(self):
         session.commit()
         session.close()
 
-        scheduler = SchedulerJob()
-        dag.clear()
+        scheduler = SchedulerJob(dag.dag_id,
+                                run_duration=1)
 
         dr = scheduler.create_dag_run(dag)
         self.assertIsNotNone(dr)
 
-        dr = scheduler.create_dag_run(dag)
-        self.assertIsNone(dr)
+        dr2 = scheduler.create_dag_run(dag)
+        self.assertIsNone(dr2)
+
+        dag.clear()
+
+        dag.max_active_runs = 0
+        scheduler.run()
+
+        session = settings.Session()
+        self.assertEqual(
+            len(session.query(TI).filter(TI.dag_id == dag.dag_id).all()), 0)
 
     def test_scheduler_fail_dagrun_timeout(self):
         """