diff --git a/src/ssh_transport.c b/src/ssh_transport.c
index 9a1a0cf..d9ef097 100644
--- a/src/ssh_transport.c
+++ b/src/ssh_transport.c
@@ -36,6 +36,7 @@
 #define SSH_TRANSPORT_MAX_PENDING_HANDSHAKES SSH_TRANSPORT_MAX_SESSIONS
 #define SSH_TRANSPORT_MAX_AUTH_ATTEMPTS 3U
 #define SSH_TRANSPORT_GENERATION_MAX 0x3fffffffU
+#define SSH_TRANSPORT_WOLFSSH_READ_BUDGET 2048U
 
 static const char *TAG = "ssh_transport";
 
@@ -49,6 +50,7 @@ typedef struct {
     bool authenticated;
     bool shell_requested;
     uint8_t authentication_attempts;
+    word32 io_read_budget;
     bool writer;
     bool close_requested;
     int64_t handshake_deadline_us;
@@ -168,6 +170,45 @@ static int ssh_seed(OS_Seed *seed, byte *output, word32 size)
     return secure_random_fill(output, size) == ESP_OK ? 0 : -1;
 }
 
+static int bounded_ssh_receive(WOLFSSH *ssh, void *data, word32 size,
+                               void *context)
+{
+    (void)ssh;
+    ssh_slot_t *slot = (ssh_slot_t *)context;
+    if (slot == NULL || data == NULL || slot->socket_fd < 0) {
+        return WS_CBIO_ERR_GENERAL;
+    }
+    if (slot->io_read_budget == 0U) {
+        return WS_CBIO_ERR_WANT_READ;
+    }
+
+    word32 request_size = size;
+    if (request_size > slot->io_read_budget) {
+        request_size = slot->io_read_budget;
+    }
+    int received = recv(slot->socket_fd, data, request_size, 0);
+    if (received > 0) {
+        slot->io_read_budget -= (word32)received;
+        return received;
+    }
+    if (received == 0) {
+        return WS_CBIO_ERR_CONN_CLOSE;
+    }
+    if (errno == EAGAIN || errno == EWOULDBLOCK) {
+        return WS_CBIO_ERR_WANT_READ;
+    }
+    if (errno == EINTR) {
+        return WS_CBIO_ERR_ISR;
+    }
+    if (errno == ECONNRESET) {
+        return WS_CBIO_ERR_CONN_RST;
+    }
+    if (errno == ECONNABORTED) {
+        return WS_CBIO_ERR_CONN_CLOSE;
+    }
+    return WS_CBIO_ERR_GENERAL;
+}
+
 static int allowed_auth_types(WOLFSSH *ssh, void *context)
 {
     (void)ssh;
@@ -206,6 +247,9 @@ static int authenticate_user(byte authentication_type,
     add_counter(&s_counters.authentication_failures, 1U);
     if (slot->authentication_attempts >= SSH_TRANSPORT_MAX_AUTH_ATTEMPTS) {
         slot->close_requested = true;
+        if (slot->socket_fd >= 0) {
+            (void)shutdown(slot->socket_fd, SHUT_RDWR);
+        }
         return WOLFSSH_USERAUTH_REJECTED;
     }
     return error == ESP_OK ? WOLFSSH_USERAUTH_INVALID_PASSWORD
@@ -325,6 +369,7 @@ static esp_err_t create_context(void)
         return ESP_FAIL;
     }
 
+    wolfSSH_SetIORecv(context, bounded_ssh_receive);
     wolfSSH_SetUserAuth(context, authenticate_user);
     wolfSSH_SetUserAuthTypes(context, allowed_auth_types);
     (void)wolfSSH_CTX_SetChannelReqShellCb(context, accept_shell);
@@ -583,6 +628,7 @@ static void accept_connections(void)
             publish_slot(slot, slot_index);
             continue;
         }
+        wolfSSH_SetIOReadCtx(slot->ssh, slot);
         wolfSSH_SetUserAuthCtx(slot->ssh, slot);
         wolfSSH_SetChannelReqCtx(slot->ssh, slot);
         publish_slot(slot, slot_index);
@@ -637,6 +683,7 @@ static void process_handshake(ssh_slot_t *slot, size_t slot_index)
         return;
     }
 
+    slot->io_read_budget = SSH_TRANSPORT_WOLFSSH_READ_BUDGET;
     int result = wolfSSH_accept(slot->ssh);
     if (result == WS_SUCCESS) {
         if (!slot->authenticated || !slot->shell_requested ||
@@ -714,6 +761,7 @@ static bool drain_broker_events(ssh_slot_t *slot)
 static bool service_wolfssh_io(ssh_slot_t *slot)
 {
     word32 channel_id = 0U;
+    slot->io_read_budget = SSH_TRANSPORT_WOLFSSH_READ_BUDGET;
     int result = wolfSSH_worker(slot->ssh, &channel_id);
     (void)channel_id;
     if (result == WS_SUCCESS || wolfssh_would_block(slot->ssh, result)) {
@@ -768,6 +816,7 @@ static bool receive_client_input(ssh_slot_t *slot)
     if (slot->rx_length != 0U) {
         return true;
     }
+    slot->io_read_budget = SSH_TRANSPORT_WOLFSSH_READ_BUDGET;
     int result = wolfSSH_stream_read(slot->ssh, slot->rx_buffer,
                                      sizeof(slot->rx_buffer));
     if (result > 0) {
@@ -790,6 +839,7 @@ static bool flush_client_output(ssh_slot_t *slot)
         return true;
     }
 
+    slot->io_read_budget = SSH_TRANSPORT_WOLFSSH_READ_BUDGET;
     int result = wolfSSH_stream_send(
         slot->ssh, slot->tx_buffer + slot->tx_offset,
         (word32)(slot->tx_length - slot->tx_offset));