diff --git a/tests/cli_tests/zboxcli_list_file_test.go b/tests/cli_tests/zboxcli_list_file_test.go
index 7b548eaa0a..7030831b8d 100644
--- a/tests/cli_tests/zboxcli_list_file_test.go
+++ b/tests/cli_tests/zboxcli_list_file_test.go
@@ -609,7 +609,6 @@ func createFileWithSize(name string, size int64) error {
 func generateRandomTestFileName(t *test.SystemTest) string {
 	path := strings.TrimSuffix(os.TempDir(), string(os.PathSeparator))
 
-	//FIXME: Filenames longer than 100 characters are rejected see https://github.com/0chain/zboxcli/issues/249
 	randomFilename := cliutils.RandomAlphaNumericString(10)
 	return fmt.Sprintf("%s%s%s_test.txt", path, string(os.PathSeparator), randomFilename)
 }
diff --git a/tests/cli_tests/zboxcli_max_file_test.go b/tests/cli_tests/zboxcli_max_file_test.go
new file mode 100644
index 0000000000..53ebba3fb0
--- /dev/null
+++ b/tests/cli_tests/zboxcli_max_file_test.go
@@ -0,0 +1,98 @@
+package cli_tests
+
+import (
+	"path/filepath"
+	"strings"
+	"testing"
+	"time"
+
+	"github.com/0chain/system_test/internal/api/util/test"
+	"github.com/0chain/system_test/tests/tokenomics_tests/utils"
+	"github.com/stretchr/testify/require"
+)
+
+func TestMaxFileSize(testSetup *testing.T) {
+	t := test.NewSystemTest(testSetup)
+
+	t.TestSetup("Create new owner wallet", func() {
+		output, err := updateStorageSCConfig(t, scOwnerWallet, map[string]string{
+			"max_file_size": "1024",
+		}, true)
+		require.Nil(t, err, strings.Join(output, "\n"))
+
+		time.Sleep(2 * time.Minute) // Wait for config to take effect on blobber
+	})
+
+	t.Cleanup(func() {
+		output, err := updateStorageSCConfig(t, scOwnerWallet, map[string]string{
+			"max_file_size": "1000000000000",
+		}, true)
+		require.Nil(t, err, strings.Join(output, "\n"))
+	})
+
+	t.Run("should be able to upload files equal or smaller than max_file_size per blobber", func(t *test.SystemTest) {
+		output, err := utils.CreateWallet(t, configPath)
+		require.Nil(t, err, "Error registering wallet", strings.Join(output, "\n"))
+
+		_, err = utils.ExecuteFaucetWithTokens(t, configPath, 9)
+		require.Nil(t, err, "Error executing faucet", strings.Join(output, "\n"))
+
+		output, err = utils.CreateNewAllocation(t, configPath, utils.CreateParams(map[string]interface{}{
+			"size":   10 * MB,
+			"data":   1,
+			"lock":   2,
+			"parity": 1,
+		}))
+		require.Nil(t, err, "Error creating allocation", strings.Join(output, "\n"))
+
+		allocationId, err := utils.GetAllocationID(output[0])
+		require.Nil(t, err, "Error getting allocation ID", strings.Join(output, "\n"))
+
+		remotepath := "/dir/"
+		filesize := 1024
+		filename := utils.GenerateRandomTestFileName(t)
+
+		err = utils.CreateFileWithSize(filename, int64(filesize))
+		require.Nil(t, err)
+
+		output, err = utils.UploadFile(t, configPath, map[string]interface{}{
+			"allocation": allocationId,
+			"remotepath": remotepath + filepath.Base(filename),
+			"localpath":  filename,
+		}, true)
+		require.Nil(t, err, "error uploading file", strings.Join(output, "\n"))
+	})
+
+	t.Run("upload should fail on sizes higher than max_file_size per blobber", func(t *test.SystemTest) {
+		output, err := utils.CreateWallet(t, configPath)
+		require.Nil(t, err, "Error registering wallet", strings.Join(output, "\n"))
+
+		_, err = utils.ExecuteFaucetWithTokens(t, configPath, 9)
+		require.Nil(t, err, "Error executing faucet", strings.Join(output, "\n"))
+
+		output, err = utils.CreateNewAllocation(t, configPath, utils.CreateParams(map[string]interface{}{
+			"size":   10 * MB,
+			"data":   1,
+			"lock":   2,
+			"parity": 1,
+		}))
+		require.Nil(t, err, "Error creating allocation", strings.Join(output, "\n"))
+
+		allocationId, err := utils.GetAllocationID(output[0])
+		require.Nil(t, err, "Error getting allocation ID", strings.Join(output, "\n"))
+
+		remotepath := "/dir/"
+		filesize := 2048
+		filename := utils.GenerateRandomTestFileName(t)
+
+		err = utils.CreateFileWithSize(filename, int64(filesize))
+		require.Nil(t, err)
+
+		_, err = utils.UploadFile(t, configPath, map[string]interface{}{
+			"allocation": allocationId,
+			"remotepath": remotepath + filepath.Base(filename),
+			"localpath":  filename,
+		}, false)
+		require.Error(t, err, "Upload should fail")
+	})
+}
diff --git a/tests/cli_tests/zboxcli_update_allocation_test.go b/tests/cli_tests/zboxcli_update_allocation_test.go
index 29b34e44e9..3cf0d76ea6 100644
--- a/tests/cli_tests/zboxcli_update_allocation_test.go
+++ b/tests/cli_tests/zboxcli_update_allocation_test.go
@@ -792,10 +792,8 @@ func TestUpdateAllocation(testSetup *testing.T) {
 func setupAndParseAllocation(t *test.SystemTest, cliConfigFilename string, extraParams ...map[string]interface{}) (string, climodel.Allocation) {
 	allocationID := setupAllocation(t, cliConfigFilename, extraParams...)
 
-	for i := 0; i < 2; i++ {
-		_, err := executeFaucetWithTokens(t, configPath, 10)
-		require.NoError(t, err, "faucet execution failed")
-	}
+	_, err := executeFaucetWithTokens(t, configPath, 20)
+	require.NoError(t, err, "faucet execution failed")
 
 	allocations := parseListAllocations(t, cliConfigFilename)
 	allocation, ok := allocations[allocationID]