diff --git a/metadata-ingestion/setup.py b/metadata-ingestion/setup.py
index dbf02e2eece48..606c2b89303b7 100644
--- a/metadata-ingestion/setup.py
+++ b/metadata-ingestion/setup.py
@@ -276,6 +276,10 @@
     *path_spec_common,
 }
 
+threading_timeout_common = {
+    "stopit==1.1.2",
+}
+
 abs_base = {
     "azure-core==1.29.4",
     "azure-identity>=1.17.1",
@@ -493,9 +497,12 @@
     "starburst-trino-usage": sql_common | usage_common | trino,
     "nifi": {"requests", "packaging", "requests-gssapi"},
     "powerbi": (
-        microsoft_common
-        | {"lark[regex]==1.1.4", "sqlparse", "more-itertools"}
-        | sqlglot_lib
+        (
+            microsoft_common
+            | {"lark[regex]==1.1.4", "sqlparse", "more-itertools"}
+            | sqlglot_lib
+            | threading_timeout_common
+        )
     ),
     "powerbi-report-server": powerbi_report_server,
     "vertica": sql_common | {"vertica-sqlalchemy-dialect[vertica-python]==0.0.8.2"},
diff --git a/metadata-ingestion/src/datahub/ingestion/source/powerbi/m_query/parser.py b/metadata-ingestion/src/datahub/ingestion/source/powerbi/m_query/parser.py
index daf0aa5a4667d..086ce2c263b0c 100644
--- a/metadata-ingestion/src/datahub/ingestion/source/powerbi/m_query/parser.py
+++ b/metadata-ingestion/src/datahub/ingestion/source/powerbi/m_query/parser.py
@@ -1,6 +1,7 @@
 import functools
 import importlib.resources as pkg_resource
 import logging
+import os
 from typing import Dict, List
 
 import lark
@@ -19,9 +20,12 @@
     TRACE_POWERBI_MQUERY_PARSER,
 )
 from datahub.ingestion.source.powerbi.rest_api_wrapper.data_classes import Table
+from datahub.utilities.threading_timeout import TimeoutException, threading_timeout
 
 logger = logging.getLogger(__name__)
 
+_M_QUERY_PARSE_TIMEOUT = int(os.getenv("DATAHUB_POWERBI_M_QUERY_PARSE_TIMEOUT", 60))
+
 
 @functools.lru_cache(maxsize=1)
 def get_lark_parser() -> Lark:
@@ -41,7 +45,8 @@ def _parse_expression(expression: str) -> Tree:
     expression = expression.replace("\u00a0", " ")
 
     logger.debug(f"Parsing expression = {expression}")
-    parse_tree: Tree = lark_parser.parse(expression)
+    with threading_timeout(_M_QUERY_PARSE_TIMEOUT):
+        parse_tree: Tree = lark_parser.parse(expression)
 
     if TRACE_POWERBI_MQUERY_PARSER:
         logger.debug(parse_tree.pretty())
@@ -85,6 +90,13 @@ def get_upstream_tables(
             return []
     except KeyboardInterrupt:
         raise
+    except TimeoutException:
+        reporter.warning(
+            title="M-Query Parsing Timeout",
+            message=f"M-Query parsing timed out after {_M_QUERY_PARSE_TIMEOUT} seconds. Lineage for this table will not be extracted.",
+            context=f"table-full-name={table.full_name}, expression={table.expression}",
+        )
+        return []
     except (
         BaseException
     ) as e:  # TODO: Debug why BaseException is needed here and below.
diff --git a/metadata-ingestion/src/datahub/utilities/threading_timeout.py b/metadata-ingestion/src/datahub/utilities/threading_timeout.py
new file mode 100644
index 0000000000000..e2caf57ad2116
--- /dev/null
+++ b/metadata-ingestion/src/datahub/utilities/threading_timeout.py
@@ -0,0 +1,42 @@
+import contextlib
+import functools
+import platform
+from typing import ContextManager
+
+from stopit import ThreadingTimeout as _ThreadingTimeout, TimeoutException
+
+__all__ = ["threading_timeout", "TimeoutException"]
+
+
+@functools.lru_cache(maxsize=1)
+def _is_cpython() -> bool:
+    """Check if we're running on CPython."""
+    return platform.python_implementation() == "CPython"
+
+
+def threading_timeout(timeout: float) -> ContextManager[None]:
+    """A timeout context manager that uses stopit's ThreadingTimeout underneath.
+
+    This is only supported on CPython.
+    That's because stopit.ThreadingTimeout uses a CPython-internal method to raise
+    an exception (the timeout error) in another thread. See stopit.threadstop.async_raise.
+
+    Reference: https://github.com/glenfant/stopit
+
+    Args:
+        timeout: The timeout in seconds. If <= 0, no timeout is applied.
+
+    Raises:
+        RuntimeError: If the timeout is not supported on the current Python implementation.
+        TimeoutException: If the timeout is exceeded.
+    """
+
+    if timeout <= 0:
+        return contextlib.nullcontext()
+
+    if not _is_cpython():
+        raise RuntimeError(
+            f"Timeout is only supported on CPython, not {platform.python_implementation()}"
+        )
+
+    return _ThreadingTimeout(timeout, swallow_exc=False)
diff --git a/metadata-ingestion/tests/unit/utilities/test_threading_timeout.py b/metadata-ingestion/tests/unit/utilities/test_threading_timeout.py
new file mode 100644
index 0000000000000..c52d18bdd55c2
--- /dev/null
+++ b/metadata-ingestion/tests/unit/utilities/test_threading_timeout.py
@@ -0,0 +1,31 @@
+import time
+
+import pytest
+
+from datahub.utilities.threading_timeout import TimeoutException, threading_timeout
+
+
+def test_timeout_no_timeout():
+    # Should complete without raising an exception
+    with threading_timeout(1.0):
+        time.sleep(0.1)
+
+
+def test_timeout_raises():
+    # Should raise TimeoutException
+    with pytest.raises(TimeoutException):
+        with threading_timeout(0.1):
+            time.sleep(0.5)
+
+
+def test_timeout_early_exit():
+    # Test that context manager handles other exceptions properly
+    with pytest.raises(ValueError):
+        with threading_timeout(1.0):
+            raise ValueError("Early exit")
+
+
+def test_timeout_zero():
+    # Should not raise an exception
+    with threading_timeout(0.0):
+        pass