diff --git a/cmd/crates/soroban-test/tests/it/integration/hello_world.rs b/cmd/crates/soroban-test/tests/it/integration/hello_world.rs
index 359252e377..63c580bef8 100644
--- a/cmd/crates/soroban-test/tests/it/integration/hello_world.rs
+++ b/cmd/crates/soroban-test/tests/it/integration/hello_world.rs
@@ -270,6 +270,27 @@ async fn contract_data_read() {
         .stdout(predicates::str::starts_with("COUNTER,2"));
 }
 
+#[tokio::test]
+pub fn half_max_instructions(){
+    let sandbox = TestEnv::new();
+    let wasm = HELLO_WORLD;
+    sandbox
+        .new_assert_cmd("contract")
+        .arg("deploy")
+        .arg("--fee")
+        .arg("1000000")
+        .arg("--instructions")
+        .arg(&(u32::MAX / 2).to_string())
+        .arg("--wasm")
+        .arg(wasm.path())
+        .arg("--salt")
+        .arg(TEST_SALT)
+        .arg("--ignore-checks")
+        .assert()
+        .stderr("")
+        .stdout_as_str()
+}
+
 async fn invoke_with_seed(sandbox: &TestEnv, id: &str, seed_phrase: &str) {
     invoke_with_source(sandbox, seed_phrase, id).await;
 }
diff --git a/cmd/crates/soroban-test/tests/it/integration/util.rs b/cmd/crates/soroban-test/tests/it/integration/util.rs
index e8471d4475..a929f3267b 100644
--- a/cmd/crates/soroban-test/tests/it/integration/util.rs
+++ b/cmd/crates/soroban-test/tests/it/integration/util.rs
@@ -33,8 +33,6 @@ pub fn deploy_contract(sandbox: &TestEnv, wasm: &Wasm) -> String {
         .arg("deploy")
         .arg("--fee")
         .arg("1000000")
-        .arg("--instructions")
-        .arg(&(u32::MAX / 2).to_string())
         .arg("--wasm")
         .arg(wasm.path())
         .arg("--salt")
diff --git a/cmd/soroban-cli/src/fee.rs b/cmd/soroban-cli/src/fee.rs
index 70f427bb9c..353fe6e5db 100644
--- a/cmd/soroban-cli/src/fee.rs
+++ b/cmd/soroban-cli/src/fee.rs
@@ -1,4 +1,5 @@
 use clap::arg;
+use soroban_env_host::xdr;
 use soroban_rpc::Assembled;
 
 use crate::commands::HEADING_RPC;
@@ -22,11 +23,24 @@ impl Args {
         if let Some(instructions) = self.instructions {
             txn.set_max_instructions(instructions)
         } else {
-            txn
+            add_padding_to_instructions(txn)
         }
     }
 }
 
+pub fn add_padding_to_instructions(txn: Assembled) -> Assembled {
+    let xdr::TransactionExt::V1(xdr::SorobanTransactionData {
+        resources: xdr::SorobanResources { instructions, .. },
+        ..
+    }) = txn.transaction().ext
+    else {
+        return txn;
+    };
+    // Start with 150%
+    let instructions = (instructions.checked_mul(150 / 100)).unwrap_or(instructions);
+    txn.set_max_instructions(instructions)
+}
+
 impl Default for Args {
     fn default() -> Self {
         Self {