diff --git a/pageserver/src/tenant/timeline/walreceiver/walreceiver_connection.rs b/pageserver/src/tenant/timeline/walreceiver/walreceiver_connection.rs
index 73eb42bb30..9cb53f46d1 100644
--- a/pageserver/src/tenant/timeline/walreceiver/walreceiver_connection.rs
+++ b/pageserver/src/tenant/timeline/walreceiver/walreceiver_connection.rs
@@ -343,6 +343,23 @@ pub(super) async fn handle_walreceiver_connection(
                             modification.commit(&ctx).await?;
                             uncommitted_records = 0;
                             filtered_records = 0;
+
+                            //
+                            // We should check checkpoint distance after appending each ingest_batch_size bytes because otherwise
+                            // layer size can become much larger than `checkpoint_distance`.
+                            // It can append because wal-sender is sending WAL using 125kb chucks and some WAL records can cause writing large
+                            // amount of data to key-value storage. So performing this check only after processing
+                            // all WAL records in the chunk, can cause huge L0 layer files.
+                            //
+                            timeline
+                                .check_checkpoint_distance()
+                                .await
+                                .with_context(|| {
+                                    format!(
+                                        "Failed to check checkpoint distance for timeline {}",
+                                        timeline.timeline_id
+                                    )
+                                })?;
                         }
                     }
 
diff --git a/test_runner/regress/test_layer_bloating.py b/test_runner/regress/test_layer_bloating.py
new file mode 100644
index 0000000000..70b115ad61
--- /dev/null
+++ b/test_runner/regress/test_layer_bloating.py
@@ -0,0 +1,66 @@
+import os
+import time
+
+import pytest
+from fixtures.log_helper import log
+from fixtures.neon_fixtures import (
+    NeonEnv,
+    logical_replication_sync,
+)
+from fixtures.pg_version import PgVersion
+
+
+def test_layer_bloating(neon_simple_env: NeonEnv, vanilla_pg):
+    env = neon_simple_env
+
+    if env.pg_version != PgVersion.V16:
+        pytest.skip("pg_log_standby_snapshot() function is available only in PG16")
+
+    timeline = env.neon_cli.create_branch("test_logical_replication", "empty")
+    endpoint = env.endpoints.create_start(
+        "test_logical_replication", config_lines=["log_statement=all"]
+    )
+
+    log.info("postgres is running on 'test_logical_replication' branch")
+    pg_conn = endpoint.connect()
+    cur = pg_conn.cursor()
+
+    # create table...
+    cur.execute("create table t(pk integer primary key)")
+    cur.execute("create publication pub1 for table t")
+    # Create slot to hold WAL
+    cur.execute("select pg_create_logical_replication_slot('my_slot', 'pgoutput')")
+
+    # now start subscriber
+    vanilla_pg.start()
+    vanilla_pg.safe_psql("create table t(pk integer primary key)")
+
+    connstr = endpoint.connstr().replace("'", "''")
+    log.info(f"ep connstr is {endpoint.connstr()}, subscriber connstr {vanilla_pg.connstr()}")
+    vanilla_pg.safe_psql(f"create subscription sub1 connection '{connstr}' publication pub1")
+
+    cur.execute(
+        """create or replace function create_snapshots(n integer) returns void as $$
+                   declare
+                     i integer;
+                   begin
+                     for i in 1..n loop
+                       perform pg_log_standby_snapshot();
+                     end loop;
+                   end; $$ language plpgsql"""
+    )
+    cur.execute("set statement_timeout=0")
+    cur.execute("select create_snapshots(10000)")
+    # Wait logical replication to sync
+    logical_replication_sync(vanilla_pg, endpoint)
+    time.sleep(10)
+
+    # Check layer file sizes
+    timeline_path = "{}/tenants/{}/timelines/{}/".format(
+        env.pageserver.workdir, env.initial_tenant, timeline
+    )
+    log.info(f"Check {timeline_path}")
+    for filename in os.listdir(timeline_path):
+        if filename.startswith("00000"):
+            log.info(f"layer {filename} size is {os.path.getsize(timeline_path + filename)}")
+            assert os.path.getsize(timeline_path + filename) < 512_000_000