diff --git a/src/core/hle/kernel/errors.h b/src/core/hle/kernel/errors.h
index d17eb0cb6f..8097b38639 100644
--- a/src/core/hle/kernel/errors.h
+++ b/src/core/hle/kernel/errors.h
@@ -14,6 +14,7 @@ constexpr ResultCode ERR_MAX_CONNECTIONS_REACHED{ErrorModule::Kernel, 7};
 constexpr ResultCode ERR_INVALID_CAPABILITY_DESCRIPTOR{ErrorModule::Kernel, 14};
 constexpr ResultCode ERR_INVALID_SIZE{ErrorModule::Kernel, 101};
 constexpr ResultCode ERR_INVALID_ADDRESS{ErrorModule::Kernel, 102};
+constexpr ResultCode ERR_OUT_OF_MEMORY{ErrorModule::Kernel, 104};
 constexpr ResultCode ERR_HANDLE_TABLE_FULL{ErrorModule::Kernel, 105};
 constexpr ResultCode ERR_INVALID_ADDRESS_STATE{ErrorModule::Kernel, 106};
 constexpr ResultCode ERR_INVALID_MEMORY_PERMISSIONS{ErrorModule::Kernel, 108};
diff --git a/src/core/hle/kernel/handle_table.cpp b/src/core/hle/kernel/handle_table.cpp
index cd3508fa9a..84a9ca7fcc 100644
--- a/src/core/hle/kernel/handle_table.cpp
+++ b/src/core/hle/kernel/handle_table.cpp
@@ -28,17 +28,33 @@ HandleTable::HandleTable() {
 
 HandleTable::~HandleTable() = default;
 
+ResultCode HandleTable::SetSize(s32 handle_table_size) {
+    if (static_cast<u32>(handle_table_size) > MAX_COUNT) {
+        return ERR_OUT_OF_MEMORY;
+    }
+
+    // Values less than or equal to zero indicate to use the maximum allowable
+    // size for the handle table in the actual kernel, so we ignore the given
+    // value in that case, since we assume this by default unless this function
+    // is called.
+    if (handle_table_size > 0) {
+        table_size = static_cast<u16>(handle_table_size);
+    }
+
+    return RESULT_SUCCESS;
+}
+
 ResultVal<Handle> HandleTable::Create(SharedPtr<Object> obj) {
     DEBUG_ASSERT(obj != nullptr);
 
-    u16 slot = next_free_slot;
-    if (slot >= generations.size()) {
+    const u16 slot = next_free_slot;
+    if (slot >= table_size) {
         LOG_ERROR(Kernel, "Unable to allocate Handle, too many slots in use.");
         return ERR_HANDLE_TABLE_FULL;
     }
     next_free_slot = generations[slot];
 
-    u16 generation = next_generation++;
+    const u16 generation = next_generation++;
 
     // Overflow count so it fits in the 15 bits dedicated to the generation in the handle.
     // Horizon OS uses zero to represent an invalid handle, so skip to 1.
@@ -79,7 +95,7 @@ bool HandleTable::IsValid(Handle handle) const {
     std::size_t slot = GetSlot(handle);
     u16 generation = GetGeneration(handle);
 
-    return slot < MAX_COUNT && objects[slot] != nullptr && generations[slot] == generation;
+    return slot < table_size && objects[slot] != nullptr && generations[slot] == generation;
 }
 
 SharedPtr<Object> HandleTable::GetGeneric(Handle handle) const {
@@ -96,7 +112,7 @@ SharedPtr<Object> HandleTable::GetGeneric(Handle handle) const {
 }
 
 void HandleTable::Clear() {
-    for (u16 i = 0; i < MAX_COUNT; ++i) {
+    for (u16 i = 0; i < table_size; ++i) {
         generations[i] = i + 1;
         objects[i] = nullptr;
     }
diff --git a/src/core/hle/kernel/handle_table.h b/src/core/hle/kernel/handle_table.h
index 5fa55c7835..44901391bf 100644
--- a/src/core/hle/kernel/handle_table.h
+++ b/src/core/hle/kernel/handle_table.h
@@ -49,6 +49,20 @@ public:
     HandleTable();
     ~HandleTable();
 
+    /**
+     * Sets the number of handles that may be in use at one time
+     * for this handle table.
+     *
+     * @param handle_table_size The desired size to limit the handle table to.
+     *
+     * @returns an error code indicating if initialization was successful.
+     *          If initialization was not successful, then ERR_OUT_OF_MEMORY
+     *          will be returned.
+     *
+     * @pre handle_table_size must be within the range [0, 1024]
+     */
+    ResultCode SetSize(s32 handle_table_size);
+
     /**
      * Allocates a handle for the given object.
      * @return The created Handle or one of the following errors:
@@ -103,6 +117,13 @@ private:
      */
     std::array<u16, MAX_COUNT> generations;
 
+    /**
+     * The limited size of the handle table. This can be specified by process
+     * capabilities in order to restrict the overall number of handles that
+     * can be created in a process instance
+     */
+    u16 table_size = static_cast<u16>(MAX_COUNT);
+
     /**
      * Global counter of the number of created handles. Stored in `generations` when a handle is
      * created, and wraps around to 1 when it hits 0x8000.
diff --git a/src/core/hle/kernel/process.cpp b/src/core/hle/kernel/process.cpp
index c5aa19afaa..8009150e06 100644
--- a/src/core/hle/kernel/process.cpp
+++ b/src/core/hle/kernel/process.cpp
@@ -99,7 +99,13 @@ ResultCode Process::LoadFromMetadata(const FileSys::ProgramMetadata& metadata) {
     vm_manager.Reset(metadata.GetAddressSpaceType());
 
     const auto& caps = metadata.GetKernelCapabilities();
-    return capabilities.InitializeForUserProcess(caps.data(), caps.size(), vm_manager);
+    const auto capability_init_result =
+        capabilities.InitializeForUserProcess(caps.data(), caps.size(), vm_manager);
+    if (capability_init_result.IsError()) {
+        return capability_init_result;
+    }
+
+    return handle_table.SetSize(capabilities.GetHandleTableSize());
 }
 
 void Process::Run(VAddr entry_point, s32 main_thread_priority, u32 stack_size) {
diff --git a/src/core/hle/kernel/process_capability.cpp b/src/core/hle/kernel/process_capability.cpp
index 3a2164b25a..583e35b794 100644
--- a/src/core/hle/kernel/process_capability.cpp
+++ b/src/core/hle/kernel/process_capability.cpp
@@ -96,7 +96,7 @@ void ProcessCapabilities::InitializeForMetadatalessProcess() {
     interrupt_capabilities.set();
 
     // Allow using the maximum possible amount of handles
-    handle_table_size = static_cast<u32>(HandleTable::MAX_COUNT);
+    handle_table_size = static_cast<s32>(HandleTable::MAX_COUNT);
 
     // Allow all debugging capabilities.
     is_debuggable = true;
@@ -337,7 +337,7 @@ ResultCode ProcessCapabilities::HandleHandleTableFlags(u32 flags) {
         return ERR_RESERVED_VALUE;
     }
 
-    handle_table_size = (flags >> 16) & 0x3FF;
+    handle_table_size = static_cast<s32>((flags >> 16) & 0x3FF);
     return RESULT_SUCCESS;
 }
 
diff --git a/src/core/hle/kernel/process_capability.h b/src/core/hle/kernel/process_capability.h
index fbc8812a3f..5cdd80747c 100644
--- a/src/core/hle/kernel/process_capability.h
+++ b/src/core/hle/kernel/process_capability.h
@@ -156,7 +156,7 @@ public:
     }
 
     /// Gets the number of total allowable handles for the process' handle table.
-    u32 GetHandleTableSize() const {
+    s32 GetHandleTableSize() const {
         return handle_table_size;
     }
 
@@ -252,7 +252,7 @@ private:
     u64 core_mask = 0;
     u64 priority_mask = 0;
 
-    u32 handle_table_size = 0;
+    s32 handle_table_size = 0;
     u32 kernel_version = 0;
 
     ProgramType program_type = ProgramType::SysModule;