diff --git a/core/src/consensus.rs b/core/src/consensus.rs
index ee3e36b7..8fd1610a 100644
--- a/core/src/consensus.rs
+++ b/core/src/consensus.rs
@@ -85,10 +85,15 @@ pub const BLOCK_KERNEL_WEIGHT: usize = 2;
 /// Total maximum block weight
 pub const MAX_BLOCK_WEIGHT: usize = 80_000;
 
+/// Maximum inputs for a block (issue#261)
+/// Hundreds of inputs + 1 output might be slow to validate (issue#258)
+pub const MAX_BLOCK_INPUTS: usize = 300_000; // soft fork down when too_high
+
 /// Whether a block exceeds the maximum acceptable weight
 pub fn exceeds_weight(input_len: usize, output_len: usize, kernel_len: usize) -> bool {
 	input_len * BLOCK_INPUT_WEIGHT + output_len * BLOCK_OUTPUT_WEIGHT
 		+ kernel_len * BLOCK_KERNEL_WEIGHT > MAX_BLOCK_WEIGHT
+		|| input_len > MAX_BLOCK_INPUTS
 }
 
 /// Fork every 250,000 blocks for first 2 years, simple number and just a
diff --git a/core/src/core/transaction.rs b/core/src/core/transaction.rs
index 44d57565..ee7db3d5 100644
--- a/core/src/core/transaction.rs
+++ b/core/src/core/transaction.rs
@@ -22,6 +22,7 @@ use util::secp::pedersen::{Commitment, RangeProof};
 use std::cmp::Ordering;
 use std::ops;
 
+use consensus;
 use core::Committed;
 use core::hash::Hashed;
 use core::pmmr::Summable;
@@ -72,6 +73,8 @@ pub enum Error {
 	/// Underlying Secp256k1 error (signature validation or invalid public
 	/// key typically)
 	Secp(secp::Error),
+	/// Restrict number of incoming inputs
+	TooManyInputs,
 }
 
 impl From<secp::Error> for Error {
@@ -347,6 +350,9 @@ impl Transaction {
 		if self.fee & 1 != 0 {
 			return Err(Error::OddFee);
 		}
+		if self.inputs.len() > consensus::MAX_BLOCK_INPUTS {
+			return Err(Error::TooManyInputs);
+		}
 		for out in &self.outputs {
 			out.verify_proof()?;
 		}