diff --git a/excalidraw-app/App.tsx b/excalidraw-app/App.tsx
index 883482286..54bb87f4b 100644
--- a/excalidraw-app/App.tsx
+++ b/excalidraw-app/App.tsx
@@ -77,6 +77,7 @@ import { newElementWith } from "../packages/excalidraw/element/mutateElement";
 import { isInitializedImageElement } from "../packages/excalidraw/element/typeChecks";
 import { loadFilesFromFirebase } from "./data/firebase";
 import {
+  isLocalStorageOverflowAtom,
   LibraryIndexedDBAdapter,
   LibraryLocalStorageMigrationAdapter,
   LocalData,
@@ -364,6 +365,20 @@ const ExcalidrawWrapper = () => {
   });
   const collabError = useAtomValue(collabErrorIndicatorAtom);
 
+  const isLocalStorageOverflow = useAtomValue(isLocalStorageOverflowAtom);
+
+  useEffect(() => {
+    if (isLocalStorageOverflow) {
+      if (excalidrawAPI) {
+        excalidrawAPI.setToast({
+          message: t("alerts.localStorageOverflow"),
+          closable: true,
+          duration: Infinity,
+        });
+      }
+    }
+  }, [isLocalStorageOverflow, excalidrawAPI]);
+
   useHandleLibrary({
     excalidrawAPI,
     adapter: LibraryIndexedDBAdapter,
diff --git a/excalidraw-app/data/LocalData.ts b/excalidraw-app/data/LocalData.ts
index 2e524522c..bbc4f7996 100644
--- a/excalidraw-app/data/LocalData.ts
+++ b/excalidraw-app/data/LocalData.ts
@@ -43,6 +43,12 @@ import { FileManager } from "./FileManager";
 import { Locker } from "./Locker";
 import { updateBrowserStateVersion } from "./tabSync";
 
+// Global state to inform the app about local storage overflow
+import { atom } from "jotai";
+import { appJotaiStore } from "../app-jotai";
+
+export const isLocalStorageOverflowAtom = atom(false);
+
 const filesStore = createStore("files-db", "files-store");
 
 class LocalFileManager extends FileManager {
@@ -68,7 +74,7 @@ class LocalFileManager extends FileManager {
 const saveDataStateToLocalStorage = (
   elements: readonly ExcalidrawElement[],
   appState: AppState,
-) => {
+): boolean => {
   try {
     const _appState = clearAppStateForLocalStorage(appState);
 
@@ -88,9 +94,18 @@ const saveDataStateToLocalStorage = (
       JSON.stringify(_appState),
     );
     updateBrowserStateVersion(STORAGE_KEYS.VERSION_DATA_STATE);
+    appJotaiStore.set(isLocalStorageOverflowAtom, false);
+    return true;
   } catch (error: any) {
-    // Unable to access window.localStorage
-    console.error(error);
+    // Quota exceeded error
+    if (error.name === "QuotaExceededError") {
+      // Set global state to inform the app about local storage overflow
+      appJotaiStore.set(isLocalStorageOverflowAtom, true);
+    } else {
+      console.error(error);
+    }
+
+    return false;
   }
 };
 
@@ -104,7 +119,12 @@ export class LocalData {
       files: BinaryFiles,
       onFilesSaved: () => void,
     ) => {
-      saveDataStateToLocalStorage(elements, appState);
+      const didSave = saveDataStateToLocalStorage(elements, appState);
+
+      // if saving to localStorage failed, don't attempt to save files
+      if (!didSave) {
+        return;
+      }
 
       await this.fileStorage.saveFiles({
         elements,
diff --git a/packages/excalidraw/locales/en.json b/packages/excalidraw/locales/en.json
index 85c5076f3..e38839ac6 100644
--- a/packages/excalidraw/locales/en.json
+++ b/packages/excalidraw/locales/en.json
@@ -238,7 +238,8 @@
     "resetLibrary": "This will clear your library. Are you sure?",
     "removeItemsFromsLibrary": "Delete {{count}} item(s) from library?",
     "invalidEncryptionKey": "Encryption key must be of 22 characters. Live collaboration is disabled.",
-    "collabOfflineWarning": "No internet connection available.\nYour changes will not be saved!"
+    "collabOfflineWarning": "No internet connection available.\nYour changes will not be saved!",
+    "localStorageOverflow": "Save failed. Too many items!"
   },
   "errors": {
     "unsupportedFileType": "Unsupported file type.",