diff --git a/server/filestore_test.go b/server/filestore_test.go
index 4d1072cbf2d..e99385c0eb9 100644
--- a/server/filestore_test.go
+++ b/server/filestore_test.go
@@ -4321,6 +4321,55 @@ func TestFileStoreMaxMsgsPerSubject(t *testing.T) {
 	})
 }
 
+// Testing the case in https://github.com/nats-io/nats-server/issues/4247
+func TestFileStoreMaxMsgsAndMaxMsgsPerSubject(t *testing.T) {
+	testFileStoreAllPermutations(t, func(t *testing.T, fcfg FileStoreConfig) {
+		fcfg.BlockSize = 128
+		fcfg.CacheExpire = time.Second
+
+		fs, err := newFileStore(
+			fcfg,
+			StreamConfig{
+				Name:     "zzz",
+				Subjects: []string{"kv.>"},
+				Storage:  FileStorage,
+				Discard:  DiscardNew, MaxMsgs: 100, // Total stream policy
+				DiscardNewPer: true, MaxMsgsPer: 1, // Per-subject policy
+			},
+		)
+		require_NoError(t, err)
+		defer fs.Stop()
+
+		for i := 1; i <= 101; i++ {
+			subj := fmt.Sprintf("kv.%d", i)
+			_, _, err := fs.StoreMsg(subj, nil, []byte("value"))
+			if i == 101 {
+				// The 101th iteration should fail because MaxMsgs is set to
+				// 100 and the policy is DiscardNew.
+				require_Error(t, err)
+			} else {
+				require_NoError(t, err)
+			}
+		}
+
+		for i := 1; i <= 100; i++ {
+			subj := fmt.Sprintf("kv.%d", i)
+			_, _, err := fs.StoreMsg(subj, nil, []byte("value"))
+			// All of these iterations should fail because MaxMsgsPer is set
+			// to 1 and DiscardNewPer is set to true, forcing us to reject
+			// cases where there is already a message on this subject.
+			require_Error(t, err)
+		}
+
+		if state := fs.State(); state.Msgs != 100 || state.FirstSeq != 1 || state.LastSeq != 100 || len(state.Deleted) != 0 {
+			// There should be 100 messages exactly, as the 101st subject
+			// should have been rejected in the first loop, and any duplicates
+			// on the other subjects should have been rejected in the second loop.
+			t.Fatalf("Bad state: %+v", state)
+		}
+	})
+}
+
 func TestFileStoreSubjectStateCacheExpiration(t *testing.T) {
 	testFileStoreAllPermutations(t, func(t *testing.T, fcfg FileStoreConfig) {
 		fcfg.BlockSize = 32