diff --git a/nativelink-worker/src/running_actions_manager.rs b/nativelink-worker/src/running_actions_manager.rs
index 3cf245d23..6ac9427e8 100644
--- a/nativelink-worker/src/running_actions_manager.rs
+++ b/nativelink-worker/src/running_actions_manager.rs
@@ -768,6 +768,12 @@ impl RunningActionImpl {
             ))
             .env_clear();
 
+        let requested_timeout = if self.action_info.timeout.is_zero() {
+            self.running_actions_manager.max_action_timeout
+        } else {
+            self.action_info.timeout
+        };
+
         let mut maybe_side_channel_file: Option<Cow<'_, OsStr>> = None;
         if let Some(additional_environment) = &self
             .running_actions_manager
@@ -784,7 +790,7 @@ impl RunningActionImpl {
                         .map_or_else(|| Cow::Borrowed(""), |v| v.as_str()),
                     EnvironmentSource::value(value) => Cow::Borrowed(value.as_str()),
                     EnvironmentSource::timeout_millis => {
-                        Cow::Owned(self.timeout.as_millis().to_string())
+                        Cow::Owned(requested_timeout.as_millis().to_string())
                     }
                     EnvironmentSource::side_channel_file => {
                         let file_cow =
@@ -929,7 +935,7 @@ impl RunningActionImpl {
                     };
 
                     let maybe_error_override = if let Some(side_channel_file) = maybe_side_channel_file {
-                        process_side_channel_file(side_channel_file.clone(), &args, self.timeout).await
+                        process_side_channel_file(side_channel_file.clone(), &args, requested_timeout).await
                         .err_tip(|| format!("Error processing side channel file: {side_channel_file:?}"))?
                     } else {
                         None
@@ -1777,7 +1783,7 @@ impl RunningActionsManager for RunningActionsManagerImpl {
                     output_upload_start_timestamp: SystemTime::UNIX_EPOCH,
                     output_upload_completed_timestamp: SystemTime::UNIX_EPOCH,
                 };
-                let timeout = if action_info.timeout == Duration::ZERO || self.timeout_handled_externally {
+                let timeout = if action_info.timeout.is_zero() || self.timeout_handled_externally {
                     self.max_action_timeout
                 } else {
                     action_info.timeout
diff --git a/nativelink-worker/tests/running_actions_manager_test.rs b/nativelink-worker/tests/running_actions_manager_test.rs
index f24c8f5d6..58d054c9d 100644
--- a/nativelink-worker/tests/running_actions_manager_test.rs
+++ b/nativelink-worker/tests/running_actions_manager_test.rs
@@ -3018,4 +3018,111 @@ exit 1
         );
         Ok(())
     }
+
+    #[tokio::test]
+    async fn running_actions_manager_respects_action_timeout(
+    ) -> Result<(), Box<dyn std::error::Error>> {
+        const WORKER_ID: &str = "foo_worker_id";
+        const SALT: u64 = 66;
+
+        let (_, _, cas_store, ac_store) = setup_stores().await?;
+        let root_action_directory = make_temp_path("root_work_directory");
+        fs::create_dir_all(&root_action_directory).await?;
+
+        // Ignore the sleep and immediately timeout.
+        static ACTION_TIMEOUT: i64 = 1;
+        fn test_monotonic_clock() -> SystemTime {
+            static CLOCK: AtomicU64 = AtomicU64::new(0);
+            monotonic_clock(&CLOCK)
+        }
+
+        let running_actions_manager = Arc::new(RunningActionsManagerImpl::new_with_callbacks(
+            RunningActionsManagerArgs {
+                root_action_directory,
+                execution_configuration: Default::default(),
+                cas_store: Pin::into_inner(cas_store.clone()),
+                ac_store: Some(Pin::into_inner(ac_store.clone())),
+                historical_store: Pin::into_inner(cas_store.clone()),
+                upload_action_result_config:
+                    &nativelink_config::cas_server::UploadActionResultConfig {
+                        upload_ac_results_strategy:
+                            nativelink_config::cas_server::UploadCacheResultsStrategy::never,
+                        ..Default::default()
+                    },
+                max_action_timeout: Duration::MAX,
+                timeout_handled_externally: false,
+            },
+            Callbacks {
+                now_fn: test_monotonic_clock,
+                // If action_timeout is the passed duration then return immeidately,
+                // which will cause the action to be killed and pass the test,
+                // otherwise return pending and fail the test.
+                sleep_fn: |duration| {
+                    assert_eq!(duration.as_secs(), ACTION_TIMEOUT as u64);
+                    Box::pin(futures::future::ready(()))
+                },
+            },
+        )?);
+        #[cfg(target_family = "unix")]
+        let arguments = vec!["sleep".to_string(), "2".to_string()];
+        #[cfg(target_family = "windows")]
+        let arguments = vec!["timeout".to_string(), "/t".to_string(), "2".to_string()];
+        let command = Command {
+            arguments,
+            working_directory: ".".to_string(),
+            ..Default::default()
+        };
+        let command_digest = serialize_and_upload_message(
+            &command,
+            cas_store.as_ref(),
+            &mut DigestHasherFunc::Sha256.hasher(),
+        )
+        .await?;
+        let input_root_digest = serialize_and_upload_message(
+            &Directory::default(),
+            cas_store.as_ref(),
+            &mut DigestHasherFunc::Sha256.hasher(),
+        )
+        .await?;
+        let action = Action {
+            command_digest: Some(command_digest.into()),
+            input_root_digest: Some(input_root_digest.into()),
+            platform: Some(Platform {
+                properties: vec![Property {
+                    name: "property_name".into(),
+                    value: "property_value".into(),
+                }],
+            }),
+            timeout: Some(prost_types::Duration {
+                seconds: ACTION_TIMEOUT,
+                nanos: 0,
+            }),
+            ..Default::default()
+        };
+        let action_digest = serialize_and_upload_message(
+            &action,
+            cas_store.as_ref(),
+            &mut DigestHasherFunc::Sha256.hasher(),
+        )
+        .await?;
+
+        let running_action_impl = running_actions_manager
+            .clone()
+            .create_and_add_action(
+                WORKER_ID.to_string(),
+                StartExecute {
+                    execute_request: Some(ExecuteRequest {
+                        action_digest: Some(action_digest.into()),
+                        ..Default::default()
+                    }),
+                    salt: SALT,
+                    queued_timestamp: Some(make_system_time(1000).into()),
+                },
+            )
+            .await?;
+
+        let result = run_action(running_action_impl).await?;
+        assert_eq!(result.exit_code, 9, "Action process should be been killed");
+        Ok(())
+    }
 }