diff --git a/test/drenv/providers/lima/k8s.yaml b/test/drenv/providers/lima/k8s.yaml
index 91142ee1c2..54af71950e 100644
--- a/test/drenv/providers/lima/k8s.yaml
+++ b/test/drenv/providers/lima/k8s.yaml
@@ -48,6 +48,12 @@ provision:
       net.ipv4.ip_forward                 = 1
       net.bridge.bridge-nf-call-ip6tables = 1
       EOF
+      # Avoid "failed to creating a fsnotify watcher: too many open files"
+      # errors with bigger setups.
+      cat <<EOF | sudo tee /etc/sysctl.d/99-fs-inotify.conf
+      fs.inotify.max_user_instances       = 8192
+      fs.inotify.max_user_watches         = 65536
+      EOF
       sysctl --system
       # Installing kubeadm, kubelet and kubectl
       export DEBIAN_FRONTEND=noninteractive