diff --git a/server/jetstream_cluster_3_test.go b/server/jetstream_cluster_3_test.go
index 5cd21a3a..cb649da1 100644
--- a/server/jetstream_cluster_3_test.go
+++ b/server/jetstream_cluster_3_test.go
@@ -134,7 +134,6 @@ func TestJetStreamClusterDiscardNewAndMaxMsgsPerSubject(t *testing.T) {
 				Name:          "KV",
 				Subjects:      []string{"KV.>"},
 				Storage:       test.storage,
-				MaxMsgsPer:    1,
 				AllowDirect:   true,
 				DiscardNewPer: true,
 				MaxMsgs:       10,
@@ -145,8 +144,17 @@ func TestJetStreamClusterDiscardNewAndMaxMsgsPerSubject(t *testing.T) {
 			} else if apiErr.ErrCode != 10052 || !strings.Contains(apiErr.Description, "discard new per subject requires discard new policy") {
 				t.Fatalf("Got wrong error: %+v", apiErr)
 			}
+
 			// Set broad discard new policy to engage DiscardNewPer
 			cfg.Discard = DiscardNew
+			// We should also error here since we have not setup max msgs per subject.
+			if _, apiErr := addStreamWithError(t, nc, cfg); apiErr == nil {
+				t.Fatalf("Expected API error but got none")
+			} else if apiErr.ErrCode != 10052 || !strings.Contains(apiErr.Description, "discard new per subject requires max msgs per subject > 0") {
+				t.Fatalf("Got wrong error: %+v", apiErr)
+			}
+
+			cfg.MaxMsgsPer = 1
 			addStream(t, nc, cfg)
 
 			// We want to test that we reject new messages on a per subject basis if the
diff --git a/server/stream.go b/server/stream.go
index 8e24d844..be645873 100644
--- a/server/stream.go
+++ b/server/stream.go
@@ -996,8 +996,13 @@ func (s *Server) checkStreamCfg(config *StreamConfig, acc *Account) (StreamConfi
 	}
 
 	// Check for new discard new per subject, we require the discard policy to also be new.
-	if cfg.DiscardNewPer && cfg.Discard != DiscardNew {
-		return StreamConfig{}, NewJSStreamInvalidConfigError(fmt.Errorf("discard new per subject requires discard new policy to be set"))
+	if cfg.DiscardNewPer {
+		if cfg.Discard != DiscardNew {
+			return StreamConfig{}, NewJSStreamInvalidConfigError(fmt.Errorf("discard new per subject requires discard new policy to be set"))
+		}
+		if cfg.MaxMsgsPer <= 0 {
+			return StreamConfig{}, NewJSStreamInvalidConfigError(fmt.Errorf("discard new per subject requires max msgs per subject > 0"))
+		}
 	}
 
 	getStream := func(streamName string) (bool, StreamConfig) {
@@ -1326,8 +1331,13 @@ func (jsa *jsAccount) configUpdateCheck(old, new *StreamConfig, s *Server) (*Str
 	}
 
 	// Check on new discard new per subject.
-	if cfg.DiscardNewPer && old.Discard != DiscardNew {
-		return nil, NewJSStreamInvalidConfigError(fmt.Errorf("discard new per subject requires discard new policy to be set"))
+	if cfg.DiscardNewPer {
+		if cfg.Discard != DiscardNew {
+			return nil, NewJSStreamInvalidConfigError(fmt.Errorf("discard new per subject requires discard new policy to be set"))
+		}
+		if cfg.MaxMsgsPer <= 0 {
+			return nil, NewJSStreamInvalidConfigError(fmt.Errorf("discard new per subject requires max msgs per subject > 0"))
+		}
 	}
 
 	// Do some adjustments for being sealed.