diff --git a/xrspatial/geotiff/__init__.py b/xrspatial/geotiff/__init__.py
index 31c54f86c..60167b5d3 100644
--- a/xrspatial/geotiff/__init__.py
+++ b/xrspatial/geotiff/__init__.py
@@ -489,9 +489,13 @@ def open_geotiff(source: str | BinaryIO, *,
         ``on_gpu_failure='strict'`` is also set. No cross-backend
         numerical parity claim outside the Tier 1 codec set.
     max_pixels : int or None
-        [stable] Maximum allowed pixel count (width * height *
-        samples). None uses the default (~1 billion). Raise to read
-        legitimately large files.
+        [stable] Maximum allowed pixel count per materialised buffer.
+        Without ``chunks=`` the cap bounds the full windowed region
+        (width * height * samples); with ``chunks=`` the cap bounds
+        each chunk's decode buffer instead, so a small ``max_pixels``
+        no longer rejects a large lazy raster up front. None uses the
+        default (~1 billion). Raise it to read legitimately large
+        files.
     max_cloud_bytes : int or None, optional
         [advanced] fsspec cloud reads can run up cost on large objects;
         the budget defends against accidental large downloads but the
diff --git a/xrspatial/geotiff/_backends/dask.py b/xrspatial/geotiff/_backends/dask.py
index d21b65ee9..868c90cdc 100644
--- a/xrspatial/geotiff/_backends/dask.py
+++ b/xrspatial/geotiff/_backends/dask.py
@@ -85,12 +85,12 @@ def read_geotiff_dask(source: str, *,
         multi-band files, 2D for single-band). Selecting a single band
         produces a 2D DataArray.
     max_pixels : int or None
-        [stable] Maximum allowed pixel count (width * height *
-        samples) for the windowed region. None uses the reader default
-        (~1 billion). The cap is checked once up-front against the
-        lazy region; each chunk task also re-checks against
-        ``max_pixels`` so windowed reads stay bounded even when
-        ``read_to_array`` is invoked directly.
+        [stable] Maximum allowed pixel count for a single materialised
+        chunk buffer (chunk_h * chunk_w * samples). None uses the
+        reader default (~1 billion). The full windowed region can
+        exceed this cap; only per-chunk decodes are bounded. To bound
+        the whole region instead, call ``read_to_array`` directly (or
+        ``open_geotiff`` without ``chunks=``).
     name : str or None
         [stable] Name for the DataArray.
     band_nodata : {'first', None}, optional
@@ -468,26 +468,13 @@ def read_geotiff_dask(source: str, *,
             raise IndexError(
                 f"band={band} out of range for {n_bands}-band file.")
 
-    # Up-front pixel-count guard against the windowed extent. Chunk
-    # tasks re-check via read_to_array's own ``max_pixels`` (which we
-    # forward through ``_delayed_read_window``), but catching an
-    # oversized request before any task is scheduled saves the caller
-    # from a misleading "tile size exceeds max_pixels" error in a
-    # chunk that happens to align with the file's tile grid.
-    # ``max_pixels=None`` substitutes the module default to match the
-    # eager (``read_to_array``) and VRT chunked paths. Without the
-    # substitution the guard would skip entirely on ``None`` and a
-    # caller could build a lazy graph over a region far larger than the
-    # documented safety cap.
-    from .._reader import MAX_PIXELS_DEFAULT as _MAX_PIXELS_DEFAULT
-    effective_max_pixels = (max_pixels if max_pixels is not None
-                            else _MAX_PIXELS_DEFAULT)
-    eff_bands = (1 if band is not None
-                 else (n_bands if n_bands > 0 else 1))
-    if full_h * full_w * eff_bands > effective_max_pixels:
-        raise ValueError(
-            f"Requested region {full_h}x{full_w}x{eff_bands} "
-            f"exceeds max_pixels={effective_max_pixels:,}.")
+    # ``max_pixels`` bounds each chunk's materialised buffer, not the
+    # full windowed region. The per-chunk cap is enforced inside
+    # ``_delayed_read_window`` -> ``_read_to_array`` -> ``_check_dimensions``
+    # against the chunk's output window. The eager (no-``chunks``) path
+    # still applies the cap to the full image, so callers who want the
+    # old semantics can drop ``chunks=`` to get a single-shot decode
+    # under the same limit.
 
     if name is None:
         import os
diff --git a/xrspatial/geotiff/_backends/gpu.py b/xrspatial/geotiff/_backends/gpu.py
index bd97c9e50..7db2f11bb 100644
--- a/xrspatial/geotiff/_backends/gpu.py
+++ b/xrspatial/geotiff/_backends/gpu.py
@@ -140,8 +140,12 @@ def read_geotiff_gpu(source: str, *,
     name : str or None
         [experimental] Name for the DataArray.
     max_pixels : int or None
-        [experimental] Maximum allowed pixel count
-        (width * height * samples). None uses the default (~1 billion).
+        [experimental] Maximum allowed pixel count per materialised
+        buffer. With ``chunks=None`` it bounds the full image
+        (width * height * samples); with ``chunks=`` it bounds the
+        per-chunk decode buffer instead so chunked reads of large
+        rasters do not need to widen the cap to the full file. None
+        uses the default (~1 billion).
     on_gpu_failure : {'auto', 'strict'}, default 'auto'
         [experimental] Behaviour when any GPU decode stage raises an
         exception.
@@ -1485,7 +1489,11 @@ def _read_geotiff_gpu_chunked_gds(source, ifd, geo_info, header, *,
     offsets = list(ifd.tile_offsets)
     byte_counts = list(ifd.tile_byte_counts)
 
-    _check_dimensions(full_w, full_h, samples, max_pixels)
+    # Per-TIFF-tile guard: hostile-input defense against a forged
+    # tile-width / tile-length tag, independent of the chunk-scoped
+    # ``max_pixels`` contract below. A real chunk task allocates a
+    # buffer the chunk's shape, not a single tile, so the chunk-extent
+    # guard further down is what bounds peak GPU memory per task.
     _check_dimensions(tw, th, samples, max_pixels)
     validate_tile_layout(ifd)
 
@@ -1532,6 +1540,12 @@ def _read_geotiff_gpu_chunked_gds(source, ifd, geo_info, header, *,
     if ch_h <= 0 or ch_w <= 0:
         raise ValueError(f"Invalid chunks: {chunks}")
 
+    # Chunk-extent guard: each ``_chunk_task`` allocates a
+    # ``(ch_h, ch_w, samples)`` buffer on the GPU. Cap that against
+    # ``max_pixels`` to match the per-chunk semantics the CPU dask
+    # path enforces inside ``_read_to_array``.
+    _check_dimensions(ch_w, ch_h, samples, max_pixels)
+
     # Validate band kwarg against the file's band count.
     n_bands_out = samples if samples > 1 else 0
     if band is not None:
diff --git a/xrspatial/geotiff/tests/integration/test_dask_pipeline.py b/xrspatial/geotiff/tests/integration/test_dask_pipeline.py
index 927756474..acce7e03f 100644
--- a/xrspatial/geotiff/tests/integration/test_dask_pipeline.py
+++ b/xrspatial/geotiff/tests/integration/test_dask_pipeline.py
@@ -252,22 +252,36 @@ def _write_oversized_dask_max_pixels_default_guard(path, *, h: int, w: int) -> N
     path.write_bytes(bytes(raw))
 
 
-def test_default_max_pixels_guard_fires_for_full_region(tmp_path):
-    """``max_pixels=None`` must apply the module default cap at the
-    up-front region guard, matching the eager / VRT paths.
+def test_default_max_pixels_guard_does_not_fire_up_front(tmp_path):
+    """The dask path no longer rejects an oversized full image at graph-
+    build time (#2501). The cap is now per-chunk, so a forged
+    multi-billion-pixel header builds a lazy graph without erroring;
+    each chunk task decodes against ``max_pixels`` separately.
     """
-    path = tmp_path / "tmp_1838_oversized.tif"
+    path = tmp_path / "tmp_2501_oversized.tif"
     side = int((MAX_PIXELS_DEFAULT ** 0.5)) + 2
     _write_oversized_dask_max_pixels_default_guard(path, h=side, w=side)
-    with pytest.raises(ValueError, match=r"max_pixels"):
-        read_geotiff_dask(str(path))
+    # The graph builds; the up-front guard is gone. Chunk-level decode
+    # may still fail when a task actually runs, but that is a separate
+    # path. ``read_geotiff_dask(...)`` itself returns a DataArray.
+    da = read_geotiff_dask(str(path))
+    assert da.shape == (side, side)
 
 
-def test_explicit_max_pixels_still_enforced(tmp_path):
-    path = tmp_path / "tmp_1838_explicit_cap.tif"
-    _write_oversized_dask_max_pixels_default_guard(path, h=2048, w=2048)
-    with pytest.raises(ValueError, match=r"max_pixels"):
-        read_geotiff_dask(str(path), max_pixels=1024)
+def test_explicit_max_pixels_enforced_per_chunk(tmp_path):
+    """Per-chunk decode honours ``max_pixels`` even when the full image
+    would have fit under it (#2501). Build a real 64x64 file, request
+    chunks of 32, and set ``max_pixels`` below the per-chunk cost.
+    """
+    arr = np.arange(64 * 64, dtype=np.uint8).reshape(64, 64)
+    path = tmp_path / "tmp_2501_per_chunk_cap.tif"
+    tifffile_dask_max_pixels_default_guard.imwrite(
+        str(path), arr, tile=(16, 16),
+        photometric="minisblack", compression="none")
+    # 32x32 chunk = 1024 pixels; cap is 100. Graph builds, compute fails.
+    da = read_geotiff_dask(str(path), chunks=32, max_pixels=100)
+    with pytest.raises(ValueError, match="exceed the safety limit"):
+        da.compute()
 
 
 def test_small_region_unaffected(tmp_path):
diff --git a/xrspatial/geotiff/tests/parity/test_pixel_equality.py b/xrspatial/geotiff/tests/parity/test_pixel_equality.py
index 0ffcb31f6..4967280b8 100644
--- a/xrspatial/geotiff/tests/parity/test_pixel_equality.py
+++ b/xrspatial/geotiff/tests/parity/test_pixel_equality.py
@@ -479,11 +479,49 @@ def test_read_geotiff_dask_band_via_dispatcher(small_multiband_tiff_path):
     np.testing.assert_array_equal(da.values, arr[:, :, 2])
 
 
-def test_read_geotiff_dask_max_pixels_rejects_oversized(small_tiff_path):
-    """``max_pixels=`` rejects the windowed region up front."""
-    path, _ = small_tiff_path
-    with pytest.raises(ValueError, match="exceeds max_pixels"):
-        read_geotiff_dask(path, chunks=2, max_pixels=10)
+def test_read_geotiff_dask_max_pixels_bounds_chunk_not_full_image(
+        small_tiff_path):
+    """``max_pixels`` bounds each chunk, not the full lazy region (#2501).
+
+    The 4x6 fixture is 24 pixels in total. With ``chunks=2`` each chunk
+    is at most 2x2 = 4 pixels, so ``max_pixels=10`` permits the read
+    even though the full image exceeds the cap. With ``chunks=4`` a
+    chunk reaches 4x4 = 16 pixels, which trips the per-chunk guard at
+    ``.compute()`` time.
+    """
+    path, arr = small_tiff_path
+
+    # Per-chunk cap is satisfied; full image is not. Should succeed.
+    da = read_geotiff_dask(path, chunks=2, max_pixels=10)
+    np.testing.assert_array_equal(da.values, arr)
+
+    # Per-chunk cap is exceeded. The graph builds, but the chunk task
+    # raises the safety-limit error on compute.
+    da = read_geotiff_dask(path, chunks=4, max_pixels=10)
+    with pytest.raises(ValueError, match="exceed the safety limit"):
+        da.compute()
+
+
+def test_read_geotiff_dask_max_pixels_chunk_includes_band_count(
+        small_multiband_tiff_path):
+    """Multi-band: per-chunk cap is ``chunk_h * chunk_w * samples`` (#2501).
+
+    The 4x6x3 fixture is 72 pixels. With ``chunks=2`` each chunk
+    materialises 2x2x3 = 12 pixels, fitting under ``max_pixels=20``
+    even though the full image (72) does not. With ``chunks=4`` the
+    largest chunk is 4x4x3 = 48 pixels and the per-chunk decode trips
+    the cap on compute.
+    """
+    path, arr = small_multiband_tiff_path
+
+    # Per-chunk cap satisfied (12 px <= 20) but full image (72) is not.
+    da = read_geotiff_dask(path, chunks=2, max_pixels=20)
+    np.testing.assert_array_equal(da.values, arr)
+
+    # Per-chunk cap exceeded (48 px > 20). Graph builds, compute raises.
+    da = read_geotiff_dask(path, chunks=4, max_pixels=20)
+    with pytest.raises(ValueError, match="exceed the safety limit"):
+        da.compute()
 
 
 def test_read_geotiff_dask_window_band_combined(small_multiband_tiff_path):
diff --git a/xrspatial/geotiff/tests/test_security.py b/xrspatial/geotiff/tests/test_security.py
index c117347e5..d1b2d253a 100644
--- a/xrspatial/geotiff/tests/test_security.py
+++ b/xrspatial/geotiff/tests/test_security.py
@@ -131,6 +131,38 @@ def test_open_geotiff_max_pixels(self, tmp_path):
         with pytest.raises(ValueError, match="exceed the safety limit"):
             open_geotiff(path, max_pixels=10)
 
+    def test_open_geotiff_max_pixels_chunked_bounds_chunk(self, tmp_path):
+        """``open_geotiff(chunks=...)`` scopes max_pixels to the chunk (#2501).
+
+        A 6x6 image is 36 pixels. ``max_pixels=10`` would reject the eager
+        read, but ``chunks=2`` keeps each materialised buffer at 2x2=4
+        pixels, well under the cap. The cap still fires when a chunk
+        actually exceeds it.
+        """
+        from xrspatial.geotiff import open_geotiff
+
+        expected = np.arange(36, dtype=np.float32).reshape(6, 6)
+        data = make_minimal_tiff(6, 6, np.dtype('float32'),
+                                 pixel_data=expected)
+        path = str(tmp_path / "small_2501_chunked.tif")
+        with open(path, 'wb') as f:
+            f.write(data)
+
+        # Eager path still rejects: full image > max_pixels.
+        with pytest.raises(ValueError, match="exceed the safety limit"):
+            open_geotiff(path, max_pixels=10)
+
+        # Dask path with chunks small enough to fit: succeeds and
+        # round-trips the values.
+        da = open_geotiff(path, chunks=2, max_pixels=10)
+        np.testing.assert_array_equal(da.values, expected)
+
+        # Dask path with chunks too large for the cap: per-chunk guard
+        # fires at compute time.
+        da = open_geotiff(path, chunks=4, max_pixels=10)
+        with pytest.raises(ValueError, match="exceed the safety limit"):
+            da.compute()
+
 
 # ---------------------------------------------------------------------------
 # Cat 1c: Tile dimension guard
diff --git a/xrspatial/geotiff/tests/unit/test_signatures.py b/xrspatial/geotiff/tests/unit/test_signatures.py
index a599f74bb..cf69efdc1 100644
--- a/xrspatial/geotiff/tests/unit/test_signatures.py
+++ b/xrspatial/geotiff/tests/unit/test_signatures.py
@@ -2077,10 +2077,20 @@ def test_read_geotiff_gpu_max_pixels_rejects_oversized(small_tiff_path):
 
 @requires_gpu
 def test_read_geotiff_gpu_chunks_max_pixels_rejects_oversized(small_tiff_path):
-    """Dask+GPU path also enforces ``max_pixels``."""
+    """Dask+GPU path enforces ``max_pixels`` per chunk (#2501).
+
+    The cap is now chunk-scoped, so a per-chunk allocation over
+    ``max_pixels`` raises either at graph-build (the GDS fast path's
+    per-tile and per-chunk checks against the 16x16 TIFF tile dim and
+    the 4x4 chunk shape) or on ``.compute()`` (the CPU-fallback path's
+    per-chunk ``_check_dimensions`` inside ``read_to_array``). Wrap
+    both calls in ``pytest.raises`` so either branch satisfies the
+    test depending on whether KvikIO is installed.
+    """
     path, _ = small_tiff_path
     with pytest.raises(ValueError, match="safety limit|exceeds max_pixels"):
-        read_geotiff_gpu(path, chunks=4, max_pixels=10)
+        da = read_geotiff_gpu(path, chunks=4, max_pixels=10)
+        da.compute()
 
 
 def test_open_geotiff_chunks_name_flows_through(small_tiff_path):