diff --git a/CHANGELOG.md b/CHANGELOG.md
index 67debfab91..e1e8642fe8 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -34,6 +34,7 @@ This project adheres to [Semantic Versioning](http://semver.org/).
  - #3373, Remove rejected mediatype `application/vnd.pgrst.object+json` from response - @taimoorzaeem
  - #3418, Fix OpenAPI not tagging a FK column correctly on O2O relationships - @laurenceisla
  - #3256, Fix wrong http status for pg error `42P17 infinite recursion` - @taimoorzaeem
+ - #3267, Fix wrong `503 Service Unavailable` on pg error `53400` - @taimoorzaeem
 
 ### Deprecated
 
diff --git a/src/PostgREST/Error.hs b/src/PostgREST/Error.hs
index 31288bf83c..488a1c6c3b 100644
--- a/src/PostgREST/Error.hs
+++ b/src/PostgREST/Error.hs
@@ -474,7 +474,7 @@ pgErrorStatus authed (SQL.SessionUsageError (SQL.QueryError _ _ (SQL.ResultError
         '3':'9':_ -> HTTP.status500 -- external routine invocation
         '3':'B':_ -> HTTP.status500 -- savepoint exception
         '4':'0':_ -> HTTP.status500 -- tx rollback
-        '5':'3':_ -> HTTP.status503 -- insufficient resources
+        '5':'3':_ -> HTTP.status500 -- insufficient resources
         '5':'4':_ -> HTTP.status413 -- too complex
         '5':'5':_ -> HTTP.status500 -- obj not on prereq state
         '5':'7':'P':'0':'1':_ -> HTTP.status503 -- terminating connection due to administrator command
diff --git a/test/spec/Feature/Query/RpcSpec.hs b/test/spec/Feature/Query/RpcSpec.hs
index 4887e8face..4edfa38d08 100644
--- a/test/spec/Feature/Query/RpcSpec.hs
+++ b/test/spec/Feature/Query/RpcSpec.hs
@@ -1466,3 +1466,10 @@ spec actualPgVersion =
         get "/rpc/raise_sqlstate_missing_details" `shouldRespondWith`
           [json|{"code":"PGRST121","message":"The message and detail field of RAISE 'PGRST' error expects JSON","details":null,"hint":null}|]
           { matchStatus = 500 }
+
+    context "test function temp_file_limit" $
+      let auth = authHeaderJWT "eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJyb2xlIjoicG9zdGdyZXN0X3Rlc3Rfc3VwZXJ1c2VyIiwiaWQiOiJqZG9lIn0.LQ-qx0ArBnfkwQQhIHKF5cS-lzl0gnTPI8NLoPbL5Fg" in
+      it "should return http status 500" $
+        request methodGet "/rpc/temp_file_limit" [auth] "" `shouldRespondWith`
+          [json|{"code":"53400","message":"temporary file size exceeds temp_file_limit (1kB)","details":null,"hint":null}|]
+          { matchStatus = 500 }
diff --git a/test/spec/fixtures/roles.sql b/test/spec/fixtures/roles.sql
index a628bf1e07..3590c6edbc 100644
--- a/test/spec/fixtures/roles.sql
+++ b/test/spec/fixtures/roles.sql
@@ -1,6 +1,7 @@
-DROP ROLE IF EXISTS postgrest_test_anonymous, postgrest_test_default_role, postgrest_test_author;
+DROP ROLE IF EXISTS postgrest_test_anonymous, postgrest_test_default_role, postgrest_test_author, postgrest_test_superuser;
 CREATE ROLE postgrest_test_anonymous;
 CREATE ROLE postgrest_test_default_role;
 CREATE ROLE postgrest_test_author;
+CREATE ROLE postgrest_test_superuser WITH SUPERUSER;
 
-GRANT postgrest_test_anonymous, postgrest_test_default_role, postgrest_test_author TO :PGUSER;
+GRANT postgrest_test_anonymous, postgrest_test_default_role, postgrest_test_author, postgrest_test_superuser TO :PGUSER;
diff --git a/test/spec/fixtures/schema.sql b/test/spec/fixtures/schema.sql
index e8d0f848da..8b7458d676 100644
--- a/test/spec/fixtures/schema.sql
+++ b/test/spec/fixtures/schema.sql
@@ -3771,3 +3771,9 @@ select * from test.projects;
 
 create or replace view test.infinite_recursion as
 select * from test.infinite_recursion;
+
+
+create or replace function temp_file_limit()
+returns bigint as $$
+  select COUNT(*) FROM generate_series('-infinity'::TIMESTAMP, 'epoch'::TIMESTAMP, INTERVAL '1 DAY');
+$$ language sql security definer set temp_file_limit to '1kB';