diff --git a/tests/extract/test_incremental.py b/tests/extract/test_incremental.py
index 0a0c1f8c2d..205df41a81 100644
--- a/tests/extract/test_incremental.py
+++ b/tests/extract/test_incremental.py
@@ -3854,6 +3854,7 @@ def some_data():
     for col in table_schema["columns"].values():
         assert "incremental" not in col
 
+
 @pytest.mark.parametrize("item_type", ALL_TEST_DATA_ITEM_FORMATS)
 @pytest.mark.parametrize("last_value_func", [min, max])
 def test_start_range_open(item_type: TestDataItemFormat, last_value_func: Any) -> None:
@@ -3961,17 +3962,57 @@ def some_data(
     # Includes values 5-10 inclusive
     assert items == expected_items
 
-def test_incremental_and_limit():
 
-    @dlt.resource(incremental=dlt.sources.incremental(cursor_path="id", initial_value=0, last_value_func=min))
-    def resource():
-        for i in range(100):
+@pytest.mark.parametrize("offset_by_last_value", [True, False])
+def test_incremental_and_limit(offset_by_last_value: bool):
+    resource_called = 0
+
+    # here we check incremental and limit when incremental once when last value cannot be used
+    # to offset the source, and once when it can.
+
+    @dlt.resource(
+        table_name="items",
+    )
+    def resource(
+        incremental=dlt.sources.incremental(cursor_path="id", initial_value=-1, row_order="asc")
+    ):
+        range_iterator = (
+            range(incremental.start_value + 1, 1000) if offset_by_last_value else range(1000)
+        )
+        for i in range_iterator:
+            nonlocal resource_called
+            resource_called += 1
             yield {
                 "id": i,
                 "value": str(i),
             }
 
+    resource.add_limit(10)
+
     p = dlt.pipeline(pipeline_name="incremtal_limit", destination="duckdb", dev_mode=True)
 
-    p.run(resource().add_limit(10))
+    p.run(resource())
+
+    # check we have the right number of items
+    assert len(p.dataset().items.df()) == 10
+    assert resource_called == 10
+    # check that we have items 0-9
+    assert p.dataset().items.df().id.tolist() == list(range(10))
+
+    # run the next ten
+    p.run(resource())
+
+    # check we have the right number of items
+    assert len(p.dataset().items.df()) == 20
+    assert resource_called == 20 if offset_by_last_value else 30
+    # check that we have items 0-19
+    assert p.dataset().items.df().id.tolist() == list(range(20))
+
+    # run the next batch
+    p.run(resource())
 
+    # check we have the right number of items
+    assert len(p.dataset().items.df()) == 30
+    assert resource_called == 30 if offset_by_last_value else 60
+    # check that we have items 0-29
+    assert p.dataset().items.df().id.tolist() == list(range(30))