diff --git a/pkg/scheduler/objects/application.go b/pkg/scheduler/objects/application.go
index cde6fbd9a..a064d321b 100644
--- a/pkg/scheduler/objects/application.go
+++ b/pkg/scheduler/objects/application.go
@@ -1223,6 +1223,12 @@ func (sa *Application) tryPlaceholderAllocate(nodeIterator func() NodeIterator,
 	return allocResult
 }
 
+// check ask against both user headRoom and queue headRoom
+func (sa *Application) checkHeadRooms(ask *AllocationAsk, userHeadroom *resources.Resource, headRoom *resources.Resource) bool {
+	// check if this fits in the users' headroom first, if that fits check the queues' headroom
+	return userHeadroom.FitInMaxUndef(ask.GetAllocatedResource()) && headRoom.FitInMaxUndef(ask.GetAllocatedResource())
+}
+
 // Try a reserved allocation of an outstanding reservation
 func (sa *Application) tryReservedAllocate(headRoom *resources.Resource, nodeIterator func() NodeIterator) *Allocation {
 	sa.Lock()
@@ -1250,13 +1256,8 @@ func (sa *Application) tryReservedAllocate(headRoom *resources.Resource, nodeIte
 			alloc := newUnreservedAllocation(reserve.nodeID, unreserveAsk)
 			return alloc
 		}
-		// check if this fits in the users' headroom first, if that fits check the queues' headroom
-		if !userHeadroom.FitInMaxUndef(ask.GetAllocatedResource()) {
-			continue
-		}
 
-		// check if this fits in the queue's headroom
-		if !headRoom.FitInMaxUndef(ask.GetAllocatedResource()) {
+		if !sa.checkHeadRooms(ask, userHeadroom, headRoom) {
 			continue
 		}
 
@@ -1280,12 +1281,16 @@ func (sa *Application) tryReservedAllocate(headRoom *resources.Resource, nodeIte
 	// lets try this on all other nodes
 	for _, reserve := range sa.reservations {
 		// Other nodes cannot be tried if the ask has a required node
-		if reserve.ask.GetRequiredNode() != "" {
+		ask := reserve.ask
+		if ask.GetRequiredNode() != "" {
 			continue
 		}
 		iterator := nodeIterator()
 		if iterator != nil {
-			alloc := sa.tryNodesNoReserve(reserve.ask, iterator, reserve.nodeID)
+			if !sa.checkHeadRooms(ask, userHeadroom, headRoom) {
+				continue
+			}
+			alloc := sa.tryNodesNoReserve(ask, iterator, reserve.nodeID)
 			// have a candidate return it, including the node that was reserved
 			if alloc != nil {
 				return alloc
@@ -1490,7 +1495,7 @@ func (sa *Application) tryNode(node *Node, ask *AllocationAsk) *Allocation {
 	alloc := NewAllocation(node.NodeID, ask)
 	if node.AddAllocation(alloc) {
 		if err := sa.queue.IncAllocatedResource(alloc.GetAllocatedResource(), false); err != nil {
-			log.Log(log.SchedApplication).Warn("queue update failed unexpectedly",
+			log.Log(log.SchedApplication).DPanic("queue update failed unexpectedly",
 				zap.Error(err))
 			// revert the node update
 			node.RemoveAllocation(alloc.GetAllocationID())
diff --git a/pkg/scheduler/objects/application_test.go b/pkg/scheduler/objects/application_test.go
index bc055ee6e..044396724 100644
--- a/pkg/scheduler/objects/application_test.go
+++ b/pkg/scheduler/objects/application_test.go
@@ -2601,6 +2601,39 @@ func TestGetRateLimitedAppLog(t *testing.T) {
 	assert.Check(t, l != nil)
 }
 
+func TestTryAllocateWithReservedHeadRoomChecking(t *testing.T) {
+	defer func() {
+		if r := recover(); r != nil {
+			t.Fatalf("reserved headroom test regression: %v", r)
+		}
+	}()
+
+	res, err := resources.NewResourceFromConf(map[string]string{"memory": "2G"})
+	assert.NilError(t, err, "failed to create basic resource")
+	var headRoom *resources.Resource
+	headRoom, err = resources.NewResourceFromConf(map[string]string{"memory": "1G"})
+	assert.NilError(t, err, "failed to create basic resource")
+
+	app := newApplication(appID1, "default", "root")
+	ask := newAllocationAsk(aKey, appID1, res)
+	var queue *Queue
+	queue, err = createRootQueue(map[string]string{"memory": "1G"})
+	assert.NilError(t, err, "queue create failed")
+	app.queue = queue
+	err = app.AddAllocationAsk(ask)
+	assert.NilError(t, err, "ask should have been added to app")
+
+	node1 := newNodeRes(nodeID1, res)
+	node2 := newNodeRes(nodeID2, res)
+	// reserve that works
+	err = app.Reserve(node1, ask)
+	assert.NilError(t, err, "reservation should not have failed")
+
+	iter := getNodeIteratorFn(node1, node2)
+	alloc := app.tryReservedAllocate(headRoom, iter)
+	assert.Assert(t, alloc == nil, "Alloc is expected to be nil due to insufficient headroom")
+}
+
 func TestUpdateRunnableStatus(t *testing.T) {
 	app := newApplication(appID0, "default", "root.unknown")
 	assert.Assert(t, app.runnableInQueue)
diff --git a/pkg/scheduler/objects/utilities_test.go b/pkg/scheduler/objects/utilities_test.go
index e66e4e982..577e26ff2 100644
--- a/pkg/scheduler/objects/utilities_test.go
+++ b/pkg/scheduler/objects/utilities_test.go
@@ -42,6 +42,7 @@ const (
 	aKey          = "alloc-1"
 	aAllocationID = "alloc-allocationid-1"
 	nodeID1       = "node-1"
+	nodeID2       = "node-2"
 	instType1     = "itype-1"
 )