diff --git a/internal/controller/scheduler/scheduler_capacity_test.go b/internal/controller/scheduler/scheduler_capacity_test.go
new file mode 100644
index 0000000..0bcf6f4
--- /dev/null
+++ b/internal/controller/scheduler/scheduler_capacity_test.go
@@ -0,0 +1,105 @@
+//nolint:testpackage // The regression exercises the unexported scheduler reconciliation loop.
+package scheduler
+
+import (
+	"testing"
+	"time"
+
+	"github.com/cirruslabs/orchard/internal/controller/notifier"
+	storepkg "github.com/cirruslabs/orchard/internal/controller/store"
+	"github.com/cirruslabs/orchard/internal/controller/store/badger"
+	v1 "github.com/cirruslabs/orchard/pkg/resource/v1"
+	"github.com/stretchr/testify/require"
+	"go.uber.org/zap"
+)
+
+func TestSchedulingLoopSkipsOvercommittedWorker(t *testing.T) {
+	logger := zap.NewNop().Sugar()
+
+	store, err := badger.NewBadgerStore(t.TempDir(), true, logger)
+	require.NoError(t, err)
+
+	var worker v1.Worker
+	worker.Name = "worker-a"
+	worker.LastSeen = time.Now()
+	worker.MachineID = "machine-a"
+	worker.Resources = v1.Resources{v1.ResourceTartVMs: 2}
+	worker.Arch = v1.ArchitectureARM64
+	worker.Runtime = v1.RuntimeTart
+
+	newPendingVM := func(name string) v1.VM {
+		var vm v1.VM
+		vm.Name = name
+		vm.CreatedAt = time.Now()
+		vm.UID = name + "-uid"
+		vm.Status = v1.VMStatusPending
+		vm.Resources = v1.Resources{v1.ResourceTartVMs: 1}
+		vm.Arch = v1.ArchitectureARM64
+		vm.Runtime = v1.RuntimeTart
+		vm.PowerState = v1.PowerStateRunning
+		vm.Conditions = []v1.Condition{{
+			Type:  v1.ConditionTypeScheduled,
+			State: v1.ConditionStateFalse,
+		}}
+
+		return vm
+	}
+
+	assignedVM := func(name string, status v1.VMStatus) v1.VM {
+		vm := newPendingVM(name)
+		vm.Worker = worker.Name
+		vm.Status = status
+		vm.Conditions[0].State = v1.ConditionStateTrue
+
+		return vm
+	}
+
+	pending := newPendingVM("pending-vm")
+
+	var settings v1.ClusterSettings
+	settings.SchedulerProfile = v1.SchedulerProfileOptimizeUtilization
+
+	err = store.Update(func(txn storepkg.Transaction) error {
+		if err := txn.SetClusterSettings(settings); err != nil {
+			return err
+		}
+
+		if err := txn.SetWorker(worker); err != nil {
+			return err
+		}
+
+		vms := []v1.VM{
+			assignedVM("running-first", v1.VMStatusRunning),
+			assignedVM("running-second", v1.VMStatusRunning),
+			assignedVM("failed-third", v1.VMStatusFailed),
+			pending,
+		}
+
+		for _, vm := range vms {
+			if err := txn.SetVM(vm); err != nil {
+				return err
+			}
+		}
+
+		return nil
+	})
+	require.NoError(t, err)
+
+	scheduler, err := NewScheduler(store, notifier.NewNotifier(logger), time.Minute, logger)
+	require.NoError(t, err)
+
+	numWorkers, numVMs, err := scheduler.schedulingLoopIteration()
+	require.NoError(t, err)
+	require.Equal(t, 1, numWorkers)
+	require.Equal(t, 4, numVMs)
+
+	err = store.View(func(txn storepkg.Transaction) error {
+		currentVM, err := txn.GetVM(pending.Name)
+		require.NoError(t, err)
+		require.False(t, currentVM.IsScheduled())
+		require.Empty(t, currentVM.Worker)
+
+		return nil
+	})
+	require.NoError(t, err)
+}
diff --git a/pkg/resource/v1/resources.go b/pkg/resource/v1/resources.go
index b0c3601..bad5609 100644
--- a/pkg/resource/v1/resources.go
+++ b/pkg/resource/v1/resources.go
@@ -62,16 +62,18 @@ func (resources Resources) Added(other Resources) Resources {
 
 func (resources Resources) Subtract(other Resources) {
 	for otherKey, otherValue := range other {
+		if otherValue >= resources[otherKey] {
+			resources[otherKey] = 0
+			continue
+		}
+
 		resources[otherKey] -= otherValue
 	}
 }
 
 func (resources Resources) Subtracted(other Resources) Resources {
 	result := resources.Copy()
-
-	for otherKey, otherValue := range other {
-		result[otherKey] -= otherValue
-	}
+	result.Subtract(other)
 
 	return result
 }
diff --git a/pkg/resource/v1/resources_test.go b/pkg/resource/v1/resources_test.go
index 03212ef..2b540dc 100644
--- a/pkg/resource/v1/resources_test.go
+++ b/pkg/resource/v1/resources_test.go
@@ -55,6 +55,50 @@ func TestResourcesSubtracted(t *testing.T) {
 	}))
 }
 
+func TestResourcesSubtractSaturatesAtZero(t *testing.T) {
+	resources := v1.Resources{
+		v1.ResourceTartVMs:      2,
+		v1.ResourceLogicalCores: 8,
+	}
+
+	resources.Subtract(v1.Resources{
+		v1.ResourceTartVMs:      3,
+		v1.ResourceLogicalCores: 4,
+		v1.ResourceMemoryMiB:    1,
+	})
+
+	require.Equal(t, v1.Resources{
+		v1.ResourceTartVMs:      0,
+		v1.ResourceLogicalCores: 4,
+		v1.ResourceMemoryMiB:    0,
+	}, resources)
+	require.False(t, resources.CanFit(v1.Resources{v1.ResourceTartVMs: 1}))
+}
+
+func TestResourcesSubtractedSaturatesAtZeroWithoutMutatingOriginal(t *testing.T) {
+	resources := v1.Resources{
+		v1.ResourceTartVMs:      2,
+		v1.ResourceLogicalCores: 8,
+	}
+
+	remaining := resources.Subtracted(v1.Resources{
+		v1.ResourceTartVMs:      3,
+		v1.ResourceLogicalCores: 4,
+		v1.ResourceMemoryMiB:    1,
+	})
+
+	require.Equal(t, v1.Resources{
+		v1.ResourceTartVMs:      0,
+		v1.ResourceLogicalCores: 4,
+		v1.ResourceMemoryMiB:    0,
+	}, remaining)
+	require.Equal(t, v1.Resources{
+		v1.ResourceTartVMs:      2,
+		v1.ResourceLogicalCores: 8,
+	}, resources)
+	require.False(t, remaining.CanFit(v1.Resources{v1.ResourceTartVMs: 1}))
+}
+
 func TestResourcesCanFit(t *testing.T) {
 	resources := v1.Resources{
 		v1.ResourceTartVMs: 2,