diff --git a/functions/adjustChatCapacity.ts b/functions/adjustChatCapacity.ts
index eb977c90..d091f63f 100644
--- a/functions/adjustChatCapacity.ts
+++ b/functions/adjustChatCapacity.ts
@@ -24,6 +24,7 @@ import {
   send,
   functionValidator as TokenValidator,
 } from '@tech-matters/serverless-helpers';
+import { WorkerChannelInstance } from 'twilio/lib/rest/taskrouter/v1/workspace/worker/workerChannel';
 
 type EnvVars = {
   TWILIO_WORKSPACE_SID: string;
@@ -31,10 +32,32 @@ type EnvVars = {
 
 export type Body = {
   workerSid?: string;
-  adjustment?: 'increase' | 'decrease';
+  adjustment?: 'increase' | 'decrease' | 'increaseUntilCapacityAvailable';
   request: { cookies: {}; headers: {} };
 };
 
+const increaseChatCapacity = async (channel: WorkerChannelInstance, maxMessageCapacity: number) => {
+  if (channel.availableCapacityPercentage > 0) {
+    return {
+      result: { status: 412, message: 'Still have available capacity, no need to increase.' },
+      updatedChannel: channel,
+    };
+  }
+
+  if (!(channel.configuredCapacity < maxMessageCapacity)) {
+    return {
+      result: { status: 412, message: 'Reached the max capacity.' },
+      updatedChannel: channel,
+    };
+  }
+
+  const updatedChannel = await channel.update({ capacity: channel.configuredCapacity + 1 });
+  return {
+    result: { status: 200, message: 'Successfully increased channel capacity' },
+    updatedChannel,
+  };
+};
+
 export const adjustChatCapacity = async (
   context: Context<EnvVars>,
   body: Required<Pick<Body, 'adjustment' | 'workerSid'>>,
@@ -59,21 +82,33 @@ export const adjustChatCapacity = async (
   }
 
   const channels = await worker.workerChannels().list();
-  const channel = channels.find((c) => c.taskChannelUniqueName === 'chat');
+  let channel = channels.find((c) => c.taskChannelUniqueName === 'chat');
 
   if (!channel) return { status: 404, message: 'Could not find chat channel.' };
 
   if (body.adjustment === 'increase') {
-    if (channel.availableCapacityPercentage > 0) {
-      return { status: 412, message: 'Still have available capacity, no need to increase.' };
-    }
+    return (await increaseChatCapacity(channel, maxMessageCapacity)).result;
+  }
 
-    if (!(channel.configuredCapacity < maxMessageCapacity)) {
-      return { status: 412, message: 'Reached the max capacity.' };
+  if (body.adjustment === 'increaseUntilCapacityAvailable') {
+    let result: Awaited<ReturnType<typeof increaseChatCapacity>>['result'] = {
+      status: 200,
+      message: '',
+    };
+    while (result.status === 200) {
+      // eslint-disable-next-line no-await-in-loop
+      ({ result, updatedChannel: channel } = await increaseChatCapacity(
+        channel,
+        maxMessageCapacity,
+      ));
     }
-
-    await channel.update({ capacity: channel.configuredCapacity + 1 });
-    return { status: 200, message: 'Successfully increased channel capacity' };
+    if (
+      channel.configuredCapacity === maxMessageCapacity &&
+      channel.availableCapacityPercentage === 0
+    ) {
+      return { status: 412, message: 'Reached the max capacity with no available capacity.' };
+    }
+    return { status: 200, message: 'Adjusted chat capacity until there is capacity available' };
   }
 
   if (body.adjustment === 'decrease') {
diff --git a/functions/pullTask.ts b/functions/pullTask.ts
index b55ca396..d5613395 100644
--- a/functions/pullTask.ts
+++ b/functions/pullTask.ts
@@ -70,7 +70,13 @@ export const handler = TokenValidator(
       ).map((r) => r.sid),
     );
 
-    await adjustChatCapacity(context, { workerSid, adjustment: 'increase' });
+    const { status } = await adjustChatCapacity(context, {
+      workerSid,
+      adjustment: 'increaseUntilCapacityAvailable',
+    });
+    if (status !== 200) {
+      resolve(error400('Failed to provide available chat capacity'));
+    }
     const pullAttemptExpiry = Date.now() + PULL_ATTEMPT_TIMEOUT_MS;
 
     // Polling is much more self contained and less messy than event driven with the backend TaskRouter API
diff --git a/functions/taskrouterListeners/transfersListener.private.ts b/functions/taskrouterListeners/transfersListener.private.ts
index 751e7401..09b8d98f 100644
--- a/functions/taskrouterListeners/transfersListener.private.ts
+++ b/functions/taskrouterListeners/transfersListener.private.ts
@@ -29,6 +29,7 @@ import {
   TASK_QUEUE_ENTERED,
 } from '@tech-matters/serverless-helpers/taskrouter';
 import type { TransferMeta, ChatTransferTaskAttributes } from '../transfer/helpers.private';
+import { AdjustChatCapacityType } from '../adjustChatCapacity';
 
 export const eventTypes: EventType[] = [
   RESERVATION_ACCEPTED,
@@ -154,6 +155,37 @@ const updateWarmVoiceTransferAttributes = async (
  */
 export const shouldHandle = (event: EventFields) => eventTypes.includes(event.EventType);
 
+const decreaseChatCapacity = async (context: Context<EnvVars>, taskSid: string) => {
+  const serviceConfig = await context.getTwilioClient().flexApi.configuration.get().fetch();
+  const {
+    feature_flags: { enable_backend_manual_pulling: enableBackendManualPulling },
+  } = serviceConfig.attributes;
+  if (enableBackendManualPulling) {
+    const task = await context
+      .getTwilioClient()
+      .taskrouter.workspaces(context.TWILIO_WORKSPACE_SID)
+      .tasks(taskSid);
+    const reservations = await task.reservations.list();
+    const workerSid = reservations.find((r) => r.reservationStatus === 'accepted')?.workerSid;
+
+    if (!workerSid) {
+      console.warn(`No worker found for task ${taskSid} to decrease chat capacity.`);
+      return;
+    }
+
+    const { path } = Runtime.getFunctions().adjustChatCapacity;
+    // eslint-disable-next-line global-require,import/no-dynamic-require,prefer-destructuring
+    const adjustChatCapacity: AdjustChatCapacityType = require(path).adjustChatCapacity;
+
+    const body = {
+      workerSid,
+      adjustment: 'decrease',
+    } as const;
+
+    await adjustChatCapacity(context, body);
+  }
+};
+
 export const handleEvent = async (context: Context<EnvVars>, event: EventFields) => {
   try {
     const {
@@ -178,8 +210,11 @@ export const handleEvent = async (context: Context<EnvVars>, event: EventFields)
       console.log('Handling chat transfer accepted...');
 
       const { originalTask: originalTaskSid } = taskAttributes.transferMeta;
-      const client = context.getTwilioClient();
 
+      // We need to decrease chat capacity before completing the task, it until the task completed event introduces a race condition
+      // The worker can still be offered another task before capacity is reduced if we don't do it now
+      await decreaseChatCapacity(context, originalTaskSid);
+      const client = context.getTwilioClient();
       await client.taskrouter
         .workspaces(context.TWILIO_WORKSPACE_SID)
         .tasks(originalTaskSid)
@@ -215,6 +250,10 @@ export const handleEvent = async (context: Context<EnvVars>, event: EventFields)
       console.log('Handling chat transfer to queue entering target queue...');
 
       const { originalTask: originalTaskSid } = taskAttributes.transferMeta;
+
+      // We need to decrease chat capacity before completing the task, it until the task completed event introduces a race condition
+      // The worker can still be offered another task before capacity is reduced if we don't do it now
+      await decreaseChatCapacity(context, originalTaskSid);
       const client = context.getTwilioClient();
 
       await client.taskrouter
diff --git a/tests/taskrouterListeners/transfersListener.test.ts b/tests/taskrouterListeners/transfersListener.test.ts
index 841eb950..545680fd 100644
--- a/tests/taskrouterListeners/transfersListener.test.ts
+++ b/tests/taskrouterListeners/transfersListener.test.ts
@@ -147,6 +147,15 @@ const context = {
         throw new Error('Workspace does not exists');
       },
     },
+    flexApi: {
+      configuration: {
+        get: () => ({
+          fetch: async () => ({
+            attributes: { feature_flags: {} },
+          }),
+        }),
+      },
+    },
   }),
   TWILIO_WORKSPACE_SID: 'WSxxx',
 };