diff --git a/asterixdb/asterix-algebra/src/main/java/org/apache/asterix/optimizer/rules/SetAsterixPhysicalOperatorsRule.java b/asterixdb/asterix-algebra/src/main/java/org/apache/asterix/optimizer/rules/SetAsterixPhysicalOperatorsRule.java
index 5aaf87b..d22ec54 100644
--- a/asterixdb/asterix-algebra/src/main/java/org/apache/asterix/optimizer/rules/SetAsterixPhysicalOperatorsRule.java
+++ b/asterixdb/asterix-algebra/src/main/java/org/apache/asterix/optimizer/rules/SetAsterixPhysicalOperatorsRule.java
@@ -162,8 +162,8 @@
                                     }
                                     ExternalGroupByPOperator externalGby = new ExternalGroupByPOperator(
                                             gby.getGroupByList(),
-                                            physicalOptimizationConfig.getMaxFramesExternalGroupBy(),
-                                            (long) physicalOptimizationConfig.getMaxFramesExternalGroupBy()
+                                            physicalOptimizationConfig.getMaxFramesForGroupBy(),
+                                            (long) physicalOptimizationConfig.getMaxFramesForGroupBy()
                                                     * physicalOptimizationConfig.getFrameSize());
                                     generateMergeAggregationExpressions(gby, context);
                                     op.setPhysicalOperator(externalGby);
@@ -182,7 +182,8 @@
                                         columnList.add(varRef.getVariableReference());
                                     }
                                 }
-                                op.setPhysicalOperator(new PreclusteredGroupByPOperator(columnList, gby.isGroupAll()));
+                                op.setPhysicalOperator(new PreclusteredGroupByPOperator(columnList, gby.isGroupAll(),
+                                        context.getPhysicalOptimizationConfig().getMaxFramesForGroupBy()));
                             }
                         }
                     } else if (((AbstractLogicalOperator) (r0.getValue())).getOperatorTag()
@@ -196,7 +197,8 @@
                                 columnList.add(varRef.getVariableReference());
                             }
                         }
-                        op.setPhysicalOperator(new PreclusteredGroupByPOperator(columnList, gby.isGroupAll()));
+                        op.setPhysicalOperator(new PreclusteredGroupByPOperator(columnList, gby.isGroupAll(),
+                                context.getPhysicalOptimizationConfig().getMaxFramesForGroupBy()));
                     } else {
                         throw new AlgebricksException("Unsupported nested operator within a group-by: "
                                 + ((AbstractLogicalOperator) (r0.getValue())).getOperatorTag().name());
diff --git a/asterixdb/asterix-app/src/test/resources/runtimets/queries/big-object/big_object_groupby/big_object_groupby.3.query.aql b/asterixdb/asterix-app/src/test/resources/runtimets/queries/big-object/big_object_groupby/big_object_groupby.3.query.aql
index 493cbb0..4fa4f3e 100644
--- a/asterixdb/asterix-app/src/test/resources/runtimets/queries/big-object/big_object_groupby/big_object_groupby.3.query.aql
+++ b/asterixdb/asterix-app/src/test/resources/runtimets/queries/big-object/big_object_groupby/big_object_groupby.3.query.aql
@@ -25,6 +25,8 @@
 
 use dataverse test;
 
+set "compiler.groupmemory" "32MB"
+
 for $i in dataset('Line')
 group by $partkey := $i.l_partkey with $i
 order by $partkey
diff --git a/asterixdb/asterix-app/src/test/resources/runtimets/queries_sqlpp/big-object/big_object_groupby/big_object_groupby.3.query.sqlpp b/asterixdb/asterix-app/src/test/resources/runtimets/queries_sqlpp/big-object/big_object_groupby/big_object_groupby.3.query.sqlpp
index b5388a9..5a5009b 100644
--- a/asterixdb/asterix-app/src/test/resources/runtimets/queries_sqlpp/big-object/big_object_groupby/big_object_groupby.3.query.sqlpp
+++ b/asterixdb/asterix-app/src/test/resources/runtimets/queries_sqlpp/big-object/big_object_groupby/big_object_groupby.3.query.sqlpp
@@ -25,6 +25,7 @@
 
 use test;
 
+set `compiler.groupmemory` `32MB`
 
 select element {'partkey':partkey,'lines': (from g select value i) }
 from  Line as i
diff --git a/asterixdb/asterix-app/src/test/resources/runtimets/queries_sqlpp/group-by/listify-2/listify-2.1.ddl.sqlpp b/asterixdb/asterix-app/src/test/resources/runtimets/queries_sqlpp/group-by/listify-2/listify-2.1.ddl.sqlpp
new file mode 100644
index 0000000..92698ab
--- /dev/null
+++ b/asterixdb/asterix-app/src/test/resources/runtimets/queries_sqlpp/group-by/listify-2/listify-2.1.ddl.sqlpp
@@ -0,0 +1,47 @@
+/*
+ * Licensed to the Apache Software Foundation (ASF) under one
+ * or more contributor license agreements.  See the NOTICE file
+ * distributed with this work for additional information
+ * regarding copyright ownership.  The ASF licenses this file
+ * to you under the Apache License, Version 2.0 (the
+ * "License"); you may not use this file except in compliance
+ * with the License.  You may obtain a copy of the License at
+ *
+ *   http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing,
+ * software distributed under the License is distributed on an
+ * "AS IS" BASIS, WITHOUT WARRANTIES OR CONDITIONS OF ANY
+ * KIND, either express or implied.  See the License for the
+ * specific language governing permissions and limitations
+ * under the License.
+ */
+
+drop  dataverse tpch if exists;
+create  dataverse tpch;
+
+use tpch;
+
+
+create type tpch.LineItemType as
+ closed {
+  l_orderkey : bigint,
+  l_partkey : bigint,
+  l_suppkey : bigint,
+  l_linenumber : bigint,
+  l_quantity : double,
+  l_extendedprice : double,
+  l_discount : double,
+  l_tax : double,
+  l_returnflag : string,
+  l_linestatus : string,
+  l_shipdate : string,
+  l_commitdate : string,
+  l_receiptdate : string,
+  l_shipinstruct : string,
+  l_shipmode : string,
+  l_comment : string
+}
+
+create  dataset LineItem(LineItemType) primary key l_orderkey,l_linenumber;
+
diff --git a/asterixdb/asterix-app/src/test/resources/runtimets/queries_sqlpp/group-by/listify-2/listify-2.2.update.sqlpp b/asterixdb/asterix-app/src/test/resources/runtimets/queries_sqlpp/group-by/listify-2/listify-2.2.update.sqlpp
new file mode 100644
index 0000000..5fe734c
--- /dev/null
+++ b/asterixdb/asterix-app/src/test/resources/runtimets/queries_sqlpp/group-by/listify-2/listify-2.2.update.sqlpp
@@ -0,0 +1,24 @@
+/*
+ * Licensed to the Apache Software Foundation (ASF) under one
+ * or more contributor license agreements.  See the NOTICE file
+ * distributed with this work for additional information
+ * regarding copyright ownership.  The ASF licenses this file
+ * to you under the Apache License, Version 2.0 (the
+ * "License"); you may not use this file except in compliance
+ * with the License.  You may obtain a copy of the License at
+ *
+ *   http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing,
+ * software distributed under the License is distributed on an
+ * "AS IS" BASIS, WITHOUT WARRANTIES OR CONDITIONS OF ANY
+ * KIND, either express or implied.  See the License for the
+ * specific language governing permissions and limitations
+ * under the License.
+ */
+
+use tpch;
+
+
+load  dataset LineItem using localfs ((`path`=`asterix_nc1://data/tpch0.001/lineitem.tbl`),(`format`=`delimited-text`),(`delimiter`=`|`)) pre-sorted;
+
diff --git a/asterixdb/asterix-app/src/test/resources/runtimets/queries_sqlpp/group-by/listify-2/listify-2.3.query.sqlpp b/asterixdb/asterix-app/src/test/resources/runtimets/queries_sqlpp/group-by/listify-2/listify-2.3.query.sqlpp
new file mode 100644
index 0000000..7379646
--- /dev/null
+++ b/asterixdb/asterix-app/src/test/resources/runtimets/queries_sqlpp/group-by/listify-2/listify-2.3.query.sqlpp
@@ -0,0 +1,30 @@
+/*
+ * Licensed to the Apache Software Foundation (ASF) under one
+ * or more contributor license agreements.  See the NOTICE file
+ * distributed with this work for additional information
+ * regarding copyright ownership.  The ASF licenses this file
+ * to you under the Apache License, Version 2.0 (the
+ * "License"); you may not use this file except in compliance
+ * with the License.  You may obtain a copy of the License at
+ *
+ *   http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing,
+ * software distributed under the License is distributed on an
+ * "AS IS" BASIS, WITHOUT WARRANTIES OR CONDITIONS OF ANY
+ * KIND, either express or implied.  See the License for the
+ * specific language governing permissions and limitations
+ * under the License.
+ */
+
+USE tpch;
+
+SET `compiler.groupmemory` "576KB"
+
+SELECT *
+FROM  LineItem AS l
+WHERE l.l_shipdate <= '1998-09-02'
+/* +hash */
+GROUP BY l.l_returnflag AS l_returnflag, l.l_linestatus AS l_linestatus
+ORDER BY l_returnflag, l_linestatus
+;
diff --git a/asterixdb/asterix-app/src/test/resources/runtimets/queries_sqlpp/group-by/listify/listify.1.ddl.sqlpp b/asterixdb/asterix-app/src/test/resources/runtimets/queries_sqlpp/group-by/listify/listify.1.ddl.sqlpp
new file mode 100644
index 0000000..92698ab
--- /dev/null
+++ b/asterixdb/asterix-app/src/test/resources/runtimets/queries_sqlpp/group-by/listify/listify.1.ddl.sqlpp
@@ -0,0 +1,47 @@
+/*
+ * Licensed to the Apache Software Foundation (ASF) under one
+ * or more contributor license agreements.  See the NOTICE file
+ * distributed with this work for additional information
+ * regarding copyright ownership.  The ASF licenses this file
+ * to you under the Apache License, Version 2.0 (the
+ * "License"); you may not use this file except in compliance
+ * with the License.  You may obtain a copy of the License at
+ *
+ *   http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing,
+ * software distributed under the License is distributed on an
+ * "AS IS" BASIS, WITHOUT WARRANTIES OR CONDITIONS OF ANY
+ * KIND, either express or implied.  See the License for the
+ * specific language governing permissions and limitations
+ * under the License.
+ */
+
+drop  dataverse tpch if exists;
+create  dataverse tpch;
+
+use tpch;
+
+
+create type tpch.LineItemType as
+ closed {
+  l_orderkey : bigint,
+  l_partkey : bigint,
+  l_suppkey : bigint,
+  l_linenumber : bigint,
+  l_quantity : double,
+  l_extendedprice : double,
+  l_discount : double,
+  l_tax : double,
+  l_returnflag : string,
+  l_linestatus : string,
+  l_shipdate : string,
+  l_commitdate : string,
+  l_receiptdate : string,
+  l_shipinstruct : string,
+  l_shipmode : string,
+  l_comment : string
+}
+
+create  dataset LineItem(LineItemType) primary key l_orderkey,l_linenumber;
+
diff --git a/asterixdb/asterix-app/src/test/resources/runtimets/queries_sqlpp/group-by/listify/listify.2.update.sqlpp b/asterixdb/asterix-app/src/test/resources/runtimets/queries_sqlpp/group-by/listify/listify.2.update.sqlpp
new file mode 100644
index 0000000..5fe734c
--- /dev/null
+++ b/asterixdb/asterix-app/src/test/resources/runtimets/queries_sqlpp/group-by/listify/listify.2.update.sqlpp
@@ -0,0 +1,24 @@
+/*
+ * Licensed to the Apache Software Foundation (ASF) under one
+ * or more contributor license agreements.  See the NOTICE file
+ * distributed with this work for additional information
+ * regarding copyright ownership.  The ASF licenses this file
+ * to you under the Apache License, Version 2.0 (the
+ * "License"); you may not use this file except in compliance
+ * with the License.  You may obtain a copy of the License at
+ *
+ *   http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing,
+ * software distributed under the License is distributed on an
+ * "AS IS" BASIS, WITHOUT WARRANTIES OR CONDITIONS OF ANY
+ * KIND, either express or implied.  See the License for the
+ * specific language governing permissions and limitations
+ * under the License.
+ */
+
+use tpch;
+
+
+load  dataset LineItem using localfs ((`path`=`asterix_nc1://data/tpch0.001/lineitem.tbl`),(`format`=`delimited-text`),(`delimiter`=`|`)) pre-sorted;
+
diff --git a/asterixdb/asterix-app/src/test/resources/runtimets/queries_sqlpp/group-by/listify/listify.3.query.sqlpp b/asterixdb/asterix-app/src/test/resources/runtimets/queries_sqlpp/group-by/listify/listify.3.query.sqlpp
new file mode 100644
index 0000000..ba1e7d4
--- /dev/null
+++ b/asterixdb/asterix-app/src/test/resources/runtimets/queries_sqlpp/group-by/listify/listify.3.query.sqlpp
@@ -0,0 +1,33 @@
+/*
+ * Licensed to the Apache Software Foundation (ASF) under one
+ * or more contributor license agreements.  See the NOTICE file
+ * distributed with this work for additional information
+ * regarding copyright ownership.  The ASF licenses this file
+ * to you under the Apache License, Version 2.0 (the
+ * "License"); you may not use this file except in compliance
+ * with the License.  You may obtain a copy of the License at
+ *
+ *   http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing,
+ * software distributed under the License is distributed on an
+ * "AS IS" BASIS, WITHOUT WARRANTIES OR CONDITIONS OF ANY
+ * KIND, either express or implied.  See the License for the
+ * specific language governing permissions and limitations
+ * under the License.
+ */
+
+USE tpch;
+
+SET `compiler.groupmemory` "576KB"
+
+SELECT  l_returnflag AS l_returnflag,
+        l_linestatus AS l_linestatus,
+        g
+FROM  LineItem AS l
+WHERE l.l_shipdate <= '1998-09-02'
+/* +hash */
+GROUP BY l.l_returnflag AS l_returnflag, l.l_linestatus AS l_linestatus
+GROUP AS g
+ORDER BY l_returnflag, l_linestatus
+;
diff --git a/asterixdb/asterix-app/src/test/resources/runtimets/results_parser_sqlpp/big-object/big_object_groupby/big_object_groupby.3.ast b/asterixdb/asterix-app/src/test/resources/runtimets/results_parser_sqlpp/big-object/big_object_groupby/big_object_groupby.3.ast
index 1b4831f..9747f1e 100644
--- a/asterixdb/asterix-app/src/test/resources/runtimets/results_parser_sqlpp/big-object/big_object_groupby/big_object_groupby.3.ast
+++ b/asterixdb/asterix-app/src/test/resources/runtimets/results_parser_sqlpp/big-object/big_object_groupby/big_object_groupby.3.ast
@@ -1,4 +1,5 @@
 DataverseUse test
+Set compiler.groupmemory=32MB
 Query:
 SELECT ELEMENT [
 RecordConstructor [
diff --git a/asterixdb/asterix-app/src/test/resources/runtimets/testsuite_sqlpp.xml b/asterixdb/asterix-app/src/test/resources/runtimets/testsuite_sqlpp.xml
index 70b3486..16d4cb3 100644
--- a/asterixdb/asterix-app/src/test/resources/runtimets/testsuite_sqlpp.xml
+++ b/asterixdb/asterix-app/src/test/resources/runtimets/testsuite_sqlpp.xml
@@ -2887,6 +2887,18 @@
         <expected-error>Invalid item type: function agg-sum cannot process item type object in an input array (or multiset)</expected-error>
       </compilation-unit>
     </test-case>
+    <test-case FilePath="group-by">
+      <compilation-unit name="listify">
+        <output-dir compare="Text">none</output-dir>
+        <expected-error>The byte size of a single group</expected-error>
+      </compilation-unit>
+    </test-case>
+    <test-case FilePath="group-by">
+      <compilation-unit name="listify-2">
+        <output-dir compare="Text">none</output-dir>
+        <expected-error>The byte size of a single group</expected-error>
+      </compilation-unit>
+    </test-case>
   </test-group>
   <test-group name="index-join">
     <test-case FilePath="index-join">