diff --git a/services/mediatranscoding/tests/MediaTranscodingServiceTestHelper.h b/services/mediatranscoding/tests/MediaTranscodingServiceTestHelper.h
index 5256a3f..3f7d8d6 100644
--- a/services/mediatranscoding/tests/MediaTranscodingServiceTestHelper.h
+++ b/services/mediatranscoding/tests/MediaTranscodingServiceTestHelper.h
@@ -208,7 +208,9 @@
         std::unique_lock lock(mLock);
 
         mEventQueue.push_back(event);
-        mLastErr = err;
+        if (err != TranscodingErrorCode::kNoError) {
+            mLastErrQueue.push_back(err);
+        }
         mCondition.notify_one();
     }
 
@@ -226,7 +228,12 @@
 
     TranscodingErrorCode getLastError() {
         std::unique_lock lock(mLock);
-        return mLastErr;
+        if (mLastErrQueue.empty()) {
+            return TranscodingErrorCode::kNoError;
+        }
+        TranscodingErrorCode err = mLastErrQueue.front();
+        mLastErrQueue.pop_front();
+        return err;
     }
 
 private:
@@ -234,7 +241,7 @@
     std::condition_variable mCondition;
     Event mPoppedEvent;
     std::list<Event> mEventQueue;
-    TranscodingErrorCode mLastErr;
+    std::list<TranscodingErrorCode> mLastErrQueue;
     int mUpdateCount = 0;
     int mLastProgress = -1;
 };
diff --git a/services/mediatranscoding/tests/mediatranscodingservice_simulated_tests.cpp b/services/mediatranscoding/tests/mediatranscodingservice_simulated_tests.cpp
index b8a6f76..c8994ac 100644
--- a/services/mediatranscoding/tests/mediatranscodingservice_simulated_tests.cpp
+++ b/services/mediatranscoding/tests/mediatranscodingservice_simulated_tests.cpp
@@ -54,6 +54,10 @@
 constexpr int64_t kPaddingUs = 1000000;
 constexpr int64_t kSessionWithPaddingUs = SimulatedTranscoder::kSessionDurationUs + kPaddingUs;
 constexpr int64_t kWatchdogTimeoutUs = 3000000;
+// Pacer settings used for simulated tests. Listed here for reference.
+constexpr int32_t kSimulatedPacerBurstThresholdMs = 500;
+//constexpr int32_t kSimulatedPacerBurstCountQuota = 10;
+//constexpr int32_t kSimulatedPacerBurstTimeQuotaSec = 3;
 
 constexpr const char* kClientOpPackageName = "TestClientPackage";
 
@@ -64,6 +68,25 @@
     virtual ~MediaTranscodingServiceSimulatedTest() {
         ALOGI("MediaTranscodingServiceResourceTest destroyed");
     }
+
+    void testPacerHelper(int numSubmits, int sessionDurationMs, int expectedSuccess) {
+        // Idle to clear out burst history.
+        usleep(kSimulatedPacerBurstThresholdMs * 2 * 1000);
+        for (int i = 0; i < numSubmits; i++) {
+            EXPECT_TRUE(mClient3->submit(i, "test_source_file_0", "test_destination_file_0",
+                                         TranscodingSessionPriority::kNormal, -1 /*bitrateBps*/,
+                                         -1 /*overridePid*/, -1 /*overrideUid*/,
+                                         sessionDurationMs));
+        }
+        for (int i = 0; i < expectedSuccess; i++) {
+            EXPECT_EQ(mClient3->pop(kPaddingUs), EventTracker::Start(CLIENT(3), i));
+            EXPECT_EQ(mClient3->pop(kSessionWithPaddingUs), EventTracker::Finished(CLIENT(3), i));
+        }
+        for (int i = expectedSuccess; i < numSubmits; i++) {
+            EXPECT_EQ(mClient3->pop(kPaddingUs), EventTracker::Failed(CLIENT(3), i));
+            EXPECT_EQ(mClient3->getLastError(), TranscodingErrorCode::kDroppedByService);
+        }
+    }
 };
 
 TEST_F(MediaTranscodingServiceSimulatedTest, TestRegisterNullClient) {
@@ -414,5 +437,36 @@
     ALOGD("TestTranscodingWatchdog finished.");
 }
 
+TEST_F(MediaTranscodingServiceSimulatedTest, TestTranscodingPacerOverCountQuotaOnly) {
+    ALOGD("TestTranscodingPacerOverCountQuotaOnly starting...");
+
+    registerMultipleClients();
+    testPacerHelper(12 /*numSubmits*/, 100 /*sessionDurationMs*/, 12 /*expectedSuccess*/);
+    unregisterMultipleClients();
+
+    ALOGD("TestTranscodingPacerOverCountQuotaOnly finished.");
+}
+
+TEST_F(MediaTranscodingServiceSimulatedTest, TestTranscodingPacerOverTimeQuotaOnly) {
+    ALOGD("TestTranscodingPacerOverTimeQuotaOnly starting...");
+
+    registerMultipleClients();
+    testPacerHelper(5 /*numSubmits*/, 1000 /*sessionDurationMs*/, 5 /*expectedSuccess*/);
+    unregisterMultipleClients();
+
+    ALOGD("TestTranscodingPacerOverTimeQuotaOnly finished.");
+}
+
+TEST_F(MediaTranscodingServiceSimulatedTest, TestTranscodingPacerOverQuota) {
+    ALOGD("TestTranscodingPacerOverQuota starting...");
+
+    registerMultipleClients();
+    testPacerHelper(12 /*numSubmits*/, 400 /*sessionDurationMs*/, 10 /*expectedSuccess*/);
+    unregisterMultipleClients();
+
+    // Idle to clear out burst history. Since we expect it to actually fail, wait for cooldown.
+    ALOGD("TestTranscodingPacerOverQuota finished.");
+}
+
 }  // namespace media
 }  // namespace android