diff --git a/subsys/modem/modem_cmux.c b/subsys/modem/modem_cmux.c
index 4a755284bff..7a78b06a8f3 100644
--- a/subsys/modem/modem_cmux.c
+++ b/subsys/modem/modem_cmux.c
@@ -816,6 +816,14 @@ static void modem_cmux_process_received_byte(struct modem_cmux *cmux, uint8_t by
 		/* Get last 8 bits of data length */
 		cmux->frame.data_len |= ((uint16_t)byte) << 7;
 
+		if (cmux->frame.data_len > cmux->receive_buf_size) {
+			LOG_ERR("Indicated frame data length %u exceeds receive buffer size %u",
+				cmux->frame.data_len, cmux->receive_buf_size);
+
+			cmux->receive_state = MODEM_CMUX_RECEIVE_STATE_DROP;
+			break;
+		}
+
 		/* Await data */
 		cmux->receive_state = MODEM_CMUX_RECEIVE_STATE_DATA;
 		break;
diff --git a/tests/subsys/modem/modem_cmux/src/main.c b/tests/subsys/modem/modem_cmux/src/main.c
index 28d772614b1..579dbb8635e 100644
--- a/tests/subsys/modem/modem_cmux/src/main.c
+++ b/tests/subsys/modem/modem_cmux/src/main.c
@@ -148,6 +148,14 @@ static uint8_t cmux_frame_dlci2_at_newline[] = {0xF9, 0x0B, 0xEF, 0x05, 0x0D, 0x
 
 static uint8_t cmux_frame_data_dlci2_at_newline[] = {0x0D, 0x0A};
 
+/*************************************************************************************************/
+/*                                     DLCI2 AT CMUX error frames				 */
+/*************************************************************************************************/
+static uint8_t cmux_frame_dlci2_at_cgdcont_invalid_length[] = {
+	0xF9, 0x0B, 0xEF, 0xFE, 0x41, 0x54, 0x2B, 0x43, 0x47, 0x44, 0x43, 0x4F, 0x4E,
+	0x54, 0x3D, 0x31, 0x2C, 0x22, 0x49, 0x50, 0x22, 0x2C, 0x22, 0x74, 0x72, 0x61,
+	0x63, 0x6B, 0x75, 0x6E, 0x69, 0x74, 0x2E, 0x6D, 0x32, 0x6D, 0x22, 0x23, 0xF9};
+
 /*************************************************************************************************/
 /*                                    DLCI1 AT CMUX frames                                       */
 /*************************************************************************************************/
@@ -814,4 +822,46 @@ ZTEST(modem_cmux, test_modem_cmux_prevent_work_while_released)
 	zassert_ok(modem_pipe_open(dlci2_pipe, K_SECONDS(10)));
 }
 
+ZTEST(modem_cmux, test_modem_drop_frames_with_invalid_length)
+{
+	int ret;
+	uint32_t events;
+
+	modem_backend_mock_put(&bus_mock, cmux_frame_dlci2_at_cgdcont_invalid_length,
+			       sizeof(cmux_frame_dlci2_at_cgdcont_invalid_length));
+
+	k_msleep(100);
+
+	events = k_event_test(&cmux_event, EVENT_CMUX_DLCI2_RECEIVE_READY);
+
+	zassert_false(events & EVENT_CMUX_DLCI2_RECEIVE_READY,
+		      "Receive event should not have been received for DLCI2 pipe");
+
+	modem_backend_mock_put(&bus_mock, cmux_frame_dlci2_at_cgdcont,
+			       sizeof(cmux_frame_dlci2_at_cgdcont));
+
+	modem_backend_mock_put(&bus_mock, cmux_frame_dlci2_at_newline,
+			       sizeof(cmux_frame_dlci2_at_newline));
+
+	k_msleep(100);
+
+	events = k_event_test(&cmux_event, EVENT_CMUX_DLCI2_RECEIVE_READY);
+	zassert_equal(events, EVENT_CMUX_DLCI2_RECEIVE_READY,
+		      "Receive ready event not received for DLCI2 pipe");
+
+	ret = modem_pipe_receive(dlci2_pipe, buffer2, sizeof(buffer2));
+	zassert_true(ret == (sizeof(cmux_frame_data_dlci2_at_cgdcont) +
+			     sizeof(cmux_frame_data_dlci2_at_newline)),
+		     "Incorrect number of bytes received");
+
+	zassert_true(memcmp(buffer2, cmux_frame_data_dlci2_at_cgdcont,
+			    sizeof(cmux_frame_data_dlci2_at_cgdcont)) == 0,
+		     "Incorrect data received");
+
+	zassert_true(memcmp(&buffer2[sizeof(cmux_frame_data_dlci2_at_cgdcont)],
+			    cmux_frame_data_dlci2_at_newline,
+			    sizeof(cmux_frame_data_dlci2_at_newline)) == 0,
+		     "Incorrect data received");
+}
+
 ZTEST_SUITE(modem_cmux, NULL, test_modem_cmux_setup, test_modem_cmux_before, NULL, NULL);