diff --git a/lib/dash/segment_template.js b/lib/dash/segment_template.js
index 1d9aa83a78..95a15237f7 100644
--- a/lib/dash/segment_template.js
+++ b/lib/dash/segment_template.js
@@ -273,7 +273,7 @@ shaka.dash.SegmentTemplate = class {
 
     const presentationTimeline = context.presentationTimeline;
 
-    // Capture valutes that could change as the parsing context moves on to
+    // Capture values that could change as the parsing context moves on to
     // other parts of the manifest.
     const periodStart = context.periodInfo.start;
     const periodDuration = context.periodInfo.duration;
@@ -341,11 +341,14 @@ shaka.dash.SegmentTemplate = class {
       return availablePresentationPositions;
     };
 
-    // We must limit the initial SegmentIndex in size, to avoid consuming too
-    // much CPU or memory for content with gigantic timeShiftBufferDepth (which
-    // can have values up to and including Infinity).
+    // For Live, we must limit the initial SegmentIndex in size, to avoid
+    // consuming too much CPU or memory for content with gigantic
+    // timeShiftBufferDepth (which can have values up to and including
+    // Infinity).
     const range = computeAvailablePositionRange();
-    const minPosition = Math.max(range[0], range[1] - segmentLimit);
+    const minPosition = context.dynamic ?
+        Math.max(range[0], range[1] - segmentLimit + 1) :
+        range[0];
     const maxPosition = range[1];
 
     const references = [];
diff --git a/test/dash/dash_parser_segment_template_unit.js b/test/dash/dash_parser_segment_template_unit.js
index 47328d5cf3..13a189a536 100644
--- a/test/dash/dash_parser_segment_template_unit.js
+++ b/test/dash/dash_parser_segment_template_unit.js
@@ -129,6 +129,44 @@ describe('DashParser SegmentTemplate', () => {
       const manifest = await parser.start('dummy://foo', playerInterface);
       expect(manifest.presentationTimeline.getSeekRangeStart()).toBe(30);
     });
+
+    it('limits segment count for Live', async () => {
+      const source = Dash.makeSimpleManifestText([
+        '<SegmentTemplate media="s$Number$.mp4" duration="1" />',
+      ]);
+
+      const config = shaka.util.PlayerConfiguration.createDefault().manifest;
+      config.dash.initialSegmentLimit = 100;
+      parser.configure(config);
+
+      fakeNetEngine.setResponseText('dummy://foo', source);
+      const manifest = await parser.start('dummy://foo', playerInterface);
+      const stream = manifest.variants[0].video;
+      await stream.createSegmentIndex();
+      goog.asserts.assert(stream.segmentIndex, 'Should have created index');
+
+      const segments = Array.from(stream.segmentIndex);
+      expect(segments.length).toBe(config.dash.initialSegmentLimit);
+    });
+
+    it('doesn\'t limit segment count for VOD', async () => {
+      const source = Dash.makeSimpleManifestText([
+        '<SegmentTemplate media="s$Number$.mp4" duration="1" />',
+      ], /* duration= */ 200);
+
+      const config = shaka.util.PlayerConfiguration.createDefault().manifest;
+      config.dash.initialSegmentLimit = 100;
+      parser.configure(config);
+
+      fakeNetEngine.setResponseText('dummy://foo', source);
+      const manifest = await parser.start('dummy://foo', playerInterface);
+      const stream = manifest.variants[0].video;
+      await stream.createSegmentIndex();
+      goog.asserts.assert(stream.segmentIndex, 'Should have created index');
+
+      const segments = Array.from(stream.segmentIndex);
+      expect(segments.length).toBe(200);
+    });
   });
 
   describe('index', () => {