diff --git a/rust/numaflow-core/src/shared/create_components.rs b/rust/numaflow-core/src/shared/create_components.rs
index ecffe43fef..94a4357609 100644
--- a/rust/numaflow-core/src/shared/create_components.rs
+++ b/rust/numaflow-core/src/shared/create_components.rs
@@ -360,12 +360,14 @@ pub async fn create_source(
                 *get_vertex_replica(),
             )
             .await?;
+            // for serving we use batch size as one as we are not batching the messages
+            // and read ahead is enabled as it supports it.
             Ok((
                 Source::new(
-                    batch_size,
+                    1,
                     source::SourceType::Serving(serving),
                     tracker_handle,
-                    source_config.read_ahead,
+                    true,
                     transformer,
                     watermark_handle,
                 ),
diff --git a/rust/numaflow-core/src/source.rs b/rust/numaflow-core/src/source.rs
index fe1c421046..f5423333bc 100644
--- a/rust/numaflow-core/src/source.rs
+++ b/rust/numaflow-core/src/source.rs
@@ -4,6 +4,7 @@
 //! [Source]: https://numaflow.numaproj.io/user-guide/sources/overview/
 //! [Watermark]: https://numaflow.numaproj.io/core-concepts/watermarks/
 
+use std::cmp::max;
 use std::sync::Arc;
 use tracing::warn;
 
@@ -55,6 +56,8 @@ use serving::ServingSource;
 use crate::transformer::Transformer;
 use crate::watermark::source::SourceWatermarkHandle;
 
+const MAX_ACK_PENDING: usize = 10000;
+
 /// Set of Read related items that has to be implemented to become a Source.
 pub(crate) trait SourceReader {
     #[allow(dead_code)]
@@ -321,8 +324,15 @@ impl Source {
         info!(?self.read_batch_size, "Started streaming source with batch size");
         let handle = tokio::spawn(async move {
             // this semaphore is used only if read-ahead is disabled. we hold this semaphore to
-            // make sure we can read only if the current inflight ones are ack'ed.
-            let semaphore = Arc::new(Semaphore::new(1));
+            // make sure we can read only if the current inflight ones are ack'ed. If read ahead
+            // is disabled you can have upto (max_ack_pending / read_batch_size) ack tasks. We
+            // divide by read_batch_size because we do batch acking in source.
+            let max_ack_tasks = match &self.read_ahead {
+                true => MAX_ACK_PENDING / self.read_batch_size,
+                false => 1,
+            };
+            let semaphore = Arc::new(Semaphore::new(max_ack_tasks));
+
             let mut result = Ok(());
             loop {
                 if cln_token.is_cancelled() {
@@ -330,14 +340,12 @@ impl Source {
                     break;
                 }
 
-                if !self.read_ahead {
-                    // Acquire the semaphore permit before reading the next batch to make
-                    // sure we are not reading ahead and all the inflight messages are acked.
-                    let _permit = Arc::clone(&semaphore)
-                        .acquire_owned()
-                        .await
-                        .expect("acquiring permit should not fail");
-                }
+                // Acquire the semaphore permit before reading the next batch to make
+                // sure we are not reading ahead and all the inflight messages are acked.
+                let _permit = Arc::clone(&semaphore)
+                    .acquire_owned()
+                    .await
+                    .expect("acquiring permit should not fail");
 
                 let read_start_time = Instant::now();
                 let messages = match Self::read(self.sender.clone()).await {
@@ -371,7 +379,6 @@ impl Source {
                 for message in messages.iter() {
                     let (resp_ack_tx, resp_ack_rx) = oneshot::channel();
                     let offset = message.offset.clone();
-                    println!("offset: {:?}", offset);
 
                     // insert the offset and the ack one shot in the tracker.
                     self.tracker_handle.insert(message, resp_ack_tx).await?;
@@ -436,8 +443,11 @@ impl Source {
                 }
             }
             info!(status=?result, "Source stopped, waiting for inflight messages to be acked");
+            // wait for all the ack tasks to be completed before stopping the source, since we give
+            // a permit for each ack task all the permits should be released when the ack tasks are
+            // done, we can verify this by trying to acquire the permit for max_ack_tasks.
             let _permit = Arc::clone(&semaphore)
-                .acquire_owned()
+                .acquire_many_owned(max_ack_tasks as u32)
                 .await
                 .expect("acquiring permit should not fail");
             info!("All inflight messages are acked. Source stopped.");
diff --git a/rust/serving/src/config.rs b/rust/serving/src/config.rs
index 828270540a..64484feef9 100644
--- a/rust/serving/src/config.rs
+++ b/rust/serving/src/config.rs
@@ -23,7 +23,7 @@ pub const DEFAULT_ID_HEADER: &str = "X-Numaflow-Id";
 pub const DEFAULT_CALLBACK_URL_HEADER_KEY: &str = "X-Numaflow-Callback-Url";
 pub const DEFAULT_REDIS_TTL_IN_SECS: u32 = 86400;
 
-pub fn generate_certs() -> std::result::Result<(Certificate, KeyPair), String> {
+pub fn generate_certs() -> Result<(Certificate, KeyPair), String> {
     let CertifiedKey { cert, key_pair } = generate_simple_self_signed(vec!["localhost".into()])
         .map_err(|e| format!("Failed to generate cert {:?}", e))?;
     Ok((cert, key_pair))
@@ -74,7 +74,7 @@ impl Default for Settings {
             app_listen_port: 3000,
             metrics_server_listen_port: 3001,
             upstream_addr: "localhost:8888".to_owned(),
-            drain_timeout_secs: 10,
+            drain_timeout_secs: 600,
             redis: RedisConfig::default(),
             host_ip: "127.0.0.1".to_owned(),
             api_auth_token: None,