diff --git a/.hgtags b/.hgtags
--- a/.hgtags
+++ b/.hgtags
@@ -28,3 +28,5 @@ a47ccfb020cda78c8680e3844aaf0b82b1390f3b
 347ae9ae544bba8deb417995285287a3b6be1611 v4.10.4
 9b257ac49841f850434be0d518baca0827e6c8cc v4.10.5
 e8bf26eea118694edc4ffe50c6c5aa91022bc434 v4.10.6
+71fa9274ba59fb982104f0b9b3d0d024c78675f7 v4.11.0
+92471577ef25636e5babe8001d47fc8e51521522 v4.11.1
diff --git a/pkgs/python-packages.nix b/pkgs/python-packages.nix
--- a/pkgs/python-packages.nix
+++ b/pkgs/python-packages.nix
@@ -653,7 +653,7 @@
     };
   };
   rhodecode-vcsserver = super.buildPythonPackage {
-    name = "rhodecode-vcsserver-4.11.0";
+    name = "rhodecode-vcsserver-4.11.1";
     buildInputs = with self; [pytest py pytest-cov pytest-sugar pytest-runner pytest-catchlog pytest-profiling gprof2dot pytest-timeout mock WebTest cov-core coverage configobj];
     doCheck = true;
     propagatedBuildInputs = with self; [Beaker configobj decorator dulwich hgsubversion hg-evolve infrae.cache mercurial msgpack-python pyramid pyramid-jinja2 pyramid-mako repoze.lru simplejson subprocess32 subvertpy six translationstring WebOb wheel zope.deprecation zope.interface ipdb ipython gevent greenlet gunicorn waitress pytest py pytest-cov pytest-sugar pytest-runner pytest-catchlog pytest-profiling gprof2dot pytest-timeout mock WebTest cov-core coverage];
diff --git a/vcsserver/subprocessio.py b/vcsserver/subprocessio.py
--- a/vcsserver/subprocessio.py
+++ b/vcsserver/subprocessio.py
@@ -23,10 +23,13 @@ along with git_http_backend.py Project.
 If not, see <http://www.gnu.org/licenses/>.
 """
 import os
+import logging
 import subprocess32 as subprocess
 from collections import deque
 from threading import Event, Thread
 
+log = logging.getLogger(__name__)
+
 
 class StreamFeeder(Thread):
     """
@@ -117,7 +120,7 @@ class InputStreamChunker(Thread):
         s = self.source
         t = self.target
         cs = self.chunk_size
-        ccm = self.chunk_count_max
+        chunk_count_max = self.chunk_count_max
         keep_reading = self.keep_reading
         da = self.data_added
         go = self.go
@@ -127,14 +130,14 @@ class InputStreamChunker(Thread):
         except ValueError:
             b = ''
 
+        timeout_input = 20
         while b and go.is_set():
-            if len(t) > ccm:
+            if len(t) > chunk_count_max:
                 keep_reading.clear()
-                keep_reading.wait(2)
-
-                if not keep_reading.wait(10):
-                    raise Exception(
-                        "Timed out while waiting for input to be read.")
+                keep_reading.wait(timeout_input)
+                if len(t) > chunk_count_max + timeout_input:
+                    log.error("Timed out while waiting for input from subprocess.")
+                    os._exit(-1)  # this will cause the worker to recycle itself
 
             t.append(b)
             da.set()