diff --git a/config.template.toml b/config.template.toml
index 30bf1cd5ba..844fb7e634 100644
--- a/config.template.toml
+++ b/config.template.toml
@@ -64,7 +64,7 @@
 #max_budget_per_task = 0.0
 
 # Maximum number of iterations
-#max_iterations = 250
+#max_iterations = 500
 
 # Path to mount the workspace in the sandbox
 #workspace_mount_path_in_sandbox = "/workspace"
diff --git a/openhands/core/config/config_utils.py b/openhands/core/config/config_utils.py
index 408a714bee..63f04ebd90 100644
--- a/openhands/core/config/config_utils.py
+++ b/openhands/core/config/config_utils.py
@@ -5,7 +5,7 @@ from pydantic import BaseModel
 from pydantic.fields import FieldInfo
 
 OH_DEFAULT_AGENT = 'CodeActAgent'
-OH_MAX_ITERATIONS = 250
+OH_MAX_ITERATIONS = 500
 
 
 def get_field_info(field: FieldInfo) -> dict[str, Any]: