diff --git a/mysql-test/suite/innodb/r/innodb_bug12400341.result b/mysql-test/suite/innodb/r/innodb_bug12400341.result
new file mode 100644
index 00000000000..551e94f5e77
--- /dev/null
+++ b/mysql-test/suite/innodb/r/innodb_bug12400341.result
@@ -0,0 +1,25 @@
+call mtr.add_suppression("InnoDB: Warning: cannot find a free slot for an undo log. Do you have too");
+show variables like "max_connections";
+Variable_name	Value
+max_connections	64
+show variables like "innodb_thread_concurrency";
+Variable_name	Value
+innodb_thread_concurrency	0
+show variables like "innodb_file_per_table";
+Variable_name	Value
+innodb_file_per_table	ON
+drop database if exists mysqltest;
+create database mysqltest;
+CREATE TABLE mysqltest.transtable (id int unsigned NOT NULL PRIMARY KEY, val int DEFAULT 0) ENGINE=InnoDB;
+select count(*) from information_schema.processlist;
+count(*)
+33
+CREATE TABLE mysqltest.testtable (id int unsigned not null primary key) ENGINE=InnoDB;
+ERROR HY000: Can't create table 'mysqltest.testtable' (errno: 177)
+select count(*) from information_schema.processlist;
+count(*)
+33
+select count(*) from information_schema.processlist;
+count(*)
+33
+drop database mysqltest;
diff --git a/mysql-test/suite/innodb/t/innodb_bug12400341-master.opt b/mysql-test/suite/innodb/t/innodb_bug12400341-master.opt
new file mode 100644
index 00000000000..13f480704f5
--- /dev/null
+++ b/mysql-test/suite/innodb/t/innodb_bug12400341-master.opt
@@ -0,0 +1 @@
+--max_connections=64 --innodb_thread_concurrency=0 --innodb_file_per_table --innodb_rollback_segments=2
diff --git a/mysql-test/suite/innodb/t/innodb_bug12400341.test b/mysql-test/suite/innodb/t/innodb_bug12400341.test
new file mode 100644
index 00000000000..2ab1be81f6d
--- /dev/null
+++ b/mysql-test/suite/innodb/t/innodb_bug12400341.test
@@ -0,0 +1,103 @@
+# Test for bug #12400341: INNODB CAN LEAVE ORPHAN IBD FILES AROUND
+
+-- source include/have_innodb.inc
+
+if (`select count(*)=0 from information_schema.global_variables where variable_name = 'INNODB_TRX_RSEG_N_SLOTS_DEBUG'`)
+{
+  --skip Test requires InnoDB built with UNIV_DEBUG definition.
+}
+
+call mtr.add_suppression("InnoDB: Warning: cannot find a free slot for an undo log. Do you have too");
+
+--disable_query_log
+set @old_innodb_trx_rseg_n_slots_debug = @@innodb_trx_rseg_n_slots_debug;
+set global innodb_trx_rseg_n_slots_debug = 32;
+--enable_query_log
+
+show variables like "max_connections";
+show variables like "innodb_thread_concurrency";
+show variables like "innodb_file_per_table";
+
+--disable_warnings
+drop database if exists mysqltest;
+--enable_warnings
+
+create database mysqltest;
+CREATE TABLE mysqltest.transtable (id int unsigned NOT NULL PRIMARY KEY, val int DEFAULT 0) ENGINE=InnoDB;
+
+--disable_query_log
+#
+# Insert in 1 transaction which needs over 1 page undo record to avoid the insert_undo cached,
+# because the cached insert_undo can be reused at "CREATE TABLE" statement later.
+#
+START TRANSACTION;
+let $c = 1024;
+while ($c)
+{
+  eval INSERT INTO mysqltest.transtable (id) VALUES ($c);
+  dec $c;
+}
+COMMIT;
+
+let $c = 32;
+while ($c)
+{
+  # if failed at here, it might be shortage of file descriptors limit.
+  connect (con$c,localhost,root,,);
+  dec $c;
+}
+--enable_query_log
+
+select count(*) from information_schema.processlist;
+
+#
+# fill the all undo slots
+#
+--disable_query_log
+let $c = 32;
+while ($c)
+{
+  connection con$c;
+  START TRANSACTION;
+  eval UPDATE mysqltest.transtable SET val = 1 WHERE id = 33 - $c;
+  dec $c;
+}
+--enable_query_log
+
+connection default;
+
+--error ER_CANT_CREATE_TABLE
+CREATE TABLE mysqltest.testtable (id int unsigned not null primary key) ENGINE=InnoDB;
+
+select count(*) from information_schema.processlist;
+
+--disable_query_log
+let $c = 32;
+while ($c)
+{
+  connection con$c;
+  ROLLBACK;
+  dec $c;
+}
+--enable_query_log
+
+connection default;
+select count(*) from information_schema.processlist;
+
+--disable_query_log
+let $c = 32;
+while ($c)
+{
+  disconnect con$c;
+  dec $c;
+}
+--enable_query_log
+
+#
+# If the isolated .ibd file remained, the drop database should fail.
+#
+drop database mysqltest;
+
+--disable_query_log
+set global innodb_trx_rseg_n_slots_debug = @old_innodb_trx_rseg_n_slots_debug;
+--enable_query_log
diff --git a/mysql-test/suite/sys_vars/r/all_vars.result b/mysql-test/suite/sys_vars/r/all_vars.result
index af05e3bc393..ee46a155cb0 100644
--- a/mysql-test/suite/sys_vars/r/all_vars.result
+++ b/mysql-test/suite/sys_vars/r/all_vars.result
@@ -4,6 +4,7 @@ load data infile "MYSQLTEST_VARDIR/tmp/sys_vars.all_vars.txt" into table t1;
 insert into t2 select variable_name from information_schema.global_variables;
 insert into t2 select variable_name from information_schema.session_variables;
 delete from t2 where variable_name='innodb_change_buffering_debug';
+delete from t2 where variable_name='innodb_trx_rseg_n_slots_debug';
 update t2 set variable_name= replace(variable_name, "PERFORMANCE_SCHEMA_", "PFS_");
 select variable_name as `There should be *no* long test name listed below:` from t2
 where length(variable_name) > 50;
diff --git a/mysql-test/suite/sys_vars/t/all_vars.test b/mysql-test/suite/sys_vars/t/all_vars.test
index f4fbf9fc6f1..afb74c006e2 100644
--- a/mysql-test/suite/sys_vars/t/all_vars.test
+++ b/mysql-test/suite/sys_vars/t/all_vars.test
@@ -49,6 +49,7 @@ insert into t2 select variable_name from information_schema.session_variables;
 
 # This is only present in debug builds.
 delete from t2 where variable_name='innodb_change_buffering_debug';
+delete from t2 where variable_name='innodb_trx_rseg_n_slots_debug';
 
 # Performance schema variables are too long for files named
 # 'mysql-test/suite/sys_vars/t/' ...
diff --git a/storage/innobase/handler/ha_innodb.cc b/storage/innobase/handler/ha_innodb.cc
index 4c947e532b1..710d66903d9 100644
--- a/storage/innobase/handler/ha_innodb.cc
+++ b/storage/innobase/handler/ha_innodb.cc
@@ -11437,6 +11437,13 @@ static MYSQL_SYSVAR_ULONG(read_ahead_threshold, srv_read_ahead_threshold,
   "trigger a readahead.",
   NULL, NULL, 56, 0, 64, 0);
 
+#ifdef UNIV_DEBUG
+static MYSQL_SYSVAR_UINT(trx_rseg_n_slots_debug, trx_rseg_n_slots_debug,
+  PLUGIN_VAR_RQCMDARG,
+  "Debug flags for InnoDB to limit TRX_RSEG_N_SLOTS for trx_rsegf_undo_find_free()",
+  NULL, NULL, 0, 0, 1024, 0);
+#endif /* UNIV_DEBUG */
+
 static struct st_mysql_sys_var* innobase_system_variables[]= {
   MYSQL_SYSVAR(additional_mem_pool_size),
   MYSQL_SYSVAR(autoextend_increment),
@@ -11506,6 +11513,9 @@ static struct st_mysql_sys_var* innobase_system_variables[]= {
   MYSQL_SYSVAR(purge_threads),
   MYSQL_SYSVAR(purge_batch_size),
   MYSQL_SYSVAR(rollback_segments),
+#ifdef UNIV_DEBUG
+  MYSQL_SYSVAR(trx_rseg_n_slots_debug),
+#endif /* UNIV_DEBUG */
   NULL
 };
 
diff --git a/storage/innobase/include/trx0rseg.ic b/storage/innobase/include/trx0rseg.ic
index daffa92fc7d..5e8d2b41120 100644
--- a/storage/innobase/include/trx0rseg.ic
+++ b/storage/innobase/include/trx0rseg.ic
@@ -25,6 +25,7 @@ Created 3/26/1996 Heikki Tuuri
 
 #include "srv0srv.h"
 #include "mtr0log.h"
+#include "trx0sys.h"
 
 /******************************************************************//**
 Gets a rollback segment header.
@@ -131,7 +132,13 @@ trx_rsegf_undo_find_free(
 	ulint		i;
 	ulint		page_no;
 
-	for (i = 0; i < TRX_RSEG_N_SLOTS; i++) {
+	for (i = 0;
+#ifndef UNIV_DEBUG
+	     i < TRX_RSEG_N_SLOTS;
+#else
+	     i < (trx_rseg_n_slots_debug ? trx_rseg_n_slots_debug : TRX_RSEG_N_SLOTS);
+#endif
+	     i++) {
 
 		page_no = trx_rsegf_get_nth_undo(rsegf, i, mtr);
 
diff --git a/storage/innobase/include/trx0sys.h b/storage/innobase/include/trx0sys.h
index 9cec1933e9d..3913792d594 100644
--- a/storage/innobase/include/trx0sys.h
+++ b/storage/innobase/include/trx0sys.h
@@ -223,6 +223,12 @@ trx_id_t
 trx_sys_get_new_trx_id(void);
 /*========================*/
 #endif /* !UNIV_HOTBACKUP */
+
+#ifdef UNIV_DEBUG
+/* Flag to control TRX_RSEG_N_SLOTS behavior debugging. */
+extern uint			trx_rseg_n_slots_debug;
+#endif
+
 /*****************************************************************//**
 Writes a trx id to an index page. In case that the id size changes in
 some future version, this function should be used instead of
diff --git a/storage/innobase/row/row0mysql.c b/storage/innobase/row/row0mysql.c
index 996a49f76e8..3f81604a1a2 100644
--- a/storage/innobase/row/row0mysql.c
+++ b/storage/innobase/row/row0mysql.c
@@ -1991,6 +1991,20 @@ err_exit:
 		}
 		break;
 
+	case DB_TOO_MANY_CONCURRENT_TRXS:
+		/* We already have .ibd file here. it should be deleted. */
+
+		if (table->space && !fil_delete_tablespace(table->space)) {
+			ut_print_timestamp(stderr);
+			fprintf(stderr,
+				"  InnoDB: Error: not able to"
+				" delete tablespace %lu of table ",
+				(ulong) table->space);
+			ut_print_name(stderr, trx, TRUE, table->name);
+			fputs("!\n", stderr);
+		}
+		/* fall through */
+
 	case DB_DUPLICATE_KEY:
 	default:
 		/* We may also get err == DB_ERROR if the .ibd file for the
diff --git a/storage/innobase/trx/trx0sys.c b/storage/innobase/trx/trx0sys.c
index 8e595353024..66d3ae5463c 100644
--- a/storage/innobase/trx/trx0sys.c
+++ b/storage/innobase/trx/trx0sys.c
@@ -134,6 +134,11 @@ UNIV_INTERN mysql_pfs_key_t	trx_doublewrite_mutex_key;
 UNIV_INTERN mysql_pfs_key_t	file_format_max_mutex_key;
 #endif /* UNIV_PFS_MUTEX */
 
+#ifdef UNIV_DEBUG
+/* Flag to control TRX_RSEG_N_SLOTS behavior debugging. */
+uint		trx_rseg_n_slots_debug = 0;
+#endif
+
 #ifndef UNIV_HOTBACKUP
 /** This is used to track the maximum file format id known to InnoDB. It's
 updated via SET GLOBAL innodb_file_format_max = 'x' or when we open