diff --git a/nomad/leader.go b/nomad/leader.go
index 1f0f03307..84ed0e0cf 100644
--- a/nomad/leader.go
+++ b/nomad/leader.go
@@ -114,6 +114,9 @@ func (s *Server) establishLeadership(stopCh chan struct{}) error {
 
 	// Scheduler periodic jobs
 	go s.schedulePeriodic(stopCh)
+
+	// Reap any failed evaluations
+	go s.reapFailedEvaluations(stopCh)
 	return nil
 }
 
@@ -173,6 +176,44 @@ func (s *Server) coreJobEval(job string) *structs.Evaluation {
 	}
 }
 
+// reapFailedEvaluations is used to reap evaluations that
+// have reached their delivery limit and should be failed
+func (s *Server) reapFailedEvaluations(stopCh chan struct{}) {
+	for {
+		select {
+		case <-stopCh:
+			return
+		default:
+			// Scan for a failed evaluation
+			eval, token, err := s.evalBroker.Dequeue([]string{failedQueue}, time.Second)
+			if err != nil {
+				return
+			}
+			if eval == nil {
+				continue
+			}
+
+			// Update the status to failed
+			newEval := eval.Copy()
+			newEval.Status = structs.EvalStatusFailed
+			newEval.StatusDescription = fmt.Sprintf("evaluation reached delivery limit (%d)", s.config.EvalDeliveryLimit)
+			s.logger.Printf("[WARN] nomad: eval %#v reached delivery limit, marking as failed", newEval)
+
+			// Update via Raft
+			req := structs.EvalUpdateRequest{
+				Evals: []*structs.Evaluation{newEval},
+			}
+			if _, _, err := s.raftApply(structs.EvalUpdateRequestType, &req); err != nil {
+				s.logger.Printf("[ERR] nomad: failed to update failed eval %#v: %v", newEval, err)
+				continue
+			}
+
+			// Ack completion
+			s.evalBroker.Ack(eval.ID, token)
+		}
+	}
+}
+
 // revokeLeadership is invoked once we step down as leader.
 // This is used to cleanup any state that may be specific to a leader.
 func (s *Server) revokeLeadership() error {
diff --git a/nomad/leader_test.go b/nomad/leader_test.go
index 8839f9d08..8f975e230 100644
--- a/nomad/leader_test.go
+++ b/nomad/leader_test.go
@@ -304,3 +304,40 @@ func TestLeader_PeriodicDispatch(t *testing.T) {
 		t.Fatalf("should pending job")
 	})
 }
+
+func TestLeader_ReapFailedEval(t *testing.T) {
+	s1 := testServer(t, func(c *Config) {
+		c.NumSchedulers = 0
+		c.EvalDeliveryLimit = 1
+	})
+	defer s1.Shutdown()
+	testutil.WaitForLeader(t, s1.RPC)
+
+	// Wait for a periodic dispatch
+	eval := mock.Eval()
+	testutil.WaitForResult(func() (bool, error) {
+		err := s1.evalBroker.Enqueue(eval)
+		return err == nil, err
+	}, func(err error) {
+		t.Fatalf("err: %v", err)
+	})
+
+	// Dequeue and Nack
+	out, token, err := s1.evalBroker.Dequeue(defaultSched, time.Second)
+	if err != nil {
+		t.Fatalf("err: %v", err)
+	}
+	s1.evalBroker.Nack(out.ID, token)
+
+	// Wait updated evaluation
+	state := s1.fsm.State()
+	testutil.WaitForResult(func() (bool, error) {
+		out, err := state.GetEvalByID(eval.ID)
+		if err != nil {
+			return false, err
+		}
+		return out != nil && out.Status == structs.EvalStatusFailed, nil
+	}, func(err error) {
+		t.Fatalf("err: %v", err)
+	})
+}