diff --git a/frappe/build.py b/frappe/build.py
index c1c807c8db..baedb633b6 100644
--- a/frappe/build.py
+++ b/frappe/build.py
@@ -15,6 +15,7 @@ import frappe
 from frappe.utils.minify import JavascriptMinify
 
 import click
+import psutil
 from six import iteritems, text_type
 from six.moves.urllib.parse import urlparse
 
@@ -226,7 +227,7 @@ def bundle(no_compress, app=None, make_copy=False, restore=False, verbose=False,
 
 	frappe_app_path = os.path.abspath(os.path.join(app_paths[0], ".."))
 	check_yarn()
-	frappe.commands.popen(command, cwd=frappe_app_path)
+	frappe.commands.popen(command, cwd=frappe_app_path, env=get_node_env())
 
 
 def watch(no_compress):
@@ -238,13 +239,32 @@ def watch(no_compress):
 	frappe_app_path = os.path.abspath(os.path.join(app_paths[0], ".."))
 	check_yarn()
 	frappe_app_path = frappe.get_app_path("frappe", "..")
-	frappe.commands.popen("{pacman} run watch".format(pacman=pacman), cwd=frappe_app_path)
+	frappe.commands.popen("{pacman} run watch".format(pacman=pacman),
+		cwd=frappe_app_path, env=get_node_env())
 
 
 def check_yarn():
 	if not find_executable("yarn"):
 		print("Please install yarn using below command and try again.\nnpm install -g yarn")
 
+def get_node_env():
+	node_env = {
+		"NODE_OPTIONS": f"--max_old_space_size={get_safe_max_old_space_size()}"
+	}
+	return node_env
+
+def get_safe_max_old_space_size():
+	safe_max_old_space_size = 0
+	try:
+		total_memory = psutil.virtual_memory().total / (1024 * 1024)
+		# reference for the safe limit assumption
+		# https://nodejs.org/api/cli.html#cli_max_old_space_size_size_in_megabytes
+		# set minimum value 1GB
+		safe_max_old_space_size = max(1024, int(total_memory * 0.75))
+	except Exception:
+		pass
+
+	return safe_max_old_space_size
 
 def make_asset_dirs(make_copy=False, restore=False):
 	# don't even think of making assets_path absolute - rm -rf ahead.
diff --git a/frappe/commands/__init__.py b/frappe/commands/__init__.py
index b7294fff77..b9ae02e112 100644
--- a/frappe/commands/__init__.py
+++ b/frappe/commands/__init__.py
@@ -11,6 +11,7 @@ import frappe.utils
 import subprocess # nosec
 from functools import wraps
 from six import StringIO
+from os import environ
 
 click.disable_unicode_literals_warning = True
 
@@ -53,16 +54,20 @@ def get_site(context, raise_err=True):
 		return None
 
 def popen(command, *args, **kwargs):
-	output    = kwargs.get('output', True)
-	cwd       = kwargs.get('cwd')
-	shell     = kwargs.get('shell', True)
+	output = kwargs.get('output', True)
+	cwd = kwargs.get('cwd')
+	shell = kwargs.get('shell', True)
 	raise_err = kwargs.get('raise_err')
+	env = kwargs.get('env')
+	if env:
+		env = dict(environ, **env)
 
 	proc = subprocess.Popen(command,
-		stdout = None if output else subprocess.PIPE,
-		stderr = None if output else subprocess.PIPE,
-		shell  = shell,
-		cwd    = cwd
+		stdout=None if output else subprocess.PIPE,
+		stderr=None if output else subprocess.PIPE,
+		shell=shell,
+		cwd=cwd,
+		env=env
 	)
 
 	return_ = proc.wait()
diff --git a/requirements.txt b/requirements.txt
index 1764834d8e..0f88a48f73 100644
--- a/requirements.txt
+++ b/requirements.txt
@@ -38,6 +38,7 @@ passlib==1.7.3
 pdfkit==0.6.1
 Pillow>=8.0.0
 premailer==3.6.1
+psutil==5.7.2
 psycopg2-binary==2.8.4
 pyasn1==0.4.8
 PyJWT==1.7.1