An extremum seeking controller includes a processing circuit configured to modulate a manipulated variable provided as an input to a plant using an extremum-seeking control technique to drive a gradient of an objective function with respect to the manipulated variable toward an extremum. The objective function includes a performance variable characterizing a performance of the plant responsive to the manipulated variable. The objective function also includes a saturation adjustment term that becomes active as the plant approaches a saturation point and remains active as the plant operates within a saturated region past the saturation point. The saturation adjustment term causes the processing circuit to adjust the manipulated variable toward a value of the manipulated variable that returns the plant from the saturated region to a non-saturated region.