Techniques are disclosed for dynamically adjusting a throttling threshold in a multi-tenant virtualized computing environment. System health parameters are collected during a predetermined time interval. A system health status of the multi-tenant virtualized computing environment is determined. Based on the system health status, a throttling threshold for service requests for the multi-tenant virtualized computing environment is determined. The throttling threshold is applied for further service requests. During a subsequent time interval, an updated system health status of the multi-tenant virtualized computing environment is determined based on system health parameters received during the subsequent time interval. The throttling threshold is updated based on the updated system health status. The updated throttling threshold is applied for further service requests.