diff --git a/core/shared/src/main/scala/fs2/Stream.scala b/core/shared/src/main/scala/fs2/Stream.scala
index 0131a46178..840b084a5e 100644
--- a/core/shared/src/main/scala/fs2/Stream.scala
+++ b/core/shared/src/main/scala/fs2/Stream.scala
@@ -13,6 +13,7 @@ import fs2.internal.{Resource => _, _}
 import java.io.PrintStream
 
 import scala.annotation.tailrec
+import scala.concurrent.TimeoutException
 import scala.concurrent.duration._
 
 /**
@@ -2713,6 +2714,17 @@ final class Stream[+F[_], +O] private[fs2] (private val free: FreeC[F, O, Unit])
   )(f: (Stream[F, O], Stream[F2, O2]) => Stream[F2, O3]): Stream[F2, O3] =
     f(this, s2)
 
+  /** Fails this stream with a [[TimeoutException]] if it does not complete within given `timeout`. */
+  def timeout[F2[x] >: F[x]: Concurrent: Timer](
+      timeout: FiniteDuration
+  ): Stream[F2, O] =
+    this.interruptWhen(
+      Timer[F2]
+        .sleep(timeout)
+        .as(Left(new TimeoutException(s"Timed out after $timeout")))
+        .widen[Either[Throwable, Unit]]
+    )
+
   /**
     * Translates effect type from `F` to `G` using the supplied `FunctionK`.
     *
diff --git a/core/shared/src/test/scala/fs2/StreamSpec.scala b/core/shared/src/test/scala/fs2/StreamSpec.scala
index f63598009e..4aeb62668e 100644
--- a/core/shared/src/test/scala/fs2/StreamSpec.scala
+++ b/core/shared/src/test/scala/fs2/StreamSpec.scala
@@ -6,6 +6,7 @@ import cats.effect._
 import cats.effect.concurrent.{Deferred, Ref, Semaphore}
 import cats.implicits._
 import scala.concurrent.duration._
+import scala.concurrent.TimeoutException
 import org.scalactic.anyvals._
 import org.scalatest.{Assertion, Succeeded}
 import fs2.concurrent.{Queue, SignallingRef}
@@ -3786,4 +3787,34 @@ class StreamSpec extends Fs2Spec {
       }
     }
   }
+
+  "withTimeout" - {
+    "timeout never-ending stream" in {
+      Stream.never[IO].timeout(100.millis).compile.drain.assertThrows[TimeoutException]
+    }
+
+    "not trigger timeout on successfully completed stream" in {
+      Stream.sleep(10.millis).timeout(1.second).compile.drain.assertNoException
+    }
+
+    "compose timeouts d1 and d2 when d1 < d2" in {
+      val d1 = 20.millis
+      val d2 = 30.millis
+      (Stream.sleep(10.millis).timeout(d1) ++ Stream.sleep(30.millis))
+        .timeout(d2)
+        .compile
+        .drain
+        .assertThrows[TimeoutException]
+    }
+
+    "compose timeouts d1 and d2 when d1 > d2" in {
+      val d1 = 40.millis
+      val d2 = 30.millis
+      (Stream.sleep(10.millis).timeout(d1) ++ Stream.sleep(25.millis))
+        .timeout(d2)
+        .compile
+        .drain
+        .assertThrows[TimeoutException]
+    }
+  }
 }