diff --git a/packages/openpi-client/src/openpi_client/runtime/runtime.py b/packages/openpi-client/src/openpi_client/runtime/runtime.py
index 9552be091a..4412f48070 100644
--- a/packages/openpi-client/src/openpi_client/runtime/runtime.py
+++ b/packages/openpi-client/src/openpi_client/runtime/runtime.py
@@ -62,7 +62,6 @@ def _run_episode(self) -> None:
 
         while self._in_episode:
             self._step()
-            self._episode_steps += 1
 
             # Sleep to maintain the desired frame rate
             now = time.time()
@@ -86,6 +85,7 @@ def _step(self) -> None:
         for subscriber in self._subscribers:
             subscriber.on_step(observation, action)
 
+        self._episode_steps += 1
         if self._environment.is_episode_complete() or (
             self._max_episode_steps > 0 and self._episode_steps >= self._max_episode_steps
         ):
diff --git a/packages/openpi-client/src/openpi_client/runtime/runtime_test.py b/packages/openpi-client/src/openpi_client/runtime/runtime_test.py
new file mode 100644
index 0000000000..653cf40a2b
--- /dev/null
+++ b/packages/openpi-client/src/openpi_client/runtime/runtime_test.py
@@ -0,0 +1,51 @@
+from openpi_client.runtime import agent as _agent
+from openpi_client.runtime import environment as _environment
+from openpi_client.runtime.runtime import Runtime
+import pytest
+
+
+class _FakeEnvironment(_environment.Environment):
+    def __init__(self, complete_after: int | None = None) -> None:
+        self.applied_actions = 0
+        self._complete_after = complete_after
+
+    def reset(self) -> None:
+        pass
+
+    def is_episode_complete(self) -> bool:
+        return self._complete_after is not None and self.applied_actions >= self._complete_after
+
+    def get_observation(self) -> dict:
+        return {"step": self.applied_actions}
+
+    def apply_action(self, action: dict) -> None:
+        self.applied_actions += 1
+
+
+class _FakeAgent(_agent.Agent):
+    def get_action(self, observation: dict) -> dict:
+        return {"step": observation["step"]}
+
+    def reset(self) -> None:
+        pass
+
+
+@pytest.mark.parametrize("max_episode_steps", [1, 2, 3])
+def test_max_episode_steps_counts_completed_actions(max_episode_steps: int) -> None:
+    environment = _FakeEnvironment()
+    runtime = Runtime(environment, _FakeAgent(), [], max_episode_steps=max_episode_steps)
+
+    runtime.run()
+
+    assert environment.applied_actions == max_episode_steps
+    assert runtime._episode_steps == max_episode_steps  # noqa: SLF001
+
+
+def test_environment_can_complete_episode_before_step_limit() -> None:
+    environment = _FakeEnvironment(complete_after=2)
+    runtime = Runtime(environment, _FakeAgent(), [], max_episode_steps=10)
+
+    runtime.run()
+
+    assert environment.applied_actions == 2
+    assert runtime._episode_steps == 2  # noqa: SLF001