diff --git a/airbyte_cdk/sources/file_based/file_based_source.py b/airbyte_cdk/sources/file_based/file_based_source.py
index df469e834..62ad1abb5 100644
--- a/airbyte_cdk/sources/file_based/file_based_source.py
+++ b/airbyte_cdk/sources/file_based/file_based_source.py
@@ -124,9 +124,16 @@ def __init__(
         self.logger = init_logger(f"airbyte.{self.name}")
         self.errors_collector: FileBasedErrorsCollector = FileBasedErrorsCollector()
         self._message_repository: Optional[MessageRepository] = None
+        configured_concurrency: int | None = self._concurrency_level
+        concurrency = (
+            min(configured_concurrency, MAX_CONCURRENCY)
+            if configured_concurrency is not None
+            else MAX_CONCURRENCY
+        )
+        initial_n_partitions = max(concurrency // 2, 1)
         concurrent_source = ConcurrentSource.create(
-            MAX_CONCURRENCY,
-            INITIAL_N_PARTITIONS,
+            concurrency,
+            initial_n_partitions,
             self.logger,
             self._slice_logger,
             self.message_repository,
diff --git a/unit_tests/sources/file_based/test_file_based_source_concurrency.py b/unit_tests/sources/file_based/test_file_based_source_concurrency.py
new file mode 100644
index 000000000..bb6d4a7fe
--- /dev/null
+++ b/unit_tests/sources/file_based/test_file_based_source_concurrency.py
@@ -0,0 +1,66 @@
+#
+# Copyright (c) 2026 Airbyte, Inc., all rights reserved.
+#
+
+from unittest.mock import MagicMock, patch
+
+import pytest
+
+from airbyte_cdk.sources.file_based.file_based_source import (
+    MAX_CONCURRENCY,
+    FileBasedSource,
+)
+
+
+class _ConcreteFBSource(FileBasedSource):
+    """Minimal concrete subclass so we can instantiate FileBasedSource."""
+
+    _concurrency_level = None
+
+    @property
+    def name(self) -> str:
+        return "test-source"
+
+    def check_connection(self, logger, config):
+        return True, None
+
+    def streams(self, config):
+        return []
+
+
+@pytest.mark.parametrize(
+    "concurrency_level, expected_num_workers, expected_initial_partitions",
+    [
+        pytest.param(None, MAX_CONCURRENCY, MAX_CONCURRENCY // 2, id="none_uses_max"),
+        pytest.param(100, 100, 50, id="default_concurrency"),
+        pytest.param(20, 20, 10, id="reduced_concurrency"),
+        pytest.param(2, 2, 1, id="minimal_concurrency"),
+        pytest.param(200, MAX_CONCURRENCY, MAX_CONCURRENCY // 2, id="capped_at_max"),
+    ],
+)
+def test_concurrency_level_controls_thread_pool_size(
+    concurrency_level, expected_num_workers, expected_initial_partitions
+):
+    _ConcreteFBSource._concurrency_level = concurrency_level
+
+    with patch(
+        "airbyte_cdk.sources.file_based.file_based_source.ConcurrentSource.create"
+    ) as mock_create:
+        mock_create.return_value = MagicMock()
+        try:
+            _ConcreteFBSource(
+                stream_reader=MagicMock(),
+                spec_class=MagicMock(),
+                catalog=None,
+                config=None,
+                state=None,
+            )
+        except Exception:
+            pass  # Other init errors are fine; we only care about the ConcurrentSource.create call
+
+        mock_create.assert_called_once()
+        call_args = mock_create.call_args
+        actual_num_workers = call_args[0][0]
+        actual_initial_partitions = call_args[0][1]
+        assert actual_num_workers == expected_num_workers
+        assert actual_initial_partitions == expected_initial_partitions