diff --git a/contrib/liblzma/compress_easy_mt.cpp b/contrib/liblzma/compress_easy_mt.cpp
index 2ba1da2..9c3612a 100644
--- a/contrib/liblzma/compress_easy_mt.cpp
+++ b/contrib/liblzma/compress_easy_mt.cpp
@@ -78,7 +78,7 @@ bool init_decoder(lzma_stream *strm)
 	return check(ret);
 }
 
-bool init_encoder_mt(lzma_stream *strm, int threads, uint64_t &memory_usage)
+bool init_encoder_mt(lzma_stream *strm, int threads, uint64_t max_memory, uint64_t &memory_usage)
 {
 	// The threaded encoder takes the options as pointer to
 	// a lzma_mt structure.
@@ -88,7 +88,7 @@ bool init_encoder_mt(lzma_stream *strm, int threads, uint64_t &memory_usage)
 	mt	.flags = 0;
 
 	// Let liblzma determine a sane block size.
-	mt	.block_size = 16 * 1024 * 1024;
+	mt	.block_size = 0;
 
 	// Use no timeout for lzma_code() calls by setting timeout
 	// to zero. That is, sometimes lzma_code() might block for
@@ -109,6 +109,20 @@ bool init_encoder_mt(lzma_stream *strm, int threads, uint64_t &memory_usage)
 
 	mt.threads = threads;
 
+    uint64_t preset_memory_usage;
+    int preset_to_use = 0;
+    for (int preset = 1; preset <= 9; preset++) {
+        mt.preset = preset;
+        preset_memory_usage = lzma_stream_encoder_mt_memusage(&mt);
+        if (preset_memory_usage > max_memory) break;
+        memory_usage = preset_memory_usage;
+        preset_to_use = preset;
+    }
+    
+    if (preset_to_use == 0) return false;
+    
+    mt.preset = preset_to_use;
+    
 	// Initialize the threaded encoder.
 	lzma_ret ret = lzma_stream_encoder_mt(strm, &mt);
 
diff --git a/contrib/liblzma/precomp_xz.h b/contrib/liblzma/precomp_xz.h
index 029e897..201d5e3 100644
--- a/contrib/liblzma/precomp_xz.h
+++ b/contrib/liblzma/precomp_xz.h
@@ -5,7 +5,8 @@
 
 bool init_lzma1(lzma_stream *strm);
 bool init_lzma2(lzma_stream *strm);
-bool init_encoder_mt(lzma_stream *strm, int threads, uint64_t &memory_usage);
+bool init_encoder_mt(lzma_stream *strm, int threads, uint64_t max_memory, uint64_t &memory_usage);
+
 bool init_decoder(lzma_stream *strm);
 
 #endif /* ifndef PRECOMP_XZ_H */
diff --git a/precomp.cpp b/precomp.cpp
index 707c250..fb57311 100644
--- a/precomp.cpp
+++ b/precomp.cpp
@@ -9190,9 +9190,16 @@ void init_compress_otf() {
     }
     case OTF_XZ_MT: {
       uint64_t memory_usage = 0;
+      // As default, use 2 GB memory for LZMA, only 1 GB in the 32-bit windows variant
+      uint64_t max_memory = 2 * 1024 * 1024 * 1024LL;
+      #ifndef UNIX
+      #ifndef BIT64
+      max_memory = 1 * 1024 * 1024 * 1024LL;
+      #endif
+      #endif
       int threads = std::thread::hardware_concurrency();
       if (threads == 0) threads = 2;
-      if (!init_encoder_mt(&otf_xz_stream_c, threads, memory_usage)) {
+      if (!init_encoder_mt(&otf_xz_stream_c, threads, max_memory, memory_usage)) {
         printf("ERROR: xz Multi-Threaded init failed\n");
         exit(1);
       }