diff --git a/pcsx2/GS/Renderers/Common/GSDevice.cpp b/pcsx2/GS/Renderers/Common/GSDevice.cpp
index 96c9c58867..7fc883bafc 100644
--- a/pcsx2/GS/Renderers/Common/GSDevice.cpp
+++ b/pcsx2/GS/Renderers/Common/GSDevice.cpp
@@ -74,11 +74,6 @@ const char* shaderName(PresentShader value)
 	}
 }
 
-static int MipmapLevelsForSize(int width, int height)
-{
-	return std::min(static_cast<int>(std::log2(std::max(width, height))) + 1, MAXIMUM_TEXTURE_MIPMAP_LEVELS);
-}
-
 #ifdef PCSX2_DEVBUILD
 
 enum class TextureLabel
@@ -285,6 +280,11 @@ std::optional<std::string> GSDevice::ReadShaderSource(const char* filename)
 	return FileSystem::ReadFileToString(Path::Combine(EmuFolders::Resources, filename).c_str());
 }
 
+int GSDevice::GetMipmapLevelsForSize(int width, int height)
+{
+	return std::min(static_cast<int>(std::log2(std::max(width, height))) + 1, MAXIMUM_TEXTURE_MIPMAP_LEVELS);
+}
+
 bool GSDevice::Create()
 {
 	m_vsync_mode = Host::GetEffectiveVSyncMode();
@@ -546,7 +546,8 @@ GSTexture* GSDevice::CreateDepthStencil(int w, int h, GSTexture::Format format,
 
 GSTexture* GSDevice::CreateTexture(int w, int h, int mipmap_levels, GSTexture::Format format, bool prefer_reuse /* = false */)
 {
-	const int levels = mipmap_levels < 0 ? MipmapLevelsForSize(w, h) : mipmap_levels;
+	pxAssert(mipmap_levels != 0 && (mipmap_levels < 0 || mipmap_levels <= GetMipmapLevelsForSize(w, h)));
+	const int levels = mipmap_levels < 0 ? GetMipmapLevelsForSize(w, h) : mipmap_levels;
 	return FetchSurface(GSTexture::Type::Texture, w, h, levels, format, false, m_features.prefer_new_textures && !prefer_reuse);
 }
 
diff --git a/pcsx2/GS/Renderers/Common/GSDevice.h b/pcsx2/GS/Renderers/Common/GSDevice.h
index c29c617279..bc6b626588 100644
--- a/pcsx2/GS/Renderers/Common/GSDevice.h
+++ b/pcsx2/GS/Renderers/Common/GSDevice.h
@@ -815,6 +815,9 @@ public:
 	/// Reads the specified shader source file.
 	static std::optional<std::string> ReadShaderSource(const char* filename);
 
+	/// Returns the maximum number of mipmap levels for a given texture size.
+	static int GetMipmapLevelsForSize(int width, int height);
+
 	__fi u64 GetPoolMemoryUsage() const { return m_pool_memory_usage; }
 
 	__fi FeatureSupport Features() const { return m_features; }
diff --git a/pcsx2/GS/Renderers/HW/GSTextureCache.cpp b/pcsx2/GS/Renderers/HW/GSTextureCache.cpp
index 780cc85923..c40c0007da 100644
--- a/pcsx2/GS/Renderers/HW/GSTextureCache.cpp
+++ b/pcsx2/GS/Renderers/HW/GSTextureCache.cpp
@@ -4166,7 +4166,7 @@ GSTextureCache::Source* GSTextureCache::CreateSource(const GIFRegTEX0& TEX0, con
 	{
 		// lod won't contain the full range when using basic mipmapping, only that
 		// which is hashed, so we just allocate the full thing.
-		tlevels = (GSConfig.HWMipmap != HWMipmapLevel::Full) ? -1 : (lod->y - lod->x + 1);
+		tlevels = (GSConfig.HWMipmap != HWMipmapLevel::Full) ? -1 : std::min(lod->y - lod->x + 1, GSDevice::GetMipmapLevelsForSize(tw, th));
 		src->m_lod = *lod;
 	}
 
@@ -5069,7 +5069,7 @@ GSTextureCache::HashCacheEntry* GSTextureCache::LookupHashCache(const GIFRegTEX0
 	// expand/upload texture
 	const int tw = region.HasX() ? region.GetWidth() : (1 << TEX0.TW);
 	const int th = region.HasY() ? region.GetHeight() : (1 << TEX0.TH);
-	const int tlevels = lod ? ((GSConfig.HWMipmap != HWMipmapLevel::Full) ? -1 : (lod->y - lod->x + 1)) : 1;
+	const int tlevels = lod ? ((GSConfig.HWMipmap != HWMipmapLevel::Full) ? -1 : std::min(lod->y - lod->x + 1, GSDevice::GetMipmapLevelsForSize(tw, th))) : 1;
 	GSTexture* tex = g_gs_device->CreateTexture(tw, th, tlevels, paltex ? GSTexture::Format::UNorm8 : GSTexture::Format::Color);
 	if (!tex)
 	{