diff --git a/Source/Engine/Graphics/Textures/GPUTexture.cpp b/Source/Engine/Graphics/Textures/GPUTexture.cpp
index 4d02f5b5c..e8c6ddbe1 100644
--- a/Source/Engine/Graphics/Textures/GPUTexture.cpp
+++ b/Source/Engine/Graphics/Textures/GPUTexture.cpp
@@ -497,6 +497,8 @@ bool GPUTexture::Init(const GPUTextureDescription& desc)
     if (OnInit())
     {
         ReleaseGPU();
+        _desc.Clear();
+        _residentMipLevels = 0;
         LOG(Warning, "Cannot initialize texture. Description: {0}", desc.ToString());
         return true;
     }
diff --git a/Source/Engine/Streaming/Streaming.cpp b/Source/Engine/Streaming/Streaming.cpp
index a5cb65eee..be9337575 100644
--- a/Source/Engine/Streaming/Streaming.cpp
+++ b/Source/Engine/Streaming/Streaming.cpp
@@ -155,6 +155,13 @@ void UpdateResource(StreamableResource* resource, DateTime now, double currentTi
                 resource->RequestStreamingUpdate();
                 return;
             }
+            else if (resource->GetAllocatedResidency() < targetResidency)
+            {
+                // Allocation failed (eg. texture format is not supported or run out of memory)
+                resource->Streaming.TargetResidency = 0;
+                resource->Streaming.LastUpdate = DateTime::MaxValue().Ticks;
+                return;
+            }
         }
 
         // Calculate residency level to stream in (resources may want to increase/decrease it's quality in steps rather than at once)