diff --git a/python/cudf/cudf/core/column/decimal.py b/python/cudf/cudf/core/column/decimal.py
index e3d88424b8a..1159a0257e8 100644
--- a/python/cudf/cudf/core/column/decimal.py
+++ b/python/cudf/cudf/core/column/decimal.py
@@ -294,8 +294,10 @@ def _binop_precision(l_dtype, r_dtype, op):
     p1, p2 = l_dtype.precision, r_dtype.precision
     s1, s2 = l_dtype.scale, r_dtype.scale
     if op in ("add", "sub"):
-        return max(s1, s2) + max(p1 - s1, p2 - s2) + 1
+        result = max(s1, s2) + max(p1 - s1, p2 - s2) + 1
     elif op in ("mul", "div"):
-        return p1 + p2 + 1
+        result = p1 + p2 + 1
     else:
         raise NotImplementedError()
+
+    return min(result, cudf.Decimal64Dtype.MAX_PRECISION)
diff --git a/python/cudf/cudf/tests/test_binops.py b/python/cudf/cudf/tests/test_binops.py
index 833b41636e3..40df234580c 100644
--- a/python/cudf/cudf/tests/test_binops.py
+++ b/python/cudf/cudf/tests/test_binops.py
@@ -1772,11 +1772,11 @@ def _decimal_series(input, dtype):
         (
             operator.add,
             ["100", "200"],
-            cudf.Decimal64Dtype(scale=-2, precision=3),
+            cudf.Decimal64Dtype(scale=-2, precision=17),
             ["0.1", "0.2"],
             cudf.Decimal64Dtype(scale=3, precision=4),
             ["100.1", "200.2"],
-            cudf.Decimal64Dtype(scale=3, precision=9),
+            cudf.Decimal64Dtype(scale=3, precision=18),
         ),
         (
             operator.sub,
@@ -1799,11 +1799,11 @@ def _decimal_series(input, dtype):
         (
             operator.sub,
             ["100", "200"],
-            cudf.Decimal64Dtype(scale=-2, precision=3),
+            cudf.Decimal64Dtype(scale=-2, precision=10),
             ["0.1", "0.2"],
-            cudf.Decimal64Dtype(scale=3, precision=4),
+            cudf.Decimal64Dtype(scale=6, precision=10),
             ["99.9", "199.8"],
-            cudf.Decimal64Dtype(scale=3, precision=9),
+            cudf.Decimal64Dtype(scale=6, precision=18),
         ),
         (
             operator.mul,
@@ -1853,11 +1853,11 @@ def _decimal_series(input, dtype):
         (
             operator.truediv,
             ["132.86", "15.25"],
-            cudf.Decimal64Dtype(scale=4, precision=6),
+            cudf.Decimal64Dtype(scale=4, precision=14),
             ["2.34", "8.50"],
-            cudf.Decimal64Dtype(scale=2, precision=4),
+            cudf.Decimal64Dtype(scale=2, precision=8),
             ["56.77", "1.79"],
-            cudf.Decimal64Dtype(scale=2, precision=11),
+            cudf.Decimal64Dtype(scale=2, precision=18),
         ),
         (
             operator.add,
@@ -1907,11 +1907,11 @@ def _decimal_series(input, dtype):
         (
             operator.mul,
             ["100", "200"],
-            cudf.Decimal64Dtype(scale=-2, precision=3),
+            cudf.Decimal64Dtype(scale=-2, precision=10),
             ["0.1", None],
-            cudf.Decimal64Dtype(scale=3, precision=4),
+            cudf.Decimal64Dtype(scale=3, precision=12),
             ["10.0", None],
-            cudf.Decimal64Dtype(scale=1, precision=8),
+            cudf.Decimal64Dtype(scale=1, precision=18),
         ),
         (
             operator.eq,