diff --git a/pytest_asyncio/plugin.py b/pytest_asyncio/plugin.py
index c6d2d7e4..bac9565d 100644
--- a/pytest_asyncio/plugin.py
+++ b/pytest_asyncio/plugin.py
@@ -58,9 +58,15 @@ def pytest_pyfunc_call(pyfuncitem):
             funcargs = pyfuncitem.funcargs
             testargs = {arg: funcargs[arg]
                         for arg in pyfuncitem._fixtureinfo.argnames}
+            test_coroutine = pyfuncitem.obj(**testargs)
+
+            if 'timeout' in pyfuncitem.keywords[marker_name].kwargs:
+                timeout = pyfuncitem.keywords[marker_name].kwargs['timeout']
+                test_coroutine = asyncio.wait_for(test_coroutine, timeout=timeout)
+
             try:
                 event_loop.run_until_complete(
-                    asyncio.async(pyfuncitem.obj(**testargs), loop=event_loop))
+                    asyncio.async(test_coroutine, loop=event_loop))
                 return True
             finally:
                 if forbid_global_loop:
diff --git a/tests/test_simple.py b/tests/test_simple.py
index 1b305904..ee20fa27 100644
--- a/tests/test_simple.py
+++ b/tests/test_simple.py
@@ -58,6 +58,12 @@ def test_asyncio_process_pool_marker(event_loop):
     assert ret == 'ok'
 
 
+@pytest.mark.xfail(raises=asyncio.TimeoutError)
+@pytest.mark.asyncio(timeout=0.05)
+def test_asyncio_marker_fail():
+    yield from asyncio.sleep(0.1)
+
+
 @pytest.mark.asyncio
 def test_unused_port_fixture(unused_tcp_port, event_loop):
     """Test the unused TCP port fixture."""