diff --git a/dandiapi/api/services/embargo/__init__.py b/dandiapi/api/services/embargo/__init__.py
index b4c2c1aab..77c31d048 100644
--- a/dandiapi/api/services/embargo/__init__.py
+++ b/dandiapi/api/services/embargo/__init__.py
@@ -7,6 +7,7 @@
 from botocore.config import Config
 from django.conf import settings
 from django.db import transaction
+from more_itertools import chunked
 
 from dandiapi.api.mail import send_dandiset_unembargoed_message
 from dandiapi.api.models import AssetBlob, Dandiset, Version
@@ -28,6 +29,7 @@
 
 
 logger = logging.getLogger(__name__)
+ASSET_BLOB_TAG_REMOVAL_CHUNK_SIZE = 5000
 
 
 def _delete_asset_blob_tags(client: S3Client, blob: str):
@@ -39,25 +41,25 @@ def _delete_asset_blob_tags(client: S3Client, blob: str):
 
 # NOTE: In testing this took ~2 minutes for 100,000 files
 def _remove_dandiset_asset_blob_embargo_tags(dandiset: Dandiset):
-    embargoed_asset_blobs = list(
-        AssetBlob.objects.filter(embargoed=True, assets__versions__dandiset=dandiset).values_list(
-            'blob', flat=True
-        )
+    client = get_boto_client(config=Config(max_pool_connections=100))
+    embargoed_asset_blobs = (
+        AssetBlob.objects.filter(embargoed=True, assets__versions__dandiset=dandiset)
+        .values_list('blob', flat=True)
+        .iterator(chunk_size=ASSET_BLOB_TAG_REMOVAL_CHUNK_SIZE)
     )
 
-    client = get_boto_client(config=Config(max_pool_connections=100))
-    with ThreadPoolExecutor(max_workers=100) as e:
-        futures = [
-            e.submit(_delete_asset_blob_tags, client=client, blob=blob)
-            for blob in embargoed_asset_blobs
-        ]
-
-    # Check if any failed and raise exception if so
-    failed = [
-        blob for i, blob in enumerate(embargoed_asset_blobs) if futures[i].exception() is not None
-    ]
-    if failed:
-        raise AssetTagRemovalError('Some blobs failed to remove tags', blobs=failed)
+    # Chunk the blobs so we're never storing a list of all embargoed blobs
+    chunks = chunked(embargoed_asset_blobs, ASSET_BLOB_TAG_REMOVAL_CHUNK_SIZE)
+    for chunk in chunks:
+        with ThreadPoolExecutor(max_workers=100) as e:
+            futures = [
+                e.submit(_delete_asset_blob_tags, client=client, blob=blob) for blob in chunk
+            ]
+
+        # Check if any failed and raise exception if so
+        failed = [blob for i, blob in enumerate(chunk) if futures[i].exception() is not None]
+        if failed:
+            raise AssetTagRemovalError('Some blobs failed to remove tags', blobs=failed)
 
 
 @transaction.atomic()
diff --git a/dandiapi/api/tests/test_unembargo.py b/dandiapi/api/tests/test_unembargo.py
index 9740ecebf..0d6eff3e8 100644
--- a/dandiapi/api/tests/test_unembargo.py
+++ b/dandiapi/api/tests/test_unembargo.py
@@ -9,10 +9,14 @@
 from dandiapi.api.models.dandiset import Dandiset
 from dandiapi.api.services.embargo import (
     AssetBlobEmbargoedError,
+    _remove_dandiset_asset_blob_embargo_tags,
     remove_asset_blob_embargoed_tag,
     unembargo_dandiset,
 )
-from dandiapi.api.services.embargo.exceptions import DandisetActiveUploadsError
+from dandiapi.api.services.embargo.exceptions import (
+    AssetTagRemovalError,
+    DandisetActiveUploadsError,
+)
 from dandiapi.api.services.exceptions import DandiError
 from dandiapi.api.tasks import unembargo_dandiset_task
 
@@ -114,6 +118,54 @@ def test_unembargo_dandiset_uploads_exist(draft_version_factory, upload_factory)
         unembargo_dandiset(ds)
 
 
+@pytest.mark.django_db()
+def test_remove_dandiset_asset_blob_embargo_tags_chunks(
+    draft_version_factory,
+    asset_factory,
+    embargoed_asset_blob_factory,
+    mocker,
+):
+    delete_asset_blob_tags_mock = mocker.patch(
+        'dandiapi.api.services.embargo._delete_asset_blob_tags'
+    )
+    chunk_size = mocker.patch('dandiapi.api.services.embargo.ASSET_BLOB_TAG_REMOVAL_CHUNK_SIZE', 2)
+
+    draft_version: Version = draft_version_factory(
+        dandiset__embargo_status=Dandiset.EmbargoStatus.UNEMBARGOING
+    )
+    ds: Dandiset = draft_version.dandiset
+    for _ in range(chunk_size + 1):
+        asset = asset_factory(blob=embargoed_asset_blob_factory())
+        draft_version.assets.add(asset)
+
+    _remove_dandiset_asset_blob_embargo_tags(dandiset=ds)
+
+    # Assert that _delete_asset_blob_tags was called chunk_size +1 times, to ensure that it works
+    # correctly across chunks
+    assert len(delete_asset_blob_tags_mock.mock_calls) == chunk_size + 1
+
+
+@pytest.mark.django_db()
+def test_delete_asset_blob_tags_fails(
+    draft_version_factory,
+    asset_factory,
+    embargoed_asset_blob_factory,
+    mocker,
+):
+    mocker.patch('dandiapi.api.services.embargo._delete_asset_blob_tags', side_effect=ValueError)
+    draft_version: Version = draft_version_factory(
+        dandiset__embargo_status=Dandiset.EmbargoStatus.UNEMBARGOING
+    )
+    ds: Dandiset = draft_version.dandiset
+    asset = asset_factory(blob=embargoed_asset_blob_factory())
+    draft_version.assets.add(asset)
+
+    # Check that if an exception within `_delete_asset_blob_tags` is raised, it's propagated upwards
+    # as an AssetTagRemovalError
+    with pytest.raises(AssetTagRemovalError):
+        _remove_dandiset_asset_blob_embargo_tags(dandiset=ds)
+
+
 @pytest.mark.django_db()
 def test_unembargo_dandiset(
     draft_version_factory,