A mechanism for bottleneck avoidance is provided in an intelligent adapter. The mechanism allows the adapter to be used such that host/adapter system throughput is optimized. The bottleneck avoidance mechanism of the present invention determines when the adapter becomes a bottleneck. If certain conditions exist, then new connections are refused so that the adapter can process packets for existing connections. If certain other conditions exist, the adapter may migrate workload to the host processor for processing. These conditions may be determined by comparing memory usage or central processing unit usage to predetermined thresholds. Alternatively, the conditions may be determined by comparing adapter response time to host response time.