diff --git a/erpnext/setup/page/setup_wizard/setup_wizard.js b/erpnext/setup/page/setup_wizard/setup_wizard.js
index cf16656..afc9d6e 100644
--- a/erpnext/setup/page/setup_wizard/setup_wizard.js
+++ b/erpnext/setup/page/setup_wizard/setup_wizard.js
@@ -205,9 +205,16 @@
 					slide.get_input("company_name").on("change", function() {
 						var parts = slide.get_input("company_name").val().split(" ");
 						var abbr = $.map(parts, function(p) { return p ? p.substr(0,1) : null }).join("");
-						slide.get_input("company_abbr").val(abbr.toUpperCase());
+						slide.get_input("company_abbr").val(abbr.slice(0, 5).toUpperCase());
 					}).val(frappe.boot.sysdefaults.company_name || "").trigger("change");
 
+					slide.get_input("company_abbr").on("change", function() {
+						if(slide.get_input("company_abbr").val().length > 5) {
+							msgprint("Company Abbreviation cannot have more than 5 characters");
+							slide.get_input("company_abbr").val("");
+						}
+					});
+
 					slide.get_input("fy_start_date").on("change", function() {
 						var year_end_date =
 							frappe.datetime.add_days(frappe.datetime.add_months(