diff --git a/CHANGELOG.md b/CHANGELOG.md
index d16ae03e1ce..19567b1099e 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -68,6 +68,7 @@
 * [BUGFIX] Querying: Fix regex matching of multibyte runes with dot operator. #8089
 * [BUGFIX] Querying: matrix results returned from instant queries were not sorted by series. #8113
 * [BUGFIX] Query scheduler: Fix a crash in result marshaling. #8140
+* [BUGFIX] Store-gateway: Allow long-running index scans to be interrupted. #8154
 
 ### Mixin
 
diff --git a/pkg/storegateway/bucket.go b/pkg/storegateway/bucket.go
index b05bab18f6c..102448cb046 100644
--- a/pkg/storegateway/bucket.go
+++ b/pkg/storegateway/bucket.go
@@ -1639,7 +1639,7 @@ func blockLabelValues(ctx context.Context, b *bucketBlock, postingsStrategy post
 	}
 
 	// TODO: if matchers contains labelName, we could use it to filter out label values here.
-	allValuesPostingOffsets, err := b.indexHeaderReader.LabelValuesOffsets(labelName, "", nil)
+	allValuesPostingOffsets, err := b.indexHeaderReader.LabelValuesOffsets(ctx, labelName, "", nil)
 	if err != nil {
 		return nil, errors.Wrap(err, "index header label values")
 	}
diff --git a/pkg/storegateway/bucket_index_postings.go b/pkg/storegateway/bucket_index_postings.go
index f3bd0708ecc..a574d340847 100644
--- a/pkg/storegateway/bucket_index_postings.go
+++ b/pkg/storegateway/bucket_index_postings.go
@@ -6,6 +6,7 @@
 package storegateway
 
 import (
+	"context"
 	"encoding/binary"
 	"fmt"
 	"sort"
@@ -80,7 +81,7 @@ func newLazySubtractingPostingGroup(m *labels.Matcher) rawPostingGroup {
 
 // toPostingGroup returns a postingGroup which shares the underlying keys slice with g.
 // This means that after calling toPostingGroup g.keys will be modified.
-func (g rawPostingGroup) toPostingGroup(r indexheader.Reader) (postingGroup, error) {
+func (g rawPostingGroup) toPostingGroup(ctx context.Context, r indexheader.Reader) (postingGroup, error) {
 	var (
 		keys      []labels.Label
 		totalSize int64
@@ -90,7 +91,7 @@ func (g rawPostingGroup) toPostingGroup(r indexheader.Reader) (postingGroup, err
 		if g.isSubtract {
 			filter = not(filter)
 		}
-		vals, err := r.LabelValuesOffsets(g.labelName, g.prefix, filter)
+		vals, err := r.LabelValuesOffsets(ctx, g.labelName, g.prefix, filter)
 		if err != nil {
 			return postingGroup{}, err
 		}
diff --git a/pkg/storegateway/bucket_index_reader.go b/pkg/storegateway/bucket_index_reader.go
index 45d2a487032..3f648702191 100644
--- a/pkg/storegateway/bucket_index_reader.go
+++ b/pkg/storegateway/bucket_index_reader.go
@@ -189,7 +189,7 @@ func (r *bucketIndexReader) fetchCachedExpandedPostings(ctx context.Context, use
 
 // expandedPostings is the main logic of ExpandedPostings, without the promise wrapper.
 func (r *bucketIndexReader) expandedPostings(ctx context.Context, ms []*labels.Matcher, stats *safeQueryStats) (returnRefs []storage.SeriesRef, pendingMatchers []*labels.Matcher, returnErr error) {
-	postingGroups, err := toPostingGroups(ms, r.block.indexHeaderReader)
+	postingGroups, err := toPostingGroups(ctx, ms, r.block.indexHeaderReader)
 	if err != nil {
 		return nil, nil, errors.Wrap(err, "toPostingGroups")
 	}
@@ -314,7 +314,7 @@ var allPostingsKey = func() labels.Label {
 
 // toPostingGroups returns a set of labels for which to look up postings lists. It guarantees that
 // each postingGroup's keys exist in the index.
-func toPostingGroups(ms []*labels.Matcher, indexhdr indexheader.Reader) ([]postingGroup, error) {
+func toPostingGroups(ctx context.Context, ms []*labels.Matcher, indexhdr indexheader.Reader) ([]postingGroup, error) {
 	var (
 		rawPostingGroups = make([]rawPostingGroup, 0, len(ms))
 		allRequested     = false
@@ -354,7 +354,7 @@ func toPostingGroups(ms []*labels.Matcher, indexhdr indexheader.Reader) ([]posti
 	// Based on the previous sorting, we start with the ones that have a known set of values because it's less expensive to check them in
 	// the index header.
 	for _, rawGroup := range rawPostingGroups {
-		pg, err := rawGroup.toPostingGroup(indexhdr)
+		pg, err := rawGroup.toPostingGroup(ctx, indexhdr)
 		if err != nil {
 			return nil, errors.Wrap(err, "filtering posting group")
 		}
diff --git a/pkg/storegateway/bucket_test.go b/pkg/storegateway/bucket_test.go
index b069538ef69..06eed4df4ef 100644
--- a/pkg/storegateway/bucket_test.go
+++ b/pkg/storegateway/bucket_test.go
@@ -885,13 +885,13 @@ func (iir *interceptedIndexReader) LabelNames() ([]string, error) {
 	return iir.Reader.LabelNames()
 }
 
-func (iir *interceptedIndexReader) LabelValuesOffsets(name string, prefix string, filter func(string) bool) ([]index.PostingListOffset, error) {
+func (iir *interceptedIndexReader) LabelValuesOffsets(ctx context.Context, name string, prefix string, filter func(string) bool) ([]index.PostingListOffset, error) {
 	if iir.onLabelValuesOffsetsCalled != nil {
 		if err := iir.onLabelValuesOffsetsCalled(name); err != nil {
 			return nil, err
 		}
 	}
-	return iir.Reader.LabelValuesOffsets(name, prefix, filter)
+	return iir.Reader.LabelValuesOffsets(ctx, name, prefix, filter)
 }
 
 func (iir *interceptedIndexReader) IndexVersion() (int, error) {
diff --git a/pkg/storegateway/indexheader/header.go b/pkg/storegateway/indexheader/header.go
index c16eb021950..ab594e97a31 100644
--- a/pkg/storegateway/indexheader/header.go
+++ b/pkg/storegateway/indexheader/header.go
@@ -6,6 +6,7 @@
 package indexheader
 
 import (
+	"context"
 	"flag"
 	"io"
 	"time"
@@ -55,7 +56,7 @@ type Reader interface {
 	// then empty slice is returned and no error.
 	// If non-empty prefix is provided, only posting lists starting with the prefix are returned.
 	// If non-nil filter is provided, then only posting lists for which filter returns true are returned.
-	LabelValuesOffsets(name string, prefix string, filter func(string) bool) ([]streamindex.PostingListOffset, error)
+	LabelValuesOffsets(ctx context.Context, name string, prefix string, filter func(string) bool) ([]streamindex.PostingListOffset, error)
 
 	// LabelNames returns all label names in sorted order.
 	LabelNames() ([]string, error)
diff --git a/pkg/storegateway/indexheader/header_test.go b/pkg/storegateway/indexheader/header_test.go
index 1c1a921e899..0308be3633f 100644
--- a/pkg/storegateway/indexheader/header_test.go
+++ b/pkg/storegateway/indexheader/header_test.go
@@ -181,7 +181,7 @@ func compareIndexToHeader(t *testing.T, indexByteSlice index.ByteSlice, headerRe
 		expectedLabelVals, err := indexReader.SortedLabelValues(ctx, lname)
 		require.NoError(t, err)
 
-		valOffsets, err := headerReader.LabelValuesOffsets(lname, "", nil)
+		valOffsets, err := headerReader.LabelValuesOffsets(ctx, lname, "", nil)
 		require.NoError(t, err)
 		strValsFromOffsets := make([]string, len(valOffsets))
 		for i := range valOffsets {
@@ -257,7 +257,7 @@ func TestReadersLabelValuesOffsets(t *testing.T) {
 				t.Run(lbl, func(t *testing.T) {
 					for _, tc := range tcs {
 						t.Run(fmt.Sprintf("prefix='%s'%s", tc.prefix, tc.desc), func(t *testing.T) {
-							values, err := r.LabelValuesOffsets(lbl, tc.prefix, tc.filter)
+							values, err := r.LabelValuesOffsets(context.Background(), lbl, tc.prefix, tc.filter)
 							require.NoError(t, err)
 							require.Equal(t, tc.expected, len(values))
 						})
diff --git a/pkg/storegateway/indexheader/index/postings.go b/pkg/storegateway/indexheader/index/postings.go
index eef7ee2f0c1..7efe9545ebe 100644
--- a/pkg/storegateway/indexheader/index/postings.go
+++ b/pkg/storegateway/indexheader/index/postings.go
@@ -6,6 +6,7 @@
 package index
 
 import (
+	"context"
 	"fmt"
 	"hash/crc32"
 	"sort"
@@ -20,7 +21,11 @@ import (
 	"github.com/grafana/mimir/pkg/storegateway/indexheader/indexheaderpb"
 )
 
-const postingLengthFieldSize = 4
+const (
+	postingLengthFieldSize = 4
+	// CheckContextEveryNIterations is used in some tight loops to check if the context is done.
+	CheckContextEveryNIterations = 1024
+)
 
 type PostingOffsetTable interface {
 	// PostingsOffset returns the byte range of the postings section for the label with the given name and value.
@@ -32,7 +37,7 @@ type PostingOffsetTable interface {
 	// LabelValuesOffsets returns all postings lists for the label named name that match filter and have the prefix provided.
 	// The ranges of each posting list are the same as returned by PostingsOffset.
 	// The returned label values are sorted lexicographically (which the same as sorted by posting offset).
-	LabelValuesOffsets(name, prefix string, filter func(string) bool) ([]PostingListOffset, error)
+	LabelValuesOffsets(ctx context.Context, name, prefix string, filter func(string) bool) ([]PostingListOffset, error)
 
 	// LabelNames returns a sorted list of all label names in this table.
 	LabelNames() ([]string, error)
@@ -286,13 +291,18 @@ func (t *PostingOffsetTableV1) PostingsOffset(name string, value string) (index.
 	return rng, true, nil
 }
 
-func (t *PostingOffsetTableV1) LabelValuesOffsets(name, prefix string, filter func(string) bool) ([]PostingListOffset, error) {
+func (t *PostingOffsetTableV1) LabelValuesOffsets(ctx context.Context, name, prefix string, filter func(string) bool) ([]PostingListOffset, error) {
 	e, ok := t.postings[name]
 	if !ok {
 		return nil, nil
 	}
 	values := make([]PostingListOffset, 0, len(e))
+	count := 1
 	for k, r := range e {
+		if count%CheckContextEveryNIterations == 0 && ctx.Err() != nil {
+			return nil, ctx.Err()
+		}
+		count++
 		if strings.HasPrefix(k, prefix) && (filter == nil || filter(k)) {
 			values = append(values, PostingListOffset{LabelValue: k, Off: r})
 		}
@@ -468,7 +478,7 @@ func (t *PostingOffsetTableV2) PostingsOffset(name string, value string) (r inde
 	return index.Range{}, false, nil
 }
 
-func (t *PostingOffsetTableV2) LabelValuesOffsets(name, prefix string, filter func(string) bool) (_ []PostingListOffset, err error) {
+func (t *PostingOffsetTableV2) LabelValuesOffsets(ctx context.Context, name, prefix string, filter func(string) bool) (_ []PostingListOffset, err error) {
 	e, ok := t.postings[name]
 	if !ok {
 		return nil, nil
@@ -546,7 +556,12 @@ func (t *PostingOffsetTableV2) LabelValuesOffsets(name, prefix string, filter fu
 		nextEntry pEntry
 	)
 
+	count := 1
 	for d.Err() == nil && !currEntry.isLast {
+		if count%CheckContextEveryNIterations == 0 && ctx.Err() != nil {
+			return nil, ctx.Err()
+		}
+		count++
 		// Populate the current list either reading it from the pre-populated "next" or reading it from the index.
 		if nextEntry != (pEntry{}) {
 			currEntry = nextEntry
diff --git a/pkg/storegateway/indexheader/lazy_binary_reader.go b/pkg/storegateway/indexheader/lazy_binary_reader.go
index 04b6519916d..7ec17b0e034 100644
--- a/pkg/storegateway/indexheader/lazy_binary_reader.go
+++ b/pkg/storegateway/indexheader/lazy_binary_reader.go
@@ -196,14 +196,14 @@ func (r *LazyBinaryReader) SymbolsReader() (streamindex.SymbolsReader, error) {
 }
 
 // LabelValuesOffsets implements Reader.
-func (r *LazyBinaryReader) LabelValuesOffsets(name string, prefix string, filter func(string) bool) ([]streamindex.PostingListOffset, error) {
+func (r *LazyBinaryReader) LabelValuesOffsets(ctx context.Context, name string, prefix string, filter func(string) bool) ([]streamindex.PostingListOffset, error) {
 	reader, wg, err := r.getOrLoadReader()
 	if err != nil {
 		return nil, err
 	}
 	defer wg.Done()
 
-	return reader.LabelValuesOffsets(name, prefix, filter)
+	return reader.LabelValuesOffsets(ctx, name, prefix, filter)
 }
 
 // LabelNames implements Reader.
diff --git a/pkg/storegateway/indexheader/reader_benchmarks_test.go b/pkg/storegateway/indexheader/reader_benchmarks_test.go
index 2fbfe210f03..e0dfd5cfd2f 100644
--- a/pkg/storegateway/indexheader/reader_benchmarks_test.go
+++ b/pkg/storegateway/indexheader/reader_benchmarks_test.go
@@ -177,7 +177,7 @@ func BenchmarkLabelValuesOffsetsIndexV1(b *testing.B) {
 		for i := 0; i < b.N; i++ {
 			name := names[i%len(names)]
 
-			values, err := br.LabelValuesOffsets(name, "", func(string) bool {
+			values, err := br.LabelValuesOffsets(ctx, name, "", func(string) bool {
 				return true
 			})
 
@@ -221,7 +221,7 @@ func BenchmarkLabelValuesOffsetsIndexV2(b *testing.B) {
 		for i := 0; i < b.N; i++ {
 			name := names[i%len(names)]
 
-			values, err := br.LabelValuesOffsets(name, "", func(string) bool {
+			values, err := br.LabelValuesOffsets(ctx, name, "", func(string) bool {
 				return true
 			})
 
@@ -241,7 +241,7 @@ func BenchmarkLabelValuesOffsetsIndexV2_WithPrefix(b *testing.B) {
 			for _, tc := range tcs {
 				b.Run(fmt.Sprintf("prefix='%s'%s", tc.prefix, tc.desc), func(b *testing.B) {
 					for i := 0; i < b.N; i++ {
-						values, err := r.LabelValuesOffsets(lbl, tc.prefix, tc.filter)
+						values, err := r.LabelValuesOffsets(context.Background(), lbl, tc.prefix, tc.filter)
 						require.NoError(b, err)
 						require.Equal(b, tc.expected, len(values))
 					}
diff --git a/pkg/storegateway/indexheader/stream_binary_reader.go b/pkg/storegateway/indexheader/stream_binary_reader.go
index de08bc4200c..c810ec5c654 100644
--- a/pkg/storegateway/indexheader/stream_binary_reader.go
+++ b/pkg/storegateway/indexheader/stream_binary_reader.go
@@ -376,8 +376,8 @@ func (r *StreamBinaryReader) SymbolsReader() (streamindex.SymbolsReader, error)
 	}, nil
 }
 
-func (r *StreamBinaryReader) LabelValuesOffsets(name string, prefix string, filter func(string) bool) ([]streamindex.PostingListOffset, error) {
-	return r.postingsOffsetTable.LabelValuesOffsets(name, prefix, filter)
+func (r *StreamBinaryReader) LabelValuesOffsets(ctx context.Context, name string, prefix string, filter func(string) bool) ([]streamindex.PostingListOffset, error) {
+	return r.postingsOffsetTable.LabelValuesOffsets(ctx, name, prefix, filter)
 }
 
 func (r *StreamBinaryReader) LabelNames() ([]string, error) {
diff --git a/pkg/storegateway/indexheader/stream_binary_reader_test.go b/pkg/storegateway/indexheader/stream_binary_reader_test.go
index 0edd644ae81..219b9b0c109 100644
--- a/pkg/storegateway/indexheader/stream_binary_reader_test.go
+++ b/pkg/storegateway/indexheader/stream_binary_reader_test.go
@@ -12,10 +12,12 @@ import (
 	"github.com/go-kit/log"
 	"github.com/prometheus/prometheus/model/labels"
 	"github.com/prometheus/prometheus/tsdb/fileutil"
+	promtestutil "github.com/prometheus/prometheus/util/testutil"
 	"github.com/stretchr/testify/require"
 	"github.com/thanos-io/objstore/providers/filesystem"
 
 	"github.com/grafana/mimir/pkg/storage/tsdb/block"
+	streamindex "github.com/grafana/mimir/pkg/storegateway/indexheader/index"
 	"github.com/grafana/mimir/pkg/util/spanlogger"
 )
 
@@ -93,3 +95,34 @@ func TestStreamBinaryReader_CheckSparseHeadersCorrectnessExtensive(t *testing.T)
 		}
 	}
 }
+
+func TestStreamBinaryReader_LabelValuesOffsetsHonorsContextCancel(t *testing.T) {
+	ctx := context.Background()
+
+	tmpDir := filepath.Join(t.TempDir(), "test-stream-binary-reader-cancel")
+	bkt, err := filesystem.NewBucket(filepath.Join(tmpDir, "bkt"))
+	require.NoError(t, err)
+	t.Cleanup(func() { require.NoError(t, bkt.Close()) })
+
+	seriesCount := streamindex.CheckContextEveryNIterations * 10
+	// Create block.
+	lbls := make([]labels.Labels, 0, seriesCount)
+	for i := 0; i < seriesCount; i++ {
+		lbls = append(lbls, labels.FromStrings("a", fmt.Sprintf("%d", i)))
+	}
+	blockID, err := block.CreateBlock(ctx, tmpDir, lbls, 1, 0, 10, labels.FromStrings("ext1", "1"))
+	require.NoError(t, err)
+	require.NoError(t, block.Upload(ctx, log.NewNopLogger(), bkt, filepath.Join(tmpDir, blockID.String()), nil))
+
+	// Write sparse index headers to disk on first build.
+	r, err := NewStreamBinaryReader(ctx, log.NewNopLogger(), bkt, tmpDir, blockID, 3, NewStreamBinaryReaderMetrics(nil), Config{})
+	require.NoError(t, err)
+
+	// LabelValuesOffsets will read all series and check for cancelation every CheckContextEveryNIterations,
+	// we set ctx to fail after half of the series are read.
+	failAfter := uint64(seriesCount / 2 / streamindex.CheckContextEveryNIterations)
+	ctx = &promtestutil.MockContextErrAfter{FailAfter: failAfter}
+	_, err = r.LabelValuesOffsets(ctx, "a", "", func(string) bool { return true })
+	require.Error(t, err)
+	require.ErrorIs(t, err, context.Canceled)
+}