diff --git a/rllib/execution/replay_buffer.py b/rllib/execution/replay_buffer.py
index a7355b85b..8d98e1397 100644
--- a/rllib/execution/replay_buffer.py
+++ b/rllib/execution/replay_buffer.py
@@ -33,9 +33,9 @@ def warn_replay_buffer_size(*, item: SampleBatchType, num_items: int) -> None:
         total_gb = psutil_mem.total / 1e9
         mem_size = num_items * item_size / 1e9
         msg = ("Estimated max memory usage for replay buffer is {} GB "
-               "({} batches of {} bytes each), "
+               "({} batches of size {}, {} bytes each), "
                "available system memory is {} GB".format(
-                   mem_size, num_items, item_size, total_gb))
+                   mem_size, num_items, item.count, item_size, total_gb))
         if mem_size > total_gb:
             raise ValueError(msg)
         elif mem_size > 0.2 * total_gb:
@@ -51,15 +51,16 @@ class ReplayBuffer:
         """Create Prioritized Replay buffer.
 
         Args:
-            size (int): Max number of items to store in the FIFO buffer.
+            size (int): Max number of timesteps to store in the FIFO buffer.
         """
         self._storage = []
         self._maxsize = size
         self._next_idx = 0
         self._hit_count = np.zeros(size)
         self._eviction_started = False
-        self._num_added = 0
-        self._num_sampled = 0
+        self._num_timesteps_added = 0
+        self._num_timesteps_added_wrap = 0
+        self._num_timesteps_sampled = 0
         self._evicted_hit_stats = WindowStat("evicted_hit", 1000)
         self._est_size_bytes = 0
 
@@ -68,18 +69,26 @@ class ReplayBuffer:
 
     @DeveloperAPI
     def add(self, item: SampleBatchType, weight: float):
-        warn_replay_buffer_size(item=item, num_items=self._maxsize)
+        warn_replay_buffer_size(
+            item=item, num_items=self._maxsize / item.count)
         assert item.count > 0, item
-        self._num_added += 1
+        self._num_timesteps_added += item.count
+        self._num_timesteps_added_wrap += item.count
 
         if self._next_idx >= len(self._storage):
             self._storage.append(item)
             self._est_size_bytes += item.size_bytes()
         else:
             self._storage[self._next_idx] = item
-        if self._next_idx + 1 >= self._maxsize:
+
+        # Wrap around storage as a circular buffer once we hit maxsize.
+        if self._num_timesteps_added_wrap >= self._maxsize:
             self._eviction_started = True
-        self._next_idx = (self._next_idx + 1) % self._maxsize
+            self._num_timesteps_added_wrap = 0
+            self._next_idx = 0
+        else:
+            self._next_idx += 1
+
         if self._eviction_started:
             self._evicted_hit_stats.push(self._hit_count[self._next_idx])
             self._hit_count[self._next_idx] = 0
@@ -109,8 +118,8 @@ class ReplayBuffer:
     @DeveloperAPI
     def stats(self, debug=False):
         data = {
-            "added_count": self._num_added,
-            "sampled_count": self._num_sampled,
+            "added_count": self._num_timesteps_added,
+            "sampled_count": self._num_timesteps_sampled,
             "est_size_bytes": self._est_size_bytes,
             "num_entries": len(self._storage),
         }
@@ -179,7 +188,6 @@ class PrioritizedReplayBuffer(ReplayBuffer):
                 transition and original idxes in buffer of sampled experiences.
         """
         assert beta >= 0.0
-        self._num_sampled += num_items
 
         idxes = self._sample_proportional(num_items)
 
@@ -194,6 +202,7 @@ class PrioritizedReplayBuffer(ReplayBuffer):
             count = self._storage[idx].count
             weights.extend([weight / max_weight] * count)
             batch_indexes.extend([idx] * count)
+            self._num_timesteps_sampled += count
         batch = self._encode_sample(idxes)
 
         # Note: prioritization is not supported in lockstep replay mode.
@@ -251,10 +260,10 @@ class LocalReplayBuffer(ParallelIteratorWorker):
     may be created to increase parallelism."""
 
     def __init__(self,
-                 num_shards,
-                 learning_starts,
-                 buffer_size,
-                 replay_batch_size,
+                 num_shards=1,
+                 learning_starts=1000,
+                 buffer_size=10000,
+                 replay_batch_size=1,
                  prioritized_replay_alpha=0.6,
                  prioritized_replay_beta=0.4,
                  prioritized_replay_eps=1e-6,
diff --git a/rllib/execution/tests/test_prioritized_replay_buffer.py b/rllib/execution/tests/test_prioritized_replay_buffer.py
index 5f3f3084c..2fa114735 100644
--- a/rllib/execution/tests/test_prioritized_replay_buffer.py
+++ b/rllib/execution/tests/test_prioritized_replay_buffer.py
@@ -26,6 +26,24 @@ class TestPrioritizedReplayBuffer(unittest.TestCase):
             "done": [np.random.choice([False, True])],
         })
 
+    def test_sequence_size(self):
+        # seq len 1
+        memory = PrioritizedReplayBuffer(size=100, alpha=0.1)
+        for _ in range(200):
+            memory.add(self._generate_data(), weight=None)
+        assert len(memory._storage) == 100, len(memory._storage)
+        assert memory.stats()["added_count"] == 200, memory.stats()
+
+        # seq len 5
+        memory = PrioritizedReplayBuffer(size=100, alpha=0.1)
+        for _ in range(40):
+            memory.add(
+                SampleBatch.concat_samples(
+                    [self._generate_data() for _ in range(5)]),
+                weight=None)
+        assert len(memory._storage) == 20, len(memory._storage)
+        assert memory.stats()["added_count"] == 200, memory.stats()
+
     def test_add(self):
         memory = PrioritizedReplayBuffer(
             size=2,