In Pokemon Go there is a limit to how many Pokemon you can have in your 'inventory' at once. This limit can be increased by buying Pokemon storage upgrades with Poke-coins etc., but the default is 250.

What happens when you try to catch another Pokemon when you are at the current limit?

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    Professor Oak: Now is not the time to use that – Kevin Aug 17 '16 at 7:20

With the new update, whenever your Pokémon inventory is full (i.e. you have 250 Pokémon with you), and you tap on another Pokémon in the wild to enter into the battle arena to capture, it won't enter into battle. Instead, a popup saying "Your Pokémon Box is full. You can buy more space in the shop." will appear followed by an affirmation selection choice saying OK and a secondary choice saying Go To Upgrades.

Pokemon storage full

So, the exact answer to this question is - NO. You won't be able to catch any Pokémon since it escapes the battle arena by showing a popup alert.

About the situation where the Eggs might hatch after you've reached your inventory; I assume that the egg won't hatch unless you've some free space in your bag to carry the Pokémon.

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    Eggs hatch normally. Unhatched eggs count towards your total number of Pokemon. – scenia Aug 17 '16 at 4:16
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    @Pureferret: If the unhatched eggs count as pokemon, then after hatching an egg you still have the same number of pokemon as before. – Erik Aug 17 '16 at 10:46
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    The y/x number you see is actually (pokemon in bag + unhatched eggs)/capacity. – David Lord Aug 17 '16 at 10:48
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    You should mention that despite what the message says, buying the space upgrade isn't the only way to make more room. You can also transfer Pokémon. – Thunderforge Aug 17 '16 at 15:02
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    @Thunderforge: you mean "grind Pokémon down into Pokémon candy that can be fed to their kin", right? – Ian MacDonald Aug 17 '16 at 19:02

Similar to when you run out of Pokeballs, the game will alert you that you cannot catch any more Pokemon because you have hit the limit to the number of Pokemon you can have. I hit this limit once but forgot to take a screenshot. I will see if I can hit the limit once more and provide one for you.

Based on the other answer by Paras Shah I must have hit the limit with an earlier version of the game.

I finally hit the limit in version 0.33.0, here's a high res screenshot of the alert (click the image for the full resolution):

Pokemon Box is Full

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  • Do Pokemon still show up? Can you enter the "battle" or does it simply say that you are at the limit when you try to interact with the Pokemon? – Theyna Aug 17 '16 at 1:00
  • @Theyna If I recall correctly, Pokemon do still show up on the map and you can still tap on them. Once you get into the battle screen the game alerts you that you have no more room to catch this Pokemon. At least that's what I can remember, although I could be mixing that up with the "out of Pokeballs" message. I believe they are both very similar, but happy to delete if another users posts a more factually correct answer. – JAL Aug 17 '16 at 1:02
  • will wait for references/screenshots or something then upvote and accept if you end up being the first to it :) – Theyna Aug 17 '16 at 1:03
  • @Theyna of course, will try to get one for you. – JAL Aug 17 '16 at 1:04
  • So if you go ahead and catch it, do you automatically transfer it or will it just eat up your balls? – Nelson Aug 17 '16 at 1:12

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