Kochen-Specker (KS) theorem lies at the heart of the foundations of quantum mechanics. It establishes impossibility of explaining predictions of quantum theory by any noncontextual ontological model. Spekkens generalized the notion of KS contextuality in [Phys. Rev. A 71, 052108 (2005)] for arbitrary experimental procedures (preparation, measurement, and transformation procedure). Interestingly, later on it was shown that preparation contextuality powers parity-oblivious multiplexing [Phys. Rev. Lett. 102, 010401 (2009)], a two party information theoretic game. Thus, using resources of a given operational theory, the maximum success probability achievable in such a game suffices as a bona-fide measure of preparation contextuality for the underlying theory. In this work we show that preparation contextuality in quantum theory is more restricted compared to a general operational theory known as box world. Moreover, we find that this limitation of quantum theory implies the quantitative bound on quantum nonlocality as depicted by the Cirel'son bound.Quantum mechanics (QM) departs fundamentally from the well known local-realistic world view of classical physics. This stark contrast of quantum theory with classical physics was illuminated by J. S. Bell [1]. Since the Bell's seminal work, nonlocality remains at the center of quantum foundational research [2,3]. More recently quantum nonlocality has been also established as a key resource for device independent information technology [3,4]. Quantum nonlocality does not contradict the relativistic causality principle, however, QM is not the only possible theory that exhibits nonlocality along with satisfying the no-signaling principle; there can be nonquantum no-signaling correlations exhibiting nonlocality. One extreme example of such a correlation (more nonlocal than QM) was first constructed by Popescu and Rohrlich (PR) [5]. Whereas PR correlation violates the Bell-Clauser-Horne-Shimony-Holt (Bell-CHSH) [1,6] inequality by algebraic maximum, the optimal Bell-CHSH violation in quantum theory is restricted by the Cirel'son bound [7]. In this work, we show that Cirel'son limit on nonlocal behavior of quantum theory can be explained from its another very interesting feature, namely restricted preparation contextuality.Nearly at the same time of Bell's result, Kochen and Specker proved another important no-go theorem showing that predictions of sharp (projective) measurements in QM can not be reproduced by any non-contextual ontological model [8]. Unlike Bell-nonlocality, structure of QM is implicit in the definition of KS contextuality. However, recently the idea of KS contextuality has been generalized, by Spekkens [9], for arbitrary operational theories rather than just quantum theory and for arbitrary experimental procedures rather than just sharp measurements. It was then shown that mixed preparations (density matrices) in quantum theory exhibit preparation contextuality [9,12]. Interestingly, invoking another non-classical concept called steering [10,11] along with ...