diff --git a/src/decoder.cpp b/src/decoder.cpp
index 48f457f8..c8279ba8 100644
--- a/src/decoder.cpp
+++ b/src/decoder.cpp
@@ -51,6 +51,11 @@ void zmq::decoder_t::set_session (session_base_t *session_)
     session = session_;
 }
 
+bool zmq::decoder_t::stalled () const
+{
+    return next == &decoder_t::message_ready;
+}
+
 bool zmq::decoder_t::one_byte_size_ready ()
 {
     //  First byte of size is read. If it is 0xff read 8-byte size.
diff --git a/src/decoder.hpp b/src/decoder.hpp
index 4afd0185..d648cda8 100644
--- a/src/decoder.hpp
+++ b/src/decoder.hpp
@@ -52,9 +52,9 @@ namespace zmq
     public:
 
         inline decoder_base_t (size_t bufsize_) :
+            next (NULL),
             read_pos (NULL),
             to_read (0),
-            next (NULL),
             bufsize (bufsize_)
         {
             buf = (unsigned char*) malloc (bufsize_);
@@ -165,6 +165,11 @@ namespace zmq
             next = NULL;
         }
 
+        //  Next step. If set to NULL, it means that associated data stream
+        //  is dead. Note that there can be still data in the process in such
+        //  case.
+        step_t next;
+
     private:
 
         //  Where to store the read data.
@@ -173,11 +178,6 @@ namespace zmq
         //  How much data to read before taking next step.
         size_t to_read;
 
-        //  Next step. If set to NULL, it means that associated data stream
-        //  is dead. Note that there can be still data in the process in such
-        //  case.
-        step_t next;
-
         //  The duffer for data to decode.
         size_t bufsize;
         unsigned char *buf;
@@ -197,6 +197,10 @@ namespace zmq
 
         void set_session (zmq::session_base_t *session_);
 
+        //  Returns true if there is a decoded message
+        //  waiting to be delivered to the session.
+        bool stalled () const;
+
     private:
 
         bool one_byte_size_ready ();
diff --git a/src/stream_engine.cpp b/src/stream_engine.cpp
index 1771990b..b25ff4bb 100644
--- a/src/stream_engine.cpp
+++ b/src/stream_engine.cpp
@@ -47,6 +47,7 @@ zmq::stream_engine_t::stream_engine_t (fd_t fd_, const options_t &options_) :
     inpos (NULL),
     insize (0),
     decoder (in_batch_size, options_.maxmsgsize),
+    input_error (false),
     outpos (NULL),
     outsize (0),
     encoder (out_batch_size),
@@ -55,7 +56,7 @@ zmq::stream_engine_t::stream_engine_t (fd_t fd_, const options_t &options_) :
     options (options_),
     plugged (false)
 {
-    //  Get the socket into non-blocking mode.
+    //  Put the socket into non-blocking mode.
     unblock_socket (s);
 
     //  Set the socket buffer limits for the underlying socket.
@@ -202,8 +203,18 @@ void zmq::stream_engine_t::in_event ()
         session->flush ();
     }
 
-    if (session && disconnection)
-        error ();
+    //  Input error has occurred. If the last decoded
+    //  message has already been accepted, we terminate
+    //  the engine immediately. Otherwise, we stop
+    //  waiting for input events and postpone the termination
+    //  until after the session has accepted the message.
+    if (session != NULL && disconnection) {
+        input_error = true;
+        if (decoder.stalled ())
+            reset_pollin (handle);
+        else
+            error ();
+    }
 }
 
 void zmq::stream_engine_t::out_event ()
@@ -235,9 +246,11 @@ void zmq::stream_engine_t::out_event ()
     //  written should be reasonably modest.
     int nbytes = write (outpos, outsize);
 
-    //  Handle problems with the connection.
+    //  IO error has occurred. We stop waiting for output events.
+    //  The engine is not terminated until we detect input error;
+    //  this is necessary to prevent losing incomming messages.
     if (nbytes == -1) {
-        error ();
+        reset_pollout (handle);
         return;
     }
 
@@ -258,6 +271,17 @@ void zmq::stream_engine_t::activate_out ()
 
 void zmq::stream_engine_t::activate_in ()
 {
+    if (input_error) {
+        //  There was an input error but the engine could not
+        //  be terminated (due to the stalled decoder).
+        //  Flush the pending message and terminate the engine now.
+        decoder.process_buffer (inpos, 0);
+        zmq_assert (!decoder.stalled ());
+        session->flush ();
+        error ();
+        return;
+    }
+
     set_pollin (handle);
 
     //  Speculative read.
diff --git a/src/stream_engine.hpp b/src/stream_engine.hpp
index 30b190b0..68a5c2ef 100644
--- a/src/stream_engine.hpp
+++ b/src/stream_engine.hpp
@@ -83,6 +83,7 @@ namespace zmq
         unsigned char *inpos;
         size_t insize;
         decoder_t decoder;
+        bool input_error;
 
         unsigned char *outpos;
         size_t outsize;