diff --git a/src/proto/streams/prioritize.rs b/src/proto/streams/prioritize.rs
index d63aa33..c543668 100644
--- a/src/proto/streams/prioritize.rs
+++ b/src/proto/streams/prioritize.rs
@@ -555,6 +555,9 @@ impl Prioritize {
         while let Some(frame) = stream.pending_send.pop_front(buffer) {
             trace!("dropping; frame={:?}", frame);
         }
+
+        stream.buffered_send_data = 0;
+        stream.requested_send_capacity = 0;
     }
 
     fn pop_frame<B>(
@@ -574,6 +577,14 @@ impl Prioritize {
                 Some(mut stream) => {
                     trace!("pop_frame; stream={:?}", stream.id);
 
+                    // If the stream receives a RESET from the peer, it may have
+                    // had data buffered to be sent, but all the frames are cleared
+                    // in clear_queue(). Instead of doing O(N) traversal through queue
+                    // to remove, lets just ignore peer_reset streams here.
+                    if stream.state.is_peer_reset() {
+                        continue;
+                    }
+
                     // It's possible that this stream, besides having data to send,
                     // is also queued to send a reset, and thus is already in the queue
                     // to wait for "some time" after a reset.
diff --git a/src/proto/streams/recv.rs b/src/proto/streams/recv.rs
index 8dc2874..2dc587c 100644
--- a/src/proto/streams/recv.rs
+++ b/src/proto/streams/recv.rs
@@ -588,16 +588,12 @@ impl Recv {
     }
 
     /// Handle remote sending an explicit RST_STREAM.
-    pub fn recv_reset(
-        &mut self,
-        frame: frame::Reset,
-        stream: &mut Stream,
-    ) -> Result<(), RecvError> {
+    pub fn recv_reset(&mut self, frame: frame::Reset, stream: &mut Stream) {
         // Notify the stream
         stream.state.recv_reset(frame.reason());
+
         stream.notify_send();
         stream.notify_recv();
-        Ok(())
     }
 
     /// Handle a received error
diff --git a/src/proto/streams/send.rs b/src/proto/streams/send.rs
index 2b92afc..b3f4716 100644
--- a/src/proto/streams/send.rs
+++ b/src/proto/streams/send.rs
@@ -283,6 +283,15 @@ impl Send {
         Ok(())
     }
 
+    pub fn recv_reset<B>(
+        &mut self,
+        buffer: &mut Buffer<Frame<B>>,
+        stream: &mut store::Ptr
+    ) {
+        // Clear all pending outbound frames
+        self.prioritize.clear_queue(buffer, stream);
+    }
+
     pub fn recv_err<B>(
         &mut self,
         buffer: &mut Buffer<Frame<B>>,
diff --git a/src/proto/streams/state.rs b/src/proto/streams/state.rs
index 0952070..94f093d 100644
--- a/src/proto/streams/state.rs
+++ b/src/proto/streams/state.rs
@@ -301,6 +301,13 @@ impl State {
         }
     }
 
+    pub fn is_peer_reset(&self) -> bool {
+        match self.inner {
+            Closed(Cause::Proto(_)) => true,
+            _ => false,
+        }
+    }
+
     /// Returns true if the stream is already reset.
     pub fn is_reset(&self) -> bool {
         match self.inner {
diff --git a/src/proto/streams/streams.rs b/src/proto/streams/streams.rs
index eeac656..00970e2 100644
--- a/src/proto/streams/streams.rs
+++ b/src/proto/streams/streams.rs
@@ -255,10 +255,14 @@ where
             },
         };
 
+        let mut send_buffer = self.send_buffer.inner.lock().unwrap();
+        let send_buffer = &mut *send_buffer;
+
         let actions = &mut me.actions;
 
         me.counts.transition(stream, |_, stream| {
-            actions.recv.recv_reset(frame, stream)?;
+            actions.recv.recv_reset(frame, stream);
+            actions.send.recv_reset(send_buffer, stream);
             assert!(stream.state.is_closed());
             Ok(())
         })
diff --git a/tests/client_request.rs b/tests/client_request.rs
index a2c09d9..e785719 100644
--- a/tests/client_request.rs
+++ b/tests/client_request.rs
@@ -708,6 +708,69 @@ fn recv_too_big_headers() {
 
 }
 
+#[test]
+fn pending_send_request_gets_reset_by_peer_properly() {
+    let _ = ::env_logger::try_init();
+    let (io, srv) = mock::new();
+
+    let payload = [0; (frame::DEFAULT_INITIAL_WINDOW_SIZE * 2) as usize];
+    let max_frame_size = frame::DEFAULT_MAX_FRAME_SIZE as usize;
+
+    let srv = srv.assert_client_handshake()
+        .unwrap()
+        .recv_settings()
+        .recv_frame(
+            frames::headers(1)
+                .request("GET", "https://http2.akamai.com/"),
+        )
+        // Note that we can only send up to ~4 frames of data by default
+        .recv_frame(frames::data(1, &payload[0..max_frame_size]))
+        .recv_frame(frames::data(1, &payload[max_frame_size..(max_frame_size*2)]))
+        .recv_frame(frames::data(1, &payload[(max_frame_size*2)..(max_frame_size*3)]))
+        .recv_frame(frames::data(1, &payload[(max_frame_size*3)..(max_frame_size*4-1)]))
+
+        .idle_ms(100)
+
+        .send_frame(frames::reset(1).refused())
+        // Because all active requests are finished, connection should shutdown
+        // and send a GO_AWAY frame. If the reset stream is bugged (and doesn't
+        // count towards concurrency limit), then connection will not send
+        // a GO_AWAY and this test will fail.
+        .recv_frame(frames::go_away(0))
+
+        .close();
+
+    let client = client::Builder::new()
+        .handshake::<_, Bytes>(io)
+        .expect("handshake")
+        .and_then(|(mut client, conn)| {
+            let request = Request::builder()
+                .uri("https://http2.akamai.com/")
+                .body(())
+                .unwrap();
+
+            let (response, mut stream) = client
+                .send_request(request, false)
+                .expect("send_request");
+
+            let response = response.expect_err("response")
+                .map(|err| {
+                    assert_eq!(
+                        err.reason(),
+                        Some(Reason::REFUSED_STREAM)
+                    );
+                });
+
+            // Send the data
+            stream.send_data(payload[..].into(), true).unwrap();
+
+            conn.drive(response)
+                .and_then(|(conn, _)| conn.expect("client"))
+        });
+
+    client.join(srv).wait().expect("wait");
+}
+
 #[test]
 fn request_without_path() {
     let _ = ::env_logger::try_init();