diff --git a/src/lib/server/CClientProxy1_4.cpp b/src/lib/server/CClientProxy1_4.cpp
index 81d86208..73473356 100644
--- a/src/lib/server/CClientProxy1_4.cpp
+++ b/src/lib/server/CClientProxy1_4.cpp
@@ -103,6 +103,10 @@ CClientProxy1_4::cryptoIv()
 
 	LOG((CLOG_DEBUG2 "send crypto iv change to \"%s\"", getName().c_str()));
 	CProtocolUtil::writef(getStream(), kMsgDCryptoIv, &data);
+	
+	// change IV only after we've sent the current IV, otherwise
+	// the client won't be able to decrypt the new IV.
+	cryptoStream->setIv(iv);
 }
 
 bool
diff --git a/src/lib/synergy/CCryptoStream.cpp b/src/lib/synergy/CCryptoStream.cpp
index fe140242..e7824247 100644
--- a/src/lib/synergy/CCryptoStream.cpp
+++ b/src/lib/synergy/CCryptoStream.cpp
@@ -124,7 +124,6 @@ void
 CCryptoStream::newIv(byte* out)
 {
 	m_autoSeedRandomPool.GenerateBlock(out, CRYPTO_IV_SIZE);
-	setIv(out);
 }
 
 void
diff --git a/src/test/unittests/synergy/CCryptoStreamTests.cpp b/src/test/unittests/synergy/CCryptoStreamTests.cpp
index 9ea027bd..83b98161 100644
--- a/src/test/unittests/synergy/CCryptoStreamTests.cpp
+++ b/src/test/unittests/synergy/CCryptoStreamTests.cpp
@@ -56,6 +56,9 @@ UInt8 g_readWriteIvChangeTrigger_buffer[4 + 4 + 16]; // abcd, DCIV, 16-byte IV
 void readWriteIvChangeTrigger_mockWrite(const void* in, UInt32 n);
 UInt8 readWriteIvChangeTrigger_mockRead(void* out, UInt32 n);
 
+UInt8 g_newIvDoesNotChangeIv_buffer[1];
+void newIvDoesNotChangeIv_mockWrite(const void* in, UInt32 n);
+
 TEST(CCryptoTests, write)
 {
 	const UInt32 size = 4;
@@ -248,6 +251,25 @@ TEST(CCryptoTests, createKey)
 	EXPECT_EQ(hash3[31], 233);
 }
 
+TEST(CCryptoTests, newIvDoesNotChangeIv)
+{
+	NiceMock<CMockEventQueue> eventQueue;
+	NiceMock<CMockStream> innerStream;
+	CCryptoOptions options("ctr", "mock");	
+	
+	ON_CALL(innerStream, write(_, _)).WillByDefault(Invoke(newIvDoesNotChangeIv_mockWrite));
+
+	CCryptoStream cs1(&eventQueue, &innerStream, options, false);
+	cs1.write("a", 1);
+	EXPECT_EQ(175, g_newIvDoesNotChangeIv_buffer[0]);
+
+	byte iv[CRYPTO_IV_SIZE];
+	cs1.newIv(iv);
+
+	cs1.write("a", 1);
+	EXPECT_EQ(92, g_newIvDoesNotChangeIv_buffer[0]);
+}
+
 void
 write_mockWrite(const void* in, UInt32 n)
 {
@@ -318,3 +340,9 @@ readWriteIvChangeTrigger_mockRead(void* out, UInt32 n)
 	g_readWriteIvChangeTrigger_readBufferIndex += n;
 	return n;
 }
+
+void
+newIvDoesNotChangeIv_mockWrite(const void* in, UInt32 n)
+{
+	memcpy(g_newIvDoesNotChangeIv_buffer, in, 1);
+}