diff --git a/ssh.c b/ssh.c
index 38640387..1e22cb8f 100644
--- a/ssh.c
+++ b/ssh.c
@@ -3200,6 +3200,7 @@ static void do_ssh1_connection(void *vctx)
         pkt = ssh_bpp_new_pktout(ssh->bpp, SSH1_CMSG_REQUEST_COMPRESSION);
         put_uint32(pkt, 6);            /* gzip compression level */
         ssh_pkt_write(ssh, pkt);
+        ssh1_bpp_requested_compression(ssh->bpp);
         crMaybeWaitUntilV((pktin = pq_pop(&ssh->pq_ssh1_connection)) != NULL);
 	if (pktin->type != SSH1_SMSG_SUCCESS
 	    && pktin->type != SSH1_SMSG_FAILURE) {
@@ -3207,9 +3208,9 @@ static void do_ssh1_connection(void *vctx)
 	    crStopV;
 	} else if (pktin->type == SSH1_SMSG_FAILURE) {
 	    c_write_str(ssh, "Server refused to compress\r\n");
-	}
-	logevent("Started zlib (RFC1950) compression");
-        ssh1_bpp_start_compression(ssh->bpp);
+	} else {
+            logevent("Started zlib (RFC1950) compression");
+        }
     }
 
     /*
diff --git a/ssh1bpp.c b/ssh1bpp.c
index a1fd78c9..702ffb8b 100644
--- a/ssh1bpp.c
+++ b/ssh1bpp.c
@@ -21,6 +21,7 @@ struct ssh1_bpp_state {
 
     struct crcda_ctx *crcda_ctx;
 
+    int pending_compression_request;
     ssh_compressor *compctx;
     ssh_decompressor *decompctx;
 
@@ -82,17 +83,13 @@ void ssh1_bpp_new_cipher(BinaryPacketProtocol *bpp,
     }
 }
 
-void ssh1_bpp_start_compression(BinaryPacketProtocol *bpp)
+void ssh1_bpp_requested_compression(BinaryPacketProtocol *bpp)
 {
     struct ssh1_bpp_state *s;
     assert(bpp->vt == &ssh1_bpp_vtable);
     s = FROMFIELD(bpp, struct ssh1_bpp_state, bpp);
 
-    assert(!s->compctx);
-    assert(!s->decompctx);
-
-    s->compctx = ssh_compressor_new(&ssh_zlib);
-    s->decompctx = ssh_decompressor_new(&ssh_zlib);
+    s->pending_compression_request = TRUE;
 }
 
 static void ssh1_bpp_handle_input(BinaryPacketProtocol *bpp)
@@ -210,6 +207,20 @@ static void ssh1_bpp_handle_input(BinaryPacketProtocol *bpp)
 
             if (type == SSH1_MSG_DISCONNECT)
                 s->bpp.seen_disconnect = TRUE;
+
+            if (type == SSH1_SMSG_SUCCESS && s->pending_compression_request) {
+                assert(!s->compctx);
+                assert(!s->decompctx);
+
+                s->compctx = ssh_compressor_new(&ssh_zlib);
+                s->decompctx = ssh_decompressor_new(&ssh_zlib);
+
+                s->pending_compression_request = FALSE;
+            }
+
+            if (type == SSH1_SMSG_FAILURE && s->pending_compression_request) {
+                s->pending_compression_request = FALSE;
+            }
         }
     }
     crFinishV;
diff --git a/sshbpp.h b/sshbpp.h
index a1c9d0ac..8fc02960 100644
--- a/sshbpp.h
+++ b/sshbpp.h
@@ -34,7 +34,11 @@ BinaryPacketProtocol *ssh1_bpp_new(void);
 void ssh1_bpp_new_cipher(BinaryPacketProtocol *bpp,
                          const struct ssh1_cipheralg *cipher,
                          const void *session_key);
-void ssh1_bpp_start_compression(BinaryPacketProtocol *bpp);
+/* requested_compression() notifies the SSH-1 BPP that we've just sent
+ * a request to enable compression, which means that on receiving the
+ * next SSH1_SMSG_SUCCESS or SSH1_SMSG_FAILURE message, it should set
+ * up zlib compression if it was SUCCESS. */
+void ssh1_bpp_requested_compression(BinaryPacketProtocol *bpp);
 
 /*
  * Structure that tracks how much data is sent and received, for