diff --git a/src/xmpp/test/xmpp_client_sm_test.cc b/src/xmpp/test/xmpp_client_sm_test.cc
index 27e95b8071a..0a9544d15ba 100644
--- a/src/xmpp/test/xmpp_client_sm_test.cc
+++ b/src/xmpp/test/xmpp_client_sm_test.cc
@@ -135,7 +135,7 @@ class XmppStateMachineTest : public ::testing::Test {
             EXPECT_TRUE(HoldTimerRunning());
             EXPECT_TRUE(sm_->session() != NULL);
             EXPECT_TRUE(connection_->session() != NULL);
-            EXPECT_TRUE(sm_->GetConnectTime() == 0);
+            EXPECT_TRUE(sm_->get_connect_attempts() != 0);
             break;
         default:
             ASSERT_TRUE(false);
@@ -635,6 +635,40 @@ TEST_F(XmppStateMachineTest, Connect_EvTcpConnectFailed_EvTcpConnected) {
     VerifyState(xmsm::OPENSENT);
 }
 
+TEST_F(XmppStateMachineTest, ConnectionBackoff) {
+    sm_->connect_attempts_inc(); // set attempts as we do not
+                                 // want connection timer to expire
+    sm_->connect_attempts_inc(); // set attempts as we do not
+                                 // want connection timer to expire
+    VerifyState(xmsm::IDLE);
+    EvStart();
+    VerifyState(xmsm::ACTIVE);
+
+    for (int idx = 0; idx <= 6; ++idx) {
+        EvConnectTimerExpired();
+        VerifyState(xmsm::CONNECT);
+
+        EvTcpConnected();
+        VerifyState(xmsm::OPENSENT);
+
+        EvXmppOpen();
+        VerifyState(xmsm::ESTABLISHED);
+
+        if (idx == 6)
+            break;
+
+        EvTcpClose();
+        VerifyState(xmsm::ACTIVE);
+    }
+
+    TASK_UTIL_EXPECT_TRUE(sm_->get_connect_attempts() >= 6);
+    EvXmppKeepalive();
+    EvXmppKeepalive();
+    EvXmppKeepalive();
+    TASK_UTIL_EXPECT_EQ(3, sm_->get_keepalive_count());
+    TASK_UTIL_EXPECT_EQ(0, sm_->get_connect_attempts());
+}
+
 }
 
 static void SetUp() {
diff --git a/src/xmpp/xmpp_state_machine.cc b/src/xmpp/xmpp_state_machine.cc
index a0a6c323d64..815ec5fe9de 100644
--- a/src/xmpp/xmpp_state_machine.cc
+++ b/src/xmpp/xmpp_state_machine.cc
@@ -210,6 +210,7 @@ struct Active : public sc::state<Active, XmppStateMachine> {
     Active(my_context ctx) : my_base(ctx) {
         XmppStateMachine *state_machine = &context<XmppStateMachine>();
         SM_LOG(state_machine, "(Xmpp Active State)");
+        state_machine->keepalive_count_clear();
         bool flap = (state_machine->get_state() == ESTABLISHED);
         state_machine->set_state(ACTIVE);
         if (flap) {
@@ -701,7 +702,6 @@ struct XmppStreamEstablished :
     XmppStreamEstablished(my_context ctx) : my_base(ctx) {
         XmppStateMachine *state_machine = &context<XmppStateMachine>();
         SM_LOG(state_machine, "(XMPP Established)");
-        state_machine->connect_attempts_clear();
         XmppConnection *connection = state_machine->connection();
         state_machine->StartHoldTimer();
         state_machine->set_state(ESTABLISHED);
@@ -734,6 +734,10 @@ struct XmppStreamEstablished :
         if (event.session != state_machine->session()) {
             return discard_event();
         }
+        state_machine->keepalive_count_inc();
+        if (state_machine->get_keepalive_count() == 3) {
+            state_machine->connect_attempts_clear();
+        }
         state_machine->StartHoldTimer();
         return discard_event();
     }
@@ -867,6 +871,7 @@ XmppStateMachine::XmppStateMachine(XmppConnection *connection, bool active)
           TaskScheduler::GetInstance()->GetTaskId("xmpp::StateMachine"), 0)),
       hold_time_(GetConfiguredHoldTime()),
       attempts_(0),
+      keepalive_count_(0),
       deleted_(false),
       in_dequeue_(false),
       is_active_(active),
@@ -1165,7 +1170,7 @@ void XmppStateMachine::AssignSession() {
 const int XmppStateMachine::kConnectInterval;
 
 int XmppStateMachine::GetConnectTime() const {
-    int backoff = min(attempts_, 6);
+    int backoff = attempts_ > 6 ? 6 : attempts_;
     return std::min(backoff ? 1 << (backoff - 1) : 0, kConnectInterval);
 }
 
diff --git a/src/xmpp/xmpp_state_machine.h b/src/xmpp/xmpp_state_machine.h
index bac8bdfd0c3..0a133627c0f 100644
--- a/src/xmpp/xmpp_state_machine.h
+++ b/src/xmpp/xmpp_state_machine.h
@@ -112,7 +112,11 @@ class XmppStateMachine :
 
     void connect_attempts_inc() { attempts_++; }
     void connect_attempts_clear() { attempts_ = 0; }
-    int get_connect_attempts() { return attempts_; }
+    int get_connect_attempts() const { return attempts_; }
+
+    void keepalive_count_inc() { keepalive_count_++; }
+    void keepalive_count_clear() { keepalive_count_ = 0; }
+    int get_keepalive_count() const { return keepalive_count_; }
 
     int hold_time() const { return hold_time_; }
     virtual int hold_time_msecs() const { return hold_time_ * 1000; }
@@ -151,7 +155,8 @@ class XmppStateMachine :
     Timer *open_timer_;
     Timer *hold_timer_;
     int hold_time_;
-    int attempts_;
+    uint32_t attempts_;
+    uint32_t keepalive_count_;
     bool deleted_;
     bool in_dequeue_;
     bool is_active_;