diff --git a/lib/daemon.py b/lib/daemon.py
index 98b9fcee7a43c29e21f180169da6676ab6dcbd06..2027a4b31bd906536699bc06f64ca51566d3330b 100644
--- a/lib/daemon.py
+++ b/lib/daemon.py
@@ -175,7 +175,8 @@ class AsyncTerminatedMessageStream(asynchat.async_chat):
   separator. For each complete message handle_message is called.
 
   """
-  def __init__(self, connected_socket, peer_address, terminator, family):
+  def __init__(self, connected_socket, peer_address, terminator, family,
+               unhandled_limit):
     """AsyncTerminatedMessageStream constructor.
 
     @type connected_socket: socket.socket
@@ -185,6 +186,8 @@ class AsyncTerminatedMessageStream(asynchat.async_chat):
     @param terminator: terminator separating messages in the stream
     @type family: integer
     @param family: socket family
+    @type unhandled_limit: integer or None
+    @param unhandled_limit: maximum unanswered messages
 
     """
     # python 2.4/2.5 uses conn=... while 2.6 has sock=... we have to cheat by
@@ -197,22 +200,36 @@ class AsyncTerminatedMessageStream(asynchat.async_chat):
     self.family = family
     self.peer_address = peer_address
     self.terminator = terminator
+    self.unhandled_limit = unhandled_limit
     self.set_terminator(terminator)
     self.ibuffer = []
-    self.next_incoming_message = 0
+    self.receive_count = 0
+    self.send_count = 0
     self.oqueue = collections.deque()
+    self.iqueue = collections.deque()
 
   # this method is overriding an asynchat.async_chat method
   def collect_incoming_data(self, data):
     self.ibuffer.append(data)
 
+  def _can_handle_message(self):
+    return (self.unhandled_limit is None or
+            (self.receive_count < self.send_count + self.unhandled_limit) and
+             not self.iqueue)
+
   # this method is overriding an asynchat.async_chat method
   def found_terminator(self):
     message = "".join(self.ibuffer)
     self.ibuffer = []
-    message_id = self.next_incoming_message
-    self.next_incoming_message += 1
-    self.handle_message(message, message_id)
+    message_id = self.receive_count
+    # We need to increase the receive_count after checking if the message can
+    # be handled, but before calling handle_message
+    can_handle = self._can_handle_message()
+    self.receive_count += 1
+    if can_handle:
+      self.handle_message(message, message_id)
+    else:
+      self.iqueue.append((message, message_id))
 
   def handle_message(self, message, message_id):
     """Handle a terminated message.
@@ -240,9 +257,16 @@ class AsyncTerminatedMessageStream(asynchat.async_chat):
     """
     # If we just append the message we received to the output queue, this
     # function can be safely called by multiple threads at the same time, and
-    # we don't need locking, since deques are thread safe.
+    # we don't need locking, since deques are thread safe. handle_write in the
+    # asyncore thread will handle the next input message if there are any
+    # enqueued.
     self.oqueue.append(message)
 
+  # this method is overriding an asyncore.dispatcher method
+  def readable(self):
+    # read from the socket if we can handle the next requests
+    return self._can_handle_message() and asynchat.async_chat.readable(self)
+
   # this method is overriding an asyncore.dispatcher method
   def writable(self):
     # the output queue may become full just after we called writable. This only
@@ -253,8 +277,14 @@ class AsyncTerminatedMessageStream(asynchat.async_chat):
   # this method is overriding an asyncore.dispatcher method
   def handle_write(self):
     if self.oqueue:
+      # if we have data in the output queue, then send_message was called.
+      # this means we can process one more message from the input queue, if
+      # there are any.
       data = self.oqueue.popleft()
       self.push(data + self.terminator)
+      self.send_count += 1
+      if self.iqueue:
+        self.handle_message(*self.iqueue.popleft())
     self.initiate_send()
 
   def close_log(self):
diff --git a/test/ganeti.daemon_unittest.py b/test/ganeti.daemon_unittest.py
index 1c9160e0b89eaafd34adf37f3847251306203f25..1343130a10348a27485cebd1306883dafa086488 100755
--- a/test/ganeti.daemon_unittest.py
+++ b/test/ganeti.daemon_unittest.py
@@ -273,10 +273,11 @@ class _MyAsyncStreamServer(daemon.AsyncStreamServer):
 class _MyMessageStreamHandler(daemon.AsyncTerminatedMessageStream):
 
   def __init__(self, connected_socket, client_address, terminator, family,
-               message_fn, client_id):
+               message_fn, client_id, unhandled_limit):
     daemon.AsyncTerminatedMessageStream.__init__(self, connected_socket,
                                                  client_address,
-                                                 terminator, family)
+                                                 terminator, family,
+                                                 unhandled_limit)
     self.message_fn = message_fn
     self.client_id = client_id
     self.error_count = 0
@@ -301,6 +302,7 @@ class TestAsyncStreamServerTCP(testutils.GanetiTestCase):
     self.server = _MyAsyncStreamServer(self.family, self.address,
                                        self.handle_connection)
     self.client_handler = _MyMessageStreamHandler
+    self.unhandled_limit = None
     self.terminator = "\3"
     self.address = self.server.getsockname()
     self.clients = []
@@ -339,7 +341,7 @@ class TestAsyncStreamServerTCP(testutils.GanetiTestCase):
     client_handler = self.client_handler(connected_socket, client_address,
                                          self.terminator, self.family,
                                          self.handle_message,
-                                         client_id)
+                                         client_id, self.unhandled_limit)
     self.connections.append(client_handler)
     self.countTerminate("connect_terminate_count")
 
@@ -494,6 +496,61 @@ class TestAsyncStreamServerTCP(testutils.GanetiTestCase):
     self.assertEquals(client1.recv(4096), "r0\3r1\3r2\3")
     self.assertRaises(socket.error, client2.recv, 4096)
 
+  def testLimitedUnhandledMessages(self):
+    self.connect_terminate_count = None
+    self.message_terminate_count = 3
+    self.unhandled_limit = 2
+    client1 = self.getClient()
+    client2 = self.getClient()
+    client1.send("one\3composed\3long\3message\3")
+    client2.send("c2one\3")
+    self.mainloop.Run()
+    self.assertEquals(self.messages[0], ["one", "composed"])
+    self.assertEquals(self.messages[1], ["c2one"])
+    self.assertFalse(self.connections[0].readable())
+    self.assert_(self.connections[1].readable())
+    self.connections[0].send_message("r0")
+    self.message_terminate_count = None
+    client1.send("another\3")
+    # when we write replies messages queued also get handled, but not the ones
+    # in the socket.
+    while self.connections[0].writable():
+      self.connections[0].handle_write()
+    self.assertFalse(self.connections[0].readable())
+    self.assertEquals(self.messages[0], ["one", "composed", "long"])
+    self.connections[0].send_message("r1")
+    self.connections[0].send_message("r2")
+    while self.connections[0].writable():
+      self.connections[0].handle_write()
+    self.assertEquals(self.messages[0], ["one", "composed", "long", "message"])
+    self.assert_(self.connections[0].readable())
+
+  def testLimitedUnhandledMessagesOne(self):
+    self.connect_terminate_count = None
+    self.message_terminate_count = 2
+    self.unhandled_limit = 1
+    client1 = self.getClient()
+    client2 = self.getClient()
+    client1.send("one\3composed\3message\3")
+    client2.send("c2one\3")
+    self.mainloop.Run()
+    self.assertEquals(self.messages[0], ["one"])
+    self.assertEquals(self.messages[1], ["c2one"])
+    self.assertFalse(self.connections[0].readable())
+    self.assertFalse(self.connections[1].readable())
+    self.connections[0].send_message("r0")
+    self.message_terminate_count = None
+    while self.connections[0].writable():
+      self.connections[0].handle_write()
+    self.assertFalse(self.connections[0].readable())
+    self.assertEquals(self.messages[0], ["one", "composed"])
+    self.connections[0].send_message("r2")
+    self.connections[0].send_message("r3")
+    while self.connections[0].writable():
+      self.connections[0].handle_write()
+    self.assertEquals(self.messages[0], ["one", "composed", "message"])
+    self.assert_(self.connections[0].readable())
+
 
 class TestAsyncStreamServerUnixPath(TestAsyncStreamServerTCP):
   """Test daemon.AsyncStreamServer with a Unix path connection"""