diff --git a/CHANGES b/CHANGES
index 8f7374e263..269a774099 100644
--- a/CHANGES
+++ b/CHANGES
@@ -43,6 +43,10 @@
          *) applies to 0.9.6a ... 0.9.6d and 0.9.7
          +) applies to 0.9.7 only
 
+  *) Fix bug in SSL_clear(): bad sessions were not removed (found by
+     Yoram Zahavi <YoramZ@gilian.com>).
+     [Lutz Jaenicke]
+
   +) Add and OPENSSL_LOAD_CONF define which will cause
      OpenSSL_add_all_algorithms() to load the openssl.cnf config file.
      This allows older applications to transparently support certain
diff --git a/ssl/ssl_lib.c b/ssl/ssl_lib.c
index 1195171a57..2b60d7288f 100644
--- a/ssl/ssl_lib.c
+++ b/ssl/ssl_lib.c
@@ -136,7 +136,6 @@ OPENSSL_GLOBAL SSL3_ENC_METHOD ssl3_undef_enc_method={
 
 int SSL_clear(SSL *s)
 	{
-	int state;
 
 	if (s->method == NULL)
 		{
@@ -161,9 +160,14 @@ int SSL_clear(SSL *s)
 		}
 #endif
 
-	state=s->state; /* Keep to check if we throw away the session-id */
 	s->type=0;
 
+	if (ssl_clear_bad_session(s))
+		{
+		SSL_SESSION_free(s->session);
+		s->session=NULL;
+		}
+
 	s->state=SSL_ST_BEFORE|((s->server)?SSL_ST_ACCEPT:SSL_ST_CONNECT);
 
 	s->version=s->method->version;
@@ -182,12 +186,6 @@ int SSL_clear(SSL *s)
 
 	ssl_clear_cipher_ctx(s);
 
-	if (ssl_clear_bad_session(s))
-		{
-		SSL_SESSION_free(s->session);
-		s->session=NULL;
-		}
-
 	s->first_packet=0;
 
 #if 1