diff --git a/src/bzip2/ftbzip2.c b/src/bzip2/ftbzip2.c
index 1d08f5e18..6f34a8bb7 100644
--- a/src/bzip2/ftbzip2.c
+++ b/src/bzip2/ftbzip2.c
@@ -102,10 +102,11 @@
 
     FT_Byte    input[FT_BZIP2_BUFFER_SIZE];  /* input read buffer  */
 
-    FT_Byte    buffer[FT_BZIP2_BUFFER_SIZE]; /* output buffer      */
-    FT_ULong   pos;                          /* position in output */
+    FT_Byte    buffer[FT_BZIP2_BUFFER_SIZE]; /* output buffer          */
+    FT_ULong   pos;                          /* position in output     */
     FT_Byte*   cursor;
     FT_Byte*   limit;
+    FT_Bool    reset;                        /* reset before next read */
 
   } FT_BZip2FileRec, *FT_BZip2File;
 
@@ -153,6 +154,7 @@
     zip->limit  = zip->buffer + FT_BZIP2_BUFFER_SIZE;
     zip->cursor = zip->limit;
     zip->pos    = 0;
+    zip->reset  = 0;
 
     /* check .bz2 header */
     {
@@ -228,6 +230,7 @@
       zip->limit  = zip->buffer + FT_BZIP2_BUFFER_SIZE;
       zip->cursor = zip->limit;
       zip->pos    = 0;
+      zip->reset  = 0;
 
       BZ2_bzDecompressInit( bzstream, 0, 0 );
     }
@@ -302,18 +305,23 @@
 
       err = BZ2_bzDecompress( bzstream );
 
-      if ( err == BZ_STREAM_END )
+      if ( err != BZ_OK )
       {
-        zip->limit = (FT_Byte*)bzstream->next_out;
-        if ( zip->limit == zip->cursor )
-          error = FT_THROW( Invalid_Stream_Operation );
-        break;
-      }
-      else if ( err != BZ_OK )
-      {
-        zip->limit = zip->cursor;
-        error      = FT_THROW( Invalid_Stream_Operation );
-        break;
+        zip->reset = 1;
+
+        if ( err == BZ_STREAM_END )
+        {
+          zip->limit = (FT_Byte*)bzstream->next_out;
+          if ( zip->limit == zip->cursor )
+            error = FT_THROW( Invalid_Stream_Operation );
+          break;
+        }
+        else
+        {
+          zip->limit = zip->cursor;
+          error      = FT_THROW( Invalid_Stream_Operation );
+          break;
+        }
       }
     }
 
@@ -363,9 +371,9 @@
     FT_Error  error;
 
 
-    /* Reset inflate stream if we're seeking backwards.        */
-    /* Yes, that is not too efficient, but it saves memory :-) */
-    if ( pos < zip->pos )
+    /* Reset inflate stream if seeking backwards or bzip reported an error. */
+    /* Yes, that is not too efficient, but it saves memory :-)              */
+    if ( pos < zip->pos || zip->reset )
     {
       error = ft_bzip2_file_reset( zip );
       if ( error )