diff --git a/include/libtorrent/aux_/session_impl.hpp b/include/libtorrent/aux_/session_impl.hpp
index 978d0adbb..aeebdfd10 100644
--- a/include/libtorrent/aux_/session_impl.hpp
+++ b/include/libtorrent/aux_/session_impl.hpp
@@ -1121,6 +1121,9 @@ namespace libtorrent
 			// whe shutting down process
 			std::list<boost::shared_ptr<tracker_logger> > m_tracker_loggers;
 
+			std::string get_log_path() const
+			{ return m_logpath; }
+
 			std::string m_logpath;
 
 		private:
diff --git a/include/libtorrent/debug.hpp b/include/libtorrent/debug.hpp
index ddaf8d03d..eef2862b6 100644
--- a/include/libtorrent/debug.hpp
+++ b/include/libtorrent/debug.hpp
@@ -145,16 +145,45 @@ namespace libtorrent
 		{
 			char log_name[512];
 			snprintf(log_name, sizeof(log_name), "libtorrent_logs%d", instance);
-			std::string dir(complete(combine_path(logpath, log_name)));
+			std::string dir(complete(combine_path(combine_path(logpath, log_name), filename)) + ".log");
 			error_code ec;
-			if (!exists(dir)) create_directories(dir, ec);
-			m_filename = combine_path(dir, filename);
+			if (!exists(parent_path(dir)))
+				create_directories(parent_path(dir), ec);
+			m_filename = dir;
 
 			mutex::scoped_lock l(file_mutex);
 			open(!append);
 			log_file << "\n\n\n*** starting log ***\n";
 		}
 
+		void move_log_file(std::string const& logpath, std::string const& new_name, int instance)
+		{
+			mutex::scoped_lock l(file_mutex);
+			if (open_filename == m_filename)
+			{
+				log_file.close();
+				open_filename.clear();
+			}
+
+			char log_name[512];
+			snprintf(log_name, sizeof(log_name), "libtorrent_logs%d", instance);
+			std::string dir(combine_path(combine_path(complete(logpath), log_name), new_name) + ".log");
+
+			error_code ec;
+			create_directories(parent_path(dir), ec);
+
+			if (ec)
+				fprintf(stderr, "Failed to create logfile directory %s: %s\n"
+					, parent_path(dir).c_str(), ec.message().c_str());
+			ec.clear();
+			rename(m_filename, dir, ec);
+			if (ec)
+				fprintf(stderr, "Failed to move logfile %s: %s\n"
+					, parent_path(dir).c_str(), ec.message().c_str());
+
+			m_filename = dir;
+		}
+
 #if TORRENT_USE_IOSTREAM
 		void open(bool truncate)
 		{
diff --git a/src/peer_connection.cpp b/src/peer_connection.cpp
index 603c179fc..0d1366919 100644
--- a/src/peer_connection.cpp
+++ b/src/peer_connection.cpp
@@ -242,12 +242,13 @@ namespace libtorrent
 #if defined TORRENT_VERBOSE_LOGGING || defined TORRENT_ERROR_LOGGING
 		error_code ec;
 		TORRENT_ASSERT(m_socket->remote_endpoint(ec) == m_remote || ec);
-		std::string torrent_name;
-		if (t) torrent_name = to_hex(t->info_hash().to_string());
+		std::string log_name = m_remote.address().to_string(ec) + "_"
+			+ to_string(m_remote.port()).elems;
 
-		m_logger = m_ses.create_log(torrent_name + '_'
-			+ m_remote.address().to_string(ec) + "_"
-			+ to_string(m_remote.port()).elems, m_ses.listen_port());
+		if (t) log_name = combine_path(to_hex(t->info_hash().to_string())
+			, log_name);
+
+		m_logger = m_ses.create_log(log_name, m_ses.listen_port());
 		peer_log("%s [ ep: %s type: %s seed: %d p: %p local: %s]"
 			, m_outgoing ? ">>> OUTGOING_CONNECTION" : "<<< INCOMING CONNECTION"
 			, print_endpoint(m_remote).c_str()
@@ -991,6 +992,17 @@ namespace libtorrent
 		boost::weak_ptr<torrent> wpt = m_ses.find_torrent(ih);
 		boost::shared_ptr<torrent> t = wpt.lock();
 
+#if defined TORRENT_VERBOSE_LOGGING || defined TORRENT_ERROR_LOGGING
+		// now that we know which torrent this peer belongs
+		// to. Move the log file into its directory
+
+		error_code ec;
+		std::string log_name = combine_path(to_hex(ih.to_string())
+			, m_remote.address().to_string(ec) + "_"
+				+ to_string(m_remote.port()).elems);
+		m_logger->move_log_file(m_ses.get_log_path(), log_name, m_ses.listen_port());
+#endif
+
 		if (t && t->is_aborted())
 		{
 #if defined TORRENT_VERBOSE_LOGGING || defined TORRENT_ERROR_LOGGING
diff --git a/src/session_impl.cpp b/src/session_impl.cpp
index 7080bb3f6..586039673 100644
--- a/src/session_impl.cpp
+++ b/src/session_impl.cpp
@@ -4754,8 +4754,9 @@ namespace aux {
 	boost::shared_ptr<logger> session_impl::create_log(std::string const& name
 		, int instance, bool append)
 	{
+		error_code ec;
 		// current options are file_logger, cout_logger and null_logger
-		return boost::shared_ptr<logger>(new logger(m_logpath, name + ".log", instance, append));
+		return boost::shared_ptr<logger>(new logger(m_logpath, name, instance, append));
 	}
 #endif