diff --git a/src/osmo-bsc/meas_rep.c b/src/osmo-bsc/meas_rep.c
index 73d9a1f21..9b2fca0d8 100644
--- a/src/osmo-bsc/meas_rep.c
+++ b/src/osmo-bsc/meas_rep.c
@@ -31,11 +31,15 @@ static int get_field(const struct gsm_meas_rep *rep,
 	case MEAS_REP_DL_RXLEV_FULL:
 		if (!(rep->flags & MEAS_REP_F_DL_VALID))
 			return -EINVAL;
-		return rep->dl.full.rx_lev;
+		/* Add BS Power value to rxlev: improve the RXLEV value by the amount of power that the BTS is reducing
+		 * transmission. Note that bs_power is coded as dB/2, a positive value indicating the amount of power reduction
+		 * on the downlink; rxlev is coded in dB, where a higher number means stronger signal. */
+		return rep->dl.full.rx_lev + (rep->bs_power * 2);
 	case MEAS_REP_DL_RXLEV_SUB:
 		if (!(rep->flags & MEAS_REP_F_DL_VALID))
 			return -EINVAL;
-		return rep->dl.sub.rx_lev;
+		/* Apply BS Power as explained above */
+		return rep->dl.sub.rx_lev + (rep->bs_power * 2);
 	case MEAS_REP_DL_RXQUAL_FULL:
 		if (!(rep->flags & MEAS_REP_F_DL_VALID))
 			return -EINVAL;
diff --git a/tests/handover/test_bs_power.ho_vty b/tests/handover/test_bs_power.ho_vty
index 2c68d57a6..5d8c27846 100644
--- a/tests/handover/test_bs_power.ho_vty
+++ b/tests/handover/test_bs_power.ho_vty
@@ -6,11 +6,6 @@ create-bts trx-count 1 timeslots c+s4 TCH/F TCH/F TCH/F TCH/F TCH/F TCH/F PDCH
 set-ts-use trx 0 0 states        *    TCH/F -     -     -     -     -     *
 
 meas-rep repeat 10 bspower 20 lchan 0 0 1 0 rxlev 20 rxqual 0 ta 0 neighbors 30
-# FAIL: there should be no handover, because the bspower reduction of 20 with an rxlev of 20 (= 40) is stronger than the
-# neighbor at 30. But since osmo-bsc fails to take the BS Power into account, it hands over to the neighbor.
-#expect-no-chan
-expect-ho from lchan 0 0 1 0 to lchan 1 0 1 0
-
-# When the neighbor then reports the stronger original cell, we get handover oscillation
-meas-rep repeat 10 bspower 0 lchan 1 0 1 0 rxlev 30 rxqual 0 ta 0 neighbors 40
-expect-ho from lchan 1 0 1 0 to lchan 0 0 1 0
+# there should be no handover, because the bspower reduction of 20 with an rxlev of 20 (= 40) is stronger than the
+# neighbor at 30.
+expect-no-chan