diff --git a/NEWS b/NEWS
index 384f2dcb0..a9dec6ad6 100644
--- a/NEWS
+++ b/NEWS
@@ -3,6 +3,13 @@ strongswan-5.8.0
 
 - The openssl plugin supports ChaCha20-Poly1305 when built with OpenSSL 1.1.0.
 
+- The PB-TNC finite state machine according to section 3.2 of RFC 5793 was not
+  correctly implemented when sending either a CRETRY or SRETRY batch. These
+  batches can only be sent in the "Decided" state and a CRETRY batch can
+  immediately carry all messages usually transported by a CDATA batch. It is
+  currently not possible to send a SRETRY batch since full-duplex mode for
+  PT-TLS transport is not supported.
+
 
 strongswan-5.7.2
 ----------------
diff --git a/src/libtnccs/plugins/tnccs_20/state_machine/pb_tnc_state_machine.c b/src/libtnccs/plugins/tnccs_20/state_machine/pb_tnc_state_machine.c
index 43f185440..51ce38453 100644
--- a/src/libtnccs/plugins/tnccs_20/state_machine/pb_tnc_state_machine.c
+++ b/src/libtnccs/plugins/tnccs_20/state_machine/pb_tnc_state_machine.c
@@ -134,15 +134,12 @@ METHOD(pb_tnc_state_machine_t, receive_batch, bool,
 			}
 			return FALSE;
 		case PB_STATE_CLIENT_WORKING:
-			if (this->is_server && type == PB_BATCH_CDATA)
+			if (this->is_server &&
+					(type == PB_BATCH_CDATA || type == PB_BATCH_CRETRY))
 			{
 				this->state = PB_STATE_SERVER_WORKING;
 				break;
 			}
-			if (this->is_server && type == PB_BATCH_CRETRY)
-			{
-				break;
-			}
 			if (type == PB_BATCH_CLOSE)
 			{
 				this->state = PB_STATE_END;
diff --git a/src/libtnccs/plugins/tnccs_20/tnccs_20_client.c b/src/libtnccs/plugins/tnccs_20/tnccs_20_client.c
index 04e404225..c8fdf0d30 100644
--- a/src/libtnccs/plugins/tnccs_20/tnccs_20_client.c
+++ b/src/libtnccs/plugins/tnccs_20/tnccs_20_client.c
@@ -538,9 +538,19 @@ METHOD(tnccs_20_handler_t, build, status_t,
 
 	if (this->request_handshake_retry)
 	{
-		if (state != PB_STATE_INIT)
+		if (state == PB_STATE_DECIDED)
 		{
+
 			build_retry_batch(this);
+
+			/* Restart the measurements */
+			tnc->imcs->notify_connection_change(tnc->imcs,
+						this->connection_id, TNC_CONNECTION_STATE_HANDSHAKE);
+			this->send_msg = TRUE;
+			this->mutex->unlock(this->mutex);
+			tnc->imcs->begin_handshake(tnc->imcs, this->connection_id);
+			this->mutex->lock(this->mutex);
+			this->send_msg = FALSE;
 		}
 
 		/* Reset the flag for the next handshake retry request */
@@ -714,7 +724,7 @@ METHOD(tnccs_20_handler_t, add_msg, void,
 	{
 		this->batch_type = PB_BATCH_CDATA;
 	}
-	if (this->batch_type == PB_BATCH_CDATA)
+	if (this->batch_type == PB_BATCH_CDATA || this->batch_type == PB_BATCH_CRETRY)
 	{
 		this->messages->insert_last(this->messages, msg);
 	}
diff --git a/src/libtnccs/plugins/tnccs_20/tnccs_20_server.c b/src/libtnccs/plugins/tnccs_20/tnccs_20_server.c
index 32d950297..44889d7e9 100644
--- a/src/libtnccs/plugins/tnccs_20/tnccs_20_server.c
+++ b/src/libtnccs/plugins/tnccs_20/tnccs_20_server.c
@@ -282,11 +282,6 @@ static void build_retry_batch(private_tnccs_20_server_t *this)
 		return;
 	}
 	change_batch_type(this, PB_BATCH_SRETRY);
-
-	this->recs->clear_recommendation(this->recs);
-
-	/* Handshake will be retried with next incoming CDATA batch */
-	this->retry_handshake = TRUE;
 }
 
 METHOD(tnccs_20_handler_t, process, status_t,
@@ -307,22 +302,13 @@ METHOD(tnccs_20_handler_t, process, status_t,
 		pb_tnc_msg_t *msg;
 		bool empty = TRUE;
 
-		if (batch_type == PB_BATCH_CDATA)
+		if (batch_type == PB_BATCH_CRETRY ||
+		   (batch_type == PB_BATCH_CDATA && this->retry_handshake))
 		{
-			/* retry handshake after a previous SRETRY batch */
-			if (this->retry_handshake)
-			{
-				tnc->imvs->notify_connection_change(tnc->imvs,
-						this->connection_id, TNC_CONNECTION_STATE_HANDSHAKE);
-				this->retry_handshake = FALSE;
-			}
-		}
-		else if (batch_type == PB_BATCH_CRETRY)
-		{
-			/* Send an SRETRY batch in response */
-			this->mutex->lock(this->mutex);
-			build_retry_batch(this);
-			this->mutex->unlock(this->mutex);
+			this->recs->clear_recommendation(this->recs);
+			tnc->imvs->notify_connection_change(tnc->imvs,
+					this->connection_id, TNC_CONNECTION_STATE_HANDSHAKE);
+			this->retry_handshake = FALSE;
 		}
 
 		enumerator = batch->create_msg_enumerator(batch);
@@ -441,9 +427,12 @@ METHOD(tnccs_20_handler_t, build, status_t,
 
 	if (this->request_handshake_retry)
 	{
-		if (state != PB_STATE_INIT)
+		if (state == PB_STATE_DECIDED)
 		{
 			build_retry_batch(this);
+
+			/* Handshake will be retried with next incoming CDATA batch */
+			this->retry_handshake = TRUE;
 		}
 
 		/* Reset the flag for the next handshake retry request */