diff --git a/lib/reqd.ml b/lib/reqd.ml
index b8d915b3..40c989aa 100644
--- a/lib/reqd.ml
+++ b/lib/reqd.ml
@@ -44,6 +44,7 @@ end
 
 module Input_state = struct
   type t =
+    | Waiting
     | Ready
     | Complete
     | Upgraded
@@ -189,11 +190,14 @@ let respond_with_streaming ?(flush_headers_immediately=false) t response =
 let respond_with_upgrade ?reason t headers =
   match t.response_state with
   | Waiting ->
-    let response = Response.create ?reason ~headers `Switching_protocols in
-    t.response_state <- Upgrade response;
-    Body.close_reader t.request_body;
-    Writer.write_response t.writer response;
-    Writer.wakeup t.writer;
+    if not (Request.is_upgrade t.request) then
+      failwith "httpaf.Reqd.respond_with_upgrade: request was not an upgrade request"
+    else (
+      let response = Response.create ?reason ~headers `Switching_protocols in
+      t.response_state <- Upgrade response;
+      Body.close_reader t.request_body;
+      Writer.write_response t.writer response;
+      Writer.wakeup t.writer);
   | Streaming _ ->
     failwith "httpaf.Reqd.respond_with_upgrade: response already started"
   | Upgrade _
@@ -248,12 +252,23 @@ let persistent_connection t =
   t.persistent
 
 let input_state t : Input_state.t =
-  match t.response_state with
-  | Upgrade _ -> Upgraded
-  | Waiting | Fixed _ | Streaming _ ->
+  let upgrade_status =
+    match Request.is_upgrade t.request with
+    | false -> `Not_upgrading
+    | true ->
+      match t.response_state with
+      | Upgrade _ -> `Finished_upgrading
+      | Fixed _ | Streaming _ -> `Upgrade_declined
+      | Waiting -> `Upgrade_in_progress
+  in
+  match upgrade_status with
+  | `Finished_upgrading -> Upgraded
+  | `Not_upgrading | `Upgrade_declined ->
     if Body.is_closed t.request_body
     then Complete
     else Ready
+  | `Upgrade_in_progress ->
+    Waiting
 ;;
 
 let output_state t : Output_state.t =
diff --git a/lib/server_connection.ml b/lib/server_connection.ml
index 64f4ea80..53b308ea 100644
--- a/lib/server_connection.ml
+++ b/lib/server_connection.ml
@@ -197,6 +197,7 @@ let rec _next_read_operation t =
   ) else (
     let reqd = current_reqd_exn t in
     match Reqd.input_state reqd with
+    | Waiting  -> `Yield
     | Ready    -> Reader.next t.reader
     | Complete -> _final_read_operation_for t reqd
     | Upgraded -> `Upgrade
@@ -293,6 +294,7 @@ and _final_write_operation_for t reqd ~upgrade =
       Writer.next t.writer;
     ) else (
       match Reqd.input_state reqd with
+      | Waiting -> `Yield
       | Ready -> Writer.next t.writer;
       | Upgraded -> `Upgrade
       | Complete ->
diff --git a/lib_test/test_server_connection.ml b/lib_test/test_server_connection.ml
index 33064c26..cbe969f4 100644
--- a/lib_test/test_server_connection.ml
+++ b/lib_test/test_server_connection.ml
@@ -967,16 +967,24 @@ let test_upgrade () =
 
 let test_upgrade_where_server_does_not_upgrade () =
   let upgrade_headers =["Connection", "upgrade" ; "Upgrade", "foo"] in
-  let response = Response.create `Bad_request ~headers:(Headers.of_list upgrade_headers) in
-  let request_handler reqd =
-    Reqd.respond_with_string reqd response ""
-  in
+  let reqd = ref None in
+  let request_handler reqd' = reqd := Some reqd' in
   let t = create request_handler in
   read_request t
     (Request.create `GET "/"
        ~headers:(Headers.of_list (("Content-Length", "0") :: upgrade_headers)));
-  Alcotest.check read_operation "Reader is `Close" `Close (current_read_operation t);
+  (* At this point, we don't know if the response handler will call respond_with_upgrade
+     or not. So we pause the reader until that is determined. *)
+  Alcotest.check read_operation "Reader is `Yield during upgrade negotiation"
+    `Yield (current_read_operation t);
+
+  (* Now pretend the user doesn't want to do the upgrade and make sure we close the
+     connection *)
+  let reqd = Option.get !reqd in
+  let response = Response.create `Bad_request ~headers:(Headers.of_list upgrade_headers) in
+  Reqd.respond_with_string reqd response "";
   write_response t response;
+  Alcotest.check read_operation "Reader is `Close" `Close (current_read_operation t);
   Alcotest.check write_operation "Writer is `Close" (`Close 0) (current_write_operation t);
 ;;