diff --git a/iscsi-scst/usr/iscsi_scstd.c b/iscsi-scst/usr/iscsi_scstd.c
index 8bb0df9f0..0b57a56bc 100644
--- a/iscsi-scst/usr/iscsi_scstd.c
+++ b/iscsi-scst/usr/iscsi_scstd.c
@@ -578,6 +578,12 @@ static void event_loop(void)
 							conn->sess->sid.id64,
 							conn->cid);
 					} else {
+						/*
+						 * Check if session could not be established,
+						 * but sessions count was already incremented
+						 */
+						if (!sess && conn->sessions_count_incremented)
+							conn->target->sessions_count--;
 						conn_free(conn);
 						log_debug(1, "conn %p freed (sess %p, empty %d)",
 							conn, sess,
diff --git a/iscsi-scst/usr/iscsid.c b/iscsi-scst/usr/iscsid.c
index c9d993017..0aebb933b 100644
--- a/iscsi-scst/usr/iscsid.c
+++ b/iscsi-scst/usr/iscsid.c
@@ -525,6 +525,8 @@ static void login_start(struct connection *conn)
 			return;
 		}
 
+		conn->target = target;
+
 		/* We may "leak" here if we have an iSCSI event on the wrong time */
 		if (!iscsi_enabled) {
 			log_info("Connect from %s to disabled iSCSI-SCST refused",
@@ -580,13 +582,15 @@ static void login_start(struct connection *conn)
 		rc = login_check_reinstatement(conn);
 		if (rc < 0)
 			return;
-		else if (rc == ISCSI_SESS_REINSTATEMENT)
-			target->sessions_count++;
-		else if (rc != ISCSI_CONN_REINSTATEMENT) {
-			if ((target->target_params[key_max_sessions] == 0) ||
-			    (target->sessions_count < target->target_params[key_max_sessions]))
+		else if (rc == ISCSI_SESS_REINSTATEMENT) {
 				target->sessions_count++;
-			else {
+				conn->sessions_count_incremented = 1;
+		} else if (rc != ISCSI_CONN_REINSTATEMENT) {
+			if ((target->target_params[key_max_sessions] == 0) ||
+			    (target->sessions_count < target->target_params[key_max_sessions])) {
+					target->sessions_count++;
+					conn->sessions_count_incremented = 1;
+			} else {
 				log_warning("Initiator %s not allowed to connect to "
 					"target %s - max sessions limit "
 					"reached (%d)",	name, target_name,
diff --git a/iscsi-scst/usr/iscsid.h b/iscsi-scst/usr/iscsid.h
index eca1024ae..e93980e50 100644
--- a/iscsi-scst/usr/iscsid.h
+++ b/iscsi-scst/usr/iscsid.h
@@ -82,7 +82,9 @@ struct connection {
 	int fd;
 
 	unsigned int passed_to_kern:1;
+	unsigned int sessions_count_incremented:1;
 
+	struct target *target;
 	struct session *sess;
 
 	u32 tid;