diff --git a/src/proto/h2/upgrade.rs b/src/proto/h2/upgrade.rs
index 40a98de08a..735cbfd9dd 100644
--- a/src/proto/h2/upgrade.rs
+++ b/src/proto/h2/upgrade.rs
@@ -80,7 +80,7 @@ where
 
             if me.h2_tx.capacity() == 0 {
                 // poll_capacity oddly needs a loop
-                'capacity: loop {
+                loop {
                     match me.h2_tx.poll_capacity(cx) {
                         Poll::Ready(Some(Ok(0))) => {}
                         Poll::Ready(Some(Ok(_))) => break,
@@ -95,7 +95,7 @@ where
                                 "send stream capacity unexpectedly closed",
                             )));
                         }
-                        Poll::Pending => break 'capacity,
+                        Poll::Pending => return Poll::Pending,
                     }
                 }
             }
diff --git a/tests/server.rs b/tests/server.rs
index 651fbdf40d..14cc976163 100644
--- a/tests/server.rs
+++ b/tests/server.rs
@@ -2300,6 +2300,283 @@ async fn h2_connect_empty_frames() {
         .unwrap();
 }
 
+#[tokio::test]
+async fn h2_connect_backpressure_respected() {
+    let (listener, addr) = setup_tcp_listener();
+    let conn = connect_async(addr).await;
+
+    let mut builder = h2::client::Builder::new();
+    builder.initial_window_size(1024);
+    builder.initial_connection_window_size(1024);
+    let (h2, connection) = builder.handshake::<_, Bytes>(conn).await.unwrap();
+    tokio::spawn(async move {
+        connection.await.unwrap();
+    });
+    let mut h2 = h2.ready().await.unwrap();
+
+    const CHUNK: &[u8] = b"backpressure test data chunk!\n";
+    const TOTAL_LEN: usize = CHUNK.len() * 2000;
+
+    let client_handle = tokio::spawn(async move {
+        let request = Request::connect("localhost").body(()).unwrap();
+        let (response, _send_stream) = h2.send_request(request, false).unwrap();
+        let response = response.await.unwrap();
+        assert_eq!(response.status(), StatusCode::OK);
+
+        let mut body = response.into_body();
+        let mut received = 0usize;
+
+        while let Some(chunk) = body.data().await {
+            let chunk = chunk.unwrap();
+            if chunk.is_empty() {
+                break;
+            }
+            let len = chunk.len();
+            received += len;
+            let _ = body.flow_control().release_capacity(len);
+        }
+
+        assert_eq!(received, TOTAL_LEN);
+    });
+
+    let svc = service_fn(move |req: Request<IncomingBody>| {
+        let on_upgrade = hyper::upgrade::on(req);
+
+        tokio::spawn(async move {
+            let mut upgraded = TokioIo::new(on_upgrade.await.expect("on_upgrade"));
+
+            for _ in 0..2000 {
+                upgraded.write_all(CHUNK).await.unwrap();
+            }
+
+            upgraded.shutdown().await.unwrap();
+        });
+
+        future::ok::<_, hyper::Error>(
+            Response::builder()
+                .status(200)
+                .body(Empty::<Bytes>::new())
+                .unwrap(),
+        )
+    });
+
+    let (socket, _) = listener.accept().await.unwrap();
+    let socket = TokioIo::new(socket);
+    http2::Builder::new(TokioExecutor)
+        .serve_connection(socket, svc)
+        .await
+        .unwrap();
+
+    client_handle.await.unwrap();
+}
+
+#[tokio::test]
+async fn h2_connect_zero_window_then_release() {
+    let (listener, addr) = setup_tcp_listener();
+    let conn = connect_async(addr).await;
+
+    let mut builder = h2::client::Builder::new();
+    builder.initial_window_size(65535);
+    let (h2, connection) = builder.handshake::<_, Bytes>(conn).await.unwrap();
+    tokio::spawn(async move {
+        connection.await.unwrap();
+    });
+    let mut h2 = h2.ready().await.unwrap();
+
+    const DATA: &[u8] = b"Hello from upgraded stream";
+
+    let client_handle = tokio::spawn(async move {
+        let request = Request::connect("localhost").body(()).unwrap();
+        let (response, _send_stream) = h2.send_request(request, false).unwrap();
+        let response = response.await.unwrap();
+        assert_eq!(response.status(), StatusCode::OK);
+
+        let mut body = response.into_body();
+        let mut received = Vec::new();
+
+        while let Some(chunk) = body.data().await {
+            let chunk = chunk.unwrap();
+            if chunk.is_empty() {
+                break;
+            }
+            let len = chunk.len();
+            received.extend_from_slice(&chunk);
+            let _ = body.flow_control().release_capacity(len);
+        }
+
+        assert_eq!(&received[..], DATA);
+    });
+
+    let svc = service_fn(move |req: Request<IncomingBody>| {
+        let on_upgrade = hyper::upgrade::on(req);
+
+        tokio::spawn(async move {
+            let mut upgraded = TokioIo::new(on_upgrade.await.expect("on_upgrade"));
+            upgraded.write_all(DATA).await.unwrap();
+            upgraded.shutdown().await.unwrap();
+        });
+
+        future::ok::<_, hyper::Error>(
+            Response::builder()
+                .status(200)
+                .body(Empty::<Bytes>::new())
+                .unwrap(),
+        )
+    });
+
+    let (socket, _) = listener.accept().await.unwrap();
+    let socket = TokioIo::new(socket);
+    http2::Builder::new(TokioExecutor)
+        .serve_connection(socket, svc)
+        .await
+        .unwrap();
+
+    client_handle.await.unwrap();
+}
+
+#[tokio::test]
+async fn h2_connect_reset_during_backpressure() {
+    let (listener, addr) = setup_tcp_listener();
+    let conn = connect_async(addr).await;
+
+    let mut builder = h2::client::Builder::new();
+    builder.initial_window_size(1024);
+    builder.initial_connection_window_size(1024);
+    let (h2, connection) = builder.handshake::<_, Bytes>(conn).await.unwrap();
+    tokio::spawn(async move {
+        let _ = connection.await;
+    });
+    let mut h2 = h2.ready().await.unwrap();
+
+    let (write_err_tx, write_err_rx) = oneshot::channel::<bool>();
+    let write_err_tx = Arc::new(Mutex::new(Some(write_err_tx)));
+
+    tokio::spawn(async move {
+        let request = Request::connect("localhost").body(()).unwrap();
+        let (response, mut send_stream) = h2.send_request(request, false).unwrap();
+        let response = response.await.unwrap();
+        assert_eq!(response.status(), StatusCode::OK);
+
+        let mut body = response.into_body();
+        let bytes = body.data().await.unwrap().unwrap();
+        let _ = body.flow_control().release_capacity(bytes.len());
+
+        send_stream.send_reset(h2::Reason::CANCEL);
+        drop(body);
+        drop(send_stream);
+
+        let got_err = write_err_rx.await.unwrap_or(false);
+        assert!(got_err, "server write should have failed after RST_STREAM");
+    });
+
+    let svc = service_fn(move |req: Request<IncomingBody>| {
+        let on_upgrade = hyper::upgrade::on(req);
+        let write_err_tx = write_err_tx.clone();
+
+        tokio::spawn(async move {
+            let mut upgraded = TokioIo::new(on_upgrade.await.expect("on_upgrade"));
+            upgraded.write_all(b"initial").await.unwrap();
+
+            let large_data = vec![b'x'; 1024 * 1024];
+            let write_result = upgraded.write_all(&large_data).await;
+
+            if let Some(tx) = write_err_tx.lock().unwrap().take() {
+                let _ = tx.send(write_result.is_err());
+            }
+        });
+
+        future::ok::<_, hyper::Error>(
+            Response::builder()
+                .status(200)
+                .body(Empty::<Bytes>::new())
+                .unwrap(),
+        )
+    });
+
+    let (socket, _) = listener.accept().await.unwrap();
+    let socket = TokioIo::new(socket);
+    let _ = http2::Builder::new(TokioExecutor)
+        .serve_connection(socket, svc)
+        .await;
+}
+
+#[tokio::test]
+async fn h2_connect_backpressure_bidirectional() {
+    let (listener, addr) = setup_tcp_listener();
+    let conn = connect_async(addr).await;
+
+    let mut builder = h2::client::Builder::new();
+    builder.initial_window_size(2048);
+    builder.initial_connection_window_size(4096);
+    let (h2, connection) = builder.handshake::<_, Bytes>(conn).await.unwrap();
+    tokio::spawn(async move {
+        connection.await.unwrap();
+    });
+    let mut h2 = h2.ready().await.unwrap();
+
+    const PATTERN: &[u8] = b"All work and no bread makes nox a dull boy.\n";
+    const REPEAT: usize = 500;
+    let expected_len = PATTERN.len() * REPEAT;
+
+    let client_handle = tokio::spawn(async move {
+        let request = Request::connect("localhost").body(()).unwrap();
+        let (response, mut send_stream) = h2.send_request(request, false).unwrap();
+        let response = response.await.unwrap();
+        assert_eq!(response.status(), StatusCode::OK);
+
+        let mut body = response.into_body();
+        let mut received = 0usize;
+
+        while let Some(chunk) = body.data().await {
+            let chunk = chunk.unwrap();
+            if chunk.is_empty() {
+                break;
+            }
+            let len = chunk.len();
+            received += len;
+            let _ = body.flow_control().release_capacity(len);
+        }
+
+        assert_eq!(received, expected_len);
+
+        send_stream.send_data("client done".into(), true).unwrap();
+    });
+
+    let svc = service_fn(move |req: Request<IncomingBody>| {
+        let on_upgrade = hyper::upgrade::on(req);
+
+        tokio::spawn(async move {
+            let mut upgraded = TokioIo::new(on_upgrade.await.expect("on_upgrade"));
+
+            for _ in 0..REPEAT {
+                upgraded.write_all(PATTERN).await.unwrap();
+            }
+
+            upgraded.shutdown().await.unwrap();
+
+            let mut response_buf = vec![0u8; 64];
+            let n = upgraded.read(&mut response_buf).await.unwrap();
+            assert_eq!(&response_buf[..n], b"client done");
+        });
+
+        future::ok::<_, hyper::Error>(
+            Response::builder()
+                .status(200)
+                .body(Empty::<Bytes>::new())
+                .unwrap(),
+        )
+    });
+
+    let (socket, _) = listener.accept().await.unwrap();
+    let socket = TokioIo::new(socket);
+    http2::Builder::new(TokioExecutor)
+        .serve_connection(socket, svc)
+        .await
+        .unwrap();
+
+    client_handle.await.unwrap();
+}
+
 #[tokio::test]
 async fn parse_errors_send_4xx_response() {
     let (listener, addr) = setup_tcp_listener();