diff --git a/src/packet_cb.c b/src/packet_cb.c
index c53ef1d6..c3b36700 100644
--- a/src/packet_cb.c
+++ b/src/packet_cb.c
@@ -78,6 +78,8 @@ SSH_PACKET_CALLBACK(ssh_packet_disconnect_callback){
   ssh_socket_close(session->socket);
   session->alive = 0;
   session->session_state = SSH_SESSION_STATE_ERROR;
+  /* correctly handle disconnect during authorization */
+  session->auth.state = SSH_AUTH_STATE_FAILED;
   /* TODO: handle a graceful disconnect */
   return SSH_PACKET_USED;
 }