diff --git a/lib/curl_ntlm.c b/lib/curl_ntlm.c
index 1f3bdccdf..f9ddf506d 100644
--- a/lib/curl_ntlm.c
+++ b/lib/curl_ntlm.c
@@ -84,7 +84,11 @@ CURLcode Curl_input_ntlm(struct connectdata *conn,
       ntlm->state = NTLMSTATE_TYPE2; /* We got a type-2 message */
     }
     else {
-      if(ntlm->state == NTLMSTATE_TYPE3) {
+      if(ntlm->state == NTLMSTATE_LAST) {
+        infof(conn->data, "NTLM auth restarted\n");
+        Curl_http_ntlm_cleanup(conn);
+      }
+      else if(ntlm->state == NTLMSTATE_TYPE3) {
         infof(conn->data, "NTLM handshake rejected\n");
         Curl_http_ntlm_cleanup(conn);
         ntlm->state = NTLMSTATE_NONE;
@@ -211,6 +215,9 @@ CURLcode Curl_output_ntlm(struct connectdata *conn, bool proxy)
   case NTLMSTATE_TYPE3:
     /* connection is already authenticated,
      * don't send a header in future requests */
+    ntlm->state = NTLMSTATE_LAST;
+
+  case NTLMSTATE_LAST:
     Curl_safefree(*allocuserpwd);
     authp->done = TRUE;
     break;