diff --git a/hw/usb.h b/hw/usb.h
index 432ccae57f..e5744773bd 100644
--- a/hw/usb.h
+++ b/hw/usb.h
@@ -179,6 +179,7 @@ struct USBEndpoint {
     uint8_t ifnum;
     int max_packet_size;
     bool pipeline;
+    bool halted;
     USBDevice *dev;
     QTAILQ_HEAD(, USBPacket) queue;
 };
diff --git a/hw/usb/core.c b/hw/usb/core.c
index c7e5bc047f..28b840e52d 100644
--- a/hw/usb/core.c
+++ b/hw/usb/core.c
@@ -382,12 +382,23 @@ int usb_handle_packet(USBDevice *dev, USBPacket *p)
     usb_packet_check_state(p, USB_PACKET_SETUP);
     assert(p->ep != NULL);
 
+    /* Submitting a new packet clears halt */
+    if (p->ep->halted) {
+        assert(QTAILQ_EMPTY(&p->ep->queue));
+        p->ep->halted = false;
+    }
+
     if (QTAILQ_EMPTY(&p->ep->queue) || p->ep->pipeline) {
         ret = usb_process_one(p);
         if (ret == USB_RET_ASYNC) {
             usb_packet_set_state(p, USB_PACKET_ASYNC);
             QTAILQ_INSERT_TAIL(&p->ep->queue, p, queue);
         } else {
+            /*
+             * When pipelining is enabled usb-devices must always return async,
+             * otherwise packets can complete out of order!
+             */
+            assert(!p->ep->pipeline);
             p->result = ret;
             usb_packet_set_state(p, USB_PACKET_COMPLETE);
         }
@@ -399,6 +410,20 @@ int usb_handle_packet(USBDevice *dev, USBPacket *p)
     return ret;
 }
 
+static void __usb_packet_complete(USBDevice *dev, USBPacket *p)
+{
+    USBEndpoint *ep = p->ep;
+
+    assert(p->result != USB_RET_ASYNC && p->result != USB_RET_NAK);
+
+    if (p->result < 0) {
+        ep->halted = true;
+    }
+    usb_packet_set_state(p, USB_PACKET_COMPLETE);
+    QTAILQ_REMOVE(&ep->queue, p, queue);
+    dev->port->ops->complete(dev->port, p);
+}
+
 /* Notify the controller that an async packet is complete.  This should only
    be called for packets previously deferred by returning USB_RET_ASYNC from
    handle_packet. */
@@ -409,11 +434,9 @@ void usb_packet_complete(USBDevice *dev, USBPacket *p)
 
     usb_packet_check_state(p, USB_PACKET_ASYNC);
     assert(QTAILQ_FIRST(&ep->queue) == p);
-    usb_packet_set_state(p, USB_PACKET_COMPLETE);
-    QTAILQ_REMOVE(&ep->queue, p, queue);
-    dev->port->ops->complete(dev->port, p);
+    __usb_packet_complete(dev, p);
 
-    while (!QTAILQ_EMPTY(&ep->queue)) {
+    while (!ep->halted && !QTAILQ_EMPTY(&ep->queue)) {
         p = QTAILQ_FIRST(&ep->queue);
         if (p->state == USB_PACKET_ASYNC) {
             break;
@@ -425,9 +448,7 @@ void usb_packet_complete(USBDevice *dev, USBPacket *p)
             break;
         }
         p->result = ret;
-        usb_packet_set_state(p, USB_PACKET_COMPLETE);
-        QTAILQ_REMOVE(&ep->queue, p, queue);
-        dev->port->ops->complete(dev->port, p);
+        __usb_packet_complete(ep->dev, p);
     }
 }
 
diff --git a/hw/usb/hcd-ehci.c b/hw/usb/hcd-ehci.c
index 8b94b17723..8504a6a6b0 100644
--- a/hw/usb/hcd-ehci.c
+++ b/hw/usb/hcd-ehci.c
@@ -2138,6 +2138,19 @@ static int ehci_state_writeback(EHCIQueue *q)
      * bit is clear.
      */
     if (q->qh.token & QTD_TOKEN_HALT) {
+        /*
+         * We should not do any further processing on a halted queue!
+         * This is esp. important for bulk endpoints with pipelining enabled
+         * (redirection to a real USB device), where we must cancel all the
+         * transfers after this one so that:
+         * 1) If they've completed already, they are not processed further
+         *    causing more stalls, originating from the same failed transfer
+         * 2) If still in flight, they are cancelled before the guest does
+         *    a clear stall, otherwise the guest and device can loose sync!
+         */
+        while ((p = QTAILQ_FIRST(&q->packets)) != NULL) {
+            ehci_free_packet(p);
+        }
         ehci_set_state(q->ehci, q->async, EST_HORIZONTALQH);
         again = 1;
     } else {
diff --git a/hw/usb/hcd-uhci.c b/hw/usb/hcd-uhci.c
index 1ace2a41da..898773414e 100644
--- a/hw/usb/hcd-uhci.c
+++ b/hw/usb/hcd-uhci.c
@@ -748,6 +748,22 @@ static int uhci_complete_td(UHCIState *s, UHCI_TD *td, UHCIAsync *async, uint32_
     return TD_RESULT_COMPLETE;
 
 out:
+    /*
+     * We should not do any further processing on a queue with errors!
+     * This is esp. important for bulk endpoints with pipelining enabled
+     * (redirection to a real USB device), where we must cancel all the
+     * transfers after this one so that:
+     * 1) If they've completed already, they are not processed further
+     *    causing more stalls, originating from the same failed transfer
+     * 2) If still in flight, they are cancelled before the guest does
+     *    a clear stall, otherwise the guest and device can loose sync!
+     */
+    while (!QTAILQ_EMPTY(&async->queue->asyncs)) {
+        UHCIAsync *as = QTAILQ_FIRST(&async->queue->asyncs);
+        uhci_async_unlink(as);
+        uhci_async_cancel(as);
+    }
+
     switch(ret) {
     case USB_RET_STALL:
         td->ctrl |= TD_CTRL_STALL;