diff --git a/codec-http/src/main/java/io/netty/handler/codec/spdy/SpdySessionHandler.java b/codec-http/src/main/java/io/netty/handler/codec/spdy/SpdySessionHandler.java
index 4fe6914bd4..866af61d50 100644
--- a/codec-http/src/main/java/io/netty/handler/codec/spdy/SpdySessionHandler.java
+++ b/codec-http/src/main/java/io/netty/handler/codec/spdy/SpdySessionHandler.java
@@ -41,12 +41,13 @@ public class SpdySessionHandler
     private final SpdySession spdySession = new SpdySession();
     private int lastGoodStreamId;
 
-    private int remoteConcurrentStreams;
-    private int localConcurrentStreams;
-    private int maxConcurrentStreams;
+    private static final int DEFAULT_MAX_CONCURRENT_STREAMS = Integer.MAX_VALUE;
+    private int remoteConcurrentStreams = DEFAULT_MAX_CONCURRENT_STREAMS;
+    private int localConcurrentStreams  = DEFAULT_MAX_CONCURRENT_STREAMS;
+    private int maxConcurrentStreams    = DEFAULT_MAX_CONCURRENT_STREAMS;
 
     private static final int DEFAULT_WINDOW_SIZE = 64 * 1024; // 64 KB default initial window size
-    private int initialSendWindowSize = DEFAULT_WINDOW_SIZE;
+    private int initialSendWindowSize    = DEFAULT_WINDOW_SIZE;
     private int initialReceiveWindowSize = DEFAULT_WINDOW_SIZE;
 
     private final Object flowControlLock = new Object();
@@ -664,23 +665,7 @@ public class SpdySessionHandler
         } else {
             localConcurrentStreams = newConcurrentStreams;
         }
-        if (localConcurrentStreams == remoteConcurrentStreams) {
-            maxConcurrentStreams = localConcurrentStreams;
-            return;
-        }
-        if (localConcurrentStreams == 0) {
-            maxConcurrentStreams = remoteConcurrentStreams;
-            return;
-        }
-        if (remoteConcurrentStreams == 0) {
-            maxConcurrentStreams = localConcurrentStreams;
-            return;
-        }
-        if (localConcurrentStreams > remoteConcurrentStreams) {
-            maxConcurrentStreams = remoteConcurrentStreams;
-        } else {
-            maxConcurrentStreams = localConcurrentStreams;
-        }
+        maxConcurrentStreams = Math.min(localConcurrentStreams, remoteConcurrentStreams);
     }
 
     // need to synchronize to prevent new streams from being created while updating active streams
@@ -705,9 +690,7 @@ public class SpdySessionHandler
             return false;
         }
 
-        int maxConcurrentStreams = this.maxConcurrentStreams;
-        if (maxConcurrentStreams != 0 &&
-           spdySession.numActiveStreams() >= maxConcurrentStreams) {
+        if (spdySession.numActiveStreams() >= maxConcurrentStreams) {
             return false;
         }
         spdySession.acceptStream(
diff --git a/codec-http/src/test/java/io/netty/handler/codec/spdy/SpdySessionHandlerTest.java b/codec-http/src/test/java/io/netty/handler/codec/spdy/SpdySessionHandlerTest.java
index 3e06701db2..a4801c4122 100644
--- a/codec-http/src/test/java/io/netty/handler/codec/spdy/SpdySessionHandlerTest.java
+++ b/codec-http/src/test/java/io/netty/handler/codec/spdy/SpdySessionHandlerTest.java
@@ -126,10 +126,23 @@ public class SpdySessionHandlerTest {
         assertNull(sessionHandler.readOutbound());
         remoteStreamId += 2;
 
-        // Check if session handler returns PROTOCOL_ERROR if it receives
-        // multiple SYN_REPLY frames for the same active Stream-ID
+        // Check if session handler correctly limits the number of
+        // concurrent streams in the SETTINGS frame
+        SpdySettingsFrame spdySettingsFrame = new DefaultSpdySettingsFrame();
+        spdySettingsFrame.setValue(SpdySettingsFrame.SETTINGS_MAX_CONCURRENT_STREAMS, 0);
+        sessionHandler.writeInbound(spdySettingsFrame);
+        assertNull(sessionHandler.readOutbound());
+        sessionHandler.writeInbound(spdySynStreamFrame);
+        assertRstStream(sessionHandler.readOutbound(), localStreamId, SpdyStreamStatus.REFUSED_STREAM);
+        assertNull(sessionHandler.readOutbound());
+        spdySettingsFrame.setValue(SpdySettingsFrame.SETTINGS_MAX_CONCURRENT_STREAMS, 100);
+        sessionHandler.writeInbound(spdySettingsFrame);
+        assertNull(sessionHandler.readOutbound());
         sessionHandler.writeInbound(new DefaultSpdySynReplyFrame(remoteStreamId));
         assertNull(sessionHandler.readOutbound());
+
+        // Check if session handler returns PROTOCOL_ERROR if it receives
+        // multiple SYN_REPLY frames for the same active Stream-ID
         sessionHandler.writeInbound(new DefaultSpdySynReplyFrame(remoteStreamId));
         assertRstStream(sessionHandler.readOutbound(), remoteStreamId, SpdyStreamStatus.STREAM_IN_USE);
         assertNull(sessionHandler.readOutbound());
@@ -187,9 +200,8 @@ public class SpdySessionHandlerTest {
         assertNull(sessionHandler.readOutbound());
         spdySynStreamFrame.setStreamId(localStreamId);
 
-        // Check if session handler correctly limits the number of
+        // Check if session handler correctly handles updates to the max
         // concurrent streams in the SETTINGS frame
-        SpdySettingsFrame spdySettingsFrame = new DefaultSpdySettingsFrame();
         spdySettingsFrame.setValue(SpdySettingsFrame.SETTINGS_MAX_CONCURRENT_STREAMS, 2);
         sessionHandler.writeInbound(spdySettingsFrame);
         assertNull(sessionHandler.readOutbound());