diff --git a/src/main.cpp b/src/main.cpp
index abb0174ed..1c1de636a 100644
--- a/src/main.cpp
+++ b/src/main.cpp
@@ -2838,6 +2838,10 @@ bool static ProcessMessage(CNode* pfrom, string strCommand, CDataStream& vRecv)
             vRecv >> pfrom->strSubVer;
         if (!vRecv.empty())
             vRecv >> pfrom->nStartingHeight;
+        if (!vRecv.empty())
+            vRecv >> pfrom->fRelayTxes; // set to true after we get the first filter* message
+        else
+            pfrom->fRelayTxes = true;
 
         if (pfrom->fInbound && addrMe.IsRoutable())
         {
@@ -3391,6 +3395,7 @@ bool static ProcessMessage(CNode* pfrom, string strCommand, CDataStream& vRecv)
             delete pfrom->pfilter;
             pfrom->pfilter = new CBloomFilter(filter);
         }
+        pfrom->fRelayTxes = true;
     }
 
 
@@ -3419,6 +3424,7 @@ bool static ProcessMessage(CNode* pfrom, string strCommand, CDataStream& vRecv)
         LOCK(pfrom->cs_filter);
         delete pfrom->pfilter;
         pfrom->pfilter = NULL;
+        pfrom->fRelayTxes = true;
     }
 
 
diff --git a/src/net.cpp b/src/net.cpp
index e88efcd19..319739429 100644
--- a/src/net.cpp
+++ b/src/net.cpp
@@ -2031,6 +2031,8 @@ void RelayTransaction(const CTransaction& tx, const uint256& hash, const CDataSt
     LOCK(cs_vNodes);
     BOOST_FOREACH(CNode* pnode, vNodes)
     {
+        if(!pnode->fRelayTxes)
+            continue;
         LOCK(pnode->cs_filter);
         if (pnode->pfilter)
         {
diff --git a/src/net.h b/src/net.h
index 81fe31200..087b2dd6a 100644
--- a/src/net.h
+++ b/src/net.h
@@ -152,6 +152,11 @@ public:
     bool fNetworkNode;
     bool fSuccessfullyConnected;
     bool fDisconnect;
+    // We use fRelayTxes for two purposes -
+    // a) it allows us to not relay tx invs before receiving the peer's version message
+    // b) the peer may tell us in their version message that we should not relay tx invs
+    //    until they have initialized their bloom filter.
+    bool fRelayTxes;
     CSemaphoreGrant grantOutbound;
     CCriticalSection cs_filter;
     CBloomFilter* pfilter;
@@ -211,6 +216,7 @@ public:
         nStartingHeight = -1;
         fGetAddr = false;
         nMisbehavior = 0;
+        fRelayTxes = false;
         setInventoryKnown.max_size(SendBufferSize() / 1000);
         pfilter = NULL;