diff --git a/Sources/NIOSSH/NIOSSHHandler.swift b/Sources/NIOSSH/NIOSSHHandler.swift
index 76194f6..17bdaa6 100644
--- a/Sources/NIOSSH/NIOSSHHandler.swift
+++ b/Sources/NIOSSH/NIOSSHHandler.swift
@@ -113,6 +113,9 @@ extension NIOSSHHandler: ChannelDuplexHandler {
 
         self.dropAllPendingGlobalRequests(ChannelError.eof)
         self.dropUnsatisfiedGlobalRequests(ChannelError.eof)
+        while let next = self.pendingChannelInitializations.popFirst() {
+            next.promise?.fail(ChannelError.eof)
+        }
     }
 
     public func channelActive(context: ChannelHandlerContext) {
diff --git a/Tests/NIOSSHTests/ChildChannelMultiplexerTests.swift b/Tests/NIOSSHTests/ChildChannelMultiplexerTests.swift
index b51a9e8..a90859d 100644
--- a/Tests/NIOSSHTests/ChildChannelMultiplexerTests.swift
+++ b/Tests/NIOSSHTests/ChildChannelMultiplexerTests.swift
@@ -61,6 +61,16 @@ final class ErrorLoggingHandler: ChannelInboundHandler {
     }
 }
 
+final class ErrorClosingHandler: ChannelInboundHandler {
+    typealias InboundIn = Any
+    typealias InboundOut = Any
+
+    func errorCaught(context: ChannelHandlerContext, error: Error) {
+        context.close(promise: nil)
+        context.fireErrorCaught(error)
+    }
+}
+
 final class ReadCountingHandler: ChannelOutboundHandler {
     typealias OutboundIn = Any
     typealias OutboundOut = Any
diff --git a/Tests/NIOSSHTests/EndToEndTests.swift b/Tests/NIOSSHTests/EndToEndTests.swift
index 579833b..2e19ab1 100644
--- a/Tests/NIOSSHTests/EndToEndTests.swift
+++ b/Tests/NIOSSHTests/EndToEndTests.swift
@@ -527,4 +527,41 @@ class EndToEndTests: XCTestCase {
         XCTAssertEqual(errorCatcher.errors.count, 1)
         XCTAssertEqual(errorCatcher.errors.first as? TestError, .bang)
     }
+
+    func testCreateChannelBeforeIncompleteHandshakeFails() throws {
+        enum TestError: Error {
+            case bang
+        }
+
+        struct RejectDelegate: NIOSSHClientServerAuthenticationDelegate {
+            func validateHostKey(hostKey: NIOSSHPublicKey, validationCompletePromise: EventLoopPromise<Void>) {
+                validationCompletePromise.fail(TestError.bang)
+            }
+        }
+
+        var harness = TestHarness()
+        harness.clientServerAuthDelegate = RejectDelegate()
+
+        XCTAssertNoThrow(try self.channel.configureWithHarness(harness))
+        XCTAssertNoThrow(try self.channel.client.pipeline.addHandler(ErrorClosingHandler()).wait())
+
+        // Get an early ref to the handler and try to create a child channel.
+        let handler = self.channel.clientSSHHandler
+
+        var err: Error?
+        let promise = self.channel.client.eventLoop.makePromise(of: Channel.self)
+        promise.futureResult.whenFailure { error in err = error }
+        handler!.createChannel(promise, channelType: .session) { channel, _ in
+            channel.eventLoop.makeSucceededFuture(())
+        }
+        XCTAssertNil(err)
+
+        // Activation errors.
+        XCTAssertNoThrow(try self.channel.activate())
+        XCTAssertThrowsError(try self.channel.interactInMemory()) { error in
+            XCTAssertEqual(error as? TestError, .bang)
+        }
+        self.channel.run()
+        XCTAssertEqual(err as? ChannelError?, .eof)
+    }
 }