diff --git a/ChangeLog b/ChangeLog
index ef01bcfee..eeb7f69c4 100644
--- a/ChangeLog
+++ b/ChangeLog
@@ -2,6 +2,11 @@ mbed TLS ChangeLog (Sorted per branch, date)
 
 = mbed TLS x.x.x branch released xxxx-xx-xx
 
+Security
+   * Fix a potential memory leak in mbedtls_ssl_setup( ) function. An allocation
+     failure could leave an unreleased buffer. A handshake init failure would
+     lead to leaving two unreleased buffers.
+
 Bugfix
    * Fixes an issue with MBEDTLS_CHACHAPOLY_C which would not compile if
      MBEDTLS_ARC4_C and MBEDTLS_CIPHER_NULL_CIPHER weren't also defined. #1890
diff --git a/library/ssl_tls.c b/library/ssl_tls.c
index d5c1e625b..bf735cb17 100644
--- a/library/ssl_tls.c
+++ b/library/ssl_tls.c
@@ -5634,13 +5634,14 @@ int mbedtls_ssl_setup( mbedtls_ssl_context *ssl,
     /*
      * Prepare base structures
      */
+    ssl->in_buf = NULL;
+    ssl->out_buf = NULL;
     if( ( ssl-> in_buf = mbedtls_calloc( 1, len ) ) == NULL ||
         ( ssl->out_buf = mbedtls_calloc( 1, len ) ) == NULL )
     {
         MBEDTLS_SSL_DEBUG_MSG( 1, ( "alloc(%d bytes) failed", len ) );
-        mbedtls_free( ssl->in_buf );
-        ssl->in_buf = NULL;
-        return( MBEDTLS_ERR_SSL_ALLOC_FAILED );
+        ret = MBEDTLS_ERR_SSL_ALLOC_FAILED;
+        goto error;
     }
 
 #if defined(MBEDTLS_SSL_PROTO_DTLS)
@@ -5675,9 +5676,32 @@ int mbedtls_ssl_setup( mbedtls_ssl_context *ssl,
     }
 
     if( ( ret = ssl_handshake_init( ssl ) ) != 0 )
-        return( ret );
+        goto error;
 
     return( 0 );
+
+error:
+    mbedtls_free( ssl->in_buf );
+    mbedtls_free( ssl->out_buf );
+
+    ssl->conf = NULL;
+
+    ssl->in_buf = NULL;
+    ssl->out_buf = NULL;
+
+    ssl->in_hdr = NULL;
+    ssl->in_ctr = NULL;
+    ssl->in_len = NULL;
+    ssl->in_iv = NULL;
+    ssl->in_msg = NULL;
+
+    ssl->out_hdr = NULL;
+    ssl->out_ctr = NULL;
+    ssl->out_len = NULL;
+    ssl->out_iv = NULL;
+    ssl->out_msg = NULL;
+
+    return( ret );
 }
 
 /*