diff --git a/swarm/CHANGELOG.md b/swarm/CHANGELOG.md
index eac4970e63b..d68330b4853 100644
--- a/swarm/CHANGELOG.md
+++ b/swarm/CHANGELOG.md
@@ -13,6 +13,9 @@ callback.
 
 - Update the `libp2p-core` dependency to `0.21`, fixing [1584](https://github.com/libp2p/rust-libp2p/issues/1584).
 
+- Fix connections being kept alive by `OneShotHandler` when not handling any
+  requests [PR 1698](https://github.com/libp2p/rust-libp2p/pull/1698).
+
 # 0.20.1 [2020-07-08]
 
 - Documentation updates.
diff --git a/swarm/src/protocols_handler/one_shot.rs b/swarm/src/protocols_handler/one_shot.rs
index 079cc815376..4f5a0288eca 100644
--- a/swarm/src/protocols_handler/one_shot.rs
+++ b/swarm/src/protocols_handler/one_shot.rs
@@ -161,11 +161,6 @@ where
         _: Self::OutboundOpenInfo,
     ) {
         self.dial_negotiated -= 1;
-
-        if self.dial_negotiated == 0 && self.dial_queue.is_empty() {
-            self.keep_alive = KeepAlive::Until(Instant::now() + self.config.keep_alive_timeout);
-        }
-
         self.events_out.push(out.into());
     }
 
@@ -221,6 +216,10 @@ where
             }
         } else {
             self.dial_queue.shrink_to_fit();
+
+            if self.dial_negotiated == 0 && self.keep_alive.is_yes() {
+                self.keep_alive = KeepAlive::Until(Instant::now() + self.config.keep_alive_timeout);
+            }
         }
 
         Poll::Pending
@@ -245,3 +244,30 @@ impl Default for OneShotHandlerConfig {
     }
 }
 
+#[cfg(test)]
+mod tests {
+    use super::*;
+
+    use futures::executor::block_on;
+    use futures::future::poll_fn;
+    use libp2p_core::upgrade::DeniedUpgrade;
+    use void::Void;
+
+    #[test]
+    fn do_not_keep_idle_connection_alive() {
+        let mut handler: OneShotHandler<_, DeniedUpgrade, Void> = OneShotHandler::new(
+            SubstreamProtocol::new(DeniedUpgrade{}),
+            Default::default(),
+        );
+
+        block_on(poll_fn(|cx| {
+            loop {
+                if let Poll::Pending = handler.poll(cx) {
+                    return Poll::Ready(())
+                }
+            }
+        }));
+
+        assert!(matches!(handler.connection_keep_alive(), KeepAlive::Until(_)));
+    }
+}