diff --git a/src/proto/streams/recv.rs b/src/proto/streams/recv.rs
index e57dc2b3..20a9ce53 100644
--- a/src/proto/streams/recv.rs
+++ b/src/proto/streams/recv.rs
@@ -506,7 +506,7 @@ impl Recv {
         self.release_connection_capacity(stream.in_flight_recv_data, task);
         stream.in_flight_recv_data = 0;
 
-        self.clear_recv_buffer(stream);
+        self.clear_recv_buffer(stream, task);
     }
 
     /// Set the "target" connection window size.
@@ -933,9 +933,22 @@ impl Recv {
         stream.notify_push();
     }
 
-    pub(super) fn clear_recv_buffer(&mut self, stream: &mut Stream) {
-        while stream.pending_recv.pop_front(&mut self.buffer).is_some() {
-            // drop it
+    pub(super) fn clear_recv_buffer(&mut self, stream: &mut Stream, task: &mut Option<Waker>) {
+        let mut to_release: WindowSize = 0;
+        while let Some(event) = stream.pending_recv.pop_front(&mut self.buffer) {
+            if let Event::Data(data) = &event {
+                to_release = to_release
+                    .saturating_add(data.len() as WindowSize)
+                    .min(stream.in_flight_recv_data);
+            }
+        }
+        // Release flow control capacity. Cases:
+        // * User read data but hasn't released: buf=0, in_flight>0 -> release 0
+        // * User released without reading: buf>0, in_flight=0 -> release 0
+        // * Normal drop without reading: buf=in_flight -> full release
+        if to_release > 0 {
+            stream.in_flight_recv_data -= to_release;
+            self.release_connection_capacity(to_release, task);
         }
     }
 
@@ -1253,6 +1266,52 @@ impl Recv {
     }
 }
 
+#[cfg(test)]
+mod tests {
+    use super::*;
+
+    #[test]
+    fn clear_recv_buffer_caps_capacity_before_overflow() {
+        const FRAME_LEN: usize = 1 << 20;
+        const FRAME_COUNT: usize = (u32::MAX as usize / FRAME_LEN) + 1;
+
+        let config = Config {
+            initial_max_send_streams: 0,
+            local_max_buffer_size: 0,
+            local_next_stream_id: 2.into(),
+            local_push_enabled: false,
+            extended_connect_protocol_enabled: false,
+            local_reset_duration: Duration::ZERO,
+            local_reset_max: 0,
+            remote_reset_max: 0,
+            remote_init_window_sz: DEFAULT_INITIAL_WINDOW_SIZE,
+            remote_max_initiated: None,
+            local_max_error_reset_streams: None,
+        };
+        let mut recv = Recv::new(peer::Dyn::Server, &config);
+        let mut store = Store::new();
+        let mut stream = store.insert(
+            StreamId::from(1),
+            Stream::new(StreamId::from(1), 0, DEFAULT_INITIAL_WINDOW_SIZE),
+        );
+        let data = Bytes::from(vec![0; FRAME_LEN]);
+
+        for _ in 0..FRAME_COUNT {
+            stream
+                .pending_recv
+                .push_back(&mut recv.buffer, Event::Data(data.clone()));
+        }
+        stream.in_flight_recv_data = DEFAULT_INITIAL_WINDOW_SIZE;
+        recv.in_flight_data = DEFAULT_INITIAL_WINDOW_SIZE;
+
+        recv.clear_recv_buffer(&mut stream, &mut None);
+
+        assert!(stream.pending_recv.is_empty());
+        assert_eq!(stream.in_flight_recv_data, 0);
+        assert_eq!(recv.in_flight_data, 0);
+    }
+}
+
 // ===== impl Open =====
 
 impl Open {
diff --git a/src/proto/streams/streams.rs b/src/proto/streams/streams.rs
index 7a6ef66f..ba326d0d 100644
--- a/src/proto/streams/streams.rs
+++ b/src/proto/streams/streams.rs
@@ -1551,7 +1551,9 @@ impl OpaqueStreamRef {
 
         let mut stream = me.store.resolve(self.key);
         stream.is_recv = false;
-        me.actions.recv.clear_recv_buffer(&mut stream);
+        me.actions
+            .recv
+            .clear_recv_buffer(&mut stream, &mut me.actions.task);
     }
 
     pub fn stream_id(&self) -> StreamId {
diff --git a/tests/h2-tests/tests/flow_control.rs b/tests/h2-tests/tests/flow_control.rs
index 5ed61a70..11d1207e 100644
--- a/tests/h2-tests/tests/flow_control.rs
+++ b/tests/h2-tests/tests/flow_control.rs
@@ -544,6 +544,61 @@ async fn stream_error_release_connection_capacity() {
     join(srv, client).await;
 }
 
+#[tokio::test]
+async fn recv_stream_drop_releases_only_buffered_connection_capacity() {
+    h2_support::trace_init!();
+
+    const FRAME_LEN: usize = 16_384;
+    const TOTAL_LEN: usize = FRAME_LEN * 2;
+
+    // Exercise all relationships between buffered and in-flight capacity:
+    // equal, buffered > in-flight, and buffered < in-flight.
+    for read_frames in 0usize..=1 {
+        for released_frames in 0usize..=1 {
+            let expected_used = read_frames.saturating_sub(released_frames) * FRAME_LEN;
+            let (io, mut peer) = mock::new();
+
+            let peer = async move {
+                let _ = peer.assert_server_handshake().await;
+                peer.send_frame(frames::headers(1).request("POST", "https://example.com/"))
+                    .await;
+                for _ in 0..2 {
+                    peer.send_frame(frames::data(1, vec![0; FRAME_LEN])).await;
+                }
+
+                peer.recv_frame(frames::window_update(0, (TOTAL_LEN - expected_used) as u32))
+                    .await;
+                if released_frames > 0 {
+                    peer.recv_frame(frames::window_update(1, FRAME_LEN as u32))
+                        .await;
+                }
+            };
+
+            let server = async move {
+                let mut server = server::handshake(io).await.unwrap();
+                let (request, _respond) = server.next().await.unwrap().unwrap();
+                let mut body = request.into_body();
+
+                for _ in 0..read_frames {
+                    assert_eq!(body.data().await.unwrap().unwrap().len(), FRAME_LEN);
+                }
+
+                let mut flow = body.flow_control().clone();
+                for _ in 0..released_frames {
+                    flow.release_capacity(FRAME_LEN).unwrap();
+                }
+                drop(body);
+
+                assert_eq!(flow.used_capacity(), expected_used);
+
+                let _ = server.next().await;
+            };
+
+            join(peer, server).await;
+        }
+    }
+}
+
 // Regression test for TODO
 #[tokio::test]
 async fn padded_data_stream_error_releases_connection_capacity() {