diff --git a/opal/mca/btl/openib/btl_openib_component.c b/opal/mca/btl/openib/btl_openib_component.c
index 28fd735ab9..966796f193 100644
--- a/opal/mca/btl/openib/btl_openib_component.c
+++ b/opal/mca/btl/openib/btl_openib_component.c
@@ -3,7 +3,7 @@
  * Copyright (c) 2004-2007 The Trustees of Indiana University and Indiana
  *                         University Research and Technology
  *                         Corporation.  All rights reserved.
- * Copyright (c) 2004-2013 The University of Tennessee and The University
+ * Copyright (c) 2004-2017 The University of Tennessee and The University
  *                         of Tennessee Research Foundation.  All rights
  *                         reserved.
  * Copyright (c) 2004-2005 High Performance Computing Center Stuttgart,
@@ -3666,7 +3666,7 @@ error:
 #endif
 
     if(IBV_WC_WR_FLUSH_ERR != wc->status || !flush_err_printed[cq]++) {
-        BTL_PEER_ERROR(remote_proc, ("error polling %s with status %s "
+        BTL_PEER_ERROR(remote_proc, ("error polling %s with status %s"
                     "status number %d for wr_id %" PRIx64 " opcode %d  vendor error %d qp_idx %d",
                     cq_name[cq], btl_openib_component_status_to_string(wc->status),
                     wc->status, wc->wr_id,
@@ -3707,9 +3707,36 @@ error:
         }
     }
 
-    if(openib_btl)
+    if(openib_btl) {
+        /* return send wqe */
+        qp_put_wqe(endpoint, qp);
+
+        /* return wqes that were sent before this frag */
+        n = qp_frag_to_wqe(endpoint, qp, to_com_frag(des));
+
+        /* force emptying the pending frags toward the dead endpoint
+         * in progress_pending_frags* below */
+        endpoint->endpoint_state = MCA_BTL_IB_FAILED;
+
+        if(IBV_WC_SEND == wc->opcode && !BTL_OPENIB_QP_TYPE_PP(qp)) {
+            BTL_VERBOSE(("frag %p returning %d credits", frag, 1+n));
+            OPAL_THREAD_FETCH_ADD32(&openib_btl->qps[qp].u.srq_qp.sd_credits, 1+n);
+            /* new SRQ credit available. Try to progress pending frags*/
+            progress_pending_frags_srq(openib_btl, qp);
+        }
+        /* new wqe or/and get token available. Try to progress pending frags */
+        progress_pending_frags_wqe(endpoint, qp);
+        mca_btl_openib_frag_progress_pending_put_get(endpoint, qp);
+
+        if (des->des_flags & MCA_BTL_DES_SEND_ALWAYS_CALLBACK) {
+            des->des_cbfunc(&openib_btl->super, endpoint, des, wc->status);
+        }
+        if (des->des_flags & MCA_BTL_DES_FLAGS_BTL_OWNERSHIP) {
+            mca_btl_openib_free(&openib_btl->super, des);
+        }
         openib_btl->error_cb(&openib_btl->super, MCA_BTL_ERROR_FLAGS_FATAL,
                              (struct opal_proc_t*)remote_proc, NULL);
+    }
 }
 
 static int poll_device(mca_btl_openib_device_t* device, int count)
diff --git a/opal/mca/btl/openib/btl_openib_endpoint.c b/opal/mca/btl/openib/btl_openib_endpoint.c
index e1f9a32681..6fbf276d9f 100644
--- a/opal/mca/btl/openib/btl_openib_endpoint.c
+++ b/opal/mca/btl/openib/btl_openib_endpoint.c
@@ -502,6 +502,7 @@ void mca_btl_openib_endpoint_send_cts(mca_btl_openib_endpoint_t *endpoint)
     mca_btl_openib_frag_t *openib_frag;
     mca_btl_openib_com_frag_t *com_frag;
     mca_btl_openib_control_header_t *ctl_hdr;
+    int rc;
 
     OPAL_OUTPUT((-1, "SENDING CTS to %s on qp index %d (QP num %d)",
                  opal_get_proc_hostname(endpoint->endpoint_proc->proc_opal),
@@ -538,11 +539,14 @@ void mca_btl_openib_endpoint_send_cts(mca_btl_openib_endpoint_t *endpoint)
     ctl_hdr->type = MCA_BTL_OPENIB_CONTROL_CTS;
 
     /* Send the fragment */
-    if (OPAL_SUCCESS != mca_btl_openib_endpoint_post_send(endpoint, sc_frag)) {
-        BTL_ERROR(("Failed to post CTS send"));
-        mca_btl_openib_endpoint_invoke_error(endpoint);
+    if (OPAL_SUCCESS != (rc = mca_btl_openib_endpoint_post_send(endpoint, sc_frag))) {
+        if( OPAL_ERR_RESOURCE_BUSY != rc ) {
+            BTL_ERROR(("Failed to post CTS send"));
+            mca_btl_openib_endpoint_invoke_error(endpoint);
+        }
+    } else {
+        endpoint->endpoint_cts_sent = true;
     }
-    endpoint->endpoint_cts_sent = true;
 }
 
 /*
@@ -611,8 +615,8 @@ void mca_btl_openib_endpoint_connected(mca_btl_openib_endpoint_t *endpoint)
     mca_btl_openib_send_frag_t *frag;
     mca_btl_openib_endpoint_t *ep;
     bool master = false;
+    int rc;
 
-    opal_output(-1, "Now we are CONNECTED");
     if (MCA_BTL_XRC_ENABLED) {
         opal_mutex_lock (&endpoint->ib_addr->addr_lock);
         if (MCA_BTL_IB_ADDR_CONNECTED == endpoint->ib_addr->status) {
@@ -664,8 +668,11 @@ void mca_btl_openib_endpoint_connected(mca_btl_openib_endpoint_t *endpoint)
         frag = to_send_frag(frag_item);
         /* We need to post this one */
 
-        if (OPAL_ERROR == mca_btl_openib_endpoint_post_send(endpoint, frag)) {
-            BTL_ERROR(("Error posting send"));
+        if(OPAL_SUCCESS != (rc = mca_btl_openib_endpoint_post_send(endpoint, frag))) {
+            /* if we are out of resources, let's try to reschedule everything later */
+            if( OPAL_ERR_RESOURCE_BUSY != rc ) {
+                BTL_ERROR(("Error posting send"));
+            }
         }
     }
     OPAL_THREAD_UNLOCK(&endpoint->endpoint_lock);
@@ -1029,6 +1036,7 @@ void *mca_btl_openib_endpoint_invoke_error(void *context)
         }
     } else {
         btl = endpoint->endpoint_btl;
+        endpoint->endpoint_state = MCA_BTL_IB_FAILED;
     }
 
     /* If we didn't find a BTL, then just bail :-( */