diff --git a/net/vmw_vsock/virtio_transport_common.c b/net/vmw_vsock/virtio_transport_common.c
index 080e8f2bf985..4102689b3348 100644
--- a/net/vmw_vsock/virtio_transport_common.c
+++ b/net/vmw_vsock/virtio_transport_common.c
@@ -340,6 +340,8 @@ virtio_transport_stream_do_dequeue(struct vsock_sock *vsk,
 	struct virtio_vsock_pkt *pkt;
 	size_t bytes, total = 0;
 	u32 free_space;
+	u32 fwd_cnt_delta;
+	bool low_rx_bytes;
 	int err = -EFAULT;
 
 	spin_lock_bh(&vvs->rx_lock);
@@ -371,7 +373,10 @@ virtio_transport_stream_do_dequeue(struct vsock_sock *vsk,
 		}
 	}
 
-	free_space = vvs->buf_alloc - (vvs->fwd_cnt - vvs->last_fwd_cnt);
+	fwd_cnt_delta = vvs->fwd_cnt - vvs->last_fwd_cnt;
+	free_space = vvs->buf_alloc - fwd_cnt_delta;
+	low_rx_bytes = (vvs->rx_bytes <
+			sock_rcvlowat(sk_vsock(vsk), 0, INT_MAX));
 
 	spin_unlock_bh(&vvs->rx_lock);
 
@@ -381,9 +386,11 @@ virtio_transport_stream_do_dequeue(struct vsock_sock *vsk,
 	 * too high causes extra messages. Too low causes transmitter
 	 * stalls. As stalls are in theory more expensive than extra
 	 * messages, we set the limit to a high value. TODO: experiment
-	 * with different values.
+	 * with different values. Also send credit update message when
+	 * number of bytes in rx queue is not enough to wake up reader.
 	 */
-	if (free_space < VIRTIO_VSOCK_MAX_PKT_BUF_SIZE) {
+	if (fwd_cnt_delta &&
+	    (free_space < VIRTIO_VSOCK_MAX_PKT_BUF_SIZE || low_rx_bytes)) {
 		virtio_transport_send_credit_update(vsk,
 						    VIRTIO_VSOCK_TYPE_STREAM,
 						    NULL);