diff --git a/ChangeLog b/ChangeLog
index 53a6095f2..59be48bee 100644
--- a/ChangeLog
+++ b/ChangeLog
@@ -9,6 +9,7 @@ Bugfix
      supports secure renegotiation
    * Fixed offset for cert_type list in ssl_parse_certificate_request()
    * Fixed const correctness issues that have no impact on the ABI
+   * x509parse_crt() now better handles PEM error situations
 
 = Version 1.2.7 released 2013-04-13
 Features
diff --git a/library/x509parse.c b/library/x509parse.c
index 2541eeca3..35f272986 100644
--- a/library/x509parse.c
+++ b/library/x509parse.c
@@ -1463,10 +1463,20 @@ int x509parse_crt( x509_cert *chain, const unsigned char *buf, size_t buflen )
                 buflen -= use_len;
                 buf += use_len;
             }
+            else if( ret == POLARSSL_ERR_PEM_BAD_INPUT_DATA )
+            {
+                return( ret );
+            }
             else if( ret != POLARSSL_ERR_PEM_NO_HEADER_FOOTER_PRESENT )
             {
                 pem_free( &pem );
 
+                /*
+                 * PEM header and footer were found
+                 */
+                buflen -= use_len;
+                buf += use_len;
+
                 if( first_error == 0 )
                     first_error = ret;