diff --git a/server/const.go b/server/const.go
index afbd00da..58045f33 100644
--- a/server/const.go
+++ b/server/const.go
@@ -41,7 +41,7 @@ var (
 
 const (
 	// VERSION is the current version for the server.
-	VERSION = "2.2.1.RC3"
+	VERSION = "2.2.1.RC4"
 
 	// PROTO is the currently supported protocol.
 	// 0 was the original
diff --git a/server/stream.go b/server/stream.go
index 82835d15..bf40a51e 100644
--- a/server/stream.go
+++ b/server/stream.go
@@ -1084,6 +1084,7 @@ func (mset *stream) processInboundMirrorMsg(m *inMsg) bool {
 
 	// Check for heartbeats and flow control messages.
 	if m.isControlMsg() && mset.mirror.cname != _EMPTY_ {
+		var needsRetry bool
 		mset.mirror.last = time.Now()
 		// Flow controls have reply subjects.
 		if m.rply != _EMPTY_ {
@@ -1091,11 +1092,14 @@ func (mset *stream) processInboundMirrorMsg(m *inMsg) bool {
 		} else {
 			// For idle heartbeats make sure we did not miss anything.
 			if ldseq := parseInt64(getHeader(JSLastDeliveredSeq, m.hdr)); ldseq > 0 && uint64(ldseq) != mset.mirror.dseq {
-				mset.retryMirrorConsumer()
+				needsRetry = true
 			}
 		}
 		mset.mu.Unlock()
-		return false
+		if needsRetry {
+			mset.retryMirrorConsumer()
+		}
+		return !needsRetry
 	}
 
 	// Ignore from old subscriptions.
@@ -1196,6 +1200,7 @@ func (mset *stream) setupMirrorConsumer() error {
 		if mset.mirror.sub != nil {
 			mset.unsubscribe(mset.mirror.sub)
 			mset.mirror.sub = nil
+			mset.mirror.dseq = 1
 		}
 		// Make sure to delete any prior consumers if we know about them.
 		mset.removeInternalConsumer(mset.mirror)
@@ -1299,6 +1304,7 @@ func (mset *stream) setupMirrorConsumer() error {
 				if err != nil {
 					mset.mirror.err = jsError(err)
 					mset.mirror.sub = nil
+					mset.mirror.cname = _EMPTY_
 				} else {
 					mset.mirror.err = nil
 					mset.mirror.sub = sub
@@ -1562,6 +1568,7 @@ func (mset *stream) processInboundSourceMsg(si *sourceInfo, m *inMsg) bool {
 
 	// Check for heartbeats and flow control messages.
 	if m.isControlMsg() && si.cname != _EMPTY_ {
+		var needsRetry bool
 		si.last = time.Now()
 		// Flow controls have reply subjects.
 		if m.rply != _EMPTY_ {
@@ -1569,11 +1576,12 @@ func (mset *stream) processInboundSourceMsg(si *sourceInfo, m *inMsg) bool {
 		} else {
 			// For idle heartbeats make sure we did not miss anything.
 			if ldseq := parseInt64(getHeader(JSLastDeliveredSeq, m.hdr)); ldseq > 0 && uint64(ldseq) != si.dseq {
+				needsRetry = true
 				mset.retrySourceConsumerAtSeq(si.name, si.sseq+1)
 			}
 		}
 		mset.mu.Unlock()
-		return false
+		return !needsRetry
 	}
 
 	// Ignore from old subscriptions.