diff --git a/quiche/quic/core/quic_connection.cc b/quiche/quic/core/quic_connection.cc
index 0e71a7f..c37c86d 100644
--- a/quiche/quic/core/quic_connection.cc
+++ b/quiche/quic/core/quic_connection.cc
@@ -2497,16 +2497,18 @@
       QuicUtils::IsCryptoStreamId(transport_version(), id)) {
     MaybeActivateLegacyVersionEncapsulation();
   }
-  if (perspective_ == Perspective::IS_SERVER &&
-      version().CanSendCoalescedPackets() && !IsHandshakeConfirmed()) {
+  if (version().CanSendCoalescedPackets() && !IsHandshakeConfirmed()) {
     if (in_on_retransmission_time_out_ &&
         coalesced_packet_.NumberOfPackets() == 0u) {
       // PTO fires while handshake is not confirmed. Do not preempt handshake
       // data with stream data.
       QUIC_CODE_COUNT(quic_try_to_send_half_rtt_data_when_pto_fires);
+      QUIC_DVLOG(1) << ENDPOINT
+                    << "Not PTOing stream data before handshake gets confirmed";
       return QuicConsumedData(0, false);
     }
-    if (coalesced_packet_.ContainsPacketOfEncryptionLevel(ENCRYPTION_INITIAL) &&
+    if (perspective_ == Perspective::IS_SERVER &&
+        coalesced_packet_.ContainsPacketOfEncryptionLevel(ENCRYPTION_INITIAL) &&
         coalesced_packet_.NumberOfPackets() == 1u) {
       // Handshake is not confirmed yet, if there is only an initial packet in
       // the coalescer, try to bundle an ENCRYPTION_HANDSHAKE packet before
diff --git a/quiche/quic/core/quic_connection_test.cc b/quiche/quic/core/quic_connection_test.cc
index 4d9c91d..c6886c6 100644
--- a/quiche/quic/core/quic_connection_test.cc
+++ b/quiche/quic/core/quic_connection_test.cc
@@ -9865,6 +9865,9 @@
   EXPECT_CALL(*send_algorithm_, SetFromConfig(_, _));
   connection_.SetFromConfig(config);
   EXPECT_FALSE(connection_.GetRetransmissionAlarm()->IsSet());
+  EXPECT_CALL(visitor_, GetHandshakeState())
+      .WillRepeatedly(Return(HANDSHAKE_CONFIRMED));
+  connection_.OnHandshakeComplete();
 
   QuicStreamId stream_id = 2;
   QuicPacketNumber last_packet;
@@ -14670,6 +14673,80 @@
   EXPECT_EQ(0x02020202u, writer_->final_bytes_of_last_packet());
 }
 
+TEST_P(QuicConnectionTest, ClientPtoSendZeroRttStreamData) {
+  if (!connection_.SupportsMultiplePacketNumberSpaces()) {
+    return;
+  }
+  use_tagging_decrypter();
+  connection_.SetEncrypter(ENCRYPTION_INITIAL,
+                           std::make_unique<TaggingEncrypter>(0x01));
+  connection_.SetDefaultEncryptionLevel(ENCRYPTION_INITIAL);
+  // Send CHLO.
+  connection_.SendCryptoStreamData();
+  ASSERT_TRUE(connection_.GetRetransmissionAlarm()->IsSet());
+  // Install 0-RTT keys.
+  connection_.SetEncrypter(ENCRYPTION_ZERO_RTT,
+                           std::make_unique<TaggingEncrypter>(0x02));
+  connection_.SetDefaultEncryptionLevel(ENCRYPTION_ZERO_RTT);
+  // Send 0-RTT stream data with congestion control blocked.
+  EXPECT_CALL(*send_algorithm_, CanSend(_)).WillRepeatedly(Return(false));
+  connection_.SendStreamDataWithString(2, std::string(1500, 'a'), 0, NO_FIN);
+
+  ASSERT_TRUE(connection_.GetRetransmissionAlarm()->IsSet());
+  connection_.GetRetransmissionAlarm()->Fire();
+  // Verify INITIAL packet get retransmitted.
+  EXPECT_EQ(0x01010101u, writer_->final_bytes_of_last_packet());
+}
+
+TEST_P(QuicConnectionTest, ClientPtoSendForwardSecureStreamData) {
+  if (!connection_.SupportsMultiplePacketNumberSpaces()) {
+    return;
+  }
+  if (QuicVersionUsesCryptoFrames(connection_.transport_version())) {
+    EXPECT_CALL(visitor_, OnCryptoFrame(_)).Times(AnyNumber());
+  }
+  EXPECT_CALL(visitor_, OnStreamFrame(_)).Times(AnyNumber());
+  use_tagging_decrypter();
+  connection_.SetEncrypter(ENCRYPTION_INITIAL,
+                           std::make_unique<TaggingEncrypter>(0x01));
+  connection_.SetDefaultEncryptionLevel(ENCRYPTION_INITIAL);
+  // Send CHLO.
+  connection_.SendCryptoDataWithString("foo", 0, ENCRYPTION_INITIAL);
+  // Receive server INITIAL + HANDSHAKE
+  QuicFrames frames1;
+  frames1.push_back(QuicFrame(&crypto_frame_));
+  QuicAckFrame ack_frame1 = InitAckFrame(1);
+  frames1.push_back(QuicFrame(&ack_frame1));
+
+  QuicFrames frames2;
+  QuicCryptoFrame crypto_frame(ENCRYPTION_HANDSHAKE, 0,
+                               absl::string_view(data1));
+  frames2.push_back(QuicFrame(&crypto_frame));
+  EXPECT_CALL(*send_algorithm_, OnCongestionEvent(_, _, _, _, _));
+  ProcessCoalescedPacket(
+      {{1, frames1, ENCRYPTION_INITIAL}, {2, frames2, ENCRYPTION_HANDSHAKE}});
+  // Send Client finished.
+  connection_.SetEncrypter(ENCRYPTION_HANDSHAKE,
+                           std::make_unique<TaggingEncrypter>(0x02));
+  connection_.SetDefaultEncryptionLevel(ENCRYPTION_HANDSHAKE);
+  EXPECT_CALL(visitor_, OnHandshakePacketSent()).Times(1);
+  connection_.SendCryptoDataWithString("foo", 0, ENCRYPTION_HANDSHAKE);
+
+  EXPECT_CALL(visitor_, GetHandshakeState())
+      .WillRepeatedly(Return(HANDSHAKE_COMPLETE));
+  connection_.SetEncrypter(ENCRYPTION_FORWARD_SECURE,
+                           std::make_unique<TaggingEncrypter>(0x03));
+  connection_.SetDefaultEncryptionLevel(ENCRYPTION_FORWARD_SECURE);
+  // Send 1-RTT stream data with congestion control blocked.
+  EXPECT_CALL(*send_algorithm_, CanSend(_)).WillRepeatedly(Return(false));
+  connection_.SendStreamDataWithString(2, std::string(1500, 'a'), 0, NO_FIN);
+
+  ASSERT_TRUE(connection_.GetRetransmissionAlarm()->IsSet());
+  connection_.GetRetransmissionAlarm()->Fire();
+  // Verify HANDSHAKE packet get retransmitted.
+  EXPECT_EQ(0x02020202u, writer_->final_bytes_of_last_packet());
+}
+
 TEST_P(QuicConnectionTest, SendingZeroRttPacketsDoesNotPostponePTO) {
   if (!connection_.SupportsMultiplePacketNumberSpaces()) {
     return;