diff --git a/rsocket/stream_control.py b/rsocket/stream_control.py
index f444e1b7..53263195 100644
--- a/rsocket/stream_control.py
+++ b/rsocket/stream_control.py
@@ -13,7 +13,7 @@
 
 class StreamControl:
     def __init__(self, first_stream_id: int):
-        self._first_stream_id = first_stream_id
+        self._first_stream_id = (first_stream_id - 2) & MAX_STREAM_ID
         self._current_stream_id = self._first_stream_id
         self._streams: Dict[int, StreamHandler] = {}
         self._maximum_stream_id = MAX_STREAM_ID
@@ -21,15 +21,19 @@ def __init__(self, first_stream_id: int):
     def allocate_stream(self) -> int:
         attempt_counter = 0
 
-        while (self._current_stream_id == CONNECTION_STREAM_ID
-               or self._current_stream_id in self._streams):
-
+        available_stream_id_found = False
+        while not available_stream_id_found:
             if attempt_counter > self._maximum_stream_id / 2:
                 raise RSocketStreamAllocationFailure()
 
             self._increment_stream_id()
             attempt_counter += 1
 
+            available_stream_id_found = not (
+                self._current_stream_id == CONNECTION_STREAM_ID
+                or self._current_stream_id in self._streams
+            )
+
         return self._current_stream_id
 
     def _increment_stream_id(self):
diff --git a/tests/rsocket/test_stream_control.py b/tests/rsocket/test_stream_control.py
index b4b93b4d..66a51965 100644
--- a/tests/rsocket/test_stream_control.py
+++ b/tests/rsocket/test_stream_control.py
@@ -66,6 +66,20 @@ def test_stream_control_reuse_old_stream_ids():
     assert next_stream == 5
 
 
+@pytest.mark.parametrize('first_stream_id', (1, 2))
+def test_stream_id_increments_after_allocation_and_registration_followed_by_finishing(first_stream_id: int):
+    control = StreamControl(first_stream_id)
+    dummy_stream = object()
+
+    allocated_id = control.allocate_stream()
+    control.register_stream(allocated_id, dummy_stream)
+
+    control.finish_stream(allocated_id)
+    new_allocated_id = control.allocate_stream()
+
+    assert new_allocated_id != allocated_id
+
+
 def test_stream_in_use():
     control = StreamControl(1)