diff --git a/bgpd/bgp_packet.c b/bgpd/bgp_packet.c
index 5d8087a..390b556 100644
--- a/bgpd/bgp_packet.c
+++ b/bgpd/bgp_packet.c
@@ -1152,7 +1152,7 @@
   as_t as4 = 0;
   struct peer *realpeer;
   struct in_addr remote_id;
-  int capability;
+  int mp_capability;
   u_int8_t notify_data_remote_as[2];
   u_int8_t notify_data_remote_id[4];
 
@@ -1174,7 +1174,7 @@
 	        inet_ntoa (remote_id));
   
   /* BEGIN to read the capability here, but dont do it yet */
-  capability = 0;
+  mp_capability = 0;
   optlen = stream_getc (peer->ibuf);
   
   if (optlen != 0)
@@ -1459,7 +1459,7 @@
   /* Open option part parse. */
   if (optlen != 0) 
     {
-      if ((ret = bgp_open_option_parse (peer, optlen, &capability)) < 0)
+      if ((ret = bgp_open_option_parse (peer, optlen, &mp_capability)) < 0)
         {
           bgp_notify_send (peer,
                  BGP_NOTIFY_OPEN_ERR,
@@ -1474,8 +1474,13 @@
 		   peer->host);
     }
 
-  /* Override capability. */
-  if (! capability || CHECK_FLAG (peer->flags, PEER_FLAG_OVERRIDE_CAPABILITY))
+  /* 
+   * Assume that the peer supports the locally configured set of
+   * AFI/SAFIs if the peer did not send us any Mulitiprotocol
+   * capabilities, or if 'override-capability' is configured.
+   */
+  if (! mp_capability ||
+      CHECK_FLAG (peer->flags, PEER_FLAG_OVERRIDE_CAPABILITY))
     {
       peer->afc_nego[AFI_IP][SAFI_UNICAST] = peer->afc[AFI_IP][SAFI_UNICAST];
       peer->afc_nego[AFI_IP][SAFI_MULTICAST] = peer->afc[AFI_IP][SAFI_MULTICAST];