diff --git a/CHANGELOG.asciidoc b/CHANGELOG.asciidoc
index af16eb5792b2..a95aa471365c 100644
--- a/CHANGELOG.asciidoc
+++ b/CHANGELOG.asciidoc
@@ -44,6 +44,7 @@ https://github.com/elastic/beats/compare/v5.0.0-alpha3...master[Check the HEAD d
 *Packetbeat*
 - Add missing nil-check to memcached GapInStream handler. {issue}1162[1162]
 - Fix NFSv4 Operation returning the first found first-class operation available in compound requests. {pull}1821[1821]
+- Fix TCP overlapping segments not being handled correctly. {pull}1898[1898]
 
 *Topbeat*
 
diff --git a/packetbeat/protos/tcp/tcp.go b/packetbeat/protos/tcp/tcp.go
index 8e7bbf76ab2d..033ab0683778 100644
--- a/packetbeat/protos/tcp/tcp.go
+++ b/packetbeat/protos/tcp/tcp.go
@@ -119,28 +119,36 @@ func (tcp *Tcp) Process(id *flows.FlowID, tcphdr *layers.TCP, pkt *protos.Packet
 	// protocol modules.
 	defer logp.Recover("Process tcp exception")
 
-	debugf("tcp flow id: %p", id)
-
 	stream, created := tcp.getStream(pkt)
 	if stream.conn == nil {
 		return
 	}
 
+	conn := stream.conn
 	if id != nil {
 		id.AddConnectionID(uint64(stream.conn.id))
 	}
-	conn := stream.conn
 
-	tcp_start_seq := tcphdr.Seq
-	tcp_seq := tcp_start_seq + uint32(len(pkt.Payload))
+	if isDebug {
+		debugf("tcp flow id: %p", id)
+	}
+
+	if len(pkt.Payload) == 0 && !tcphdr.FIN {
+		// return early if packet is not interesting. Still need to find/create
+		// stream first in order to update the TCP stream timer
+		return
+	}
+
+	tcpStartSeq := tcphdr.Seq
+	tcpSeq := tcpStartSeq + uint32(len(pkt.Payload))
 	lastSeq := conn.lastSeq[stream.dir]
 	if isDebug {
 		debugf("pkt.start_seq=%v pkt.last_seq=%v stream.last_seq=%v (len=%d)",
-			tcp_start_seq, tcp_seq, lastSeq, len(pkt.Payload))
+			tcpStartSeq, tcpSeq, lastSeq, len(pkt.Payload))
 	}
 
-	if len(pkt.Payload) > 0 && lastSeq != 0 {
-		if tcpSeqBeforeEq(tcp_seq, lastSeq) {
+	if lastSeq != 0 {
+		if tcpSeqBeforeEq(tcpSeq, lastSeq) {
 			if isDebug {
 				debugf("Ignoring retransmitted segment. pkt.seq=%v len=%v stream.seq=%v",
 					tcphdr.Seq, len(pkt.Payload), lastSeq)
@@ -148,10 +156,10 @@ func (tcp *Tcp) Process(id *flows.FlowID, tcphdr *layers.TCP, pkt *protos.Packet
 			return
 		}
 
-		if tcpSeqBefore(lastSeq, tcp_start_seq) {
+		if tcpSeqBefore(lastSeq, tcpStartSeq) {
 			if !created {
-				gap := int(tcp_start_seq - lastSeq)
-				logp.Warn("Gap in tcp stream. last_seq: %d, seq: %d, gap: %d", lastSeq, tcp_start_seq, gap)
+				gap := int(tcpStartSeq - lastSeq)
+				logp.Warn("Gap in tcp stream. last_seq: %d, seq: %d, gap: %d", lastSeq, tcpStartSeq, gap)
 				drop := stream.gapInStream(gap)
 				if drop {
 					if isDebug {
@@ -165,9 +173,25 @@ func (tcp *Tcp) Process(id *flows.FlowID, tcphdr *layers.TCP, pkt *protos.Packet
 				}
 			}
 		}
+
+		// cut away packet overlap
+		if tcpSeqBefore(tcpStartSeq, lastSeq) {
+			delta := lastSeq - tcpStartSeq
+
+			// if 'overlap' already covered by previous packet -> return
+			if int(delta) >= len(pkt.Payload) {
+				return
+			}
+
+			pkt.Payload = pkt.Payload[delta:]
+			tcphdr.Seq += delta
+			if len(pkt.Payload) == 0 && !tcphdr.FIN {
+				return
+			}
+		}
 	}
 
-	conn.lastSeq[stream.dir] = tcp_seq
+	conn.lastSeq[stream.dir] = tcpSeq
 	stream.addPacket(pkt, tcphdr)
 }
 
diff --git a/packetbeat/protos/tcp/tcp_test.go b/packetbeat/protos/tcp/tcp_test.go
index d396be435575..c173bdcfbcfc 100644
--- a/packetbeat/protos/tcp/tcp_test.go
+++ b/packetbeat/protos/tcp/tcp_test.go
@@ -213,6 +213,59 @@ func TestTCSeqPayload(t *testing.T) {
 			10,
 			[]byte{5, 6, 7, 8},
 		},
+		{"ACK same sequence number",
+			[]segment{
+				{0, []byte{1, 2}},
+				{2, nil},
+				{2, []byte{3, 4}},
+				{4, []byte{5, 6}},
+			},
+			0,
+			[]byte{1, 2, 3, 4, 5, 6},
+		},
+		{"ACK same sequence number 2",
+			[]segment{
+				{0, nil},
+				{1, nil},
+				{1, []byte{1, 2}},
+				{3, nil},
+				{3, []byte{3, 4}},
+				{5, []byte{5, 6}},
+				{7, []byte{7, 8}},
+				{9, nil},
+			},
+			0,
+			[]byte{1, 2, 3, 4, 5, 6, 7, 8},
+		},
+		{"Overlap, first segment bigger",
+			[]segment{
+				{0, []byte{1, 2}},
+				{2, []byte{3, 4}},
+				{2, []byte{3}},
+				{4, []byte{5, 6}},
+			},
+			0,
+			[]byte{1, 2, 3, 4, 5, 6},
+		},
+		{"Overlap, second segment bigger",
+			[]segment{
+				{0, []byte{1, 2}},
+				{2, []byte{3}},
+				{2, []byte{3, 4}},
+				{4, []byte{5, 6}},
+			},
+			0,
+			[]byte{1, 2, 3, 4, 5, 6},
+		},
+		{"Overlap, covered",
+			[]segment{
+				{0, []byte{1, 2, 3, 4}},
+				{1, []byte{2, 3}},
+				{4, []byte{5, 6}},
+			},
+			0,
+			[]byte{1, 2, 3, 4, 5, 6},
+		},
 	}
 
 	for i, test := range tests {
@@ -248,6 +301,10 @@ func TestTCSeqPayload(t *testing.T) {
 		}
 
 		assert.Equal(t, test.expectedGaps, gap)
+		if len(test.expectedState) != len(state) {
+			assert.Equal(t, len(test.expectedState), len(state))
+			continue
+		}
 		assert.Equal(t, test.expectedState, state)
 	}
 }
@@ -309,7 +366,7 @@ func makeCollectPayload(
 		priv protos.ProtocolData,
 	) protos.ProtocolData {
 		if resetOnNil && priv == nil {
-			*state = nil
+			(*state) = nil
 		}
 		*state = append(*state, p.Payload...)
 		return *state