diff --git a/internal/ackhandler/sent_packet_handler.go b/internal/ackhandler/sent_packet_handler.go
index dd8988f0f68..c12dc5d9e5d 100644
--- a/internal/ackhandler/sent_packet_handler.go
+++ b/internal/ackhandler/sent_packet_handler.go
@@ -536,6 +536,13 @@ func (h *sentPacketHandler) setLossDetectionTimer() {
 	// PTO alarm
 	ptoTime, encLevel, ok := h.getPTOTimeAndSpace()
 	if !ok {
+		if !oldAlarm.IsZero() {
+			h.alarm = time.Time{}
+			h.logger.Debugf("Canceling loss detection timer. No PTO needed..")
+			if h.tracer != nil {
+				h.tracer.LossTimerCanceled()
+			}
+		}
 		return
 	}
 	h.alarm = ptoTime
diff --git a/internal/ackhandler/sent_packet_handler_test.go b/internal/ackhandler/sent_packet_handler_test.go
index 7282444dedb..dfa760365ab 100644
--- a/internal/ackhandler/sent_packet_handler_test.go
+++ b/internal/ackhandler/sent_packet_handler_test.go
@@ -931,6 +931,17 @@ var _ = Describe("SentPacketHandler", func() {
 			handler.ReceivedPacket(protocol.EncryptionHandshake)
 			Expect(handler.GetLossDetectionTimeout()).ToNot(BeZero())
 		})
+
+		It("cancels the loss detection alarm when all Handshake packets are acknowledged", func() {
+			t := time.Now().Add(-time.Second)
+			handler.ReceivedBytes(99999)
+			handler.SentPacket(ackElicitingPacket(&Packet{PacketNumber: 2, SendTime: t}))
+			handler.SentPacket(handshakePacket(&Packet{PacketNumber: 3, SendTime: t}))
+			handler.SentPacket(handshakePacket(&Packet{PacketNumber: 4, SendTime: t}))
+			Expect(handler.GetLossDetectionTimeout()).ToNot(BeZero())
+			handler.ReceivedAck(&wire.AckFrame{AckRanges: []wire.AckRange{{Smallest: 3, Largest: 4}}}, protocol.EncryptionHandshake, time.Now())
+			Expect(handler.GetLossDetectionTimeout()).To(BeZero())
+		})
 	})
 
 	Context("amplification limit, for the client", func() {