diff --git a/src/add-ons/kernel/network/protocols/tcp/TCPEndpoint.cpp b/src/add-ons/kernel/network/protocols/tcp/TCPEndpoint.cpp
index c07592d002..8a4a13ad19 100644
--- a/src/add-ons/kernel/network/protocols/tcp/TCPEndpoint.cpp
+++ b/src/add-ons/kernel/network/protocols/tcp/TCPEndpoint.cpp
@@ -1061,7 +1061,7 @@ TCPEndpoint::_SendQueued(bool force)
 
 	if ((fOptions & TCP_NOOPT) == 0) {
 		if (fFlags & FLAG_OPTION_TIMESTAMP) {
-			segment.has_timestamps = true;
+			segment.options |= TCP_HAS_TIMESTAMPS;
 			segment.TSecr = fReceivedTSval;
 			segment.TSval = htonl(tcp_now());
 		}
@@ -1071,7 +1071,7 @@ TCPEndpoint::_SendQueued(bool force)
 			// add connection establishment options
 			segment.max_segment_size = fReceiveMaxSegmentSize;
 			if (fFlags & FLAG_OPTION_WINDOW_SCALE) {
-				segment.has_window_shift = true;
+				segment.options |= TCP_HAS_WINDOW_SCALE;
 				segment.window_shift = fReceiveWindowShift;
 			}
 		}
@@ -1185,7 +1185,7 @@ TCPEndpoint::_SendQueued(bool force)
 		// for local connections as the answer is directly handled
 
 		if (segment.flags & TCP_FLAG_SYNCHRONIZE) {
-			segment.has_window_shift = false;
+			segment.options &= ~TCP_HAS_WINDOW_SCALE;
 			segment.max_segment_size = 0;
 			size++;
 		}
@@ -1583,7 +1583,7 @@ TCPEndpoint::_PrepareReceivePath(tcp_segment_header &segment)
 		if (segment.max_segment_size > 0)
 			fSendMaxSegmentSize = segment.max_segment_size;
 
-		if (segment.has_window_shift) {
+		if (segment.options & TCP_HAS_WINDOW_SCALE) {
 			fFlags |= FLAG_OPTION_WINDOW_SCALE;
 			fSendWindowShift = segment.window_shift;
 		} else {
@@ -1591,7 +1591,7 @@ TCPEndpoint::_PrepareReceivePath(tcp_segment_header &segment)
 			fReceiveWindowShift = 0;
 		}
 
-		if (segment.has_timestamps) {
+		if (segment.options & TCP_HAS_TIMESTAMPS) {
 			fFlags |= FLAG_OPTION_TIMESTAMP;
 			fReceivedTSval = segment.TSval;
 		} else
@@ -1654,7 +1654,7 @@ TCPEndpoint::_Acknowledged(tcp_segment_header &segment)
 	if (fSendUnacknowledged == fSendMax)
 		gStackModule->cancel_timer(&fRetransmitTimer);
 
-	if (segment.has_timestamps)
+	if (segment.options & TCP_HAS_TIMESTAMPS)
 		_UpdateSRTT(tcp_diff_timestamp(ntohl(segment.TSecr)));
 	else {
 		// TODO Fallback to RFC 793 type estimation
diff --git a/src/add-ons/kernel/network/protocols/tcp/tcp.cpp b/src/add-ons/kernel/network/protocols/tcp/tcp.cpp
index 82af07f35c..688c6d426e 100644
--- a/src/add-ons/kernel/network/protocols/tcp/tcp.cpp
+++ b/src/add-ons/kernel/network/protocols/tcp/tcp.cpp
@@ -57,6 +57,10 @@ static recursive_lock sEndpointManagersLock;
 static EndpointManagerList sEndpointManagers;
 
 
+// The TCP header length is at most 64 bytes.
+static const int kMaxOptionSize = 64 - sizeof(tcp_header);
+
+
 static EndpointManager *
 endpoint_manager_for(net_domain *domain)
 {
@@ -114,14 +118,15 @@ add_options(tcp_segment_header &segment, uint8 *buffer, size_t bufferSize)
 	tcp_option *option = (tcp_option *)buffer;
 	size_t length = 0;
 
-	if (segment.max_segment_size > 0 && length + 8 < bufferSize) {
+	if (segment.max_segment_size > 0 && length + 8 <= bufferSize) {
 		option->kind = TCP_OPTION_MAX_SEGMENT_SIZE;
 		option->length = 4;
 		option->max_segment_size = htons(segment.max_segment_size);
 		bump_option(option, length);
 	}
 
-	if (segment.has_timestamps && length + 12 < bufferSize) {
+	if ((segment.options & TCP_HAS_TIMESTAMPS)
+		&& length + 12 <= bufferSize) {
 		// two NOPs so the timestamps get aligned to a 4 byte boundary
 		option->kind = TCP_OPTION_NOP;
 		bump_option(option, length);
@@ -135,7 +140,8 @@ add_options(tcp_segment_header &segment, uint8 *buffer, size_t bufferSize)
 		bump_option(option, length);
 	}
 
-	if (segment.has_window_shift && length + 4 < bufferSize) {
+	if ((segment.options & TCP_HAS_WINDOW_SCALE)
+		&& length + 4 <= bufferSize) {
 		// insert one NOP so that the subsequent data is aligned on a 4 byte boundary
 		option->kind = TCP_OPTION_NOP;
 		bump_option(option, length);
@@ -146,6 +152,30 @@ add_options(tcp_segment_header &segment, uint8 *buffer, size_t bufferSize)
 		bump_option(option, length);
 	}
 
+	if ((segment.options & TCP_SACK_PERMITTED)
+		&& length + 2 <= bufferSize) {
+		option->kind = TCP_OPTION_SACK_PERMITTED;
+		option->length = 2;
+		bump_option(option, length);
+	}
+
+	if (segment.sack_count > 0) {
+		int sackCount = ((int)(bufferSize - length) - 4) / sizeof(tcp_sack);
+		if (sackCount > segment.sack_count)
+			sackCount = segment.sack_count;
+
+		if (sackCount > 0) {
+			option->kind = TCP_OPTION_NOP;
+			bump_option(option, length);
+			option->kind = TCP_OPTION_NOP;
+			bump_option(option, length);
+			option->kind = TCP_OPTION_SACK;
+			option->length = 2 + sackCount * sizeof(tcp_sack);
+			memcpy(option->sack, segment.sacks, sackCount * sizeof(tcp_sack));
+			bump_option(option, length);
+		}
+	}
+
 	if ((length & 3) == 0) {
 		// options completely fill out the option space
 		return length;
@@ -167,7 +197,7 @@ add_tcp_header(net_address_module_info *addressModule,
 {
 	buffer->protocol = IPPROTO_TCP;
 
-	uint8 optionsBuffer[32];
+	uint8 optionsBuffer[kMaxOptionSize];
 	uint32 optionsLength = add_options(segment, optionsBuffer, sizeof(optionsBuffer));
 
 	NetBufferPrepend<tcp_header> bufferHeader(buffer, sizeof(tcp_header) + optionsLength);
@@ -213,12 +243,22 @@ tcp_options_length(tcp_segment_header &segment)
 	if (segment.max_segment_size > 0)
 		length += 4;
 
-	if (segment.has_timestamps)
+	if (segment.options & TCP_HAS_TIMESTAMPS)
 		length += 12;
 
-	if (segment.has_window_shift)
+	if (segment.options & TCP_HAS_WINDOW_SCALE)
 		length += 4;
 
+	if (segment.options & TCP_SACK_PERMITTED)
+		length += 2;
+
+	if (segment.sack_count > 0) {
+		int sackCount = min_c((int)((kMaxOptionSize - length - 4)
+			/ sizeof(tcp_sack)), segment.sack_count);
+		if (sackCount > 0)
+			length += 4 + sackCount * sizeof(tcp_sack);
+	}
+
 	if ((length & 3) == 0)
 		return length;
 
@@ -227,17 +267,20 @@ tcp_options_length(tcp_segment_header &segment)
 
 
 void
-process_options(tcp_segment_header &segment, net_buffer *buffer, int32 size)
+process_options(tcp_segment_header &segment, net_buffer *buffer, size_t size)
 {
 	if (size == 0)
 		return;
 
 	tcp_option *option;
-	uint8 optionsBuffer[32];
+
+	uint8 optionsBuffer[kMaxOptionSize];
 	if (gBufferModule->direct_access(buffer, sizeof(tcp_header), size,
 			(void **)&option) != B_OK) {
-		if (size > 32)
-			panic("UNIMPLEMENTED: TCP option processing across data nodes");
+		if (size > sizeof(optionsBuffer)) {
+			dprintf("Ignoring TCP options larger than expected.\n");
+			return;
+		}
 
 		gBufferModule->read(buffer, sizeof(tcp_header), optionsBuffer, size);
 		option = (tcp_option *)optionsBuffer;
@@ -257,17 +300,20 @@ process_options(tcp_segment_header &segment, net_buffer *buffer, int32 size)
 				break;
 			case TCP_OPTION_WINDOW_SHIFT:
 				if (option->length == 3 && (size - 3) >= 0) {
-					segment.has_window_shift = true;
+					segment.options |= TCP_HAS_WINDOW_SCALE;
 					segment.window_shift = option->window_shift;
 				}
 				break;
 			case TCP_OPTION_TIMESTAMP:
 				if (option->length == 10 && (size - 10) >= 0) {
-					segment.has_timestamps = true;
+					segment.options |= TCP_HAS_TIMESTAMPS;
 					segment.TSval = option->timestamp.TSval;
 					segment.TSecr = ntohl(option->timestamp.TSecr);
 				}
 				break;
+			case TCP_OPTION_SACK_PERMITTED:
+				if (option->length == 2 && (size - 2) >= 0)
+					segment.options |= TCP_SACK_PERMITTED;
 		}
 
 		if (length < 0) {
diff --git a/src/add-ons/kernel/network/protocols/tcp/tcp.h b/src/add-ons/kernel/network/protocols/tcp/tcp.h
index e0690fe51b..7ceeda03a7 100644
--- a/src/add-ons/kernel/network/protocols/tcp/tcp.h
+++ b/src/add-ons/kernel/network/protocols/tcp/tcp.h
@@ -106,6 +106,11 @@ class tcp_sequence {
 #define TCP_MAX_WINDOW					65535
 #define TCP_MAX_SEGMENT_LIFETIME		60000000	// 60 secs
 
+struct tcp_sack {
+	uint32 left_edge;
+	uint32 right_edge;
+} _PACKED;
+
 struct tcp_option {
 	uint8	kind;
 	uint8	length;
@@ -116,6 +121,7 @@ struct tcp_option {
 			uint32	TSval;
 			uint32	TSecr;
 		} timestamp;
+		tcp_sack sack[0];
 	};
 } _PACKED;
 
@@ -124,19 +130,27 @@ enum tcp_option_kind {
 	TCP_OPTION_NOP				= 1,
 	TCP_OPTION_MAX_SEGMENT_SIZE	= 2,
 	TCP_OPTION_WINDOW_SHIFT		= 3,
+	TCP_OPTION_SACK_PERMITTED	= 4,
+	TCP_OPTION_SACK				= 5,
 	TCP_OPTION_TIMESTAMP		= 8,
 };
 
 #define TCP_MAX_WINDOW_SHIFT	14
 
+enum {
+	TCP_HAS_WINDOW_SCALE	= 1 << 0,
+	TCP_HAS_TIMESTAMPS		= 1 << 1,
+	TCP_SACK_PERMITTED		= 1 << 2,
+};
+
 struct tcp_segment_header {
 	tcp_segment_header(uint8 _flags)
 		:
 		flags(_flags),
 		window_shift(0),
 		max_segment_size(0),
-		has_window_shift(false),
-		has_timestamps(false)
+		sack_count(0),
+		options(0)
 	{}
 
 	uint32	sequence;
@@ -150,8 +164,10 @@ struct tcp_segment_header {
 	uint32	TSval;
 	uint32	TSecr;
 
-	bool	has_window_shift : 1;
-	bool	has_timestamps : 1;
+	tcp_sack	*sacks;
+	int			sack_count;
+
+	uint32	options;
 
 	bool AcknowledgeOnly() const
 	{