diff --git a/ArjunaJTA/jdbc/classes/com/arjuna/ats/internal/jdbc/ConnectionImple.java b/ArjunaJTA/jdbc/classes/com/arjuna/ats/internal/jdbc/ConnectionImple.java
index 8ec8b9cf67..8a5ab031bb 100644
--- a/ArjunaJTA/jdbc/classes/com/arjuna/ats/internal/jdbc/ConnectionImple.java
+++ b/ArjunaJTA/jdbc/classes/com/arjuna/ats/internal/jdbc/ConnectionImple.java
@@ -386,7 +386,7 @@ public void close() throws SQLException
 	void closeImpl() throws SQLException {
 		try {
 			ConnectionManager.remove(this);
-			if (!_theConnection.isClosed()) {
+			if (_theConnection != null && !_theConnection.isClosed()) {
 				_theConnection.close();
 			}
 			if (_transactionalDriverXAConnectionConnection != null) {
@@ -405,7 +405,9 @@ public boolean isClosed() throws SQLException
 		 * bound it to a different transaction.
 		 */
 
-		if (_theConnection == null)
+		if (_transactionalDriverXAConnectionConnection == null)
+			return true; // closeImpl was explicitly called
+		else if (_theConnection == null)
 			return false; // not opened yet. // TODO why don't we return true here
 		else
 			return _theConnection.isClosed();
diff --git a/ArjunaJTA/jdbc/tests/classes/com/hp/mwtests/ts/jdbc/basic/JDBC2Test.java b/ArjunaJTA/jdbc/tests/classes/com/hp/mwtests/ts/jdbc/basic/JDBC2Test.java
index 2273a8a6c1..3b5a6902fa 100644
--- a/ArjunaJTA/jdbc/tests/classes/com/hp/mwtests/ts/jdbc/basic/JDBC2Test.java
+++ b/ArjunaJTA/jdbc/tests/classes/com/hp/mwtests/ts/jdbc/basic/JDBC2Test.java
@@ -32,6 +32,7 @@
 package com.hp.mwtests.ts.jdbc.basic;
 
 import static org.junit.Assert.assertFalse;
+import static org.junit.Assert.assertTrue;
 import static org.junit.Assert.fail;
 
 import java.sql.Connection;
@@ -268,7 +269,7 @@ public void test() throws Exception
 
             tx.begin();
 
-            assertFalse(conn.isClosed());
+            assertTrue(conn.isClosed());
 
             if (!reuseconn)
             {
@@ -328,4 +329,30 @@ public void test() throws Exception
         {
         }
     }
+
+    @Test
+    public void testCloseUnused() throws Exception {
+        assertFalse(conn.isClosed());
+
+        conn.close();
+
+        assertTrue(conn.isClosed());
+    }
+
+    @Test
+    public void testCloseUsed() throws Exception {
+        javax.transaction.UserTransaction tx = com.arjuna.ats.jta.UserTransaction.userTransaction();
+
+        assertFalse(conn.isClosed());
+
+        tx.begin();
+        conn.createStatement().close();
+
+        assertFalse(conn.isClosed());
+
+        conn.close();
+        tx.commit();
+
+        assertTrue(conn.isClosed());
+    }
 }