diff --git a/evennia/server/portal/telnet.py b/evennia/server/portal/telnet.py
index 955ea5e918..83e2fa03a2 100644
--- a/evennia/server/portal/telnet.py
+++ b/evennia/server/portal/telnet.py
@@ -84,7 +84,7 @@ class TelnetProtocol(Telnet, StatefulTelnetProtocol, Session):
 
         from evennia.utils.utils import delay
         # timeout the handshakes in case the client doesn't reply at all
-        delay(2, callback=self.handshake_done, timeout=True)
+        self._handshake_delay = delay(2, callback=self.handshake_done, timeout=True)
 
         # TCP/IP keepalive watches for dead links
         self.transport.setTcpKeepAlive(1)
diff --git a/evennia/server/portal/tests.py b/evennia/server/portal/tests.py
index be400144c6..791e5172a4 100644
--- a/evennia/server/portal/tests.py
+++ b/evennia/server/portal/tests.py
@@ -8,9 +8,24 @@ try:
 except ImportError:
     import unittest
 
+from mock import Mock
 import string
 from evennia.server.portal import irc
 
+from twisted.conch.telnet import IAC, WILL, DONT, SB, SE, NAWS, DO
+from twisted.test import proto_helpers
+from twisted.trial.unittest import TestCase as TwistedTestCase
+
+from .telnet import TelnetServerFactory, TelnetProtocol
+from .portal import PORTAL_SESSIONS
+from .suppress_ga import SUPPRESS_GA
+from .naws import DEFAULT_HEIGHT, DEFAULT_WIDTH
+from .ttype import TTYPE, IS
+from .mccp import MCCP
+from .mssp import MSSP
+from .mxp import MXP
+from .telnet_oob import MSDP, MSDP_VAL, MSDP_VAR
+
 
 class TestIRC(TestCase):
 
@@ -73,3 +88,64 @@ class TestIRC(TestCase):
         s = r'|wthis|Xis|gis|Ma|C|complex|*string'
 
         self.assertEqual(irc.parse_irc_to_ansi(irc.parse_ansi_to_irc(s)), s)
+
+
+class TestTelnet(TwistedTestCase):
+    def setUp(self):
+        super(TestTelnet, self).setUp()
+        factory = TelnetServerFactory()
+        factory.protocol = TelnetProtocol
+        factory.sessionhandler = PORTAL_SESSIONS
+        factory.sessionhandler.portal = Mock()
+        self.proto = factory.buildProtocol(("localhost", 0))
+        self.transport = proto_helpers.StringTransport()
+        self.addCleanup(factory.sessionhandler.disconnect_all)
+
+    def test_mudlet_ttype(self):
+        self.transport.client = ["localhost"]
+        self.transport.setTcpKeepAlive = Mock()
+        d = self.proto.makeConnection(self.transport)
+        # test suppress_ga
+        self.assertTrue(self.proto.protocol_flags["NOGOAHEAD"])
+        self.proto.dataReceived(IAC + DONT + SUPPRESS_GA)
+        self.assertFalse(self.proto.protocol_flags["NOGOAHEAD"])
+        self.assertEqual(self.proto.handshakes, 7)
+        # test naws
+        self.assertEqual(self.proto.protocol_flags['SCREENWIDTH'], {0: DEFAULT_WIDTH})
+        self.assertEqual(self.proto.protocol_flags['SCREENHEIGHT'], {0: DEFAULT_HEIGHT})
+        self.proto.dataReceived(IAC + WILL + NAWS)
+        self.proto.dataReceived([IAC, SB, NAWS, '', 'x', '', 'd', IAC, SE])
+        self.assertEqual(self.proto.protocol_flags['SCREENWIDTH'][0], 120)
+        self.assertEqual(self.proto.protocol_flags['SCREENHEIGHT'][0], 100)
+        self.assertEqual(self.proto.handshakes, 6)
+        # test ttype
+        self.assertTrue(self.proto.protocol_flags["FORCEDENDLINE"])
+        self.assertFalse(self.proto.protocol_flags["TTYPE"])
+        self.assertTrue(self.proto.protocol_flags["ANSI"])
+        self.proto.dataReceived(IAC + WILL + TTYPE)
+        self.proto.dataReceived([IAC, SB, TTYPE, IS, "MUDLET", IAC, SE])
+        self.assertTrue(self.proto.protocol_flags["XTERM256"])
+        self.assertEqual(self.proto.protocol_flags["CLIENTNAME"], "MUDLET")
+        self.proto.dataReceived([IAC, SB, TTYPE, IS, "XTERM", IAC, SE])
+        self.proto.dataReceived([IAC, SB, TTYPE, IS, "MTTS 137", IAC, SE])
+        self.assertEqual(self.proto.handshakes, 5)
+        # test mccp
+        self.proto.dataReceived(IAC + DONT + MCCP)
+        self.assertFalse(self.proto.protocol_flags['MCCP'])
+        self.assertEqual(self.proto.handshakes, 4)
+        # test mssp
+        self.proto.dataReceived(IAC + DONT + MSSP)
+        self.assertEqual(self.proto.handshakes, 3)
+        # test oob
+        self.proto.dataReceived(IAC + DO + MSDP)
+        self.proto.dataReceived([IAC, SB, MSDP, MSDP_VAR, "LIST", MSDP_VAL, "COMMANDS", IAC, SE])
+        self.assertTrue(self.proto.protocol_flags['OOB'])
+        self.assertEqual(self.proto.handshakes, 2)
+        # test mxp
+        self.proto.dataReceived(IAC + DONT + MXP)
+        self.assertFalse(self.proto.protocol_flags['MXP'])
+        self.assertEqual(self.proto.handshakes, 1)
+        # clean up to prevent Unclean reactor
+        self.proto.nop_keep_alive.stop()
+        self.proto._handshake_delay.cancel()
+        return d