diff --git a/embed/etcd.go b/embed/etcd.go
index 87bd3dfa3..da1d8f610 100644
--- a/embed/etcd.go
+++ b/embed/etcd.go
@@ -201,7 +201,6 @@ func startPeerListeners(cfg *Config) (plns []net.Listener, err error) {
 	}()
 
 	for i, u := range cfg.LPUrls {
-		var tlscfg *tls.Config
 		if u.Scheme == "http" {
 			if !cfg.PeerTLSInfo.Empty() {
 				plog.Warningf("The scheme of peer url %s is HTTP while peer key/cert files are presented. Ignored peer key/cert files.", u.String())
@@ -210,12 +209,7 @@ func startPeerListeners(cfg *Config) (plns []net.Listener, err error) {
 				plog.Warningf("The scheme of peer url %s is HTTP while client cert auth (--peer-client-cert-auth) is enabled. Ignored client cert auth for this url.", u.String())
 			}
 		}
-		if !cfg.PeerTLSInfo.Empty() {
-			if tlscfg, err = cfg.PeerTLSInfo.ServerConfig(); err != nil {
-				return nil, err
-			}
-		}
-		if plns[i], err = rafthttp.NewListener(u, tlscfg); err != nil {
+		if plns[i], err = rafthttp.NewListener(u, &cfg.PeerTLSInfo); err != nil {
 			return nil, err
 		}
 		plog.Info("listening for peers on ", u.String())
diff --git a/etcdmain/etcd.go b/etcdmain/etcd.go
index ba6031652..d4edb56b5 100644
--- a/etcdmain/etcd.go
+++ b/etcdmain/etcd.go
@@ -19,7 +19,6 @@ import (
 	"encoding/json"
 	"fmt"
 	"io/ioutil"
-	"net"
 	"net/http"
 	"os"
 	"path/filepath"
@@ -305,18 +304,7 @@ func startProxy(cfg *config) error {
 	}
 	// Start a proxy server goroutine for each listen address
 	for _, u := range cfg.LCUrls {
-		var (
-			l      net.Listener
-			tlscfg *tls.Config
-		)
-		if !cfg.ClientTLSInfo.Empty() {
-			tlscfg, err = cfg.ClientTLSInfo.ServerConfig()
-			if err != nil {
-				return err
-			}
-		}
-
-		l, err := transport.NewListener(u.Host, u.Scheme, tlscfg)
+		l, err := transport.NewListener(u.Host, u.Scheme, &cfg.ClientTLSInfo)
 		if err != nil {
 			return err
 		}
@@ -369,6 +357,11 @@ func identifyDataDirOrDie(dir string) dirType {
 }
 
 func setupLogging(cfg *config) {
+	cfg.ClientTLSInfo.HandshakeFailure = func(conn *tls.Conn, err error) {
+		plog.Infof("rejected connection from %q (%v)", conn.RemoteAddr().String(), err)
+	}
+	cfg.PeerTLSInfo.HandshakeFailure = cfg.ClientTLSInfo.HandshakeFailure
+
 	capnslog.SetGlobalLogLevel(capnslog.INFO)
 	if cfg.Debug {
 		capnslog.SetGlobalLogLevel(capnslog.DEBUG)
diff --git a/pkg/transport/keepalive_listener_test.go b/pkg/transport/keepalive_listener_test.go
index f8c062cf7..425f53368 100644
--- a/pkg/transport/keepalive_listener_test.go
+++ b/pkg/transport/keepalive_listener_test.go
@@ -18,7 +18,6 @@ import (
 	"crypto/tls"
 	"net"
 	"net/http"
-	"os"
 	"testing"
 )
 
@@ -50,12 +49,12 @@ func TestNewKeepAliveListener(t *testing.T) {
 	}
 
 	// tls
-	tmp, err := createTempFile([]byte("XXX"))
+	tlsinfo, del, err := createSelfCert()
 	if err != nil {
 		t.Fatalf("unable to create tmpfile: %v", err)
 	}
-	defer os.Remove(tmp)
-	tlsInfo := TLSInfo{CertFile: tmp, KeyFile: tmp}
+	defer del()
+	tlsInfo := TLSInfo{CertFile: tlsinfo.CertFile, KeyFile: tlsinfo.KeyFile}
 	tlsInfo.parseFunc = fakeCertificateParserFunc(tls.Certificate{}, nil)
 	tlscfg, err := tlsInfo.ServerConfig()
 	if err != nil {
diff --git a/pkg/transport/listener.go b/pkg/transport/listener.go
index 3e45a8446..af798f974 100644
--- a/pkg/transport/listener.go
+++ b/pkg/transport/listener.go
@@ -33,11 +33,11 @@ import (
 	"github.com/coreos/etcd/pkg/tlsutil"
 )
 
-func NewListener(addr, scheme string, tlscfg *tls.Config) (l net.Listener, err error) {
+func NewListener(addr, scheme string, tlsinfo *TLSInfo) (l net.Listener, err error) {
 	if l, err = newListener(addr, scheme); err != nil {
 		return nil, err
 	}
-	return wrapTLS(addr, scheme, tlscfg, l)
+	return wrapTLS(addr, scheme, tlsinfo, l)
 }
 
 func newListener(addr string, scheme string) (net.Listener, error) {
@@ -48,15 +48,11 @@ func newListener(addr string, scheme string) (net.Listener, error) {
 	return net.Listen("tcp", addr)
 }
 
-func wrapTLS(addr, scheme string, tlscfg *tls.Config, l net.Listener) (net.Listener, error) {
+func wrapTLS(addr, scheme string, tlsinfo *TLSInfo, l net.Listener) (net.Listener, error) {
 	if scheme != "https" && scheme != "unixs" {
 		return l, nil
 	}
-	if tlscfg == nil {
-		l.Close()
-		return nil, fmt.Errorf("cannot listen on TLS for %s: KeyFile and CertFile are not presented", scheme+"://"+addr)
-	}
-	return tls.NewListener(l, tlscfg), nil
+	return newTLSListener(l, tlsinfo)
 }
 
 type TLSInfo struct {
@@ -69,6 +65,10 @@ type TLSInfo struct {
 	// ServerName ensures the cert matches the given host in case of discovery / virtual hosting
 	ServerName string
 
+	// HandshakeFailure is optinally called when a connection fails to handshake. The
+	// connection will be closed immediately afterwards.
+	HandshakeFailure func(*tls.Conn, error)
+
 	selfCert bool
 
 	// parseFunc exists to simplify testing. Typically, parseFunc
diff --git a/pkg/transport/listener_test.go b/pkg/transport/listener_test.go
index b3217333a..6cc44a118 100644
--- a/pkg/transport/listener_test.go
+++ b/pkg/transport/listener_test.go
@@ -24,18 +24,16 @@ import (
 	"time"
 )
 
-func createTempFile(b []byte) (string, error) {
-	f, err := ioutil.TempFile("", "etcd-test-tls-")
+func createSelfCert() (*TLSInfo, func(), error) {
+	d, terr := ioutil.TempDir("", "etcd-test-tls-")
+	if terr != nil {
+		return nil, nil, terr
+	}
+	info, err := SelfCert(d, []string{"127.0.0.1"})
 	if err != nil {
-		return "", err
+		return nil, nil, err
 	}
-	defer f.Close()
-
-	if _, err = f.Write(b); err != nil {
-		return "", err
-	}
-
-	return f.Name(), nil
+	return &info, func() { os.RemoveAll(d) }, nil
 }
 
 func fakeCertificateParserFunc(cert tls.Certificate, err error) func(certPEMBlock, keyPEMBlock []byte) (tls.Certificate, error) {
@@ -47,28 +45,25 @@ func fakeCertificateParserFunc(cert tls.Certificate, err error) func(certPEMBloc
 // TestNewListenerTLSInfo tests that NewListener with valid TLSInfo returns
 // a TLS listener that accepts TLS connections.
 func TestNewListenerTLSInfo(t *testing.T) {
-	tmp, err := createTempFile([]byte("XXX"))
+	tlsInfo, del, err := createSelfCert()
 	if err != nil {
-		t.Fatalf("unable to create tmpfile: %v", err)
+		t.Fatalf("unable to create cert: %v", err)
 	}
-	defer os.Remove(tmp)
-	tlsInfo := TLSInfo{CertFile: tmp, KeyFile: tmp}
-	tlsInfo.parseFunc = fakeCertificateParserFunc(tls.Certificate{}, nil)
-	testNewListenerTLSInfoAccept(t, tlsInfo)
+	defer del()
+	testNewListenerTLSInfoAccept(t, *tlsInfo)
 }
 
 func testNewListenerTLSInfoAccept(t *testing.T, tlsInfo TLSInfo) {
-	tlscfg, err := tlsInfo.ServerConfig()
-	if err != nil {
-		t.Fatalf("unexpected serverConfig error: %v", err)
-	}
-	ln, err := NewListener("127.0.0.1:0", "https", tlscfg)
+	ln, err := NewListener("127.0.0.1:0", "https", &tlsInfo)
 	if err != nil {
 		t.Fatalf("unexpected NewListener error: %v", err)
 	}
 	defer ln.Close()
 
-	go http.Get("https://" + ln.Addr().String())
+	tr := &http.Transport{TLSClientConfig: &tls.Config{InsecureSkipVerify: true}}
+	cli := &http.Client{Transport: tr}
+	go cli.Get("https://" + ln.Addr().String())
+
 	conn, err := ln.Accept()
 	if err != nil {
 		t.Fatalf("unexpected Accept error: %v", err)
@@ -87,25 +82,25 @@ func TestNewListenerTLSEmptyInfo(t *testing.T) {
 }
 
 func TestNewTransportTLSInfo(t *testing.T) {
-	tmp, err := createTempFile([]byte("XXX"))
+	tlsinfo, del, err := createSelfCert()
 	if err != nil {
-		t.Fatalf("Unable to prepare tmpfile: %v", err)
+		t.Fatalf("unable to create cert: %v", err)
 	}
-	defer os.Remove(tmp)
+	defer del()
 
 	tests := []TLSInfo{
 		{},
 		{
-			CertFile: tmp,
-			KeyFile:  tmp,
+			CertFile: tlsinfo.CertFile,
+			KeyFile:  tlsinfo.KeyFile,
 		},
 		{
-			CertFile: tmp,
-			KeyFile:  tmp,
-			CAFile:   tmp,
+			CertFile: tlsinfo.CertFile,
+			KeyFile:  tlsinfo.KeyFile,
+			CAFile:   tlsinfo.CAFile,
 		},
 		{
-			CAFile: tmp,
+			CAFile: tlsinfo.CAFile,
 		},
 	}
 
@@ -159,17 +154,17 @@ func TestTLSInfoEmpty(t *testing.T) {
 }
 
 func TestTLSInfoMissingFields(t *testing.T) {
-	tmp, err := createTempFile([]byte("XXX"))
+	tlsinfo, del, err := createSelfCert()
 	if err != nil {
-		t.Fatalf("Unable to prepare tmpfile: %v", err)
+		t.Fatalf("unable to create cert: %v", err)
 	}
-	defer os.Remove(tmp)
+	defer del()
 
 	tests := []TLSInfo{
-		{CertFile: tmp},
-		{KeyFile: tmp},
-		{CertFile: tmp, CAFile: tmp},
-		{KeyFile: tmp, CAFile: tmp},
+		{CertFile: tlsinfo.CertFile},
+		{KeyFile: tlsinfo.KeyFile},
+		{CertFile: tlsinfo.CertFile, CAFile: tlsinfo.CAFile},
+		{KeyFile: tlsinfo.KeyFile, CAFile: tlsinfo.CAFile},
 	}
 
 	for i, info := range tests {
@@ -184,30 +179,29 @@ func TestTLSInfoMissingFields(t *testing.T) {
 }
 
 func TestTLSInfoParseFuncError(t *testing.T) {
-	tmp, err := createTempFile([]byte("XXX"))
+	tlsinfo, del, err := createSelfCert()
 	if err != nil {
-		t.Fatalf("Unable to prepare tmpfile: %v", err)
+		t.Fatalf("unable to create cert: %v", err)
 	}
-	defer os.Remove(tmp)
+	defer del()
 
-	info := TLSInfo{CertFile: tmp, KeyFile: tmp, CAFile: tmp}
-	info.parseFunc = fakeCertificateParserFunc(tls.Certificate{}, errors.New("fake"))
+	tlsinfo.parseFunc = fakeCertificateParserFunc(tls.Certificate{}, errors.New("fake"))
 
-	if _, err = info.ServerConfig(); err == nil {
+	if _, err = tlsinfo.ServerConfig(); err == nil {
 		t.Errorf("expected non-nil error from ServerConfig()")
 	}
 
-	if _, err = info.ClientConfig(); err == nil {
+	if _, err = tlsinfo.ClientConfig(); err == nil {
 		t.Errorf("expected non-nil error from ClientConfig()")
 	}
 }
 
 func TestTLSInfoConfigFuncs(t *testing.T) {
-	tmp, err := createTempFile([]byte("XXX"))
+	tlsinfo, del, err := createSelfCert()
 	if err != nil {
-		t.Fatalf("Unable to prepare tmpfile: %v", err)
+		t.Fatalf("unable to create cert: %v", err)
 	}
-	defer os.Remove(tmp)
+	defer del()
 
 	tests := []struct {
 		info       TLSInfo
@@ -215,13 +209,13 @@ func TestTLSInfoConfigFuncs(t *testing.T) {
 		wantCAs    bool
 	}{
 		{
-			info:       TLSInfo{CertFile: tmp, KeyFile: tmp},
+			info:       TLSInfo{CertFile: tlsinfo.CertFile, KeyFile: tlsinfo.KeyFile},
 			clientAuth: tls.NoClientCert,
 			wantCAs:    false,
 		},
 
 		{
-			info:       TLSInfo{CertFile: tmp, KeyFile: tmp, CAFile: tmp},
+			info:       TLSInfo{CertFile: tlsinfo.CertFile, KeyFile: tlsinfo.KeyFile, CAFile: tlsinfo.CertFile},
 			clientAuth: tls.RequireAndVerifyClientCert,
 			wantCAs:    true,
 		},
diff --git a/pkg/transport/listener_tls.go b/pkg/transport/listener_tls.go
new file mode 100644
index 000000000..53e6a1048
--- /dev/null
+++ b/pkg/transport/listener_tls.go
@@ -0,0 +1,137 @@
+// Copyright 2017 The etcd Authors
+//
+// Licensed under the Apache License, Version 2.0 (the "License");
+// you may not use this file except in compliance with the License.
+// You may obtain a copy of the License at
+//
+//     http://www.apache.org/licenses/LICENSE-2.0
+//
+// Unless required by applicable law or agreed to in writing, software
+// distributed under the License is distributed on an "AS IS" BASIS,
+// WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+// See the License for the specific language governing permissions and
+// limitations under the License.
+
+package transport
+
+import (
+	"crypto/tls"
+	"fmt"
+	"net"
+	"sync"
+)
+
+// tlsListener overrides a TLS listener so it will reject client
+// certificates with insufficient SAN credentials.
+type tlsListener struct {
+	net.Listener
+	connc            chan net.Conn
+	donec            chan struct{}
+	err              error
+	handshakeFailure func(*tls.Conn, error)
+}
+
+func newTLSListener(l net.Listener, tlsinfo *TLSInfo) (net.Listener, error) {
+	if tlsinfo == nil || tlsinfo.Empty() {
+		l.Close()
+		return nil, fmt.Errorf("cannot listen on TLS for %s: KeyFile and CertFile are not presented", l.Addr().String())
+	}
+	tlscfg, err := tlsinfo.ServerConfig()
+	if err != nil {
+		return nil, err
+	}
+	tlsl := &tlsListener{
+		Listener:         tls.NewListener(l, tlscfg),
+		connc:            make(chan net.Conn),
+		donec:            make(chan struct{}),
+		handshakeFailure: tlsinfo.HandshakeFailure,
+	}
+	go tlsl.acceptLoop()
+	return tlsl, nil
+}
+
+func (l *tlsListener) Accept() (net.Conn, error) {
+	select {
+	case conn := <-l.connc:
+		return conn, nil
+	case <-l.donec:
+		return nil, l.err
+	}
+}
+
+// acceptLoop launches each TLS handshake in a separate goroutine
+// to prevent a hanging TLS connection from blocking other connections.
+func (l *tlsListener) acceptLoop() {
+	var wg sync.WaitGroup
+	var pendingMu sync.Mutex
+
+	pending := make(map[net.Conn]struct{})
+	stopc := make(chan struct{})
+	defer func() {
+		close(stopc)
+		pendingMu.Lock()
+		for c := range pending {
+			c.Close()
+		}
+		pendingMu.Unlock()
+		wg.Wait()
+		close(l.donec)
+	}()
+
+	for {
+		conn, err := l.Listener.Accept()
+		if err != nil {
+			l.err = err
+			return
+		}
+
+		pendingMu.Lock()
+		pending[conn] = struct{}{}
+		pendingMu.Unlock()
+
+		wg.Add(1)
+		go func() {
+			defer func() {
+				if conn != nil {
+					conn.Close()
+				}
+				wg.Done()
+			}()
+
+			tlsConn := conn.(*tls.Conn)
+			herr := tlsConn.Handshake()
+			pendingMu.Lock()
+			delete(pending, conn)
+			pendingMu.Unlock()
+			if herr != nil {
+				if l.handshakeFailure != nil {
+					l.handshakeFailure(tlsConn, herr)
+				}
+				return
+			}
+
+			st := tlsConn.ConnectionState()
+			if len(st.PeerCertificates) > 0 {
+				cert := st.PeerCertificates[0]
+				if len(cert.IPAddresses) > 0 || len(cert.DNSNames) > 0 {
+					addr := tlsConn.RemoteAddr().String()
+					h, _, herr := net.SplitHostPort(addr)
+					if herr != nil || cert.VerifyHostname(h) != nil {
+						return
+					}
+				}
+			}
+			select {
+			case l.connc <- tlsConn:
+				conn = nil
+			case <-stopc:
+			}
+		}()
+	}
+}
+
+func (l *tlsListener) Close() error {
+	err := l.Listener.Close()
+	<-l.donec
+	return err
+}
diff --git a/pkg/transport/timeout_listener.go b/pkg/transport/timeout_listener.go
index 0f4df5fbe..b35e04955 100644
--- a/pkg/transport/timeout_listener.go
+++ b/pkg/transport/timeout_listener.go
@@ -15,7 +15,6 @@
 package transport
 
 import (
-	"crypto/tls"
 	"net"
 	"time"
 )
@@ -23,7 +22,7 @@ import (
 // NewTimeoutListener returns a listener that listens on the given address.
 // If read/write on the accepted connection blocks longer than its time limit,
 // it will return timeout error.
-func NewTimeoutListener(addr string, scheme string, tlscfg *tls.Config, rdtimeoutd, wtimeoutd time.Duration) (net.Listener, error) {
+func NewTimeoutListener(addr string, scheme string, tlsinfo *TLSInfo, rdtimeoutd, wtimeoutd time.Duration) (net.Listener, error) {
 	ln, err := newListener(addr, scheme)
 	if err != nil {
 		return nil, err
@@ -33,7 +32,7 @@ func NewTimeoutListener(addr string, scheme string, tlscfg *tls.Config, rdtimeou
 		rdtimeoutd: rdtimeoutd,
 		wtimeoutd:  wtimeoutd,
 	}
-	if ln, err = wrapTLS(addr, scheme, tlscfg, ln); err != nil {
+	if ln, err = wrapTLS(addr, scheme, tlsinfo, ln); err != nil {
 		return nil, err
 	}
 	return ln, nil
diff --git a/rafthttp/util.go b/rafthttp/util.go
index 83c1a27e4..12e548c77 100644
--- a/rafthttp/util.go
+++ b/rafthttp/util.go
@@ -15,7 +15,6 @@
 package rafthttp
 
 import (
-	"crypto/tls"
 	"fmt"
 	"io"
 	"net"
@@ -37,8 +36,8 @@ var (
 
 // NewListener returns a listener for raft message transfer between peers.
 // It uses timeout listener to identify broken streams promptly.
-func NewListener(u url.URL, tlscfg *tls.Config) (net.Listener, error) {
-	return transport.NewTimeoutListener(u.Host, u.Scheme, tlscfg, ConnReadTimeout, ConnWriteTimeout)
+func NewListener(u url.URL, tlsinfo *transport.TLSInfo) (net.Listener, error) {
+	return transport.NewTimeoutListener(u.Host, u.Scheme, tlsinfo, ConnReadTimeout, ConnWriteTimeout)
 }
 
 // NewRoundTripper returns a roundTripper used to send requests