diff --git a/reactos/lib/drivers/ip/network/arp.c b/reactos/lib/drivers/ip/network/arp.c
index 3a956120bbf..08549c2fc07 100644
--- a/reactos/lib/drivers/ip/network/arp.c
+++ b/reactos/lib/drivers/ip/network/arp.c
@@ -183,9 +183,11 @@ VOID ARPReceive(
  */
 {
     PARP_HEADER Header;
-    IP_ADDRESS Address;
+    IP_ADDRESS SrcAddress;
+    IP_ADDRESS DstAddress;
     PVOID SenderHWAddress;
     PVOID SenderProtoAddress;
+    PVOID TargetProtoAddress;
     PNEIGHBOR_CACHE_ENTRY NCE;
     PNDIS_PACKET NdisPacket;
     PIP_INTERFACE Interface = (PIP_INTERFACE)Context;
@@ -208,12 +210,14 @@ VOID ARPReceive(
 
     SenderHWAddress    = (PVOID)((ULONG_PTR)Header + sizeof(ARP_HEADER));
     SenderProtoAddress = (PVOID)((ULONG_PTR)SenderHWAddress + Header->HWAddrLen);
+    TargetProtoAddress = (PVOID)((ULONG_PTR)SenderProtoAddress + Header->ProtoAddrLen + Header->HWAddrLen);
 
     /* Check if we know the sender */
 
-    AddrInitIPv4(&Address, *((PULONG)SenderProtoAddress));
+    AddrInitIPv4(&SrcAddress, *((PULONG)SenderProtoAddress));
+    AddrInitIPv4(&DstAddress, *((PULONG)TargetProtoAddress));
 
-    NCE = NBLocateNeighbor(&Address);
+    NCE = NBLocateNeighbor(&SrcAddress);
     if (NCE) {
         /* We know the sender. Update the hardware address
            and state in our neighbor address cache */
@@ -222,12 +226,12 @@ VOID ARPReceive(
         /* The packet had our protocol address as target. The sender
            may want to communicate with us soon, so add his address
            to our address cache */
-        NCE = NBAddNeighbor(Interface, &Address, SenderHWAddress,
+        NCE = NBAddNeighbor(Interface, &SrcAddress, SenderHWAddress,
             Header->HWAddrLen, 0, ARP_TIMEOUT);
     }
 
     if (Header->Opcode != ARP_OPCODE_REQUEST ||
-        !AddrIsEqual(&Address, &Interface->Unicast))
+        !AddrIsEqual(&DstAddress, &Interface->Unicast))
         return;
 
     /* This is a request for our address. Swap the addresses and