diff --git a/drivers/usb/usbstor/CMakeLists.txt b/drivers/usb/usbstor/CMakeLists.txt
index 7eea2d0c369..bd918b020fd 100644
--- a/drivers/usb/usbstor/CMakeLists.txt
+++ b/drivers/usb/usbstor/CMakeLists.txt
@@ -3,7 +3,7 @@ add_definitions(-DDEBUG_MODE)
 
 include_directories(${REACTOS_SOURCE_DIR}/ntoskrnl/include)
 
-add_library(usbstor SHARED descriptor.c disk.c fdo.c misc.c pdo.c queue.c scsi.c usbstor.c usbstor.rc)
+add_library(usbstor SHARED descriptor.c disk.c fdo.c misc.c pdo.c queue.c error.c scsi.c usbstor.c usbstor.rc)
 
 set_module_type(usbstor kernelmodedriver)
 add_importlibs(usbstor ntoskrnl hal usbd)
diff --git a/drivers/usb/usbstor/error.c b/drivers/usb/usbstor/error.c
new file mode 100644
index 00000000000..58d300421f9
--- /dev/null
+++ b/drivers/usb/usbstor/error.c
@@ -0,0 +1,159 @@
+/*
+ * PROJECT:     ReactOS Universal Serial Bus Bulk Storage Driver
+ * LICENSE:     GPL - See COPYING in the top level directory
+ * FILE:        drivers/usb/usbstor/error.c
+ * PURPOSE:     USB block storage device driver.
+ * PROGRAMMERS:
+ *              James Tabor
+ *              Michael Martin (michael.martin@reactos.org)
+ *              Johannes Anderwald (johannes.anderwald@reactos.org)
+ */
+
+#include "usbstor.h"
+
+NTSTATUS
+USBSTOR_ResetPipeWithHandle(
+    IN PDEVICE_OBJECT DeviceObject,
+    IN USBD_PIPE_HANDLE PipeHandle)
+{
+    PURB Urb;
+    NTSTATUS Status;
+
+    //
+    // allocate urb
+    //
+	DPRINT1("Allocating URB\n");
+    Urb = (PURB)AllocateItem(NonPagedPool, sizeof(struct _URB_PIPE_REQUEST));
+    if (!Urb)
+    {
+        //
+        // out of memory
+        //
+		DPRINT1("OutofMemory!\n");
+        return STATUS_INSUFFICIENT_RESOURCES;
+    }
+
+    //
+    // initialize the urb
+    //
+    Urb->UrbPipeRequest.Hdr.Length = sizeof(struct _URB_PIPE_REQUEST);
+    Urb->UrbPipeRequest.Hdr.Function = URB_FUNCTION_SYNC_RESET_PIPE_AND_CLEAR_STALL;
+    Urb->UrbPipeRequest.PipeHandle = PipeHandle;
+
+    //
+    // send the request
+    //
+	DPRINT1("Sending Request DeviceObject %x, Urb %x\n", DeviceObject, Urb);
+    Status = USBSTOR_SyncUrbRequest(DeviceObject, Urb);
+
+    //
+    // free urb
+    //
+    FreeItem(Urb);
+
+    //
+    // done
+    //
+    return Status;
+}
+
+NTSTATUS
+USBSTOR_HandleTransferError(
+	PDEVICE_OBJECT DeviceObject,
+	PIRP Irp,
+	PIRP_CONTEXT Context)
+{
+	NTSTATUS Status;
+	PIO_STACK_LOCATION Stack;
+	PURB Urb;
+	USBD_PIPE_HANDLE PipeHandle;
+	PSCSI_REQUEST_BLOCK Request;
+
+	DPRINT1("Entered Handle Transfer Error\n");
+	//
+	// Determine pipehandle
+	//
+    if (Context->cbw->CommandBlock[0] == SCSIOP_WRITE)
+    {
+        //
+        // write request used bulk out pipe
+        // 
+        PipeHandle = Context->FDODeviceExtension->InterfaceInformation->Pipes[Context->FDODeviceExtension->BulkOutPipeIndex].PipeHandle;
+    }
+    else
+    {
+        //
+        // default bulk in pipe
+        //
+        PipeHandle = Context->FDODeviceExtension->InterfaceInformation->Pipes[Context->FDODeviceExtension->BulkInPipeIndex].PipeHandle;
+    }
+
+	switch (Context->Urb.UrbHeader.Status)
+	{
+		case USBD_STATUS_STALL_PID:
+		{
+			//
+			// First attempt to reset the pipe
+			//
+			DPRINT1("Resetting Pipe\n");
+			Status = USBSTOR_ResetPipeWithHandle(DeviceObject, PipeHandle);
+			if (NT_SUCCESS(Status))
+			{
+				Status = STATUS_SUCCESS;
+				break;
+			}
+
+			DPRINT1("Failed to reset pipe %x\n");
+
+			//
+			// FIXME: Reset of pipe failed, attempt to reset port
+			//
+			
+			Status = STATUS_UNSUCCESSFUL;
+			break;
+		}
+		//
+		// FIXME: Handle more errors
+		//
+		default:
+		{
+			DPRINT1("Error not handled\n");
+			Status = STATUS_UNSUCCESSFUL;
+		}
+	}
+
+	if (Status != STATUS_SUCCESS)
+	{
+		Irp->IoStatus.Status = Status;
+		Irp->IoStatus.Information = 0;
+	}
+	else
+	{
+		Stack = IoGetCurrentIrpStackLocation(Context->Irp);
+		//
+		// Retry the operation
+		//
+		Request = (PSCSI_REQUEST_BLOCK)Stack->Parameters.Others.Argument1;
+		DPRINT1("Retrying\n");
+		Status = USBSTOR_HandleExecuteSCSI(DeviceObject, Context->Irp, Request, Context->PDODeviceExtension);
+	}
+	
+	DPRINT1("USBSTOR_HandleTransferError returning with Status %x\n", Status);
+	return Status;
+}
+
+VOID
+NTAPI
+ErrorHandlerWorkItemRoutine(
+	PVOID Context)
+{
+	NTSTATUS Status;
+	PERRORHANDLER_WORKITEM_DATA WorkItemData = (PERRORHANDLER_WORKITEM_DATA)Context;
+	
+	Status = USBSTOR_HandleTransferError(WorkItemData->DeviceObject, WorkItemData->Irp, WorkItemData->Context);
+
+	//
+	// Free Work Item Data
+	//
+	ExFreePool(WorkItemData);
+}