diff --git a/video/video_send_stream_impl.cc b/video/video_send_stream_impl.cc
index b2a69ef04c..ae905df95a 100644
--- a/video/video_send_stream_impl.cc
+++ b/video/video_send_stream_impl.cc
@@ -650,10 +650,14 @@ uint32_t VideoSendStreamImpl::OnBitrateUpdated(BitrateAllocationUpdate update) {
       rtc::dchecked_cast<uint8_t>(update.packet_loss_ratio * 256),
       update.round_trip_time.ms(), stats_proxy_->GetSendFrameRate());
   encoder_target_rate_bps_ = rtp_video_sender_->GetPayloadBitrateBps();
+  const uint32_t protection_bitrate_bps =
+      rtp_video_sender_->GetProtectionBitrateBps();
   DataRate headroom = DataRate::Zero();
-  if (encoder_target_rate_bps_ > encoder_max_bitrate_bps_) {
+  if (encoder_target_rate_bps_ >
+      encoder_max_bitrate_bps_ + protection_bitrate_bps) {
     headroom =
-        DataRate::bps(encoder_target_rate_bps_ - encoder_max_bitrate_bps_);
+        DataRate::bps(encoder_target_rate_bps_ -
+                      (encoder_max_bitrate_bps_ + protection_bitrate_bps));
   }
   encoder_target_rate_bps_ =
       std::min(encoder_max_bitrate_bps_, encoder_target_rate_bps_);
@@ -662,7 +666,7 @@ uint32_t VideoSendStreamImpl::OnBitrateUpdated(BitrateAllocationUpdate update) {
       rtc::dchecked_cast<uint8_t>(update.packet_loss_ratio * 256),
       update.round_trip_time.ms());
   stats_proxy_->OnSetEncoderTargetRate(encoder_target_rate_bps_);
-  return rtp_video_sender_->GetProtectionBitrateBps();
+  return protection_bitrate_bps;
 }
 
 }  // namespace internal
diff --git a/video/video_send_stream_impl_unittest.cc b/video/video_send_stream_impl_unittest.cc
index d874c4d1fc..e8eab842b6 100644
--- a/video/video_send_stream_impl_unittest.cc
+++ b/video/video_send_stream_impl_unittest.cc
@@ -678,6 +678,38 @@ TEST_F(VideoSendStreamImplTest, CallsVideoStreamEncoderOnBitrateUpdate) {
     static_cast<BitrateAllocatorObserver*>(vss_impl.get())
         ->OnBitrateUpdated(update);
 
+    // Add protection bitrate to the mix, this should be subtracted from the
+    // headroom.
+    const uint32_t protection_bitrate_bps = 10000;
+    EXPECT_CALL(rtp_video_sender_, GetProtectionBitrateBps())
+        .WillOnce(Return(protection_bitrate_bps));
+
+    EXPECT_CALL(rtp_video_sender_,
+                OnBitrateUpdated(rate_with_headroom.bps(), _,
+                                 update.round_trip_time.ms(), _));
+    EXPECT_CALL(rtp_video_sender_, GetPayloadBitrateBps())
+        .WillOnce(Return(rate_with_headroom.bps()));
+    const DataRate headroom_minus_protection =
+        headroom - DataRate::bps(protection_bitrate_bps);
+    EXPECT_CALL(
+        video_stream_encoder_,
+        OnBitrateUpdated(qvga_max_bitrate, headroom_minus_protection, 0, _));
+    static_cast<BitrateAllocatorObserver*>(vss_impl.get())
+        ->OnBitrateUpdated(update);
+
+    // Protection bitrate exceeds headroom, make sure it is capped to 0.
+    EXPECT_CALL(rtp_video_sender_, GetProtectionBitrateBps())
+        .WillOnce(Return(headroom.bps() + 1000));
+    EXPECT_CALL(rtp_video_sender_,
+                OnBitrateUpdated(rate_with_headroom.bps(), _,
+                                 update.round_trip_time.ms(), _));
+    EXPECT_CALL(rtp_video_sender_, GetPayloadBitrateBps())
+        .WillOnce(Return(rate_with_headroom.bps()));
+    EXPECT_CALL(video_stream_encoder_,
+                OnBitrateUpdated(qvga_max_bitrate, DataRate::Zero(), 0, _));
+    static_cast<BitrateAllocatorObserver*>(vss_impl.get())
+        ->OnBitrateUpdated(update);
+
     // Set rates to zero on stop.
     EXPECT_CALL(video_stream_encoder_,
                 OnBitrateUpdated(DataRate::Zero(), DataRate::Zero(), 0, 0));