diff --git a/src/Application.cpp b/src/Application.cpp
index 0ceef99b75..89fe9d2ddc 100644
--- a/src/Application.cpp
+++ b/src/Application.cpp
@@ -69,8 +69,6 @@ void Application::run()
 	if (!theConfig.DEBUG_LOGFILE.empty())
 		Log::setLogFile(theConfig.DEBUG_LOGFILE);
 
-	mSNTPClient.init(theConfig.SNTP_SERVERS);
-
 	//
 	// Construct databases.
 	//
@@ -149,6 +147,8 @@ void Application::run()
 		mNetOps.setLastCloseNetTime(secondLedger->getCloseTimeNC());
 	}
 
+	mSNTPClient.init(theConfig.SNTP_SERVERS);
+
 	mNetOps.setStateTimer();
 
 	mIOService.run(); // This blocks
diff --git a/src/Application.h b/src/Application.h
index 3ba29dee22..9efbc89fc1 100644
--- a/src/Application.h
+++ b/src/Application.h
@@ -88,6 +88,7 @@ public:
 	bool isNew(const uint256& s)					{ return mSuppressions.addSuppression(s); }
 	bool isNew(const uint160& s)					{ return mSuppressions.addSuppression(s); }
 	bool running()									{ return mTxnDB != NULL; }
+	bool getSystemTimeOffset(int& offset)			{ return mSNTPClient.getOffset(offset); }
 
 	DatabaseCon* getRpcDB()			{ return mRpcDB; }
 	DatabaseCon* getTxnDB()			{ return mTxnDB; }
diff --git a/src/NetworkOPs.cpp b/src/NetworkOPs.cpp
index 3ba931e9cd..4d243e654b 100644
--- a/src/NetworkOPs.cpp
+++ b/src/NetworkOPs.cpp
@@ -31,7 +31,12 @@ NetworkOPs::NetworkOPs(boost::asio::io_service& io_service, LedgerMaster* pLedge
 
 boost::posix_time::ptime NetworkOPs::getNetworkTimePT()
 {
-	return boost::posix_time::second_clock::universal_time() + boost::posix_time::seconds(mTimeOffset);
+	int offset;
+	if (theApp->getSystemTimeOffset(offset))
+		offset += mTimeOffset;
+	else
+		offset = mTimeOffset;
+	return boost::posix_time::second_clock::universal_time() + boost::posix_time::seconds(offset);
 }
 
 uint32 NetworkOPs::getNetworkTimeNC()
diff --git a/src/Peer.cpp b/src/Peer.cpp
index ccc1b11220..3a8e385f39 100644
--- a/src/Peer.cpp
+++ b/src/Peer.cpp
@@ -571,15 +571,22 @@ void Peer::recvHello(newcoin::TMHello& packet)
 	// Cancel verification timeout.
 	(void) mVerifyTimer.cancel();
 
-	uint32 minTime = theApp->getOPs().getNetworkTimeNC() - 20;
-	uint32 maxTime = minTime + 20;
+	uint32 ourTime = theApp->getOPs().getNetworkTimeNC();
+	uint32 minTime = ourTime - 10;
+	uint32 maxTime = ourTime + 10;
+
+	if (packet.has_nettime())
+	{
+		int64 to = ourTime;
+		to -= packet.nettime();
+		Log(lsTRACE) << "Connect: time error " << to;
+	}
 
 	if (packet.has_nettime() && ((packet.nettime() < minTime) || (packet.nettime() > maxTime)))
 	{
 		Log(lsINFO) << "Recv(Hello): Disconnect: Clock is far off";
 	}
-	
-	if (packet.protoversionmin() < MAKE_VERSION_INT(MIN_PROTO_MAJOR, MIN_PROTO_MINOR))
+	else if (packet.protoversionmin() < MAKE_VERSION_INT(MIN_PROTO_MAJOR, MIN_PROTO_MINOR))
 	{
 		Log(lsINFO) << "Recv(Hello): Server requires protocol version " <<
 			GET_VERSION_MAJOR(packet.protoversion()) << "." << GET_VERSION_MINOR(packet.protoversion())
diff --git a/src/SNTPClient.cpp b/src/SNTPClient.cpp
index 75226b0750..7f652fa401 100644
--- a/src/SNTPClient.cpp
+++ b/src/SNTPClient.cpp
@@ -40,7 +40,7 @@ void SNTPClient::resolveComplete(const boost::system::error_code& error, boost::
 			time_t now = time(NULL);
 			if ((query.mLocalTimeSent == now) || ((query.mLocalTimeSent + 1) == now))
 			{
-				Log(lsINFO) << "SNTP: Redundant query suppressed";
+				Log(lsTRACE) << "SNTP: Redundant query suppressed";
 				return;
 			}
 			query.mReceivedReply = false;
@@ -57,20 +57,20 @@ void SNTPClient::receivePacket(const boost::system::error_code& error, std::size
 	if (!error)
 	{
 		boost::mutex::scoped_lock sl(mLock);
-		Log(lsINFO) << "SNTP: Packet from " << mReceiveEndpoint;
+		Log(lsTRACE) << "SNTP: Packet from " << mReceiveEndpoint;
 		std::map<boost::asio::ip::udp::endpoint, SNTPQuery>::iterator query = mQueries.find(mReceiveEndpoint);
 		if (query == mQueries.end())
-			Log(lsINFO) << "SNTP: Reply found without matching query";
+			Log(lsDEBUG) << "SNTP: Reply found without matching query";
 		else if (query->second.mReceivedReply)
-			Log(lsINFO) << "SNTP: Duplicate response to query";
+			Log(lsDEBUG) << "SNTP: Duplicate response to query";
 		else
 		{
 			query->second.mReceivedReply = true;
 			if (time(NULL) > (query->second.mLocalTimeSent + 1))
-				Log(lsINFO) << "SNTP: Late response";
+				Log(lsWARNING) << "SNTP: Late response";
 			else
 				if (bytes_xferd < 48)
-					Log(lsINFO) << "SNTP: Short reply (" << bytes_xferd << ") " << mReceiveBuffer.size();
+					Log(lsWARNING) << "SNTP: Short reply (" << bytes_xferd << ") " << mReceiveBuffer.size();
 				else
 					processReply();
 		}
@@ -84,7 +84,7 @@ void SNTPClient::receivePacket(const boost::system::error_code& error, std::size
 void SNTPClient::sendComplete(const boost::system::error_code& error, std::size_t)
 {
 	if (error)
-		Log(lsINFO) << "SNTP: Send error";
+		Log(lsWARNING) << "SNTP: Send error";
 }
 
 void SNTPClient::processReply()
@@ -107,11 +107,17 @@ void SNTPClient::processReply()
 		return;
 	}
 
-	timev -= time(NULL);
+	time_t now = time(NULL);
+	timev -= now;
 	timev -= 0x83AA7E80ULL;
-	Log(lsINFO) << "SNTP: Offset is " << timev;	
+	Log(lsTRACE) << "SNTP: Offset is " << timev;
 
-	// WRITEME
+	if ((mLastOffsetUpdate == (time_t) -1) || (mLastOffsetUpdate < (now - 180)))
+		mOffset = timev;
+	else
+		mOffset = ((mOffset * 7) + timev) / 8;
+	mLastOffsetUpdate = now;
+	Log(lsTRACE) << "SNTP: Offset is " << timev << ", new system offset is " << timev;
 }
 
 void SNTPClient::timerEntry(const boost::system::error_code& error)
@@ -150,6 +156,15 @@ void SNTPClient::queryAll()
 		nothing();
 }
 
+bool SNTPClient::getOffset(int& offset)
+{
+	boost::mutex::scoped_lock sl(mLock);
+	if ((mLastOffsetUpdate == (time_t) -1) || ((mLastOffsetUpdate + 90) < time(NULL)))
+		return false;
+	offset = mOffset;
+	return true;
+}
+
 bool SNTPClient::doQuery()
 {
 	boost::mutex::scoped_lock sl(mLock);