diff --git a/actix-http/CHANGES.md b/actix-http/CHANGES.md
index 71132c6b2..f9323cc72 100644
--- a/actix-http/CHANGES.md
+++ b/actix-http/CHANGES.md
@@ -1,6 +1,8 @@
 # Changes
 
-## Unreleased - 2021-xx-xx
+## Unreleased - 2022-xx-xx
+### Fixed
+- Consume bytes from read buffer when `Payload` is dropped early. [#2764]
 
 
 ## 3.0.4 - 2022-03-09
diff --git a/actix-http/src/h1/dispatcher.rs b/actix-http/src/h1/dispatcher.rs
index dea8a4beb..b0792f611 100644
--- a/actix-http/src/h1/dispatcher.rs
+++ b/actix-http/src/h1/dispatcher.rs
@@ -22,7 +22,7 @@ use crate::{
     config::ServiceConfig,
     error::{DispatchError, ParseError, PayloadError},
     service::HttpFlow,
-    ConnectionType, Error, Extensions, OnConnectData, Request, Response, StatusCode,
+    Error, Extensions, OnConnectData, Request, Response, StatusCode,
 };
 
 use super::{
@@ -724,7 +724,7 @@ where
                                         this.state.set(State::None);
 
                                         // break out of payload decode loop
-                                        break;
+                                        return Ok(true);
                                     }
 
                                     // Either whole payload is read and loop is broken or more data
@@ -736,18 +736,18 @@ where
                                 }
                             }
 
-                            // not enough info to decide if connection is going to be clean or not
+                            // no bytes in the read buffer, but there are still bytes to be read
+                            // according to the content-length header. The client has stopped
+                            // sending data early. Reset the state, set disconnection flag,
+                            // and stop reading.
                             None => {
-                                error!(
-                                    "handler did not read whole payload and dispatcher could not \
-                                    drain read buf; return 500 and close connection"
-                                );
-
+                                debug!("client stopped sending data; disconnecting");
+                                // reset dispatcher state
                                 this.flags.insert(Flags::SHUTDOWN);
-                                let mut res = Response::internal_server_error().drop_body();
-                                res.head_mut().set_connection_type(ConnectionType::Close);
-                                this.messages.push_back(DispatcherMessage::Error(res));
-                                *this.error = Some(DispatchError::HandlerDroppedPayload);
+                                let _ = this.payload.take();
+                                this.state.set(State::None);
+
+                                // break out of payload decode loop
                                 return Ok(true);
                             }
                         }
@@ -1010,8 +1010,22 @@ where
         self: Pin<&mut Self>,
         cx: &mut Context<'_>,
     ) -> Result<bool, DispatchError> {
-        let this = self.project();
+        let mut this = self.project();
+        Self::read_available_projected(&mut this, cx)
+    }
 
+    /// Returns true when I/O stream can be disconnected after write to it.
+    /// Meant to be called when there is already access to a projected
+    /// `InnerDispatcher` available.
+    ///
+    /// It covers these conditions:
+    /// - `std::io::ErrorKind::ConnectionReset` after partial read;
+    /// - all data read done.
+    #[inline(always)] // TODO: bench this inline
+    fn read_available_projected(
+        this: &mut InnerDispatcherProj<'_, T, S, B, X, U>,
+        cx: &mut Context<'_>,
+    ) -> Result<bool, DispatchError> {
         if this.flags.contains(Flags::READ_DISCONNECT) {
             return Ok(false);
         };
diff --git a/actix-http/src/h1/dispatcher_tests.rs b/actix-http/src/h1/dispatcher_tests.rs
index 40454d45a..ddb704093 100644
--- a/actix-http/src/h1/dispatcher_tests.rs
+++ b/actix-http/src/h1/dispatcher_tests.rs
@@ -783,6 +783,74 @@ async fn upgrade_handling() {
     .await;
 }
 
+#[actix_rt::test]
+async fn handler_drop_large_payload() {
+    let _ = env_logger::try_init();
+
+    const CONTENT_LENGTH: usize = 256 * 1024;
+    let content = str::from_utf8(&[b'x'; CONTENT_LENGTH]).unwrap();
+    let buf = TestBuffer::new(http_msg(format!(
+        r"
+        POST /drop-payload HTTP/1.1
+        Content-Length: {}
+        
+        {}",
+        CONTENT_LENGTH, content
+    )));
+
+    let services = HttpFlow::new(
+        drop_payload_service(),
+        ExpectHandler,
+        None::<UpgradeHandler>,
+    );
+
+    let h1 = Dispatcher::new(
+        buf.clone(),
+        services,
+        ServiceConfig::default(),
+        None,
+        OnConnectData::default(),
+    );
+    pin!(h1);
+
+    lazy(|cx| {
+        assert!(h1.as_mut().poll(cx).is_pending());
+        assert!(h1.as_mut().poll(cx).is_pending());
+
+        // polls: manual
+        assert_eq!(h1.poll_count, 2);
+
+        let mut res = BytesMut::from(buf.take_write_buf().as_ref());
+        stabilize_date_header(&mut res);
+        let res = &res[..];
+
+        let exp = http_msg(
+            r"
+            HTTP/1.1 200 OK
+            content-length: 15
+            date: Thu, 01 Jan 1970 12:34:56 UTC
+
+            payload dropped
+            ",
+        );
+
+        assert_eq!(
+            res,
+            exp,
+            "\nexpected response not in write buffer:\n\
+               response: {:?}\n\
+               expected: {:?}",
+            String::from_utf8_lossy(res),
+            String::from_utf8_lossy(&exp)
+        );
+
+        if let DispatcherStateProj::Normal { inner } = h1.as_mut().project().inner.project() {
+            assert!(inner.state.is_none());
+        }
+    })
+    .await;
+}
+
 #[actix_rt::test]
 async fn handler_drop_payload() {
     let _ = env_logger::try_init();