diff --git a/pal/src/host/vm-common/kernel_virtio.h b/pal/src/host/vm-common/kernel_virtio.h
index cc3e0961..dfacfa83 100644
--- a/pal/src/host/vm-common/kernel_virtio.h
+++ b/pal/src/host/vm-common/kernel_virtio.h
@@ -362,6 +362,7 @@ int virtio_vsock_connect(int sockfd, const void* addr, size_t addrlen, uint64_t
 int virtio_vsock_shutdown(int sockfd, enum virtio_vsock_shutdown shutdown);
 int virtio_vsock_close(int sockfd, uint64_t timeout_us);
 long virtio_vsock_peek(int sockfd);
+bool virtio_vsock_can_write(int sockfd);
 long virtio_vsock_read(int sockfd, void* buf, size_t count);
 long virtio_vsock_write(int sockfd, const void* buf, size_t count);
 int virtio_vsock_getsockname(int sockfd, const void* addr, size_t* addrlen);
@@ -369,7 +370,6 @@ int virtio_vsock_set_socket_options(int sockfd, bool ipv6_v6only, bool reuseport
 
 int virtio_vsock_isr(void);
 int virtio_vsock_bottomhalf(void);
-bool virtio_vsock_can_write(void);
 int virtio_vsock_init(struct virtio_pci_regs* pci_regs, struct virtio_vsock_config* pci_config,
                       uint64_t notify_off_addr, uint32_t notify_off_multiplier,
                       uint32_t* interrupt_status_reg);
diff --git a/pal/src/host/vm-common/kernel_virtio_vsock.c b/pal/src/host/vm-common/kernel_virtio_vsock.c
index cff91084..c7d41507 100644
--- a/pal/src/host/vm-common/kernel_virtio_vsock.c
+++ b/pal/src/host/vm-common/kernel_virtio_vsock.c
@@ -6,10 +6,6 @@
  *
  * Reference: https://docs.oasis-open.org/virtio/virtio/v1.1/csprd01/virtio-v1.1-csprd01.pdf
  *
- * TODO:
- * - Implement guest-side buffer space management via peer_buf_alloc, peer_fwd_cnt, tx_cnt
- *   (see section 5.10.6.3 in spec)
- *
  * Diagram with flows:
  *
  *   Bottomhalves thread (CPU0)                       +  App threads (CPU0-CPUn)
@@ -418,13 +414,6 @@ static int send_pending_tq_control_packets(void) {
     return ret;
 }
 
-bool virtio_vsock_can_write(void) {
-    spinlock_lock(&g_vsock_transmit_lock);
-    bool can_write = (g_vsock && g_vsock->tq->free_desc != g_vsock->tq->queue_size);
-    spinlock_unlock(&g_vsock_transmit_lock);
-    return can_write;
-}
-
 /* called from the bottomhalf thread in normal context (not interrupt context) */
 int virtio_vsock_bottomhalf(void) {
     int handle_rq_ret = handle_rq_with_disabled_notifications();
@@ -574,6 +563,10 @@ static struct virtio_vsock_connection* create_connection(uint64_t host_port, uin
     conn->host_port  = host_port;
     conn->guest_port = guest_port;
 
+    conn->tx_cnt         = 0;
+    conn->peer_fwd_cnt   = 0;
+    conn->peer_buf_alloc = 0;
+
     conn->fwd_cnt   = 0;
     conn->buf_alloc = VSOCK_MAX_PACKETS * VSOCK_MAX_PAYLOAD_SIZE;
 
@@ -742,7 +735,12 @@ static int send_rw_packet(struct virtio_vsock_connection* conn, const char* payl
     if (!packet)
         return -PAL_ERROR_NOMEM;
 
-    return copy_into_tq_and_free(packet);
+    int ret = copy_into_tq_and_free(packet);
+    if (!ret) {
+        /* successfully queued the packet to be sent, only then update "bytes transmitted" */
+        conn->tx_cnt += payload_size;
+    }
+    return ret;
 }
 
 /* takes ownership of the packet */
@@ -834,6 +832,15 @@ static int process_packet(struct virtio_vsock_packet* packet) {
         goto out;
     }
 
+    /*
+     * Even if packets have malicious fwd_cnt and buf_alloc values, this is benign because it only
+     * affects buffer space management: (1) Gramine may conclude that the host side can receive
+     * bytes even though it can't, or (2) Gramine may conclude that the host side can't receive
+     * bytes even if it can. Former case results in a packet dropped by the host, latter case
+     * results in Gramine app not sending the packet. Both cases are Denial of Service.
+     *
+     * See also virtio_vsock_can_write().
+     */
     conn->peer_fwd_cnt   = packet->header.fwd_cnt;
     conn->peer_buf_alloc = packet->header.buf_alloc;
 
@@ -1561,6 +1568,36 @@ long virtio_vsock_peek(int sockfd) {
     return ret;
 }
 
+bool virtio_vsock_can_write(int sockfd) {
+    spinlock_lock(&g_vsock_transmit_lock);
+    bool can_write = (g_vsock && g_vsock->tq->free_desc != g_vsock->tq->queue_size);
+    spinlock_unlock(&g_vsock_transmit_lock);
+
+    if (can_write) {
+        /* we can send; additionally check that host can receive (buffer space management) */
+        spinlock_lock(&g_vsock_connections_lock);
+
+        struct virtio_vsock_connection* conn = get_connection(sockfd);
+        if (conn) {
+            uint32_t bytes_in_flight = conn->tx_cnt - conn->peer_fwd_cnt;
+            int64_t bytes_avail_in_peer_buf = (int64_t)conn->peer_buf_alloc - bytes_in_flight;
+            if (bytes_avail_in_peer_buf < 0) {
+                /* play it safe (peer_fwd_cnt and peer_buf_alloc are potentially malicious) */
+                bytes_avail_in_peer_buf = 0;
+            }
+
+            can_write = (bytes_avail_in_peer_buf > 0);
+        } else {
+            /* maybe connection was shutdown, just return that we can't write in this case */
+            can_write = false;
+        }
+
+        spinlock_unlock(&g_vsock_connections_lock);
+    }
+
+    return can_write;
+}
+
 long virtio_vsock_read(int sockfd, void* buf, size_t count) {
     long ret;
 
diff --git a/pal/src/host/vm-common/pal_common_object.c b/pal/src/host/vm-common/pal_common_object.c
index c7ee6a21..bf27bf05 100644
--- a/pal/src/host/vm-common/pal_common_object.c
+++ b/pal/src/host/vm-common/pal_common_object.c
@@ -112,7 +112,7 @@ static int check_socket_handle(struct pal_handle* handle, pal_wait_flags_t event
     if ((events & PAL_WAIT_READ) && peeked)
         revents |= PAL_WAIT_READ;
 
-    if ((events & PAL_WAIT_WRITE) && virtio_vsock_can_write())
+    if ((events & PAL_WAIT_WRITE) && virtio_vsock_can_write(handle->sock.fd))
         revents |= PAL_WAIT_WRITE;
 
     *out_events = revents;