diff -Naur freeradius-1.1.0/src/modules/rlm_eap/types/rlm_eap_tls/eap_tls.c freeradius-1.1.0_reauth/src/modules/rlm_eap/types/rlm_eap_tls/eap_tls.c
--- freeradius-1.1.0/src/modules/rlm_eap/types/rlm_eap_tls/eap_tls.c	2007-11-02 10:07:50.000000000 +0530
+++ freeradius-1.1.0_reauth/src/modules/rlm_eap/types/rlm_eap_tls/eap_tls.c	2007-11-02 10:07:54.000000000 +0530
@@ -609,40 +609,54 @@
 static void eaptls_operation(EAPTLS_PACKET *eaptls_packet UNUSED,
 			     eaptls_status_t status, EAP_HANDLER *handler)
 {
-	tls_session_t *tls_session;
+    int ret = 0;
+    tls_session_t *tls_session;
 
-	tls_session = (tls_session_t *)handler->opaque;
+    tls_session = (tls_session_t *)handler->opaque;
 
-	if ((status == EAPTLS_MORE_FRAGMENTS) ||
-	    (status == EAPTLS_MORE_FRAGMENTS_WITH_LENGTH) ||
-	    (status == EAPTLS_FIRST_FRAGMENT)) {
-		/*
-		 * Send the ACK.
-		 */
-		eaptls_send_ack(handler->eap_ds, tls_session->peap_flag);
-	} else {
-		/*
-		 *	We have the complete TLS-data or TLS-message.
-		 *
-		 *	Clean the dirty message.
-		 *
-		 *	Authenticate the user and send
-		 *	Success/Failure.
-		 *
-		 *	If more info
-		 *	is required then send another request.  */
-		if (tls_handshake_recv(tls_session)) {
-			/*
-			 *	FIXME: return success/fail.
-			 *
-			 *	TLS proper can decide what to do, then.
-			 */
-			eaptls_request(handler->eap_ds, tls_session);
-		} else {
-			eaptls_fail(handler->eap_ds, tls_session->peap_flag);
-		}
-	}
-	return;
+    if ((status == EAPTLS_MORE_FRAGMENTS) ||
+        (status == EAPTLS_MORE_FRAGMENTS_WITH_LENGTH) ||
+        (status == EAPTLS_FIRST_FRAGMENT)) {
+        /*
+         * Send the ACK.
+         */
+        eaptls_send_ack(handler->eap_ds, tls_session->peap_flag);
+    } else {
+        /*
+         *	We have the complete TLS-data or TLS-message.
+         *
+         *	Clean the dirty message.
+         *
+         *	Authenticate the user and send
+         *	Success/Failure.
+         *
+         *	If more info
+         *	is required then send another request.  */
+        ret = tls_handshake_recv(tls_session);
+        /*
+         *	TLS returns 1 on normal case.
+         *	            7 (it can be any value otherthan 0 and 1.  TLS should know this value) 
+         *	            on fast re-auth completion.
+         */
+        if (1 == ret) 
+        {
+            eaptls_request(handler->eap_ds, tls_session);
+        } 
+        else if(7 == ret)
+        {
+            /*
+             *  Success: Return MPPE keys.
+             */
+            eaptls_success(handler->eap_ds, 0);
+            eaptls_gen_mppe_keys(&handler->request->reply->vps,
+                    tls_session->ssl,
+                    "client EAP encryption");
+
+        } else {
+            eaptls_fail(handler->eap_ds, tls_session->peap_flag);
+        }
+    }
+    return;
 }
 
 
diff -Naur freeradius-1.1.0/src/modules/rlm_eap/types/rlm_eap_tls/tls.c freeradius-1.1.0_reauth/src/modules/rlm_eap/types/rlm_eap_tls/tls.c
--- freeradius-1.1.0/src/modules/rlm_eap/types/rlm_eap_tls/tls.c	2004-02-27 00:34:31.000000000 +0530
+++ freeradius-1.1.0_reauth/src/modules/rlm_eap/types/rlm_eap_tls/tls.c	2007-11-02 10:02:23.000000000 +0530
@@ -22,11 +22,24 @@
  */
 #include "eap_tls.h"
 
+static long ctx_num = 0;
+
 tls_session_t *eaptls_new_session(SSL_CTX *ssl_ctx, int client_cert)
 {
 	tls_session_t *state = NULL;
 	SSL *new_tls = NULL;
 	int verify_mode = SSL_VERIFY_NONE;
+    int ret = 0;
+
+    if(0 == ctx_num++)
+    {
+        ret = SSL_CTX_set_session_id_context(ssl_ctx, 
+                (const unsigned char *)&ctx_num, sizeof(long));
+        if(!ret)
+        {
+            printf("FR : pblm in set session id context\n");
+        }
+    }
 
 	if ((new_tls = SSL_new(ssl_ctx)) == NULL) {
 		radlog(L_ERR, "rlm_eap_tls: Error creating new SSL");
@@ -39,9 +52,14 @@
 
 	state = (tls_session_t *)malloc(sizeof(*state));
 	memset(state, 0, sizeof(*state));
+
+    SSL_CTX_set_session_cache_mode(ssl_ctx, SSL_SESS_CACHE_NO_AUTO_CLEAR|SSL_SESS_CACHE_SERVER);
+
 	session_init(state);
 	state->ssl = new_tls;
 
+    state->ssl->new_session = 1;
+
 	/*
 	 *	Create & hook the BIOs to handle the dirty side of the
 	 *	SSL.  This is *very important* as we want to handle
@@ -185,6 +203,18 @@
 		DEBUG2("In SSL Connect mode \n");
 	}
 
+	if (SSL_is_init_finished(ssn->ssl) && 1 == ssn->ssl->hit)
+    {
+        /* Session Resumption : CCS and Finish received, parsed 
+         * and validated successfully.  Time to wind up handshake. */
+        record_init(&ssn->dirty_in);
+
+        /* This can return any value otherthan 0 and 1.  Check for 
+         * this ret value in the lower layer for reauth completion */
+        return 7; 
+
+    }
+
 	if (ssn->info.content_type != application_data) {
 		err = BIO_read(ssn->from_ssl, ssn->dirty_out.data,
 			       sizeof(ssn->dirty_out.data));
@@ -261,7 +291,10 @@
 void session_close(tls_session_t *ssn)
 {
 	if(ssn->ssl)
+    {
+        SSL_shutdown(ssn->ssl);
 		SSL_free(ssn->ssl);
+    }
 #if 0
 /*
  * WARNING: SSL_free seems to decrement the reference counts already,
@@ -271,11 +304,11 @@
 		BIO_free(ssn->into_ssl);
 	if(ssn->from_ssl)
 		BIO_free(ssn->from_ssl);
-#endif
 	record_close(&ssn->clean_in);
 	record_close(&ssn->clean_out);
 	record_close(&ssn->dirty_in);
 	record_close(&ssn->dirty_out);
+#endif
 	session_init(ssn);
 }