diff --git a/rtl/nrzi_decode.v b/rtl/nrzi_decode.v
index ece1326..065cfd6 100644
--- a/rtl/nrzi_decode.v
+++ b/rtl/nrzi_decode.v
@@ -7,31 +7,53 @@
 
 module nrzi_decode (
 	input clk,
+	input rst,
 	input [1:0] nrzi,
 	input [1:0] nrzi_valid,
 	output reg [1:0] nrz,
 	output reg [1:0] nrz_valid
 );
 
-	reg [1:0] nrz_next;
-	reg nrzi_last;
-	reg nrzi_last_next;
+	reg [1:0] nrz_next, nrz_valid_next;
+	reg nrzi_last, nrzi_last_next, nrzi_last_valid, nrzi_last_valid_next;
+	initial nrz_valid = 0;
+	initial nrzi_last_valid = 0;
 
 	always @(*) begin
 		nrz_next[0] = nrzi[1] ^ nrzi[0];
 		nrz_next[1] = nrzi[1] ^ nrzi_last;
 
 		nrzi_last_next = nrzi_last;
-		if (nrzi_valid != 0)
-			nrzi_last_next = nrzi[1];
-		if (nrzi_valid & 2)
+		nrzi_last_valid_next = 1'b1;
+		if (nrzi_valid[1])
 			nrzi_last_next = nrzi[0];
+		else if (nrzi_valid[0])
+			nrzi_last_next = nrzi[1];
+		else
+			nrzi_last_valid_next = nrzi_last_valid;
+
+		nrz_valid_next = nrzi_valid;
+		if (!nrzi_last_valid) begin
+			nrz_valid_next = 0;
+			if (nrzi_valid[1]) begin
+				nrz_valid_next = 2'b1;
+				nrz_next[1] = nrz_next[0];
+			end
+		end
 	end
 
 	always @(posedge clk) begin
-		nrzi_last <= nrzi_last_next;
-		nrz_valid <= nrzi_valid;
-		nrz <= nrz_next;
+		if (rst) begin
+			nrzi_last <= 1'bX;
+			nrzi_last_valid <= 1'b0;
+			nrz_valid <= 2'b0;
+			nrz <= 2'b0;
+		end else begin
+			nrzi_last <= nrzi_last_next;
+			nrzi_last_valid = nrzi_last_valid_next;
+			nrz_valid <= nrz_valid_next;
+			nrz <= nrz_next;
+		end
 	end
 
 endmodule
diff --git a/tb/nrzi_decode.py b/tb/nrzi_decode.py
index 46a760b..0447236 100644
--- a/tb/nrzi_decode.py
+++ b/tb/nrzi_decode.py
@@ -6,9 +6,11 @@ import random
 import cocotb
 from cocotb.clock import Clock
 from cocotb.regression import TestFactory
-from cocotb.triggers import FallingEdge, RisingEdge, Timer
+from cocotb.triggers import ClockCycles, FallingEdge, RisingEdge, Timer
+from cocotb.types import LogicArray
 
-from .util import alist, async_iter, compare_lists, timeout, send_recovered_bits, with_valids
+from .nrzi_encode import nrzi_encode
+from .util import alist, async_iter, compare_lists, timeout, send_recovered_bits, with_valids, print_list_at
 
 async def nrzi_decode(bits):
     last = 1
@@ -19,8 +21,12 @@ async def nrzi_decode(bits):
 @timeout(10, 'us')
 async def test_rx(decoder, valids):
     decoder.nrzi_valid.value = 0
+    decoder.nrzi.value = LogicArray('X', 'X')
+    decoder.rst.value = 1
     await Timer(1)
     await cocotb.start(Clock(decoder.clk, 8, units='ns').start())
+    await ClockCycles(decoder.clk, 1)
+    decoder.rst.value = 0
 
     ins = [random.randrange(2) for _ in range(1000)]
     await cocotb.start(send_recovered_bits(decoder.clk, decoder.nrzi,
@@ -40,6 +46,6 @@ async def test_rx(decoder, valids):
             outs.append(decoder.nrz[0].value)
 
     # Ignore the first bit, since it is influenced by the initial value
-    compare_lists((await alist(nrzi_decode(async_iter(ins))))[1:], outs[1:])
+    compare_lists((await alist(nrzi_decode(async_iter(ins))))[1:], outs)
 
 with_valids(globals(), test_rx)