diff --git a/fs/cifs/smb2misc.c b/fs/cifs/smb2misc.c
index 7b8b58fb4d3fbdcf898d306a585c7332cd2c0ef5..58700d2ba8cdd5c1525fe08ce3805b887bc163dc 100644
--- a/fs/cifs/smb2misc.c
+++ b/fs/cifs/smb2misc.c
@@ -517,7 +517,6 @@ smb2_tcon_has_lease(struct cifs_tcon *tcon, struct smb2_lease_break *rsp,
 	__u8 lease_state;
 	struct list_head *tmp;
 	struct cifsFileInfo *cfile;
-	struct TCP_Server_Info *server = tcon->ses->server;
 	struct cifs_pending_open *open;
 	struct cifsInodeInfo *cinode;
 	int ack_req = le32_to_cpu(rsp->Flags &
@@ -537,13 +536,25 @@ smb2_tcon_has_lease(struct cifs_tcon *tcon, struct smb2_lease_break *rsp,
 		cifs_dbg(FYI, "lease key match, lease break 0x%x\n",
 			 le32_to_cpu(rsp->NewLeaseState));
 
-		server->ops->set_oplock_level(cinode, lease_state, 0, NULL);
-
 		if (ack_req)
 			cfile->oplock_break_cancelled = false;
 		else
 			cfile->oplock_break_cancelled = true;
 
+		set_bit(CIFS_INODE_PENDING_OPLOCK_BREAK, &cinode->flags);
+
+		/*
+		 * Set or clear flags depending on the lease state being READ.
+		 * HANDLE caching flag should be added when the client starts
+		 * to defer closing remote file handles with HANDLE leases.
+		 */
+		if (lease_state & SMB2_LEASE_READ_CACHING_HE)
+			set_bit(CIFS_INODE_DOWNGRADE_OPLOCK_TO_L2,
+				&cinode->flags);
+		else
+			clear_bit(CIFS_INODE_DOWNGRADE_OPLOCK_TO_L2,
+				  &cinode->flags);
+
 		queue_work(cifsoplockd_wq, &cfile->oplock_break);
 		kfree(lw);
 		return true;
diff --git a/fs/cifs/smb2ops.c b/fs/cifs/smb2ops.c
index 237d7281ada340f800722506e7f8f687d9681440..b66d630e00582e8be9fe8a3759fe3e85020276bf 100644
--- a/fs/cifs/smb2ops.c
+++ b/fs/cifs/smb2ops.c
@@ -2300,6 +2300,15 @@ smb2_downgrade_oplock(struct TCP_Server_Info *server,
 		server->ops->set_oplock_level(cinode, 0, 0, NULL);
 }
 
+static void
+smb21_downgrade_oplock(struct TCP_Server_Info *server,
+		       struct cifsInodeInfo *cinode, bool set_level2)
+{
+	server->ops->set_oplock_level(cinode,
+				      set_level2 ? SMB2_LEASE_READ_CACHING_HE :
+				      0, 0, NULL);
+}
+
 static void
 smb2_set_oplock_level(struct cifsInodeInfo *cinode, __u32 oplock,
 		      unsigned int epoch, bool *purge_cache)
@@ -3351,7 +3360,7 @@ struct smb_version_operations smb21_operations = {
 	.print_stats = smb2_print_stats,
 	.is_oplock_break = smb2_is_valid_oplock_break,
 	.handle_cancelled_mid = smb2_handle_cancelled_mid,
-	.downgrade_oplock = smb2_downgrade_oplock,
+	.downgrade_oplock = smb21_downgrade_oplock,
 	.need_neg = smb2_need_neg,
 	.negotiate = smb2_negotiate,
 	.negotiate_wsize = smb2_negotiate_wsize,
@@ -3447,7 +3456,7 @@ struct smb_version_operations smb30_operations = {
 	.dump_share_caps = smb2_dump_share_caps,
 	.is_oplock_break = smb2_is_valid_oplock_break,
 	.handle_cancelled_mid = smb2_handle_cancelled_mid,
-	.downgrade_oplock = smb2_downgrade_oplock,
+	.downgrade_oplock = smb21_downgrade_oplock,
 	.need_neg = smb2_need_neg,
 	.negotiate = smb2_negotiate,
 	.negotiate_wsize = smb2_negotiate_wsize,
@@ -3551,7 +3560,7 @@ struct smb_version_operations smb311_operations = {
 	.dump_share_caps = smb2_dump_share_caps,
 	.is_oplock_break = smb2_is_valid_oplock_break,
 	.handle_cancelled_mid = smb2_handle_cancelled_mid,
-	.downgrade_oplock = smb2_downgrade_oplock,
+	.downgrade_oplock = smb21_downgrade_oplock,
 	.need_neg = smb2_need_neg,
 	.negotiate = smb2_negotiate,
 	.negotiate_wsize = smb2_negotiate_wsize,