diff --git a/meson.build b/meson.build
index f588862c2..114148c1b 100644
--- a/meson.build
+++ b/meson.build
@@ -785,6 +785,7 @@ if get_option('tests')
 		'test/litest-device-dell-canvas-totem.c',
 		'test/litest-device-dell-canvas-totem-touch.c',
 		'test/litest-device-elantech-touchpad.c',
+		'test/litest-device-elan-tablet.c',
 		'test/litest-device-generic-singletouch.c',
 		'test/litest-device-gpio-keys.c',
 		'test/litest-device-huion-pentablet.c',
diff --git a/src/evdev-tablet.c b/src/evdev-tablet.c
index 67880d037..e152065ec 100644
--- a/src/evdev-tablet.c
+++ b/src/evdev-tablet.c
@@ -1755,8 +1755,8 @@ tablet_update_tool_state(struct tablet_dispatch *tablet,
 	 */
 	if (tablet_has_status(tablet, TABLET_AXES_UPDATED)) {
 		if (tablet->quirks.proximity_out_forced) {
-			if (!tablet_has_status(tablet, TABLET_TOOL_UPDATED) ||
-			    tablet->tool_state)
+			if (!tablet_has_status(tablet, TABLET_TOOL_UPDATED)  &&
+			    !tablet->tool_state)
 				tablet->tool_state = bit(LIBINPUT_TABLET_TOOL_TYPE_PEN);
 			tablet->quirks.proximity_out_forced = false;
 		} else if (tablet->tool_state == 0 &&
diff --git a/test/litest-device-elan-tablet.c b/test/litest-device-elan-tablet.c
new file mode 100644
index 000000000..7b8e70227
--- /dev/null
+++ b/test/litest-device-elan-tablet.c
@@ -0,0 +1,103 @@
+/*
+ * Copyright © 2020 Red Hat, Inc.
+ *
+ * Permission is hereby granted, free of charge, to any person obtaining a
+ * copy of this software and associated documentation files (the "Software"),
+ * to deal in the Software without restriction, including without limitation
+ * the rights to use, copy, modify, merge, publish, distribute, sublicense,
+ * and/or sell copies of the Software, and to permit persons to whom the
+ * Software is furnished to do so, subject to the following conditions:
+ *
+ * The above copyright notice and this permission notice (including the next
+ * paragraph) shall be included in all copies or substantial portions of the
+ * Software.
+ *
+ * THE SOFTWARE IS PROVIDED "AS IS", WITHOUT WARRANTY OF ANY KIND, EXPRESS OR
+ * IMPLIED, INCLUDING BUT NOT LIMITED TO THE WARRANTIES OF MERCHANTABILITY,
+ * FITNESS FOR A PARTICULAR PURPOSE AND NONINFRINGEMENT.  IN NO EVENT SHALL
+ * THE AUTHORS OR COPYRIGHT HOLDERS BE LIABLE FOR ANY CLAIM, DAMAGES OR OTHER
+ * LIABILITY, WHETHER IN AN ACTION OF CONTRACT, TORT OR OTHERWISE, ARISING
+ * FROM, OUT OF OR IN CONNECTION WITH THE SOFTWARE OR THE USE OR OTHER
+ * DEALINGS IN THE SOFTWARE.
+ */
+
+#include "config.h"
+
+#include "litest.h"
+#include "litest-int.h"
+
+static struct input_event proximity_in[] = {
+	{ .type = EV_ABS, .code = ABS_X, .value = LITEST_AUTO_ASSIGN },
+	{ .type = EV_ABS, .code = ABS_Y, .value = LITEST_AUTO_ASSIGN },
+	{ .type = EV_ABS, .code = ABS_PRESSURE, .value = LITEST_AUTO_ASSIGN },
+	{ .type = EV_KEY, .code = BTN_TOOL_PEN, .value = 1 },
+	{ .type = EV_SYN, .code = SYN_REPORT, .value = 0 },
+	{ .type = -1, .code = -1 },
+};
+
+static struct input_event proximity_out[] = {
+	{ .type = EV_KEY, .code = BTN_TOOL_PEN, .value = 0 },
+	{ .type = EV_SYN, .code = SYN_REPORT, .value = 0 },
+	{ .type = -1, .code = -1 },
+};
+
+static struct input_event motion[] = {
+	{ .type = EV_ABS, .code = ABS_X, .value = LITEST_AUTO_ASSIGN },
+	{ .type = EV_ABS, .code = ABS_Y, .value = LITEST_AUTO_ASSIGN },
+	{ .type = EV_ABS, .code = ABS_PRESSURE, .value = LITEST_AUTO_ASSIGN },
+	{ .type = EV_SYN, .code = SYN_REPORT, .value = 0 },
+	{ .type = -1, .code = -1 },
+};
+
+static int
+get_axis_default(struct litest_device *d, unsigned int evcode, int32_t *value)
+{
+	switch (evcode) {
+	case ABS_PRESSURE:
+		*value = 100;
+		return 0;
+	}
+	return 1;
+}
+
+static struct litest_device_interface interface = {
+	.tablet_proximity_in_events = proximity_in,
+	.tablet_proximity_out_events = proximity_out,
+	.tablet_motion_events = motion,
+
+	.get_axis_default = get_axis_default,
+};
+
+static struct input_absinfo absinfo[] = {
+	{ ABS_X, 0, 18176, 0, 0, 62 },
+	{ ABS_Y, 0, 10240, 0, 0, 62 },
+	{ ABS_PRESSURE, 0, 4096, 0, 0, 0 },
+	{ .value = -1 },
+};
+
+static struct input_id input_id = {
+	.bustype = 0x18,
+	.vendor = 0x4f3,
+	.product = 0x23b9,
+	.version = 0x100,
+};
+
+static int events[] = {
+	EV_KEY, BTN_TOOL_PEN,
+	EV_KEY, BTN_TOOL_RUBBER,
+	EV_KEY, BTN_TOUCH,
+	EV_KEY, BTN_STYLUS,
+	EV_MSC, MSC_SCAN,
+	-1, -1,
+};
+
+TEST_DEVICE("elan-tablet",
+	.type = LITEST_ELAN_TABLET,
+	.features = LITEST_TABLET,
+	.interface = &interface,
+
+	.name = "ELAN2514:00 04F3:23B9",
+	.id = &input_id,
+	.events = events,
+	.absinfo = absinfo,
+)
diff --git a/test/litest.h b/test/litest.h
index ab2633bc5..e145f3a84 100644
--- a/test/litest.h
+++ b/test/litest.h
@@ -301,6 +301,7 @@ enum litest_device_type {
 	LITEST_DELL_CANVAS_TOTEM_TOUCH,
 	LITEST_WACOM_ISDV4_4200_PEN,
 	LITEST_ALPS_3FG,
+	LITEST_ELAN_TABLET,
 };
 
 #define LITEST_DEVICELESS	-2
diff --git a/test/test-tablet.c b/test/test-tablet.c
index 340615c4d..13d7ce20a 100644
--- a/test/test-tablet.c
+++ b/test/test-tablet.c
@@ -2954,6 +2954,84 @@ START_TEST(tool_direct_switch_skip_tool_update)
 }
 END_TEST
 
+START_TEST(tool_direct_switch_with_forced_proxout)
+{
+	struct litest_device *dev = litest_current_device();
+	struct libinput *li = dev->libinput;
+	struct libinput_event *event;
+	struct axis_replacement axes[] = {
+		{ ABS_DISTANCE, 10 },
+		{ ABS_PRESSURE, 0 },
+		{ -1, -1 }
+	};
+
+	if (!libevdev_has_event_code(dev->evdev, EV_KEY, BTN_TOOL_RUBBER))
+		return;
+
+	litest_drain_events(li);
+
+	/* This is a *very* specific event sequence to trigger a bug:
+	   - pen proximity in
+	   - pen proximity forced out
+	   - eraser proximity in without axis movement
+	   - eraser axis move
+	 */
+
+	/* pen prox in */
+	litest_tablet_proximity_in(dev, 10, 10, axes);
+	libinput_dispatch(li);
+	event = libinput_get_event(li);
+	litest_is_proximity_event(event,
+				  LIBINPUT_TABLET_TOOL_PROXIMITY_STATE_IN);
+	libinput_event_destroy(event);
+
+	/* pen motion */
+	litest_tablet_motion(dev, 20, 30, axes);
+	libinput_dispatch(li);
+
+	event = libinput_get_event(li);
+	litest_is_tablet_event(event, LIBINPUT_EVENT_TABLET_TOOL_AXIS);
+	libinput_event_destroy(event);
+
+	/* pen forced prox out */
+	litest_timeout_tablet_proxout();
+	libinput_dispatch(li);
+
+	/* actual prox out for tablets that don't do forced prox out */
+	litest_tablet_proximity_out(dev);
+	libinput_dispatch(li);
+
+	event = libinput_get_event(li);
+	litest_is_proximity_event(event,
+				  LIBINPUT_TABLET_TOOL_PROXIMITY_STATE_OUT);
+	libinput_event_destroy(event);
+
+	/* eraser prox in without axes */
+	litest_event(dev, EV_KEY, BTN_TOOL_RUBBER, 1);
+	litest_event(dev, EV_SYN, SYN_REPORT, 0);
+	libinput_dispatch(li);
+	event = libinput_get_event(li);
+	litest_is_proximity_event(event,
+				  LIBINPUT_TABLET_TOOL_PROXIMITY_STATE_IN);
+	libinput_event_destroy(event);
+
+	/* eraser motion */
+	litest_tablet_motion(dev, 30, 40, axes);
+	litest_tablet_motion(dev, 40, 50, axes);
+	libinput_dispatch(li);
+
+	event = libinput_get_event(li);
+	litest_is_tablet_event(event, LIBINPUT_EVENT_TABLET_TOOL_AXIS);
+	libinput_event_destroy(event);
+
+	event = libinput_get_event(li);
+	litest_is_tablet_event(event, LIBINPUT_EVENT_TABLET_TOOL_AXIS);
+	libinput_event_destroy(event);
+
+	litest_assert_empty_queue(li);
+}
+END_TEST
+
 START_TEST(mouse_tool)
 {
 	struct litest_device *dev = litest_current_device();
@@ -5756,6 +5834,7 @@ TEST_COLLECTION(tablet)
 	litest_add("tablet:tool", tool_type, LITEST_TABLET, LITEST_ANY);
 	litest_add("tablet:tool", tool_in_prox_before_start, LITEST_TABLET, LITEST_TOTEM);
 	litest_add("tablet:tool", tool_direct_switch_skip_tool_update, LITEST_TABLET, LITEST_ANY);
+	litest_add("tablet:tool", tool_direct_switch_with_forced_proxout, LITEST_TABLET, LITEST_ANY);
 
 	/* Tablets hold back the proximity until the first event from the
 	 * kernel, the totem sends it immediately */