diff --git a/XS.xs b/XS.xs
index 3c32e50..419e07e 100644
--- a/XS.xs
+++ b/XS.xs
@@ -4499,12 +4499,14 @@ decode_json (pTHX_ SV *string, JSON *json, STRLEN *offset_return, SV *typesv)
 #endif
       croak ("%s, at character offset %d (before \"%s\")",
              dec.err,
-             (int)ptr_to_index (aTHX_ string, dec.cur-SvPVX(string)),
+             (int)ptr_to_index (aTHX_ string, dec.cur - SvPVX(string)),
              dec.cur != dec.end ? SvPV_nolen (uni) : "(end of string)");
     }
 
-  if (!(dec.json.flags & F_ALLOW_NONREF) && json_nonref(aTHX_ sv))
+  if (!(dec.json.flags & F_ALLOW_NONREF) && json_nonref(aTHX_ sv)) {
+    SvREFCNT_dec (sv);
     croak ("JSON text must be an object or array (but found number, string, true, false or null, use allow_nonref to allow this)");
+  }
 
   if (UNLIKELY(converted && !(converted - 1))) /* with BOM, and UTF8 was not set */
     json->flags &= ~F_UTF8;
diff --git a/xt/leaktrace.t b/xt/leaktrace.t
index dba9d6b..7a35746 100644
--- a/xt/leaktrace.t
+++ b/xt/leaktrace.t
@@ -4,7 +4,7 @@
 
 use strict;
 use constant HAS_LEAKTRACE => eval{ require Test::LeakTrace };
-use Test::More HAS_LEAKTRACE ? (tests => 1) : (skip_all => 'require Test::LeakTrace');
+use Test::More HAS_LEAKTRACE ? (tests => 4) : (skip_all => 'require Test::LeakTrace');
 use Test::LeakTrace;
 
 use Cpanel::JSON::XS;
@@ -22,3 +22,23 @@ leaks_cmp_ok{
   $js->encode ( bless { k => 1 }, Temp1:: );
 
 } '<', 1;
+
+# leak on allow_nonref croak, GH 206
+leaks_cmp_ok{
+    eval { decode_json('"asdf"') };
+    #print $@;
+}  '<', 1;
+
+# illegal unicode croak
+leaks_cmp_ok{
+    eval { decode_json("{\"\x{c2}\x{c2}\"}") };
+    #print $@;
+}  '<', 1;
+
+# wrong type croak
+leaks_cmp_ok{
+    use Cpanel::JSON::XS::Type;
+    my $js = Cpanel::JSON::XS->new->canonical->require_types;
+    eval { $js->encode([0], JSON_TYPE_FLOAT) };
+    #print $@;
+}  '<', 1;