diff --git a/drivers/net/bonding/bond_3ad.c b/drivers/net/bonding/bond_3ad.c
index f3f5825469d6..6a407070c2e8 100644
--- a/drivers/net/bonding/bond_3ad.c
+++ b/drivers/net/bonding/bond_3ad.c
@@ -2294,6 +2294,34 @@ void bond_3ad_handle_link_change(struct slave *slave, char link)
 	port->sm_vars |= AD_PORT_BEGIN;
 }
 
+/*
+ * set link state for bonding master: if we have an active partnered
+ * aggregator, we're up, if not, we're down.  Presumes that we cannot
+ * have an active aggregator if there are no slaves with link up.
+ *
+ * Called by bond_set_carrier(). Return zero if carrier state does not
+ * change, nonzero if it does.
+ */
+int bond_3ad_set_carrier(struct bonding *bond)
+{
+	struct aggregator *agg;
+
+	agg = __get_active_agg(&(SLAVE_AD_INFO(bond->first_slave).aggregator));
+	if (agg && MAC_ADDRESS_COMPARE(&agg->partner_system, &null_mac_addr)) {
+		if (!netif_carrier_ok(bond->dev)) {
+			netif_carrier_on(bond->dev);
+			return 1;
+		}
+		return 0;
+	}
+
+	if (netif_carrier_ok(bond->dev)) {
+		netif_carrier_off(bond->dev);
+		return 1;
+	}
+	return 0;
+}
+
 /**
  * bond_3ad_get_active_agg_info - get information of the active aggregator
  * @bond: bonding struct to work on
diff --git a/drivers/net/bonding/bond_3ad.h b/drivers/net/bonding/bond_3ad.h
index 5ee2cef5b037..6ad5ad6e65d5 100644
--- a/drivers/net/bonding/bond_3ad.h
+++ b/drivers/net/bonding/bond_3ad.h
@@ -283,5 +283,6 @@ void bond_3ad_handle_link_change(struct slave *slave, char link);
 int  bond_3ad_get_active_agg_info(struct bonding *bond, struct ad_info *ad_info);
 int bond_3ad_xmit_xor(struct sk_buff *skb, struct net_device *dev);
 int bond_3ad_lacpdu_recv(struct sk_buff *skb, struct net_device *dev, struct packet_type* ptype, struct net_device *orig_dev);
+int bond_3ad_set_carrier(struct bonding *bond);
 #endif //__BOND_3AD_H__
 
diff --git a/drivers/net/bonding/bond_main.c b/drivers/net/bonding/bond_main.c
index f13a539dc169..55d236726d11 100644
--- a/drivers/net/bonding/bond_main.c
+++ b/drivers/net/bonding/bond_main.c
@@ -558,6 +558,42 @@ out:
 
 /*------------------------------- Link status -------------------------------*/
 
+/*
+ * Set the carrier state for the master according to the state of its
+ * slaves.  If any slaves are up, the master is up.  In 802.3ad mode,
+ * do special 802.3ad magic.
+ *
+ * Returns zero if carrier state does not change, nonzero if it does.
+ */
+static int bond_set_carrier(struct bonding *bond)
+{
+	struct slave *slave;
+	int i;
+
+	if (bond->slave_cnt == 0)
+		goto down;
+
+	if (bond->params.mode == BOND_MODE_8023AD)
+		return bond_3ad_set_carrier(bond);
+
+	bond_for_each_slave(bond, slave, i) {
+		if (slave->link == BOND_LINK_UP) {
+			if (!netif_carrier_ok(bond->dev)) {
+				netif_carrier_on(bond->dev);
+				return 1;
+			}
+			return 0;
+		}
+	}
+
+down:
+	if (netif_carrier_ok(bond->dev)) {
+		netif_carrier_off(bond->dev);
+		return 1;
+	}
+	return 0;
+}
+
 /*
  * Get link speed and duplex from the slave's base driver
  * using ethtool. If for some reason the call fails or the
@@ -1074,10 +1110,24 @@ void bond_change_active_slave(struct bonding *bond, struct slave *new_active)
 void bond_select_active_slave(struct bonding *bond)
 {
 	struct slave *best_slave;
+	int rv;
 
 	best_slave = bond_find_best_slave(bond);
 	if (best_slave != bond->curr_active_slave) {
 		bond_change_active_slave(bond, best_slave);
+		rv = bond_set_carrier(bond);
+		if (!rv)
+			return;
+
+		if (netif_carrier_ok(bond->dev)) {
+			printk(KERN_INFO DRV_NAME
+			       ": %s: first active interface up!\n",
+			       bond->dev->name);
+		} else {
+			printk(KERN_INFO DRV_NAME ": %s: "
+			       "now running without any active interface !\n",
+			       bond->dev->name);
+		}
 	}
 }
 
@@ -1458,10 +1508,14 @@ int bond_enslave(struct net_device *bond_dev, struct net_device *slave_dev)
 		if (((!bond->curr_active_slave) ||
 		     (bond->curr_active_slave->dev->priv_flags & IFF_SLAVE_INACTIVE)) &&
 		    (new_slave->link != BOND_LINK_DOWN)) {
-			dprintk("This is the first active slave\n");
 			/* first slave or no active slave yet, and this link
 			   is OK, so make this interface the active one */
 			bond_change_active_slave(bond, new_slave);
+			printk(KERN_INFO DRV_NAME
+			       ": %s: first active interface up!\n",
+			       bond->dev->name);
+			netif_carrier_on(bond->dev);
+
 		} else {
 			dprintk("This is just a backup slave\n");
 			bond_set_slave_inactive_flags(new_slave);
@@ -1517,6 +1571,8 @@ int bond_enslave(struct net_device *bond_dev, struct net_device *slave_dev)
 		break;
 	} /* switch(bond_mode) */
 
+	bond_set_carrier(bond);
+
 	write_unlock_bh(&bond->lock);
 
 	res = bond_create_slave_symlinks(bond_dev, slave_dev);
@@ -1656,18 +1712,12 @@ int bond_release(struct net_device *bond_dev, struct net_device *slave_dev)
 		bond_alb_deinit_slave(bond, slave);
 	}
 
-	if (oldcurrent == slave) {
+	if (oldcurrent == slave)
 		bond_select_active_slave(bond);
 
-		if (!bond->curr_active_slave) {
-			printk(KERN_INFO DRV_NAME
-			       ": %s: now running without any active "
-			       "interface !\n",
-			       bond_dev->name);
-		}
-	}
-
 	if (bond->slave_cnt == 0) {
+		bond_set_carrier(bond);
+
 		/* if the last slave was removed, zero the mac address
 		 * of the master so it will be set by the application
 		 * to the mac address of the first slave
@@ -1751,6 +1801,8 @@ static int bond_release_all(struct net_device *bond_dev)
 
 	write_lock_bh(&bond->lock);
 
+	netif_carrier_off(bond_dev);
+
 	if (bond->slave_cnt == 0) {
 		goto out;
 	}
@@ -2187,15 +2239,9 @@ void bond_mii_monitor(struct net_device *bond_dev)
 
 		bond_select_active_slave(bond);
 
-		if (oldcurrent && !bond->curr_active_slave) {
-			printk(KERN_INFO DRV_NAME
-			       ": %s: now running without any active "
-			       "interface !\n",
-			       bond_dev->name);
-		}
-
 		write_unlock(&bond->curr_slave_lock);
-	}
+	} else
+		bond_set_carrier(bond);
 
 re_arm:
 	if (bond->params.miimon) {
@@ -2499,13 +2545,6 @@ void bond_loadbalance_arp_mon(struct net_device *bond_dev)
 
 		bond_select_active_slave(bond);
 
-		if (oldcurrent && !bond->curr_active_slave) {
-			printk(KERN_INFO DRV_NAME
-			       ": %s: now running without any active "
-			       "interface !\n",
-			       bond_dev->name);
-		}
-
 		write_unlock(&bond->curr_slave_lock);
 	}
 
@@ -2579,12 +2618,15 @@ void bond_activebackup_arp_mon(struct net_device *bond_dev)
 					bond->current_arp_slave = NULL;
 				}
 
+				bond_set_carrier(bond);
+
 				if (slave == bond->curr_active_slave) {
 					printk(KERN_INFO DRV_NAME
 					       ": %s: %s is up and now the "
 					       "active interface\n",
 					       bond_dev->name,
 					       slave->dev->name);
+					netif_carrier_on(bond->dev);
 				} else {
 					printk(KERN_INFO DRV_NAME
 					       ": %s: backup interface %s is "
@@ -2844,7 +2886,8 @@ static void bond_info_show_master(struct seq_file *seq)
 			   (curr) ? curr->dev->name : "None");
 	}
 
-	seq_printf(seq, "MII Status: %s\n", (curr) ? "up" : "down");
+	seq_printf(seq, "MII Status: %s\n", netif_carrier_ok(bond->dev) ?
+		   "up" : "down");
 	seq_printf(seq, "MII Polling Interval (ms): %d\n", bond->params.miimon);
 	seq_printf(seq, "Up Delay (ms): %d\n",
 		   bond->params.updelay * bond->params.miimon);
@@ -4531,6 +4574,8 @@ int bond_create(char *name, struct bond_params *params, struct bonding **newbond
 	if (newbond)
 		*newbond = bond_dev->priv;
 
+	netif_carrier_off(bond_dev);
+
 	rtnl_unlock(); /* allows sysfs registration of net device */
 	res = bond_create_sysfs_entry(bond_dev->priv);
 	goto done;
diff --git a/drivers/net/bonding/bonding.h b/drivers/net/bonding/bonding.h
index ce9dc9b4e2dc..0bdfe2c71453 100644
--- a/drivers/net/bonding/bonding.h
+++ b/drivers/net/bonding/bonding.h
@@ -22,8 +22,8 @@
 #include "bond_3ad.h"
 #include "bond_alb.h"
 
-#define DRV_VERSION	"3.0.2"
-#define DRV_RELDATE	"February 21, 2006"
+#define DRV_VERSION	"3.0.3"
+#define DRV_RELDATE	"March 23, 2006"
 #define DRV_NAME	"bonding"
 #define DRV_DESCRIPTION	"Ethernet Channel Bonding Driver"