diff --git a/ChangeLog b/ChangeLog
index ccc77e0def..f8e8cbb9cc 100644
--- a/ChangeLog
+++ b/ChangeLog
@@ -1,3 +1,14 @@
+2006-04-06  Robert Love  <rml@novell.com>
+
+	Fix bad but simple bug where an active modem connection did not update
+	NM's connection state, breaking any app that did online/offline:
+	* src/NetworkManagerMain.h: Add 'modem_active' member to NMData,
+	  represented whether a dial up connection is active, or not.
+	* src/nm-dbus-nm.c: Set and unset 'modem_active' in response
+	  to modem activation and deactivation.
+	* src/NetworkManagerDbus.c: When asked our state, do not return
+	  disconnected if the modem is active.
+
 2006-04-04  Robert Love  <rml@novell.com>
 
 	* gnome/applet/applet.c: Remove the 'Remove' option that I added to the
diff --git a/src/NetworkManagerDbus.c b/src/NetworkManagerDbus.c
index 1ba3888a56..c00f932721 100644
--- a/src/NetworkManagerDbus.c
+++ b/src/NetworkManagerDbus.c
@@ -302,7 +302,7 @@ NMState nm_get_app_state_from_data (NMData *data)
 		return NM_STATE_ASLEEP;
 
 	act_dev = nm_get_active_device (data);
-	if (!act_dev)
+	if (!act_dev && !data->modem_active)
 		return NM_STATE_DISCONNECTED;
 
 	if (nm_device_is_activating (act_dev))
diff --git a/src/NetworkManagerMain.h b/src/NetworkManagerMain.h
index c4cf9a1b29..24b703a241 100644
--- a/src/NetworkManagerMain.h
+++ b/src/NetworkManagerMain.h
@@ -83,6 +83,7 @@ typedef struct NMData
 	GMutex *				dev_list_mutex;
 
 	gboolean				wireless_enabled;
+	gboolean				modem_active;
 	gboolean				asleep;
 
 	GSList *				dialup_list;
diff --git a/src/nm-dbus-nm.c b/src/nm-dbus-nm.c
index ce6c4aaa0f..017e12f0ac 100644
--- a/src/nm-dbus-nm.c
+++ b/src/nm-dbus-nm.c
@@ -170,6 +170,8 @@ static DBusMessage *nm_dbus_nm_activate_dialup (DBusConnection *connection, DBus
 	if (!nm_system_activate_dialup (nm_data->dialup_list, dialup))
 		reply = nm_dbus_create_error_message (message, NM_DBUS_INTERFACE, "ActivationFailed",
 									   "Failed to activate the dialup device.");
+	else
+		nm_data->modem_active = TRUE;
 	nm_unlock_mutex (nm_data->dialup_list_mutex, __FUNCTION__);
 
 out:
@@ -203,6 +205,8 @@ static DBusMessage *nm_dbus_nm_deactivate_dialup (DBusConnection *connection, DB
 	if (!nm_system_deactivate_dialup (nm_data->dialup_list, dialup))
 		reply = nm_dbus_create_error_message (message, NM_DBUS_INTERFACE, "DeactivationFailed",
 									   "Failed to deactivate the dialup device.");
+	else
+		nm_data->modem_active = FALSE;
 	nm_unlock_mutex (nm_data->dialup_list_mutex, __FUNCTION__);
 
 out:
@@ -560,6 +564,7 @@ static DBusMessage *nm_dbus_nm_sleep (DBusConnection *connection, DBusMessage *m
 
 		nm_lock_mutex (app_data->dialup_list_mutex, __FUNCTION__);
 		nm_system_deactivate_all_dialup (app_data->dialup_list);
+		app_data->modem_active = FALSE;
 		nm_unlock_mutex (app_data->dialup_list_mutex, __FUNCTION__);
 	}