diff --git a/src/initscripts/system/firewall b/src/initscripts/system/firewall
index 00512d9fa..409aaf7a9 100644
--- a/src/initscripts/system/firewall
+++ b/src/initscripts/system/firewall
@@ -219,10 +219,10 @@ iptables_init() {
 	iptables -A INPUT -j ICMPINPUT
 	iptables -A ICMPINPUT -p icmp --icmp-type 8 -j ACCEPT
 
-	# Accept everything on loopback
+	# Accept everything on loopback if both source and destination are within 127.0.0.0/8
 	iptables -N LOOPBACK
-	iptables -A LOOPBACK -i lo -j ACCEPT
-	iptables -A LOOPBACK -o lo -j ACCEPT
+	iptables -A LOOPBACK -i lo -s 127.0.0.0/8 -d 127.0.0.0/8 -j ACCEPT
+	iptables -A LOOPBACK -o lo -s 127.0.0.0/8 -d 127.0.0.0/8 -j ACCEPT
 
 	# Filter all packets with loopback addresses on non-loopback interfaces.
 	iptables -A LOOPBACK -s 127.0.0.0/8 -j DROP