diff --git a/lib/handshake.js b/lib/handshake.js
index 9fbb623..254837b 100644
--- a/lib/handshake.js
+++ b/lib/handshake.js
@@ -90,7 +90,7 @@ function readScreens(bl, display, cbDisplayReady)
                  if (display.screen.length == display.screen_num)
                  {
                      delete display.screen_num;
-                     cbDisplayReady(display);
+                     cbDisplayReady(null, display);
                      return;
                  } else {
                      readScreens(bl, display, cbDisplayReady);
diff --git a/lib/xcore.js b/lib/xcore.js
index 5c68b1c..519c665 100644
--- a/lib/xcore.js
+++ b/lib/xcore.js
@@ -531,10 +531,12 @@ XClient.prototype.startHandshake = function() {
     var client = this;
 
     handshake.writeClientHello(this.pack_stream, this.displayNum, this.authHost, this.authFamily);
-    handshake.readServerHello(this.pack_stream, function(display)
+    handshake.readServerHello(this.pack_stream, function(err, display)
     {
-        // TODO: readServerHello can set error state in display
-        // emit error in that case
+        if (err) {
+            client.emit('error', err);
+            return;
+        }
         client.expectReplyHeader();
         client.display = display;
         display.client = client;