diff --git a/src/devices/machine/z80dma.cpp b/src/devices/machine/z80dma.cpp
index e99f71e8c..78b35f89d 100644
--- a/src/devices/machine/z80dma.cpp
+++ b/src/devices/machine/z80dma.cpp
@@ -184,7 +184,7 @@ void z80dma_device::device_reset()
 	m_timer->reset();
 
 	m_status = 0;
-	m_dma_seq = ~0;
+	m_dma_seq = SEQ_IDLE;
 	m_rdy = 0;
 	m_force_ready = 0;
 	m_wait = 0;
@@ -298,6 +298,8 @@ void z80dma_device::disable()
 	{
 		set_busrq(CLEAR_LINE);
 	}
+	m_dma_seq = SEQ_IDLE;
+	LOGDMA("IDLE\n");
 }
 
 void z80dma_device::update_bao()
@@ -607,6 +609,7 @@ TIMER_CALLBACK_MEMBER(z80dma_device::clock_w)
 		}
 		break;
 
+	case SEQ_IDLE:
 	default:
 		break;
 	}
@@ -919,6 +922,9 @@ void z80dma_device::bai_w(int state)
 {
 	m_busrq_ack = state;
 	update_bao();
+
+	if (m_busrq_ack && m_dma_seq == SEQ_IDLE)
+		set_busrq(CLEAR_LINE);
 }
 
 
diff --git a/src/devices/machine/z80dma.h b/src/devices/machine/z80dma.h
index 657cc6f36..cf3eca50d 100644
--- a/src/devices/machine/z80dma.h
+++ b/src/devices/machine/z80dma.h
@@ -93,7 +93,8 @@ protected:
 
 	enum
 	{
-		SEQ_WAIT_READY = 0,
+		SEQ_IDLE = 0,
+		SEQ_WAIT_READY,
 		SEQ_REQUEST_BUS,
 		SEQ_WAITING_ACK,
 		SEQ_TRANS1_INC_DEC_SOURCE_ADDRESS,
diff --git a/src/mame/sinclair/next/specnext.cpp b/src/mame/sinclair/next/specnext.cpp
index a4073eaef..b3cf0d7fb 100644
--- a/src/mame/sinclair/next/specnext.cpp
+++ b/src/mame/sinclair/next/specnext.cpp
@@ -1523,6 +1523,8 @@ void specnext_state::update_dma_delay()
 	const u16 dma_int_mask = (m_nr_cc_dma_int_en_0_7 << INT_PRIORITY_NMI) | ((m_nr_cc_dma_int_en_0_10 & 1) << INT_PRIORITY_ULA)
 		| (m_nr_cd_dma_int_en_1 << INT_PRIORITY_CTC) | ((m_nr_cc_dma_int_en_0_10 >> 1) << INT_PRIORITY_LINE);
 	m_dma->dma_delay_w((m_nr_c0_int_mode_pulse_0_im2_1 && (dma_int_mask & m_im2_int_status)) ? 1 : 0);
+	if (m_nr_c0_int_mode_pulse_0_im2_1)
+		LOGINTVVV("DMA delay %d (int_status=%04x, int_mask=%04x)\n", (dma_int_mask & m_im2_int_status) ? 1 : 0, m_im2_int_status, dma_int_mask);
 }
 
 u8 specnext_state::reg_r(offs_t nr_register)
@@ -2714,19 +2716,44 @@ void specnext_state::irq_w(int state)
 {
 	m_maincpu->set_input_line(INPUT_LINE_IRQ0, state);
 
+	const std::array<int, 10> states =
+	{
+		m_im2_line->z80daisy_irq_state(),
+		m_im2_uart0_rx->z80daisy_irq_state(),
+		m_im2_uart1_rx->z80daisy_irq_state(),
+		m_ctc->z80daisy_chanel_irq_state(0),
+		m_ctc->z80daisy_chanel_irq_state(1),
+		m_ctc->z80daisy_chanel_irq_state(2),
+		m_ctc->z80daisy_chanel_irq_state(3),
+		m_im2_ula->z80daisy_irq_state(),
+		m_im2_uart0_tx->z80daisy_irq_state(),
+		m_im2_uart1_tx->z80daisy_irq_state()
+	};
+
+	const std::array<u16, 10> masks =
+	{
+		1 << INT_PRIORITY_LINE,
+		1 << INT_PRIORITY_UART0_RX,
+		1 << INT_PRIORITY_UART1_RX,
+		1 << (INT_PRIORITY_CTC + 0),
+		1 << (INT_PRIORITY_CTC + 1),
+		1 << (INT_PRIORITY_CTC + 2),
+		1 << (INT_PRIORITY_CTC + 3),
+		1 << INT_PRIORITY_ULA,
+		1 << INT_PRIORITY_UART0_TX,
+		1 << INT_PRIORITY_UART1_TX
+	};
+
 	const int tmp = m_im2_int_status;
-	m_im2_int_status &= 1 << INT_PRIORITY_NMI;
-	m_im2_int_status |= ((m_im2_uart0_tx->z80daisy_irq_state() & Z80_DAISY_IEO) != 0) << INT_PRIORITY_UART0_TX;
-	m_im2_int_status |= ((m_im2_uart1_tx->z80daisy_irq_state() & Z80_DAISY_IEO) != 0) << INT_PRIORITY_UART1_TX;
-	m_im2_int_status |= ((m_im2_ula->z80daisy_irq_state() & Z80_DAISY_IEO) != 0) << INT_PRIORITY_ULA;
-	m_im2_int_status |= ((m_ctc->z80daisy_chanel_irq_state(3) & Z80_DAISY_IEO) != 0) << (INT_PRIORITY_CTC + 3);
-	m_im2_int_status |= ((m_ctc->z80daisy_chanel_irq_state(2) & Z80_DAISY_IEO) != 0) << (INT_PRIORITY_CTC + 2);
-	m_im2_int_status |= ((m_ctc->z80daisy_chanel_irq_state(1) & Z80_DAISY_IEO) != 0) << (INT_PRIORITY_CTC + 1);
-	m_im2_int_status |= ((m_ctc->z80daisy_chanel_irq_state(0) & Z80_DAISY_IEO) != 0) << (INT_PRIORITY_CTC + 0);
-	m_im2_int_status |= ((m_im2_uart0_rx->z80daisy_irq_state() & Z80_DAISY_IEO) != 0) << INT_PRIORITY_UART0_RX;
-	m_im2_int_status |= ((m_im2_uart1_rx->z80daisy_irq_state() & Z80_DAISY_IEO) != 0) << INT_PRIORITY_UART1_RX;
-	m_im2_int_status |= ((m_im2_line->z80daisy_irq_state() & Z80_DAISY_IEO) != 0) << INT_PRIORITY_LINE;
-	LOGINTVVV("IRQ%s: %04x -> %04x\n", state ? "+" : "-", tmp, m_im2_int_status);
+	m_im2_int_status = 0;
+	for(int i = 0; i < states.size(); ++i)
+	{
+		m_im2_int_status |= (states[i] & Z80_DAISY_IEO) ? masks[i] : 0;
+		if ((states[i] & Z80_DAISY_INT) && !m_im2_int_status) // only highest priority IRQ
+			m_im2_int_status |= masks[i];
+	}
+	m_im2_int_status |= tmp & (1 << INT_PRIORITY_NMI);
+	LOGINTVVV("IRQs: %s %04x -> %04x\n", state ? "+" : "-", tmp, m_im2_int_status);
 
 	update_dma_delay();
 }
diff --git a/src/mame/sinclair/next/specnext_dma.cpp b/src/mame/sinclair/next/specnext_dma.cpp
index dd1ed0dfb..3f6b0aea8 100644
--- a/src/mame/sinclair/next/specnext_dma.cpp
+++ b/src/mame/sinclair/next/specnext_dma.cpp
@@ -42,6 +42,16 @@ specnext_dma_device::specnext_dma_device(const machine_config &mconfig, const ch
 {
 }
 
+void specnext_dma_device::dma_delay_w(bool dma_delay)
+{
+	if (m_dma_delay && !dma_delay && (m_dma_seq == SEQ_WAIT_READY))
+	{
+		set_busrq(ASSERT_LINE);
+		m_dma_seq = SEQ_WAITING_ACK;
+	}
+	m_dma_delay = dma_delay;
+}
+
 void specnext_dma_device::reset_byte_counter()
 {
 	m_byte_counter = m_dma_mode ? 0 : 1;
@@ -97,8 +107,8 @@ TIMER_CALLBACK_MEMBER(specnext_dma_device::clock_w)
 			{
 				set_busrq(CLEAR_LINE);
 				m_dma_seq = SEQ_WAIT_READY;
-				return;
 			}
+			return;
 		}
 	}
 
diff --git a/src/mame/sinclair/next/specnext_dma.h b/src/mame/sinclair/next/specnext_dma.h
index cf1f3e996..c7553d549 100644
--- a/src/mame/sinclair/next/specnext_dma.h
+++ b/src/mame/sinclair/next/specnext_dma.h
@@ -13,7 +13,7 @@ public:
 	specnext_dma_device(const machine_config &mconfig, const char *tag, device_t *owner, u32 clock);
 
 	void dma_mode_w(bool dma_mode) { m_dma_mode = dma_mode; }
-	void dma_delay_w(bool dma_delay) { m_dma_delay = dma_delay; }
+	void dma_delay_w(bool dma_delay);
 
 	virtual void write(u8 data) override;
 
diff --git a/src/mame/sinclair/next/specnext_im2.cpp b/src/mame/sinclair/next/specnext_im2.cpp
index b4c385c6c..368584d4d 100644
--- a/src/mame/sinclair/next/specnext_im2.cpp
+++ b/src/mame/sinclair/next/specnext_im2.cpp
@@ -8,6 +8,10 @@
 #include "specnext_im2.h"
 
 
+#define VERBOSE     0
+#include "logmacro.h"
+
+
 // device type definition
 DEFINE_DEVICE_TYPE(SPECNEXT_IM2, specnext_im2_device, "specnext_im2", "Spectrum Next IM2")
 
@@ -35,17 +39,34 @@ int specnext_im2_device::z80daisy_irq_ack()
 
 void specnext_im2_device::z80daisy_irq_reti()
 {
-	m_state = 0;
-	m_irq_cb(CLEAR_LINE);
+	if (m_state & Z80_DAISY_IEO)
+	{
+		m_state &= ~Z80_DAISY_IEO;
+		m_irq_cb((m_state & Z80_DAISY_INT) ? ASSERT_LINE : CLEAR_LINE);
+	}
 }
 
 void specnext_im2_device::irq_w(int state)
 {
-	if (state != CLEAR_LINE)
-		m_state = Z80_DAISY_INT;
+	if (state == CLEAR_LINE)
+	{
+		m_state = 0;
+		m_irq_cb(CLEAR_LINE);
+	}
+	else if (m_state & Z80_DAISY_IEO)
+	{
+		LOG("IM2: Ignoring IRQ while in IEO\n");
+	}
 	else
-		m_state &= ~Z80_DAISY_INT;
-	m_irq_cb(state);
+	{
+		// FPGA im2_device in S_ISR cannot transition to S_REQ;
+		// don't assert INT while being serviced (IEO set), or
+		// the daisy chain would ACK this device, consuming the
+		// new INT, and a subsequent RETI would clear IEO while
+		// the original ISR still runs.
+		m_state |= Z80_DAISY_INT;
+		m_irq_cb(ASSERT_LINE);
+	}
 }