diff --git a/modules/audio_coding/neteq/decision_logic_unittest.cc b/modules/audio_coding/neteq/decision_logic_unittest.cc
index e54c213..ebc24d4 100644
--- a/modules/audio_coding/neteq/decision_logic_unittest.cc
+++ b/modules/audio_coding/neteq/decision_logic_unittest.cc
@@ -31,7 +31,7 @@
   TickTimer tick_timer;
   PacketBuffer packet_buffer(10, &tick_timer);
   DelayPeakDetector delay_peak_detector(&tick_timer, false);
-  DelayManager delay_manager(240, 0, &delay_peak_detector, &tick_timer);
+  DelayManager delay_manager(240, 0, false, &delay_peak_detector, &tick_timer);
   BufferLevelFilter buffer_level_filter;
   DecisionLogic* logic = DecisionLogic::Create(
       fs_hz, output_size_samples, false, &decoder_database, packet_buffer,
@@ -48,7 +48,7 @@
   TickTimer tick_timer;
   PacketBuffer packet_buffer(10, &tick_timer);
   DelayPeakDetector delay_peak_detector(&tick_timer, false);
-  DelayManager delay_manager(240, 0, &delay_peak_detector, &tick_timer);
+  DelayManager delay_manager(240, 0, false, &delay_peak_detector, &tick_timer);
   BufferLevelFilter buffer_level_filter;
   {
     test::ScopedFieldTrials field_trial(
diff --git a/modules/audio_coding/neteq/delay_manager.cc b/modules/audio_coding/neteq/delay_manager.cc
index 4ca545d1..c97d535 100644
--- a/modules/audio_coding/neteq/delay_manager.cc
+++ b/modules/audio_coding/neteq/delay_manager.cc
@@ -34,6 +34,8 @@
 // Steady-state forgetting factor for |iat_vector_|, 0.9993 in Q15.
 constexpr int kIatFactor_ = 32745;
 constexpr int kMaxIat = 64;  // Max inter-arrival time to register.
+constexpr int kMaxReorderedPackets =
+    10;  // Max number of consecutive reordered packets.
 
 absl::optional<int> GetForcedLimitProbability() {
   constexpr char kForceTargetDelayPercentileFieldTrial[] =
@@ -63,6 +65,7 @@
 
 DelayManager::DelayManager(size_t max_packets_in_buffer,
                            int base_min_target_delay_ms,
+                           bool enable_rtx_handling,
                            DelayPeakDetector* peak_detector,
                            const TickTimer* tick_timer)
     : first_packet_received_(false),
@@ -85,7 +88,8 @@
       last_pack_cng_or_dtmf_(1),
       frame_length_change_experiment_(
           field_trial::IsEnabled("WebRTC-Audio-NetEqFramelengthExperiment")),
-      forced_limit_probability_(GetForcedLimitProbability()) {
+      forced_limit_probability_(GetForcedLimitProbability()),
+      enable_rtx_handling_(enable_rtx_handling) {
   assert(peak_detector);  // Should never be NULL.
   RTC_DCHECK_GE(base_min_target_delay_ms_, 0);
   RTC_DCHECK_LE(minimum_delay_ms_, maximum_delay_ms_);
@@ -146,6 +150,7 @@
         rtc::saturated_cast<int>(1000 * packet_len_samp / sample_rate_hz);
   }
 
+  bool reordered = false;
   if (packet_len_ms > 0) {
     // Cannot update statistics unless |packet_len_ms| is valid.
     // Calculate inter-arrival time (IAT) in integer "packet times"
@@ -158,7 +163,6 @@
     }
 
     // Check for discontinuous packet sequence and re-ordering.
-    bool reordered = false;
     if (IsNewerSequenceNumber(sequence_number, last_seq_no_ + 1)) {
       // Compensate for gap in the sequence numbers. Reduce IAT with the
       // expected extra time due to lost packets, but ensure that the IAT is
@@ -183,6 +187,12 @@
     LimitTargetLevel();
   }  // End if (packet_len_ms > 0).
 
+  if (enable_rtx_handling_ && reordered &&
+      num_reordered_packets_ < kMaxReorderedPackets) {
+    ++num_reordered_packets_;
+    return 0;
+  }
+  num_reordered_packets_ = 0;
   // Prepare for next packet arrival.
   packet_iat_stopwatch_ = tick_timer_->GetNewStopwatch();
   last_seq_no_ = sequence_number;
diff --git a/modules/audio_coding/neteq/delay_manager.h b/modules/audio_coding/neteq/delay_manager.h
index 8eee49c..652a773 100644
--- a/modules/audio_coding/neteq/delay_manager.h
+++ b/modules/audio_coding/neteq/delay_manager.h
@@ -36,6 +36,7 @@
   // PeakDetector object to the DelayManager.
   DelayManager(size_t max_packets_in_buffer,
                int base_min_target_delay_ms,
+               bool enable_rtx_handling,
                DelayPeakDetector* peak_detector,
                const TickTimer* tick_timer);
 
@@ -177,6 +178,8 @@
   int last_pack_cng_or_dtmf_;
   const bool frame_length_change_experiment_;
   const absl::optional<int> forced_limit_probability_;
+  const bool enable_rtx_handling_;
+  int num_reordered_packets_ = 0;  // Number of consecutive reordered packets.
 
   RTC_DISALLOW_COPY_AND_ASSIGN(DelayManager);
 };
diff --git a/modules/audio_coding/neteq/delay_manager_unittest.cc b/modules/audio_coding/neteq/delay_manager_unittest.cc
index b0e23a9..e33b2aa 100644
--- a/modules/audio_coding/neteq/delay_manager_unittest.cc
+++ b/modules/audio_coding/neteq/delay_manager_unittest.cc
@@ -46,6 +46,7 @@
   MockDelayPeakDetector detector_;
   uint16_t seq_no_;
   uint32_t ts_;
+  bool enable_rtx_handling_ = false;
 };
 
 DelayManagerTest::DelayManagerTest()
@@ -60,8 +61,8 @@
 
 void DelayManagerTest::RecreateDelayManager() {
   EXPECT_CALL(detector_, Reset()).Times(1);
-  dm_.reset(new DelayManager(kMaxNumberOfPackets, kMinDelayMs, &detector_,
-                             &tick_timer_));
+  dm_.reset(new DelayManager(kMaxNumberOfPackets, kMinDelayMs,
+                             enable_rtx_handling_, &detector_, &tick_timer_));
 }
 
 void DelayManagerTest::SetPacketAudioLength(int lengt_ms) {
@@ -320,6 +321,31 @@
   EXPECT_EQ(0, dm_->Update(seq_no_ - 1, ts_ - kFrameSizeMs, kFs));
 }
 
+TEST_F(DelayManagerTest, EnableRtxHandling) {
+  enable_rtx_handling_ = true;
+  RecreateDelayManager();
+
+  // Insert first packet.
+  SetPacketAudioLength(kFrameSizeMs);
+  InsertNextPacket();
+
+  // Insert reordered packet.
+  // TODO(jakobi): Test estimated inter-arrival time by mocking the histogram
+  // instead of checking the call to the peak detector.
+  EXPECT_CALL(detector_, Update(3, true, _));
+  EXPECT_EQ(0, dm_->Update(seq_no_ - 3, ts_ - 3 * kFrameSizeMs, kFs));
+
+  // Insert another reordered packet.
+  EXPECT_CALL(detector_, Update(2, true, _));
+  EXPECT_EQ(0, dm_->Update(seq_no_ - 2, ts_ - 2 * kFrameSizeMs, kFs));
+
+  // Insert the next packet in order and verify that the inter-arrival time is
+  // estimated correctly.
+  IncreaseTime(kFrameSizeMs);
+  EXPECT_CALL(detector_, Update(1, false, _));
+  InsertNextPacket();
+}
+
 // Tests that skipped sequence numbers (simulating empty packets) are handled
 // correctly.
 TEST_F(DelayManagerTest, EmptyPacketsReported) {
diff --git a/modules/audio_coding/neteq/mock/mock_delay_manager.h b/modules/audio_coding/neteq/mock/mock_delay_manager.h
index 51c8300..67c7a8a 100644
--- a/modules/audio_coding/neteq/mock/mock_delay_manager.h
+++ b/modules/audio_coding/neteq/mock/mock_delay_manager.h
@@ -21,10 +21,12 @@
  public:
   MockDelayManager(size_t max_packets_in_buffer,
                    int base_min_target_delay_ms,
+                   bool enable_rtx_handling,
                    DelayPeakDetector* peak_detector,
                    const TickTimer* tick_timer)
       : DelayManager(max_packets_in_buffer,
                      base_min_target_delay_ms,
+                     enable_rtx_handling,
                      peak_detector,
                      tick_timer) {}
   virtual ~MockDelayManager() { Die(); }
diff --git a/modules/audio_coding/neteq/neteq_impl.cc b/modules/audio_coding/neteq/neteq_impl.cc
index 8b87d07..8115135 100644
--- a/modules/audio_coding/neteq/neteq_impl.cc
+++ b/modules/audio_coding/neteq/neteq_impl.cc
@@ -65,6 +65,7 @@
           new DelayPeakDetector(tick_timer.get(), config.enable_rtx_handling)),
       delay_manager(new DelayManager(config.max_packets_in_buffer,
                                      config.min_delay_ms,
+                                     config.enable_rtx_handling,
                                      delay_peak_detector.get(),
                                      tick_timer.get())),
       dtmf_buffer(new DtmfBuffer(config.sample_rate_hz)),
diff --git a/modules/audio_coding/neteq/neteq_impl_unittest.cc b/modules/audio_coding/neteq/neteq_impl_unittest.cc
index a970104..cf627d9 100644
--- a/modules/audio_coding/neteq/neteq_impl_unittest.cc
+++ b/modules/audio_coding/neteq/neteq_impl_unittest.cc
@@ -97,7 +97,7 @@
     if (use_mock_delay_manager_) {
       std::unique_ptr<MockDelayManager> mock(new MockDelayManager(
           config_.max_packets_in_buffer, config_.min_delay_ms,
-          delay_peak_detector_, tick_timer_));
+          config_.enable_rtx_handling, delay_peak_detector_, tick_timer_));
       mock_delay_manager_ = mock.get();
       EXPECT_CALL(*mock_delay_manager_, set_streaming_mode(false)).Times(1);
       deps.delay_manager = std::move(mock);
diff --git a/modules/audio_coding/neteq/tools/neteq_test.cc b/modules/audio_coding/neteq/tools/neteq_test.cc
index b12a407..97e71bf 100644
--- a/modules/audio_coding/neteq/tools/neteq_test.cc
+++ b/modules/audio_coding/neteq/tools/neteq_test.cc
@@ -136,6 +136,7 @@
                 : -1;
         *text_log_ << "Packet   - wallclock: " << std::setw(5) << time_now_ms
                    << ", delta wc: " << std::setw(4) << delta_wallclock
+                   << ", seq_no: " << packet_data->header.sequenceNumber
                    << ", timestamp: " << std::setw(10)
                    << packet_data->header.timestamp
                    << ", delta ts: " << std::setw(4) << delta_timestamp