diff --git a/src/main/java/org/opencord/aaa/AaaManager.java b/src/main/java/org/opencord/aaa/AaaManager.java
index 2aedc5f..2c02f69 100755
--- a/src/main/java/org/opencord/aaa/AaaManager.java
+++ b/src/main/java/org/opencord/aaa/AaaManager.java
@@ -462,10 +462,10 @@
                     break;
                 case RADIUS.RADIUS_CODE_ACCESS_ACCEPT:
                     //send an EAPOL - Success to the supplicant.
-                    byte[] eapMessage =
+                    byte[] eapMessageSuccess =
                             radiusPacket.getAttribute(RADIUSAttribute.RADIUS_ATTR_EAP_MESSAGE).getValue();
                     eapPayload = new EAP();
-                    eapPayload = (EAP) eapPayload.deserialize(eapMessage, 0, eapMessage.length);
+                    eapPayload = (EAP) eapPayload.deserialize(eapMessageSuccess, 0, eapMessageSuccess.length);
                     eth = buildEapolResponse(stateMachine.supplicantAddress(),
                                              MacAddress.valueOf(nasMacAddress),
                                              stateMachine.vlanId(),
@@ -477,6 +477,17 @@
                     break;
                 case RADIUS.RADIUS_CODE_ACCESS_REJECT:
                     stateMachine.denyAccess();
+                    //send an EAPOL - Failure to the supplicant.
+                    byte[] eapMessageFailure =
+                            radiusPacket.getAttribute(RADIUSAttribute.RADIUS_ATTR_EAP_MESSAGE).getValue();
+                    eapPayload = new EAP();
+                    eapPayload = (EAP) eapPayload.deserialize(eapMessageFailure, 0, eapMessageFailure.length);
+                    eth = buildEapolResponse(stateMachine.supplicantAddress(),
+                                             MacAddress.valueOf(nasMacAddress),
+                                             stateMachine.vlanId(),
+                                             EAPOL.EAPOL_PACKET,
+                                             eapPayload);
+                    sendPacketToSupplicant(eth, stateMachine.supplicantConnectpoint());
                     break;
                 default:
                     log.warn("Unknown RADIUS message received with code: {}", radiusPacket.getCode());
diff --git a/src/main/java/org/opencord/aaa/StateMachine.java b/src/main/java/org/opencord/aaa/StateMachine.java
index 1caf835..323313f 100644
--- a/src/main/java/org/opencord/aaa/StateMachine.java
+++ b/src/main/java/org/opencord/aaa/StateMachine.java
@@ -80,7 +80,7 @@
        input
        ----------------------------------------------------------------------------------------------------
 
-       START                STARTED |   _               |   _               |   STARTED     |   _
+       START                STARTED |   _               |   _               |   STARTED     |   STARTED
 
        REQUEST_ACCESS       _       |   PENDING         |   _               |   _           |   _
 
@@ -100,7 +100,7 @@
     private int[] authorizedTransition =
             {STATE_STARTED, STATE_AUTHORIZED, STATE_AUTHORIZED, STATE_AUTHORIZED, STATE_IDLE};
     private int[] unauthorizedTransition =
-            {STATE_UNAUTHORIZED, STATE_UNAUTHORIZED, STATE_UNAUTHORIZED, STATE_UNAUTHORIZED, STATE_IDLE};
+            {STATE_STARTED, STATE_UNAUTHORIZED, STATE_UNAUTHORIZED, STATE_UNAUTHORIZED, STATE_IDLE};
 
     //THE TRANSITION TABLE
     private int[][] transition =
@@ -522,6 +522,10 @@
         private final Logger log = getLogger(getClass());
         private String name = "UNAUTHORIZED_STATE";
 
+        public void start() {
+            log.info("Moving from UNAUTHORIZED state to STARTED state.");
+        }
+
         public void logoff() {
             log.info("Moving from UNAUTHORIZED state to IDLE state.");
         }
diff --git a/src/test/java/org/opencord/aaa/StateMachineTest.java b/src/test/java/org/opencord/aaa/StateMachineTest.java
index 6626537..f87d72f 100644
--- a/src/test/java/org/opencord/aaa/StateMachineTest.java
+++ b/src/test/java/org/opencord/aaa/StateMachineTest.java
@@ -201,16 +201,16 @@
         stateMachine.denyAccess();
 
         stateMachine.start();
-        assertEquals(stateMachine.state(), StateMachine.STATE_UNAUTHORIZED);
+        assertEquals(stateMachine.state(), StateMachine.STATE_STARTED);
 
         stateMachine.requestAccess();
-        assertEquals(stateMachine.state(), StateMachine.STATE_UNAUTHORIZED);
+        assertEquals(stateMachine.state(), StateMachine.STATE_PENDING);
 
         stateMachine.authorizeAccess();
-        assertEquals(stateMachine.state(), StateMachine.STATE_UNAUTHORIZED);
+        assertEquals(stateMachine.state(), StateMachine.STATE_AUTHORIZED);
 
         stateMachine.denyAccess();
-        assertEquals(stateMachine.state(), StateMachine.STATE_UNAUTHORIZED);
+        assertEquals(stateMachine.state(), StateMachine.STATE_AUTHORIZED);
 
         stateMachine.logoff();
         assertEquals(stateMachine.state(), StateMachine.STATE_IDLE);