diff --git a/drivers/net/wireless/rt2x00/rt2x00mac.c b/drivers/net/wireless/rt2x00/rt2x00mac.c
index f1dcbaa80c3c..9d346bd2db0e 100644
--- a/drivers/net/wireless/rt2x00/rt2x00mac.c
+++ b/drivers/net/wireless/rt2x00/rt2x00mac.c
@@ -96,7 +96,6 @@ int rt2x00mac_tx(struct ieee80211_hw *hw, struct sk_buff *skb)
 	struct ieee80211_tx_info *tx_info = IEEE80211_SKB_CB(skb);
 	struct ieee80211_hdr *ieee80211hdr = (struct ieee80211_hdr *)skb->data;
 	enum data_queue_qid qid = skb_get_queue_mapping(skb);
-	struct rt2x00_intf *intf = vif_to_intf(tx_info->control.vif);
 	struct data_queue *queue;
 	u16 frame_control;
 
@@ -152,18 +151,6 @@ int rt2x00mac_tx(struct ieee80211_hw *hw, struct sk_buff *skb)
 		}
 	}
 
-	/*
-	 * XXX: This is as wrong as the old mac80211 code was,
-	 *	due to beacons not getting sequence numbers assigned
-	 *	properly.
-	 */
-	if (tx_info->flags & IEEE80211_TX_CTL_ASSIGN_SEQ) {
-		if (tx_info->flags & IEEE80211_TX_CTL_FIRST_FRAGMENT)
-			intf->seqno += 0x10;
-		ieee80211hdr->seq_ctrl &= cpu_to_le16(IEEE80211_SCTL_FRAG);
-		ieee80211hdr->seq_ctrl |= cpu_to_le16(intf->seqno);
-	}
-
 	if (rt2x00queue_write_tx_frame(queue, skb)) {
 		ieee80211_stop_queue(rt2x00dev->hw, qid);
 		return NETDEV_TX_BUSY;
diff --git a/drivers/net/wireless/rt2x00/rt2x00queue.c b/drivers/net/wireless/rt2x00/rt2x00queue.c
index 7f442030f5ad..7b581a370fde 100644
--- a/drivers/net/wireless/rt2x00/rt2x00queue.c
+++ b/drivers/net/wireless/rt2x00/rt2x00queue.c
@@ -120,6 +120,7 @@ static void rt2x00queue_create_tx_descriptor(struct queue_entry *entry,
 {
 	struct rt2x00_dev *rt2x00dev = entry->queue->rt2x00dev;
 	struct ieee80211_tx_info *tx_info = IEEE80211_SKB_CB(entry->skb);
+	struct rt2x00_intf *intf = vif_to_intf(tx_info->control.vif);
 	struct ieee80211_hdr *hdr = (struct ieee80211_hdr *)entry->skb->data;
 	struct ieee80211_rate *rate =
 	    ieee80211_get_tx_rate(rt2x00dev->hw, tx_info);
@@ -199,6 +200,31 @@ static void rt2x00queue_create_tx_descriptor(struct queue_entry *entry,
 		txdesc->ifs = IFS_SIFS;
 	}
 
+	/*
+	 * Hardware should insert sequence counter.
+	 * FIXME: We insert a software sequence counter first for
+	 * hardware that doesn't support hardware sequence counting.
+	 *
+	 * This is wrong because beacons are not getting sequence
+	 * numbers assigned properly.
+	 *
+	 * A secondary problem exists for drivers that cannot toggle
+	 * sequence counting per-frame, since those will override the
+	 * sequence counter given by mac80211.
+	 */
+	if (tx_info->flags & IEEE80211_TX_CTL_ASSIGN_SEQ) {
+		spin_lock(&intf->lock);
+
+		if (test_bit(ENTRY_TXD_FIRST_FRAGMENT, &txdesc->flags))
+			intf->seqno += 0x10;
+		hdr->seq_ctrl &= cpu_to_le16(IEEE80211_SCTL_FRAG);
+		hdr->seq_ctrl |= cpu_to_le16(intf->seqno);
+
+		spin_unlock(&intf->lock);
+
+		__set_bit(ENTRY_TXD_GENERATE_SEQ, &txdesc->flags);
+	}
+
 	/*
 	 * PLCP setup
 	 * Length calculation depends on OFDM/CCK rate.
diff --git a/drivers/net/wireless/rt2x00/rt2x00queue.h b/drivers/net/wireless/rt2x00/rt2x00queue.h
index 8945945c892e..a4a8c57004db 100644
--- a/drivers/net/wireless/rt2x00/rt2x00queue.h
+++ b/drivers/net/wireless/rt2x00/rt2x00queue.h
@@ -199,6 +199,7 @@ struct txdone_entry_desc {
  * @ENTRY_TXD_RTS_FRAME: This frame is a RTS frame.
  * @ENTRY_TXD_CTS_FRAME: This frame is a CTS-to-self frame.
  * @ENTRY_TXD_OFDM_RATE: This frame is send out with an OFDM rate.
+ * @ENTRY_TXD_GENERATE_SEQ: This frame requires sequence counter.
  * @ENTRY_TXD_FIRST_FRAGMENT: This is the first frame.
  * @ENTRY_TXD_MORE_FRAG: This frame is followed by another fragment.
  * @ENTRY_TXD_REQ_TIMESTAMP: Require timestamp to be inserted.
@@ -210,6 +211,7 @@ enum txentry_desc_flags {
 	ENTRY_TXD_RTS_FRAME,
 	ENTRY_TXD_CTS_FRAME,
 	ENTRY_TXD_OFDM_RATE,
+	ENTRY_TXD_GENERATE_SEQ,
 	ENTRY_TXD_FIRST_FRAGMENT,
 	ENTRY_TXD_MORE_FRAG,
 	ENTRY_TXD_REQ_TIMESTAMP,
diff --git a/drivers/net/wireless/rt2x00/rt61pci.c b/drivers/net/wireless/rt2x00/rt61pci.c
index ec4ec65d94fd..fbe2a652e014 100644
--- a/drivers/net/wireless/rt2x00/rt61pci.c
+++ b/drivers/net/wireless/rt2x00/rt61pci.c
@@ -1544,7 +1544,8 @@ static void rt61pci_write_tx_desc(struct rt2x00_dev *rt2x00dev,
 	rt2x00_set_field32(&word, TXD_W1_CWMIN, txdesc->cw_min);
 	rt2x00_set_field32(&word, TXD_W1_CWMAX, txdesc->cw_max);
 	rt2x00_set_field32(&word, TXD_W1_IV_OFFSET, IEEE80211_HEADER);
-	rt2x00_set_field32(&word, TXD_W1_HW_SEQUENCE, 1);
+	rt2x00_set_field32(&word, TXD_W1_HW_SEQUENCE,
+			   test_bit(ENTRY_TXD_GENERATE_SEQ, &txdesc->flags));
 	rt2x00_set_field32(&word, TXD_W1_BUFFER_COUNT, 1);
 	rt2x00_desc_write(txd, 1, word);
 
diff --git a/drivers/net/wireless/rt2x00/rt73usb.c b/drivers/net/wireless/rt2x00/rt73usb.c
index 866504612e8a..9761eaaa08be 100644
--- a/drivers/net/wireless/rt2x00/rt73usb.c
+++ b/drivers/net/wireless/rt2x00/rt73usb.c
@@ -1281,7 +1281,8 @@ static void rt73usb_write_tx_desc(struct rt2x00_dev *rt2x00dev,
 	rt2x00_set_field32(&word, TXD_W1_CWMIN, txdesc->cw_min);
 	rt2x00_set_field32(&word, TXD_W1_CWMAX, txdesc->cw_max);
 	rt2x00_set_field32(&word, TXD_W1_IV_OFFSET, IEEE80211_HEADER);
-	rt2x00_set_field32(&word, TXD_W1_HW_SEQUENCE, 1);
+	rt2x00_set_field32(&word, TXD_W1_HW_SEQUENCE,
+			   test_bit(ENTRY_TXD_GENERATE_SEQ, &txdesc->flags));
 	rt2x00_desc_write(txd, 1, word);
 
 	rt2x00_desc_read(txd, 2, &word);