diff --git a/lib/peer_client.js b/lib/peer_client.js
index c818677..77ec1d1 100644
--- a/lib/peer_client.js
+++ b/lib/peer_client.js
@@ -179,6 +179,19 @@ PeerClient.prototype.checkServerReq = function() {
       self.log.emit('log', 'peer-client', 'Peer connection established (' + self.url + ')');
 
       res.statusCode = 200;
+
+      // If the auth flag is set, then that means this connection is authenticated.
+      // We need to pass back the authorization so that the server we're peering to
+      // can connect back to us for subscriptions
+      if ((typeof res.socket.socket.authorized !== 'undefined') && (res.socket.socket.authorized)) {
+        var headers = {
+          'X-Authorization-Required': true,
+          'authorization': res.socket.socket._httpMessage._headers.authorization
+        };
+
+        res.writeHead(res.statusCode, headers);
+      }
+
       res.end();
 
       // remove request listener
diff --git a/lib/peer_socket.js b/lib/peer_socket.js
index 28a0981..1514559 100644
--- a/lib/peer_socket.js
+++ b/lib/peer_socket.js
@@ -24,6 +24,7 @@ var PeerSocket = module.exports = function(ws, name, peerRegistry, opts) {
   var self = this;
   this.state = STATES.DISCONNECTED;
   this.name = name; // peers local id
+  this.authorization = null;
   this.agent = null;
   this.subscriptions = {}; // { <topic>: <subscribed_count> }
   this.connectionId = null;
@@ -311,6 +312,10 @@ PeerSocket.prototype.subscribe = function(event, cb) {
     agent: this.agent
   };
 
+  if (this.authorization !== null) {
+    opts.headers.Authorization = this.authorization;
+  }
+
   var req = http.request(opts, function(res) {
     cb();
   }).on('error', cb);
@@ -355,6 +360,10 @@ PeerSocket.prototype.unsubscribe = function(event, cb) {
     agent: this.agent
   };
 
+  if (this.authorization !== null) {
+    opts.headers.Authorization = this.authorization;
+  }
+
   var req = http.request(opts, function(res) {
     cb();
   }).on('error', cb);
@@ -362,6 +371,7 @@ PeerSocket.prototype.unsubscribe = function(event, cb) {
 };
 
 PeerSocket.prototype.confirmConnection = function(connectionId, callback) { 
+  var self = this;
   var timeout = setTimeout(function() {
     req.abort();
     callback(new Error('Confirm connection timeout reached.'));
@@ -373,6 +383,14 @@ PeerSocket.prototype.confirmConnection = function(connectionId, callback) {
     if (res.statusCode !== 200) {
       return callback(new Error('Unexpected status code'));
     }
+  
+    // If the peer has responded with an auth flag, then it is passing back the
+    // authorization to use for future requests.  So we need to store this value
+    // for requests like observe subscribe.
+    if (res.headers['x-authorization-required']) {
+      self.authorization = res.headers.authorization;
+    }
+    
     callback();
   }).on('error', function(err) {
     clearTimeout(timeout);
@@ -404,6 +422,10 @@ PeerSocket.prototype.transition = function(action, args, cb) {
     }
   };
 
+  if (this.authorization !== null) {
+    opts.headers.Authorization = this.authorization;
+  }
+
   var req = http.request(opts, function(res) {
     var buffer = [];
     var len = 0;