diff --git a/tunnel/default.go b/tunnel/default.go
index 6ba7f878..90a641f0 100644
--- a/tunnel/default.go
+++ b/tunnel/default.go
@@ -17,6 +17,9 @@ type tun struct {
 
 	sync.RWMutex
 
+	// tunnel token
+	token string
+
 	// to indicate if we're connected or not
 	connected bool
 
@@ -50,6 +53,7 @@ func newTunnel(opts ...Option) *tun {
 
 	return &tun{
 		options: options,
+		token:   uuid.New().String(),
 		send:    make(chan *message, 128),
 		closed:  make(chan bool),
 		sockets: make(map[string]*socket),
@@ -57,6 +61,14 @@ func newTunnel(opts ...Option) *tun {
 	}
 }
 
+// Init initializes tunnel options
+func (t *tun) Init(opts ...Option) error {
+	for _, o := range opts {
+		o(&t.options)
+	}
+	return nil
+}
+
 // getSocket returns a socket from the internal socket map.
 // It does this based on the Micro-Tunnel-Id and Micro-Tunnel-Session
 func (t *tun) getSocket(id, session string) (*socket, bool) {
@@ -92,6 +104,7 @@ func (t *tun) newSocket(id, session string) (*socket, bool) {
 		t.Unlock()
 		return nil, false
 	}
+
 	t.sockets[id+session] = s
 	t.Unlock()
 
@@ -126,6 +139,9 @@ func (t *tun) process() {
 			// set the session id
 			newMsg.Header["Micro-Tunnel-Session"] = msg.session
 
+			// set the tunnel token
+			newMsg.Header["Micro-Tunnel-Token"] = t.token
+
 			// send the message via the interface
 			t.RLock()
 			if len(t.links) == 0 {
@@ -144,7 +160,10 @@ func (t *tun) process() {
 }
 
 // process incoming messages
-func (t *tun) listen(link transport.Socket, listener bool) {
+func (t *tun) listen(link transport.Socket) {
+	// loopback flag
+	var loopback bool
+
 	for {
 		// process anything via the net interface
 		msg := new(transport.Message)
@@ -155,10 +174,21 @@ func (t *tun) listen(link transport.Socket, listener bool) {
 		}
 
 		switch msg.Header["Micro-Tunnel"] {
-		case "connect", "close":
-			// TODO: handle the connect/close message
-			// maybe used to create the dial/listen sockets
-			// or report io.EOF or maybe to kill the link
+		case "connect":
+			// check the Micro-Tunnel-Token
+			token, ok := msg.Header["Micro-Tunnel-Token"]
+			if !ok {
+				continue
+			}
+
+			// are we connecting to ourselves?
+			if token == t.token {
+				loopback = true
+			}
+			continue
+		case "close":
+			// TODO: handle the close message
+			// maybe report io.EOF or kill the link
 			continue
 		}
 
@@ -182,18 +212,23 @@ func (t *tun) listen(link transport.Socket, listener bool) {
 		var exists bool
 
 		log.Debugf("Received %+v from %s", msg, link.Remote())
-		// get the socket based on the tunnel id and session
-		// this could be something we dialed in which case
-		// we have a session for it otherwise its a listener
-		s, exists = t.getSocket(id, session)
-		if !exists {
-			// try get it based on just the tunnel id
-			// the assumption here is that a listener
-			// has no session but its set a listener session
-			s, exists = t.getSocket(id, "listener")
-		}
 
-		// no socket in existence
+		switch {
+		case loopback:
+			s, exists = t.getSocket(id, "listener")
+		default:
+			// get the socket based on the tunnel id and session
+			// this could be something we dialed in which case
+			// we have a session for it otherwise its a listener
+			s, exists = t.getSocket(id, session)
+			if !exists {
+				// try get it based on just the tunnel id
+				// the assumption here is that a listener
+				// has no session but its set a listener session
+				s, exists = t.getSocket(id, "listener")
+			}
+		}
+		// bail if no socket has been found
 		if !exists {
 			log.Debugf("Tunnel skipping no socket exists")
 			// drop it, we don't care about
@@ -246,6 +281,7 @@ func (t *tun) listen(link transport.Socket, listener bool) {
 	}
 }
 
+// connect the tunnel to all the nodes and listen for incoming tunnel connections
 func (t *tun) connect() error {
 	l, err := t.options.Transport.Listen(t.options.Address)
 	if err != nil {
@@ -277,7 +313,7 @@ func (t *tun) connect() error {
 			}()
 
 			// listen for inbound messages
-			t.listen(sock, true)
+			t.listen(sock)
 		})
 
 		t.Lock()
@@ -306,14 +342,15 @@ func (t *tun) connect() error {
 
 		if err := c.Send(&transport.Message{
 			Header: map[string]string{
-				"Micro-Tunnel": "connect",
+				"Micro-Tunnel":       "connect",
+				"Micro-Tunnel-Token": t.token,
 			},
 		}); err != nil {
 			continue
 		}
 
 		// process incoming messages
-		go t.listen(c, false)
+		go t.listen(c)
 
 		// save the link
 		id := uuid.New().String()
@@ -330,12 +367,36 @@ func (t *tun) connect() error {
 	return nil
 }
 
+// Connect the tunnel
+func (t *tun) Connect() error {
+	t.Lock()
+	defer t.Unlock()
+
+	// already connected
+	if t.connected {
+		return nil
+	}
+
+	// send the connect message
+	if err := t.connect(); err != nil {
+		return err
+	}
+
+	// set as connected
+	t.connected = true
+	// create new close channel
+	t.closed = make(chan bool)
+
+	return nil
+}
+
 func (t *tun) close() error {
 	// close all the links
 	for id, link := range t.links {
 		link.Send(&transport.Message{
 			Header: map[string]string{
-				"Micro-Tunnel": "close",
+				"Micro-Tunnel":       "close",
+				"Micro-Tunnel-Token": t.token,
 			},
 		})
 		link.Close()
@@ -376,36 +437,6 @@ func (t *tun) Close() error {
 	return nil
 }
 
-// Connect the tunnel
-func (t *tun) Connect() error {
-	t.Lock()
-	defer t.Unlock()
-
-	// already connected
-	if t.connected {
-		return nil
-	}
-
-	// send the connect message
-	if err := t.connect(); err != nil {
-		return err
-	}
-
-	// set as connected
-	t.connected = true
-	// create new close channel
-	t.closed = make(chan bool)
-
-	return nil
-}
-
-func (t *tun) Init(opts ...Option) error {
-	for _, o := range opts {
-		o(&t.options)
-	}
-	return nil
-}
-
 // Dial an address
 func (t *tun) Dial(addr string) (Conn, error) {
 	log.Debugf("Tunnel dialing %s", addr)
@@ -413,7 +444,6 @@ func (t *tun) Dial(addr string) (Conn, error) {
 	if !ok {
 		return nil, errors.New("error dialing " + addr)
 	}
-
 	// set remote
 	c.remote = addr
 	// set local
diff --git a/tunnel/tunnel_test.go b/tunnel/tunnel_test.go
index 721479bb..79db046a 100644
--- a/tunnel/tunnel_test.go
+++ b/tunnel/tunnel_test.go
@@ -24,10 +24,22 @@ func testAccept(t *testing.T, tun Tunnel, wg *sync.WaitGroup) {
 
 	// get a message
 	for {
+		// accept the message
 		m := new(transport.Message)
 		if err := c.Recv(m); err != nil {
 			t.Fatal(err)
 		}
+
+		if v := m.Header["test"]; v != "send" {
+			t.Fatalf("Accept side expected test:send header. Received: %s", v)
+		}
+
+		// now respond
+		m.Header["test"] = "accept"
+		if err := c.Send(m); err != nil {
+			t.Fatal(err)
+		}
+
 		wg.Done()
 		return
 	}
@@ -44,13 +56,24 @@ func testSend(t *testing.T, tun Tunnel) {
 
 	m := transport.Message{
 		Header: map[string]string{
-			"test": "header",
+			"test": "send",
 		},
 	}
 
+	// send the message
 	if err := c.Send(&m); err != nil {
 		t.Fatal(err)
 	}
+
+	// now wait for the response
+	mr := new(transport.Message)
+	if err := c.Recv(mr); err != nil {
+		t.Fatal(err)
+	}
+
+	if v := mr.Header["test"]; v != "accept" {
+		t.Fatalf("Message not received from accepted side. Received: %s", v)
+	}
 }
 
 func TestTunnel(t *testing.T) {
@@ -98,3 +121,35 @@ func TestTunnel(t *testing.T) {
 	// wait until done
 	wg.Wait()
 }
+
+func TestLoopbackTunnel(t *testing.T) {
+	// create a new tunnel client
+	tun := NewTunnel(
+		Address("127.0.0.1:9096"),
+		Nodes("127.0.0.1:9096"),
+	)
+
+	// start tunB
+	err := tun.Connect()
+	if err != nil {
+		t.Fatal(err)
+	}
+	defer tun.Close()
+
+	time.Sleep(time.Millisecond * 50)
+
+	var wg sync.WaitGroup
+
+	// start accepting connections
+	// on tunnel A
+	wg.Add(1)
+	go testAccept(t, tun, &wg)
+
+	time.Sleep(time.Millisecond * 50)
+
+	// dial and send via B
+	testSend(t, tun)
+
+	// wait until done
+	wg.Wait()
+}