diff --git a/libs/ardour/mtc_slave.cc b/libs/ardour/mtc_slave.cc
index 906a0372a4..cb35c0c785 100644
--- a/libs/ardour/mtc_slave.cc
+++ b/libs/ardour/mtc_slave.cc
@@ -113,10 +113,11 @@ MTC_Slave::update_mtc_time (const byte *msg, bool was_full)
 		/* We received the last quarter frame 7 quarter frames (1.75 mtc
 		   frames) after the instance when the contents of the mtc quarter
 		   frames were decided. Add time to compensate for the elapsed 1.75
-		   frames 
+		   frames.
+		   Also compensate for audio latency. 
 		*/
 
-		mtc_frame += (long) (1.75 * session.frames_per_smpte_frame());
+		mtc_frame += (long) (1.75 * session.frames_per_smpte_frame()) + session.worst_output_latency();
 		
 		if (first_mtc_frame == 0) {
 			first_mtc_frame = mtc_frame;
diff --git a/libs/ardour/session_midi.cc b/libs/ardour/session_midi.cc
index 56e593086a..f793dba956 100644
--- a/libs/ardour/session_midi.cc
+++ b/libs/ardour/session_midi.cc
@@ -910,6 +910,9 @@ Session::send_full_time_code ()
 		}
 	}
 
+	// Compensate for audio latency
+	outbound_mtc_smpte_frame += _worst_output_latency;
+
 	next_quarter_frame_to_send = 0;
 
 	// Sync slave to the same smpte time as we are on (except if negative, see above)
@@ -1007,6 +1010,8 @@ Session::send_midi_time_code ()
 				smpte_increment( transmitting_smpte_time );        
 				// Re-calculate timing of first quarter frame
 				smpte_to_sample( transmitting_smpte_time, outbound_mtc_smpte_frame, true /* use_offset */, false );
+				// Compensate for audio latency
+				outbound_mtc_smpte_frame += _worst_output_latency;
 			}
 		}
 	}