diff --git a/reg-tests/cache/vary.vtc b/reg-tests/cache/vary.vtc
index a840799f3..be79b6ad2 100644
--- a/reg-tests/cache/vary.vtc
+++ b/reg-tests/cache/vary.vtc
@@ -5,7 +5,8 @@ varnishtest "Vary support"
 feature ignore_unknown_macro
 
 server s1 {
-       # Response varying on "accept-encoding"
+       # Response varying on "accept-encoding" with
+       # an unacceptable content-encoding
        rxreq
        expect req.url == "/accept-encoding"
        txresp -hdr "Content-Encoding: gzip" \
@@ -16,6 +17,15 @@ server s1 {
        # Response varying on "accept-encoding"
        rxreq
        expect req.url == "/accept-encoding"
+       txresp -hdr "Content-Encoding: gzip" \
+               -hdr "Vary: accept-encoding" \
+               -hdr "Cache-Control: max-age=5" \
+               -bodylen 45
+
+       # Response varying on "accept-encoding" with
+       # no content-encoding
+       rxreq
+       expect req.url == "/accept-encoding"
        txresp -hdr "Content-Type: text/plain" \
                -hdr "Vary: accept-encoding" \
                -hdr "Cache-Control: max-age=5" \
@@ -57,7 +67,7 @@ server s1 {
        expect req.url == "/referer-accept-encoding"
        txresp -hdr "Vary: referer,accept-encoding" \
                -hdr "Cache-Control: max-age=5" \
-               -hdr "Content-Encoding: gzip" \
+               -hdr "Content-Encoding: br" \
                -bodylen 54
 
        rxreq
@@ -72,14 +82,14 @@ server s1 {
        expect req.url == "/multiple_headers"
        txresp -hdr "Vary: accept-encoding" \
               -hdr "Cache-Control: max-age=5" \
-               -hdr "Content-Encoding: gzip" \
+               -hdr "Content-Encoding: br" \
               -bodylen 155
 
        rxreq
        expect req.url == "/multiple_headers"
        txresp -hdr "Vary: accept-encoding" \
               -hdr "Cache-Control: max-age=5" \
-               -hdr "Content-Encoding: gzip" \
+               -hdr "Content-Encoding: br" \
               -bodylen 166
 
 
@@ -163,6 +173,16 @@ client c1 -connect ${h1_fe_sock} {
        expect resp.http.content-encoding == "gzip"
        expect resp.bodylen == 45
 
+       # The response for the first request had an unacceptable `content-encoding`
+       # which might happen if that's the only thing the server supports, but
+       # we must not cache that and instead defer to the server.
+       txreq -url "/accept-encoding" -hdr "Accept-Encoding: first_value"
+       rxresp
+       expect resp.status == 200
+       expect resp.http.content-encoding == "gzip"
+       expect resp.bodylen == 45
+       expect resp.http.X-Cache-Hit == 0
+
        txreq -url "/accept-encoding" -hdr "Accept-Encoding: second_value"
        rxresp
        expect resp.status == 200
@@ -170,11 +190,15 @@ client c1 -connect ${h1_fe_sock} {
        expect resp.http.content-type == "text/plain"
        expect resp.http.X-Cache-Hit == 0
 
+       # This request matches the cache entry for the request above, despite
+       # matching the `accept-encoding` of the first request because the
+       # request above only has the `identity` encoding which is implicitly
+       # added, unless explicitely forbidden.
        txreq -url "/accept-encoding" -hdr "Accept-Encoding: first_value"
        rxresp
        expect resp.status == 200
-       expect resp.bodylen == 45
-       expect resp.http.content-encoding == "gzip"
+       expect resp.bodylen == 48
+       expect resp.http.content-type == "text/plain"
        expect resp.http.X-Cache-Hit == 1
 
        txreq -url "/accept-encoding" -hdr "Accept-Encoding: second_value"
@@ -227,7 +251,7 @@ client c1 -connect ${h1_fe_sock} {
 
        # Mixed Vary (Accept-Encoding + Referer)
        txreq -url "/referer-accept-encoding" \
-               -hdr "Accept-Encoding: first_value,second_value" \
+               -hdr "Accept-Encoding: br, gzip" \
                -hdr "Referer: referer"
        rxresp
        expect resp.status == 200
@@ -235,7 +259,7 @@ client c1 -connect ${h1_fe_sock} {
        expect resp.http.X-Cache-Hit == 0
 
        txreq -url "/referer-accept-encoding" \
-               -hdr "Accept-Encoding: first_value" \
+               -hdr "Accept-Encoding: br" \
                -hdr "Referer: other-referer"
        rxresp
        expect resp.status == 200
@@ -243,7 +267,7 @@ client c1 -connect ${h1_fe_sock} {
        expect resp.http.X-Cache-Hit == 0
 
        txreq -url "/referer-accept-encoding" \
-               -hdr "Accept-Encoding: second_value" \
+               -hdr "Accept-Encoding: gzip" \
                -hdr "Referer: other-referer"
        rxresp
        expect resp.status == 200
@@ -252,14 +276,14 @@ client c1 -connect ${h1_fe_sock} {
 
        txreq -url "/referer-accept-encoding" \
                -hdr "Referer: referer" \
-               -hdr "Accept-Encoding: second_value,first_value"
+               -hdr "Accept-Encoding: gzip, br"
        rxresp
        expect resp.status == 200
        expect resp.bodylen == 51
        expect resp.http.X-Cache-Hit == 1
 
        txreq -url "/referer-accept-encoding" \
-               -hdr "Accept-Encoding: first_value" \
+               -hdr "Accept-Encoding: br" \
                -hdr "Referer: other-referer"
        rxresp
        expect resp.status == 200
@@ -267,7 +291,7 @@ client c1 -connect ${h1_fe_sock} {
        expect resp.http.X-Cache-Hit == 1
 
        txreq -url "/referer-accept-encoding" \
-               -hdr "Accept-Encoding: second_value" \
+               -hdr "Accept-Encoding: gzip" \
                -hdr "Referer: other-referer"
        rxresp
        expect resp.status == 200
@@ -277,16 +301,16 @@ client c1 -connect ${h1_fe_sock} {
 
        # Multiple Accept-encoding headers
        txreq -url "/multiple_headers" \
-               -hdr "Accept-Encoding: first_encoding" \
-               -hdr "Accept-Encoding: second_encoding,third_encoding"
+               -hdr "Accept-Encoding: gzip" \
+               -hdr "Accept-Encoding: br, deflate"
        rxresp
        expect resp.status == 200
        expect resp.bodylen == 155
        expect resp.http.X-Cache-Hit == 0
 
        txreq -url "/multiple_headers" \
-               -hdr "Accept-Encoding: third_encoding" \
-               -hdr "Accept-Encoding: second_encoding,first_encoding"
+               -hdr "Accept-Encoding: deflate" \
+               -hdr "Accept-Encoding: br,gzip"
        rxresp
        expect resp.status == 200
        expect resp.bodylen == 155
diff --git a/reg-tests/cache/vary_accept_encoding.vtc b/reg-tests/cache/vary_accept_encoding.vtc
index afd2cfbd5..59e819a75 100644
--- a/reg-tests/cache/vary_accept_encoding.vtc
+++ b/reg-tests/cache/vary_accept_encoding.vtc
@@ -73,6 +73,21 @@ server s1 {
                -hdr "Cache-Control: max-age=5" \
                -hdr "Content-Encoding: unknown_encoding" \
                -bodylen 119
+
+
+       rxreq
+       expect req.url == "/hash-collision"
+       txresp -hdr "Vary: accept-encoding" \
+               -hdr "Cache-Control: max-age=5" \
+               -hdr "Content-Encoding: br" \
+               -bodylen 129
+
+       rxreq
+       expect req.url == "/hash-collision"
+       txresp -hdr "Vary: accept-encoding" \
+               -hdr "Cache-Control: max-age=5" \
+               -hdr "Content-Encoding: gzip" \
+               -bodylen 139
 } -start
 
 
@@ -300,4 +315,21 @@ client c1 -connect ${h1_fe_sock} {
        expect resp.bodylen == 119
        expect resp.http.X-Cache-Hit == 0
 
+       #
+       # Hash collision (https://github.com/haproxy/haproxy/issues/988)
+       #
+       # crc32(gzip) ^ crc32(br) ^ crc32(xxx) ^ crc32(jdcqiab) == crc32(gzip)
+       txreq -url "/hash-collision" -hdr "Accept-Encoding: br,gzip,xxx,jdcqiab"
+       rxresp
+       expect resp.status == 200
+       expect resp.http.content-encoding == "br"
+       expect resp.bodylen == 129
+       expect resp.http.X-Cache-Hit == 0
+
+       txreq -url "/hash-collision" -hdr "Accept-Encoding: gzip"
+       rxresp
+       expect resp.status == 200
+       expect resp.http.content-encoding == "gzip"
+       expect resp.bodylen == 139
+       expect resp.http.X-Cache-Hit == 0
 } -run
diff --git a/src/cache.c b/src/cache.c
index c740818e9..23883df96 100644
--- a/src/cache.c
+++ b/src/cache.c
@@ -2398,19 +2398,28 @@ static int accept_encoding_hash_cmp(const void *ref_hash, const void *new_hash,
 		/* All the bits set in the reference bitmap correspond to the
 		 * stored response' encoding and should all be set in the new
 		 * encoding bitmap in order for the client to be able to manage
-		 * the response. */
-		if ((ref.encoding_bitmap & new.encoding_bitmap) == ref.encoding_bitmap) {
-			/* The cached response has encodings that are accepted
-			 * by the client, it can be served directly by the cache
-			 * (as far as the accept-encoding part is concerned). */
-			return 0;
-		}
+		 * the response.
+		 *
+		 * If this is the case the cached response has encodings that
+		 * are accepted by the client. It can be served directly by
+		 * the cache (as far as the accept-encoding part is concerned).
+		 */
+
+		return (ref.encoding_bitmap & new.encoding_bitmap) != ref.encoding_bitmap;
 	}
+	else {
+		/* We must compare hashes only when the the response contains
+		 * unknown encodings.
+		 * Otherwise we might serve unacceptable responses if the hash
+		 * of a client's `accept-encoding` header collides with a
+		 * known encoding.
+		 */
 
-	ref.hash = read_u32(ref_hash+sizeof(ref.encoding_bitmap));
-	new.hash = read_u32(new_hash+sizeof(new.encoding_bitmap));
+		ref.hash = read_u32(ref_hash+sizeof(ref.encoding_bitmap));
+		new.hash = read_u32(new_hash+sizeof(new.encoding_bitmap));
 
-	return ref.hash != new.hash;
+		return ref.hash != new.hash;
+	}
 }