diff --git a/library/hls/src/main/java/com/google/android/exoplayer2/source/hls/Aes128DataSource.java b/library/hls/src/main/java/com/google/android/exoplayer2/source/hls/Aes128DataSource.java
index 142b846a97..3f57cba1b0 100644
--- a/library/hls/src/main/java/com/google/android/exoplayer2/source/hls/Aes128DataSource.java
+++ b/library/hls/src/main/java/com/google/android/exoplayer2/source/hls/Aes128DataSource.java
@@ -78,16 +78,19 @@ import javax.crypto.spec.SecretKeySpec;
       throw new RuntimeException(e);
     }
 
-    cipherInputStream = new CipherInputStream(
-        new DataSourceInputStream(upstream, dataSpec), cipher);
+    DataSourceInputStream inputStream = new DataSourceInputStream(upstream, dataSpec);
+    cipherInputStream = new CipherInputStream(inputStream, cipher);
+    inputStream.open();
 
     return C.LENGTH_UNSET;
   }
 
   @Override
   public void close() throws IOException {
-    cipherInputStream = null;
-    upstream.close();
+    if (cipherInputStream != null) {
+      cipherInputStream = null;
+      upstream.close();
+    }
   }
 
   @Override
diff --git a/library/hls/src/test/java/com/google/android/exoplayer2/source/hls/Aes128DataSourceTest.java b/library/hls/src/test/java/com/google/android/exoplayer2/source/hls/Aes128DataSourceTest.java
new file mode 100644
index 0000000000..86bffc7762
--- /dev/null
+++ b/library/hls/src/test/java/com/google/android/exoplayer2/source/hls/Aes128DataSourceTest.java
@@ -0,0 +1,101 @@
+/*
+ * Copyright (C) 2018 The Android Open Source Project
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ *      http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+package com.google.android.exoplayer2.source.hls;
+
+import static com.google.common.truth.Truth.assertThat;
+
+import android.net.Uri;
+import com.google.android.exoplayer2.C;
+import com.google.android.exoplayer2.upstream.DataSource;
+import com.google.android.exoplayer2.upstream.DataSpec;
+import java.io.IOException;
+import org.junit.Test;
+import org.junit.runner.RunWith;
+import org.robolectric.RobolectricTestRunner;
+
+/** Test for {@link Aes128DataSource}. */
+@RunWith(RobolectricTestRunner.class)
+public class Aes128DataSourceTest {
+
+  @Test
+  public void test_OpenCallsUpstreamOpen_CloseCallsUpstreamClose() throws IOException {
+    UpstreamDataSource upstream = new UpstreamDataSource();
+    Aes128DataSource testInstance = new Aes128DataSource(upstream, new byte[16], new byte[16]);
+    assertThat(upstream.opened).isFalse();
+
+    Uri uri = Uri.parse("http.abc.com/def");
+    testInstance.open(new DataSpec(uri));
+    assertThat(upstream.opened).isTrue();
+
+    testInstance.close();
+    assertThat(upstream.opened).isFalse();
+  }
+
+  @Test
+  public void test_OpenCallsUpstreamThrowingOpen_CloseCallsUpstreamClose() throws IOException {
+    UpstreamDataSource upstream =
+        new UpstreamDataSource() {
+          @Override
+          public long open(DataSpec dataSpec) throws IOException {
+            throw new IOException();
+          }
+        };
+    Aes128DataSource testInstance = new Aes128DataSource(upstream, new byte[16], new byte[16]);
+    assertThat(upstream.opened).isFalse();
+
+    Uri uri = Uri.parse("http.abc.com/def");
+    try {
+      testInstance.open(new DataSpec(uri));
+    } catch (IOException e) {
+      // Expected.
+    }
+    assertThat(upstream.opened).isFalse();
+    assertThat(upstream.closedCalled).isFalse();
+
+    // Even though the upstream open call failed, close should still call close on the upstream as
+    // per the contract of DataSource.
+    testInstance.close();
+    assertThat(upstream.closedCalled).isTrue();
+  }
+
+  private static class UpstreamDataSource implements DataSource {
+
+    public boolean opened;
+    public boolean closedCalled;
+
+    @Override
+    public long open(DataSpec dataSpec) throws IOException {
+      opened = true;
+      return C.LENGTH_UNSET;
+    }
+
+    @Override
+    public int read(byte[] buffer, int offset, int readLength) {
+      return C.RESULT_END_OF_INPUT;
+    }
+
+    @Override
+    public Uri getUri() {
+      return null;
+    }
+
+    @Override
+    public void close() {
+      opened = false;
+      closedCalled = true;
+    }
+  }
+}