diff --git a/bucket-handlers.go b/bucket-handlers.go
index f77731b48..c9de6505b 100644
--- a/bucket-handlers.go
+++ b/bucket-handlers.go
@@ -230,7 +230,7 @@ func (api CloudStorageAPI) PutBucketHandler(w http.ResponseWriter, req *http.Req
 	// if body of request is non-nil then check for validity of Content-Length
 	if req.Body != nil {
 		/// if Content-Length is unknown/missing, deny the request
-		if req.ContentLength == -1 {
+		if req.ContentLength == -1 && !contains(req.TransferEncoding, "chunked") {
 			writeErrorResponse(w, req, MissingContentLength, req.URL.Path)
 			return
 		}
diff --git a/utils.go b/utils.go
index f7a4ca7c1..c478008a1 100644
--- a/utils.go
+++ b/utils.go
@@ -46,3 +46,13 @@ func isMaxObjectSize(size int64) bool {
 	}
 	return false
 }
+
+func contains(stringList []string, element string) bool {
+	for _, e := range stringList {
+		if e == element {
+			return true
+		}
+	}
+
+	return false
+}