diff --git a/library/util_axis_fifo_asym/util_axis_fifo_asym.v b/library/util_axis_fifo_asym/util_axis_fifo_asym.v
index 9fe6fa1a62..ef661b504b 100644
--- a/library/util_axis_fifo_asym/util_axis_fifo_asym.v
+++ b/library/util_axis_fifo_asym/util_axis_fifo_asym.v
@@ -153,8 +153,18 @@ module util_axis_fifo_asym #(
 
         if (TKEEP_EN) begin
 
-          assign s_axis_tlast_int_s[i] = (i==RATIO-1) ? ((|s_axis_tkeep[M_DATA_WIDTH/8*i+:M_DATA_WIDTH/8]) ? s_axis_tlast : 1'b0) :
-            (((|s_axis_tkeep[M_DATA_WIDTH/8*i+:M_DATA_WIDTH/8]) & (~(|s_axis_tkeep[M_DATA_WIDTH/8*(i+1)+:M_DATA_WIDTH/8]))) ? s_axis_tlast : 1'b0);
+          // tlast is asserted for the atomic fifo instances on the following conditions:
+          // - for the most significant instance, tlast is the input tlast if any of the tkeep bits for the instance is asserted (so we are not suppressing this transfer)
+          // - for the least significant instance, tlast is the input tlast if no tkeep bits are asserted for any instance (transfer is all null bytes)
+          // - for the other instances, we store the input tlast if all the following instances have tkeep=0 for all bits and no less significant instance has stored it
+          // thus, the tlast is stored on the most significant instance that has non-null bytes (meaning not all tkeep bits are 0), if there are any.
+          if (i==RATIO-1) begin
+            assign s_axis_tlast_int_s[i] = (|s_axis_tkeep[M_DATA_WIDTH/8*i+:M_DATA_WIDTH/8]) ? s_axis_tlast : 1'b0;
+          end else if (i==0) begin
+            assign s_axis_tlast_int_s[i] = (~|s_axis_tkeep) ? s_axis_tlast : 1'b0;
+          end else begin
+            assign s_axis_tlast_int_s[i] = (~(|s_axis_tkeep[(S_DATA_WIDTH/8)-1:(M_DATA_WIDTH/8)*(i+1)]) && ~|s_axis_tlast_int_s[i-1:0]) ? s_axis_tlast : 1'b0;
+          end
 
         end else begin
 
@@ -216,7 +226,9 @@ module util_axis_fifo_asym #(
     if (RATIO_TYPE) begin : small_master
 
       for (i=0; i<RATIO; i=i+1) begin
-        assign m_axis_ready_int_s[i] = (m_axis_counter == i) ? m_axis_ready : 1'b0;
+        // When TKEEP_EN, we need to discard the data from the internal FIFOs for which tkeep=0.
+        // Thus we still need to assert m_axis_ready_int_s for that internal FIFO even without an actual AXI handshake.
+        assign m_axis_ready_int_s[i] = (m_axis_counter == i) ? (m_axis_ready ||  (TKEEP_EN && !(|m_axis_tkeep))) : 0;
       end
 
       assign m_axis_data = m_axis_data_int_s >> (m_axis_counter*A_WIDTH) ;
@@ -224,7 +236,17 @@ module util_axis_fifo_asym #(
 
       // VALID/EMPTY/ALMOST_EMPTY is driven by the current atomic instance
       assign m_axis_valid_int = m_axis_valid_int_s >> m_axis_counter;
-      assign m_axis_valid = m_axis_valid_int & (|m_axis_tkeep);
+
+      // When TLAST_EN=1, we still have to assert m_axis_valid when tlast is
+      // high even if all bytes are null due to tkeep. AXI-Streaming only allows
+      // us to suppress transfers with all tkeep bits deasserted if tlast is
+      // also deasserted.
+      if (TLAST_EN) begin
+        assign m_axis_valid = m_axis_valid_int & ((|m_axis_tkeep) || m_axis_tlast);
+      end else begin
+        assign m_axis_valid = m_axis_valid_int & (|m_axis_tkeep);
+      end
+
       assign m_axis_tlast = m_axis_tlast_int_s >> m_axis_counter;
 
       // the FIFO has the same level as the last atomic instance
@@ -317,7 +339,10 @@ module util_axis_fifo_asym #(
         if (!m_axis_aresetn) begin
           m_axis_counter <= 0;
         end else begin
-          if (m_axis_ready && m_axis_valid_int) begin
+          // When using tkeep, we might have an internally "valid" data beat without any actually valid bytes.
+          // This will result in m_axis_valid being actually low for the external world.
+          // In this case (tkeep is all 0), we need to increment the counter without waiting for m_axis_ready.
+          if ((m_axis_ready && m_axis_valid) || (TKEEP_EN && m_axis_valid_int && !(|m_axis_tkeep))) begin
             m_axis_counter <= m_axis_counter + 1'b1;
           end
         end