diff --git a/swarm/CHANGELOG.md b/swarm/CHANGELOG.md
index 1ebf11b0d2a..bccbd85f86f 100644
--- a/swarm/CHANGELOG.md
+++ b/swarm/CHANGELOG.md
@@ -1,5 +1,8 @@
 # 0.22.1 [unreleased]
 
+- Respect inbound timeouts and upgrade versions in the `MultiHandler`.
+  [PR 1786](https://github.com/libp2p/rust-libp2p/pull/1786).
+
 - Instead of iterating each inbound and outbound substream upgrade looking for
   one to make progress, use a `FuturesUnordered` for both pending inbound and
   pending outbound upgrades. As a result only those upgrades are polled that are
diff --git a/swarm/src/protocols_handler/multi.rs b/swarm/src/protocols_handler/multi.rs
index 9d4a4fd6ba8..4bc2e04aec5 100644
--- a/swarm/src/protocols_handler/multi.rs
+++ b/swarm/src/protocols_handler/multi.rs
@@ -37,18 +37,20 @@ use crate::upgrade::{
 };
 use futures::{future::BoxFuture, prelude::*};
 use libp2p_core::{ConnectedPoint, Multiaddr, PeerId};
-use libp2p_core::upgrade::{ProtocolName, UpgradeError, NegotiationError, ProtocolError};
+use libp2p_core::upgrade::{self, ProtocolName, UpgradeError, NegotiationError, ProtocolError};
 use rand::Rng;
 use std::{
+    cmp,
     collections::{HashMap, HashSet},
     error,
     fmt,
     hash::Hash,
     iter::{self, FromIterator},
-    task::{Context, Poll}
+    task::{Context, Poll},
+    time::Duration
 };
 
-/// A [`ProtocolsHandler`] for multiple other `ProtocolsHandler`s.
+/// A [`ProtocolsHandler`] for multiple `ProtocolsHandler`s of the same type.
 #[derive(Clone)]
 pub struct MultiHandler<K, H> {
     handlers: HashMap<K, H>
@@ -74,6 +76,9 @@ where
     /// Create and populate a `MultiHandler` from the given handler iterator.
     ///
     /// It is an error for any two protocols handlers to share the same protocol name.
+    ///
+    /// > **Note**: All handlers should use the same [`upgrade::Version`] for
+    /// > the inbound and outbound [`SubstreamProtocol`]s.
     pub fn try_from_iter<I>(iter: I) -> Result<Self, DuplicateProtonameError>
     where
         I: IntoIterator<Item = (K, H)>
@@ -100,17 +105,34 @@ where
     type OutboundOpenInfo = (K, <H as ProtocolsHandler>::OutboundOpenInfo);
 
     fn listen_protocol(&self) -> SubstreamProtocol<Self::InboundProtocol, Self::InboundOpenInfo> {
-        let (upgrade, info) = self.handlers.iter()
+        let (upgrade, info, timeout, version) = self.handlers.iter()
             .map(|(k, h)| {
-                let (_, u, i) = h.listen_protocol().into_upgrade();
-                (k.clone(), (u, i))
+                let p = h.listen_protocol();
+                let t = *p.timeout();
+                let (v, u, i) = p.into_upgrade();
+                (k.clone(), (v, u, i, t))
             })
-            .fold((Upgrade::new(), Info::new()), |(mut upg, mut inf), (k, (u, i))| {
-                upg.upgrades.push((k.clone(), u));
-                inf.infos.push((k, i));
-                (upg, inf)
-            });
+            .fold((Upgrade::new(), Info::new(), Duration::from_secs(0), None),
+                |(mut upg, mut inf, mut timeout, mut version), (k, (v, u, i, t))| {
+                    upg.upgrades.push((k.clone(), u));
+                    inf.infos.push((k, i));
+                    timeout = cmp::max(timeout, t);
+                    version = version.map_or(Some(v), |vv|
+                        if v != vv {
+                            // Different upgrade (i.e. protocol negotiation) protocol
+                            // versions are usually incompatible and not negotiated
+                            // themselves, so a protocol upgrade may fail.
+                            log::warn!("Differing upgrade versions. Defaulting to V1.");
+                            Some(upgrade::Version::V1)
+                        } else {
+                            Some(v)
+                        });
+                    (upg, inf, timeout, version)
+                }
+            );
         SubstreamProtocol::new(upgrade, info)
+            .with_timeout(timeout)
+            .with_upgrade_protocol(version.unwrap_or(upgrade::Version::V1))
     }
 
     fn inject_fully_negotiated_outbound (
@@ -293,6 +315,9 @@ where
     /// Create and populate an `IntoMultiHandler` from the given iterator.
     ///
     /// It is an error for any two protocols handlers to share the same protocol name.
+    ///
+    /// > **Note**: All handlers should use the same [`upgrade::Version`] for
+    /// > the inbound and outbound [`SubstreamProtocol`]s.
     pub fn try_from_iter<I>(iter: I) -> Result<Self, DuplicateProtonameError>
     where
         I: IntoIterator<Item = (K, H)>